Food Business Summit Moscow Feb 4-5,2010
Tun Cerraholu President SUN InBev Agenda Introduction of our company How beer category has been doing? How consumers are reacting to economic crisis? Food retail going forward = Anheuser-Busch InBev at a glance +
Anheuser-Busch InBev is the leading global brewer. One of the worlds top five consumer products companies. Four of the top ten selling beers in the world are Anheuser-Busch InBev brands. Approximately employees world wide Number 1 or 2 position in over 20 markets Over 200 brands worldwide. + = November Anheuser-Busch and InBev combined to create the global leader in beer and one of the worlds top 5 consumer products companies. SUN InBev Russia 8800 employees 10 breweries
More than 150 sales offices Number 2 in Russia St.-Petersburg Kursk Novocheboksarsk Klin Perm Ivanovo Saransk Omsk Volzhsky Angarsk 33,0 54,0 Less then 2,7 2,7 13,0 14,0 32,0 more then 54,0 Inhabitants per sq.km Global Brands Brewed in Russia Strong portfolio of Russian Brands Category dynamics, National Urban
Beer category demonstrated decrease in Volume in the long term (-10,7%) as well as in Value (-1,3%) vs. Year Ago. Category dynamics, National Urban Source: Nielsen, Retail Audit Urban Russia Report Total Beer Price segment structure, urban communities
Price segment split varies by community Total Beer Price segment structure, urban communities Source: Nielsen, Retail Audit Urban Russia Report Although beer penetration stable over
last years, number of beer consumption occasion decreasing resulting in market volume shrink. Beer consumers penetration Last 3 months consumption penetration Consumption volume Source: Synovate BPT, Urban Russia Source: COMCON TGI, Urban Russia 69% of people worried about crisis in Russia, lower than year ago.
How worried are you by the current economic crisis in this country? Dynamics Worried (points 4-5), % = Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 November 2009 I dont believe the crisis exists 1+2 not worried 3 moderately 4 rather worried 5 worried a lot Significantly higher/ lower vs. previous wave Source: COMCON Crisis Research On-line panel Base: All respondents,(1300 monthly) Personally, Ive noticed it! Im on an administrative leave now, there is no work to do. And they owe me a few months salary. It's the beginning of stabilization after crisis. The crisis dictates its terms. An on-going crisis, unemployment, decreased incomes, growing crime rate and corruption, plus this flu... Put off or rejected to purchase
People still save money on frequent cafs visitsand putting off purchasing realty, cars and HH appliances December 2008 vs. November 2009 December 2008 November 2009 Put off or rejected to purchase Saving money now, buying less expensive products, not as many or not as often % of each category (potential) buyers Source: COMCON Crisis Research On-line panel Beer along with other alcohol drinks among categoriesbuyers are saving money more than on average.
Thinking of the last month, has your purchase of the following product categories changed? (by a list of answer options Are saving money (at least in one of 50 categories in the questionnaire) 86% Fish Ice-cream Gellies, marshmallow, pastila, etc. Yogurt, tvorozhok, desserts Salted snacks, not including crispbread RTE breakfasts Color cosmetics Chews Ketchup Lollipops Baby food Rye and wheat crispbread Mineral water Coffee Body lotion, cream, milk Childrenswear and footwear Milk, kefir, ryazhenka Womenswear Menswear Meet Juice, nectar Chocolate tablets Loose chocolates Vodka Boxed chocolates Frozen convenience food CSD Chips Beer Wine/ champagne/ vermouth Toys Cheese Strong alcohol (not incl. vodka) Chocolate bars November 2009 Source: COMCON Crisis Research On-line panel %: of buyers for each category, buying less/ not as often/ cheaper brands/ at a cheaper POS * 34 categories where theyre saving more money vs. others % of category purchasers
55% of beer purchasers reported no change and/orincreased spending for beer % of category purchasers Nov09 13 1. Began to buy in smaller volume 26 2. Began to buy not so often 7 3. Began to buy less expensive brands 10 4. Began to buy at a less expensive store 1 Stored up 47 No change 8 Increased expenses (began to buy more, more expensive, more often) THINKING OF THE PAST MONTH, have any of your purchases of beer changed? Dynamics (total) Began to save money on (p. 1-4), % 11 12 2 3 4 5 6 7 8 9 10 2008 2009 Source: COMCON Crisis Research On-line panel November 2009, Regions Moscow StPet Regions 42 47 50 21 5 Significantly higher/lower than average category Channel performance 2009 vs. 2008
The over all retail turnover of Russia for 2008 was 13.8 milrd RUR that is on 13% higher than in 2007, the result of 2009 is considered to be on 4.5% higher than 2008 The main drop due to crisis is sensed by HoReCa channel more that 55% decline The main drop in retail turnover is coming from OM, Kiosks and Pavilions The performance of modern retail and traditional food stores is above the market drop in FMCG Channel performance possible trends for 2010
The modern retail will keep developing and leading the growth of the total retail turnover. The main expansion will come from hypermarket formats due to the fact that in Russia the lowest in Europe ratio of m2 on 1000 people (500 m2) The share of OM, Kiosks and Pavilions will keep declining The consumer offers and category marketing within all FMCG categories will become the most important driver for generating added value Our expectations from food retail business
Category management and deep understanding of category value drivers Space management within not only beer aisle, but total store space National Accounts example
So Paulo Before After National Accounts example
So Paulo Before After THANK YOU FOR YOUR ATTENTION!
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