Table of Contents
Alcoholic Drinks in Turkey - Industry Overview
EXECUTIVE SUMMARY
Urbanisation stimulates sales in Turkey
Efes Pilsen AS continues to lead sales
Distribution share of supermarkets increases
Alcoholic drinks sales set to grow over forecast period
KEY TRENDS AND DEVELOPMENTS
Young population fuelling alcoholic drinks growth
Rising unit prices pose threat to alcoholic drinks sales
Higher off-trade than on-trade growth
New products focusing on differentiation and non-alcoholic drinks
Summary 1 Key New Product Developments 2010-2011
Specialist retailers lose share to grocery retailers
Summary 2 Leading Specialist Retailers 2011
Diageo acquires Mey Içki Sanayi ve Ticaret
Summary 3 Merger and Acquisition Activity 2010-2011
Summary 4 Speculated Merger and Acquisition Activity 2011-2012
MARKET BACKGROUND
Legislation
Drinking and driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Table 1 Number of On-trade Establishments by Type 2006-2010
TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer 2011 - Efes Pilsen
Table 5 Selling Margin of a Typical Wine 2011 - Doluca
Table 6 Selling Margin of a Typical Spirits 2011 - Yeni Raki
OPERATING ENVIRONMENT
Contraband/parallel trade
Duty free
Cross-border/private imports
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
PUBLISHED DATA COMPARISONS
National consumer expenditure
TAPDK-Tobacco and Alcohol Market Regulatory Authority
SOURCES
Summary 5 Research Sources
Alcoholic Drinks in Turkey - Company Profiles
Efe Alkollu Icecekler Ticaret AS in Alcoholic Drinks (Turkey)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 7 Efe Alkollu Icecekler Ticaret AS: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 8 Efe Alkollu Icecekler Ticaret AS: Competitive Position 2011
Efes Pilsen AS in Alcoholic Drinks (Turkey)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 11 Efes Pilsen AS: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 12 Efes Pilsen AS: Competitive Position 2011
Kavaklidere Saraplari AS in Alcoholic Drinks (Turkey)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 14 Kavaklidere Saraplari AS: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 15 Kavaklidere Saraplari AS: Competitive Position 2011
Mey Içki Sanayi ve Ticaret AS in Alcoholic Drinks (Turkey)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 18 Mey Içki Sanayi ve Ticaret AS: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 19 Mey Içki Sanayi ve Ticaret AS: Competitive Position 2011
Sevilen Sarap Sanayii AS in Alcoholic Drinks (Turkey)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 21 Sevilen Sarap Sanayi AS: Competitive Position 2011
Beer in Turkey - Category Analysis
HEADLINES
TRENDS
Nice weather conditions in Turkey resulted in an increase in beer sales in 2011 despite rising unit prices. Due to good weather, people are more eager to spend time socialising in bars, pubs, restaurants and outside areas. Also, given the fact that beer is the cheapest alcoholic drink in Turkey, it is popular among young consumers socialising outside. In addition, as the prices of all alcoholic drinks increased after the tax rise, some consumers from wine and spirits shifted to cheaper alternatives such as beer.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Efes Pilsen is the largest beer manufacturer in Turkey and continued to lead sales in 2011, recording a total volume share of 85%. The company’s bestselling brands are Efes Pilsen, Efes Xtra and Efes Fici, which recorded respective total volume shares of 68%, 9% and 5%. Efes Pilsen was followed by Türk Tuborg Bira ve Malt Sanayii, which recorded a total volume share of 8% due to the popularity of its Venus Pilsner and Gold brands. Efes Pilsen is very well established in Turkey, with strong distribution channels and a wide product range. The company also invests heavily in new product developments in order to attract consumers. For example, Efes Pilsen produced the first wheat beer (Gusta) and first flavoured beer (Mariachi) in Turkey in 2007, the first beer with coffee (Efes Dark Brown) in 2008 and the first high alcohol wheat beer (Gusta Dark) in 2009. In addition, the company launched the only non-alcoholic beer in Turkey (Efes Alkolsuz) in 2011.
PROSPECTS
Beer will remain the most dynamic alcoholic drinks area over the forecast period due to its lower unit price. Beer companies are expected to continue to invest in new product launches in order to stimulate consumer interest and will continue sponsorship activities in order to increase brand awareness. Beer will be the first choice amongst students and young adults in particular, who account for the largest proportion of the drinking population in Turkey.
CATEGORY BACKGROUND
Lager price band methodology
Summary 22 Lager by Price Band 2011
Table 23 Number of Breweries 2006-2011
CATEGORY DATA
Table 24 Sales of Beer by Category: Total Volume 2006-2011
Table 25 Sales of Beer by Category: Total Value 2006-2011
Table 26 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 27 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 32 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 34 Beer Imports by Country of Origin: Total Value 2005-2010
Table 35 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 36 Beer Exports by Country of Destination: Total Value 2005-2010
Table 37 Company Shares of Beer by National Brand Owner 2007-2011
Table 38 Company Shares of Beer by Global Brand Owner 2007-2011
Table 39 Brand Shares of Beer 2008-2011
Table 40 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 41 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 43 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016
Cider/Perry in Turkey - Category Analysis
TRENDS
Cider/perry was not available in Turkey in 2011 or during the review period. It is unlikely that cider will become popular over the forecast period unless heavy investment is made to introduce, market and promote brands. It should be noted that rising tourist numbers are not expected to increase the potential for cider in Turkey.
RTDs/High-Strength Premixes in Turkey - Category Analysis
TRENDS
Zefirium Icecek Gida San ve Tic was the only player within RTDs between 2007 and 2010. The company introduced spirit based RTDs in Turkey for the first time in 2007 but has since experienced declining sales. In response to its disappointing performance, the company reduced unit prices by 4% in 2010 in an attempt to increase demand. However, sales remained negligible and the company stopped operating in 2011. Between 2007 and 2010, the company’s products were only available in Istanbul and popular coastal tourist resorts that attract a high number of foreign tourists. Given the very poor performance of the area, no new entries are expected over the forecast period.
Spirits in Turkey - Category Analysis
HEADLINES
TRENDS
The rise in the special consumption tax resulted in an increase in unit prices within spirits. Consequently, consumers started to shift to cheaper alternatives and reduce the amount that they consume. Young people in particular have started to prefer beer to spirits as it is cheaper and easier to drink.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Mey Içki Sanayi ve Ticaret maintained its leading position within spirits in 2011, recording a total volume share of 75% thanks to its strong position within raki (aniseed-flavoured spirits). The company’s success can be attributed to its well-established Tekel brand, especially the Yeni Raki aniseed-flavoured spirit. The company has a strong distribution channel and the fact that it invests in new product development also helps to boost sales.
PROSPECTS
Spirits is expected to start registering positive growth from 2012 onwards due to rising disposable incomes and the improving economy. Moreover, the fact that spirits is still not mature in Turkey means that the area has significant growth potential. Mainly driven by raki and vodka, spirits has a projected forecast period total volume CAGR of 2%.
CATEGORY BACKGROUND
Summary 23 Benchmark Brands 2011
CATEGORY DATA
Table 44 Sales of Spirits by Category: Total Volume 2006-2011
Table 45 Sales of Spirits by Category: Total Value 2006-2011
Table 46 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 47 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 48 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 49 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 50 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 51 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 52 Sales of Gin by Price Platform 2006-2011
Table 53 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 54 Sales of Vodka by Price Platform 2006-2011
Table 55 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 56 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 57 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 58 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 59 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 60 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 61 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 62 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 63 Liqueurs Production, Imports and Exports: Total Volume 2005-2010
Table 64 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 65 Tequila Production, Imports and Exports: Total Volume 2005-2010
Table 66 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 67 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 68 Company Shares of Spirits by National Brand Owner 2007-2011
Table 69 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 70 Brand Shares of Spirits 2008-2011
Table 71 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 72 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 73 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 74 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016
Wine in Turkey - Category Analysis
HEADLINES
TRENDS
Average alcoholic drinks unit prices increased during 2011 due to the rise in Special Consumption Tax (OTV) in October 2010. As a result, consumers are shifting to cheaper alternatives like beer or are reducing the amount of wine they consume.
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
Kavaklidere Saraplari continued to lead wine sales in 2011, recording a total volume share of 13%. The company’s Yakut brand is the bestselling wine brand in Turkey and accounted for 4% of total volume sales in 2011. There is strong competition within wine between Kavaklidere Saraplari (13% total volume share in 2011), Doluca Bagcilik ve Sarapcilik (12%) and Mey Içki Sanayi ve Ticaret (12%). These three companies have strong distribution channels and their products are widely available in Turkey.
PROSPECTS
Wine has a projected forecast period total volume CAGR of 0% - a major improvement in comparison with the review period average of -8%. Wine is expected to recover from the effects of the recession and prices within the area will rise over the coming years. The increasing variety and wider availability of products and rising disposable incomes will help wine to start registering positive volume growth rates.
CATEGORY DATA
Table 75 Sales of Wine by Category: Total Volume 2006-2011
Table 76 Sales of Wine by Category: Total Value 2006-2011
Table 77 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 78 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 79 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 80 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 81 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 82 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 83 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 84 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 85 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 86 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 87 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 88 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 89 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 90 Sales of Still Red Wine by Quality Classification 2006-2011
Table 91 Sales of Still White Wine by Quality Classification 2006-2011
Table 92 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 93 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 94 Wine Imports by Country of Origin: Total Volume 2005-2010
Table 95 Wine Imports by Country of Origin: Total Value 2005-2010
Table 96 Wine Exports by Country of Destination: Total Volume 2005-2010
Table 97 Wine Exports by Country of Destination: Total Value 2005-2010
Table 98 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 99 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 100 Brand Shares of Still Light Grape Wine 2008-2011
Table 101 Company Shares of Champagne by National Brand Owner 2007-2011
Table 102 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 103 Brand Shares of Champagne 2008-2011
Table 104 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 105 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 106 Brand Shares of Other Sparkling Wine 2008-2011
Table 107 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011
Table 108 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011
Table 109 Brand Shares of Fortified Wine and Vermouth 2008-2011
Table 110 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 111 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 112 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 113 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016