August 7, 2008

An Analysis of the Alcoholic Drinks Industry in Azerbaijan, Including Market Trends, Product Segmentation & Leading Companies

Research and Markets ( has announced the addition of the "Alcoholic Drinks in Azerbaijan" report to their offering.

This market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market -- be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.

Why buy this report:

- Get insight into trends in market performance

- Pinpoint growth sectors and identify factors driving change

- Identify market and brand leaders and understand the competitive environment

Product coverage:

- Beer

- Cider/perry

- RTDs/High-strength premixes

- Spirits

- Wine

Executive Summary:

Healthy volume growth, despite a high inflation rate:

In 2007, alcoholic drinks in Azerbaijan recorded healthy volume growth, despite a high inflation rate. The government is continuously striving to make consumer income levels grow. At the end of review period, alongside existing Russian vodka brands, there was a high inflow of Ukrainian vodka brands. Local wine and brandy experienced a considerable boom. Georgian wines also gained popularity at the end of review period. Being a Muslim country, Azerbaijan is still quite tolerant towards consumption of alcoholic drinks, with volume sales dropping slightly only during the holy month of Ramadan.

Local wine, beer and brandy experience considerable demand:

At the end of review period, the main domestic beer manufacturers started slightly to concentrate volume sales in their hands, by driving out the remaining players to the provincial areas. Several new local brands of brandy appeared to compete with imported brands on a quality and packaging basis. Brandy is the second most popular spirit after vodka, and gradually increased its volume sales during the review period. The consumption of liqueurs, the third most popular type of spirits, fluctuated. Local and imported wine producers achieved a considerable breakthrough. Alongside the huge inflow of new local brands, Georgian wines became increasingly popular.

Competition between local and imported brands intensifies:

At the end of review period, wine encountered intense competition between the huge number of local brands, brands imported from European countries, and Georgian wine brands. In vodka, there was strong competition between local vodka brands and the brands imported from Ukraine and Russia. Belarussian vodka brands also started to appear. The competitive environment in premium drinks involves imported brands from Europe, Russia, Australia, the US, etc. However, the leading volume share of premium drinks belongs to brands imported from Europe, Russia, Ukraine and Georgia.

Supermarkets/hypermarkets increases its volume share:

The volume share of supermarkets/hypermarkets in the distribution of alcoholic drinks continuously increased during the review period. Meanwhile, the volume share of the others distribution channel, including outdoor markets, bazaars, etc, kept on falling. In beer, however, a large volume share was still sold through outdoor markets in 2007. In spirits, discounters held the highest volume share. Wine is increasingly purchased in supermarkets/hypermarkets, while premium alcoholic drinks such as whisky, cognac, imported wine and brandy, gin, rum and tequila are mainly purchased in supermarkets/hypermarkets or in large independent food stores.

Promising forecast outlook, with continued brand expansion:

Over the forecast period, alcoholic drinks in Azerbaijan will continue to develop. Brand expansion will be continuously observed. Local wine, brandy, vodka and beer will grow rapidly and will remain the dominant alcoholic drinks. Vodka will keep its position as the favourite alcoholic drink. Ukrainian vodka brands will compete with Russian vodka brands. The existence of premium vodka and expansion of brands will generate interest and demand, making spirits the dynamic sector during the forecast period.

Key Topics Covered:

- Key Trends and Developments

- Market Background

- Taxation and Duty Levies

- Operating Environment

- Market Indicators

- Market Data

- Definitions

- Beer

- Wine

- Spirits

- Cider

- RTDs/High-Strength Premixes

Companies Mentioned:

- Agro-Azerinvest Mmc

- Baki Shampan Sherablari Sc

- Baki Sherab-1 Jsc (Baki Sherab Zavodu)

- Engin Ltd

- Ganja-Sharab Wine Factory (Ganja Sharab-2)

- Naig's Co Tovuz Baltiya Ltd

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Source: Euromonitor International