United Dutch Breweries EXPORT PLAN BELARUS

1. Executive summary

2. Introduction

3. External analysis

4. Operational plan

5. Swot analysis

6. Strategy for expanding to the Belarus market

• Demographic factors & consumption

• Economic factors & competition

• Political factors & legislation

Table of contents.

intro.

Company’s

history

begins

in the 16th

century.

(since 1538) DE ORANJEBOOM

(est.1671) DE DRIE HOEFIJZERS

*Netherlands

DE ORANJEBOOM DE DRIE HOEFIJZERS

1968

Export = 95% of total volume

annual capacity – 2 mln. Hectolitres of beer

Export markets for UDB

What makes the company unique?

Independent and 100% Dutch company

Flexibility

Focus on SPEED TO MARKET

Aware of treating the environment responsibly

Belarus.

External analysis.

Demographic factors & consumption.

Beer buyers

500,000 - 800,000

consumption per capita

37.4 liters/py

18-60 18-40

Buyers by age

population

9,461,000

country recorded unrecorded total beer wine spirits other

Moldova 8.22 10.00 18.22 4.57 4.67 4.42 0.00

Czech Republic 14.97 1.48 16.45 8.51 2.33 3.59 0.39

Hungary 12.27 4.00 16.27 4.42 4.94 3.02 0.14

Russia 11.03 4.73 15.76 3.65 0.10 6.88 0.34

Ukraine 8.10 7.50 15.60 2.69 0.58 5.21 0.02

Estonia 13.77 1.80 15.57 5.53 1.09 9.19 0.43

Andorra 14.08 1.40 15.48 3.93 5.69 3.14 0.00

Romania 11.30 4.00 15.30 4.07 2.33 4.14 0.00

Slovenia 12.19 3.00 15.19 4.10 5.10 1.33 0.00

Belarus 11.22 3.91 15.13 1.84 0.80 4.08 2.67

Pure alcohol consumption among adults (age 15+)

in liters per capita per year.

Income Consumption per capita per day Consumption per capita per month

High 1 liter 30 liter

Mean 1 liter 30 liter

Low 0,5 liter 15 liter

Table of the ratio of income and beer consumption in Belarus

575

450

431

411

404

404

391

46,4

43,6

32,9

33,1

34,9

39,7

31,2

Minsk city

Brest region

Grodno region

Vitebsk region

Mogilev region

Gomel region

Minsk region

Level of average wage

in Belarus in 2012 ( )

Average consumption

of beer per capita (liter)

Economic factors and competition.

75% OF CONSUMED BEER IS DOMESTICALLY PRODUCED

LEADING BEER PRODUCERS IN BELARUS: 1. Krinitsa

2. Carlsberg (Alivaria)

3. Heineken (Syabar and Rechitsapivo)

4. Lidskoe Pivo

5. Brestskoe Pivo

3,1

3,1 1,8

1,9

2,7

3,6

1

Brest

region Vitebsk

region Gomel

region Grodno

region Minsk

region Mogilev

region Minsk

city

Sales volume

> 2,4 mln. dal

Sales volume

> 0,8 mln. dal

Sales volume

< 0,8 mln. dal

Sale of beer by main producers in 2012

57% 22%

11%

7%

6%

7%

87%

60% 24%

12%

4% Dark

Light barley

Light wheat

4-5 % 5-6 %

< 4 %

> 6 %

68%

18%

6% 8%

32% of consumers choose known brands

27% are loyal to the same producer

6% do not care about brand or producer

31% admit that they might try something new, & only

4% are actively seeking something new to try.

Political factors and legislation.

Total ban on

advertising

rising rates of

excise duty

Ban on drinking in

Public places

Ban on sale in

Plastic package

Government regulation & prohibitions.

Operational plan.

Most popular beer in Belarus: the light filtered pasteurized beer

with a strength of 4-5%

in plastic packing

*Belarus

Where to enter

the new market?

swot analysis.

Strengths.

Large variety of beer styles, new tastes not offered by competitors

High quality of raw material and final product

Ecological policy – using processed aluminum

weakness.

Brand is unknown in the country

Strong competition

No partners on this market

opportunities.

Sales of beer are forecast to increase 28.3% (2009-2014)

Probable joint venture with the largest state-owned company

Government support of beer producers in order to reduce

the consumption of strong alcohol

threats.

Inflation & reduction of the purchasing power of population. People less often

go to the cafes and restaurants and choose drinking beer at home, thus we’ll

have to reorient from on-trade to off-trade

Rise of price of raw materials and increase of excite duties

Further toughening of legislation

Find partners:

joint ventures,

retailers

Build partnership with

government Gain the confidence

Of customers

Occupy the strong

position in higher price

segment

Strategy for expanding to the Belarus market.

Belarus

Thank you very much

for your attention!

Ilya balalaev

Helen demicheva

Eugene dolomanji

Azamat kanukoev