In the first 11 months of this year A. Le Coq beer sales exceeded last year’s result by over 300,000 litres despite the general market recession trend. At the same time, the 11-month analysis of the alcohol excise duty proceeds compiled by the Estonian Breweries Association indicates a general beer sales decrease of 6%. Despite the beer market decline, A. Le Coq predicts stability for high-quality beers coupled with an even faster drop in sales of strong beers.

According to Tarmo Noop, Director of A. Le Coq, the beer sales volume increase after a considerable price hike and in the context of the general market decline trend is truly a remarkable result. “Maintaining a stable sales level in the current economic situation is a form of art and even the smallest of rises are very pleasing indeed,” said Noop. He added that, in view of the overall beer sales volume decrease, A. Le Coq’s sales volume increase in excess of 300,000 litres over last year is highly commendable. “We have actually increased our market share and will try to continue doing so,” Noop expressed optimism.

According to Noop, the beer market recession trend has been predictable from the beginning of this year. “I believed that the market would decrease by about 5% and the excise duty proceeds analysis and other summaries indicate approximately the same percentage,” added Noop.

Noop pointed out that the strong beer production decline trend will continue and the Premium beer share will grow. “Although the beer prices have been raised and consumers are now more budget-oriented, they do value high-quality beer and do not want to cut corners in this respect,” remarked Noop. “The increased market share of A. Le Coq Premium is a litmus test of consumers’ quality preferences,” concluded Noop. AC Nielsen’s data shows that as of the end of September, A.Le Coq Premium enjoyed a retail trade share of over 13% and was thus the market leader.

Noop added that the falling trend concerns ciders and other light alcoholic beverages, too. “The decline of the light alcoholic beverage and beer sales will probably continue, which is why it is even more important now to constantly invest in product research and development,” stressed Noop. He believes that one of the causes of the dropping light alcoholic beverage sales is the 30% excise duty raise implemented in 2008. “Tallinn is the fourth most expensive beer city in Europe and so both the city residents and tourists are forced to consume less beer,” Noop admitted.

Source: http://www.alecoq.ee/eng/life/news/?newsID=2340

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