Dear Shareholders,
As indicated above 2006 was a significantly dynamic
year for our Company. On the other hand, severe
winter and the short summer periods together with
the avian flu instances and the World Cup impacted
the general tourism activity in Turkey adversely in
2006. However the sales volume growth achieved
in the last quarter of the year enabled our Turkish
beer business to end 2006 with a total sales volume
of 7.1 million hectoliters including exports, in line
with the previous year.
Our international beer operations reached a total
sales volume of 11.7 million hectoliters in 2006,
indicating 31% growth over 2005. The increase was
attributable to the organic volume growth in Russia,
Kazakhstan, Moldova and Serbia as well as the
acquisition of the seventh largest brewer in Russia,
the Krasny Vostok Brewing Group. This transaction,
not only being the largest acquisition that our
Company accomplished so far but also with the
successful completion of its integration within 2006,
also indicates the level of know-how and accumulated
experience in our beer business.
As a result our total beer sales volume, including
both Turkey and international businesses, grew 17%
and reached 18.8 million hectoliters.
Dear Shareholders,
As you would recall in November 2005 we sold our
entire share in Efes Sınai Yatırım Holding A.Ş (Efes
Invest) to Coca-Cola İçecek A.Ş (CCI) and at the
same time increased our consolidated stake in CCI
to 51% in order to bring our domestic and international
bottling businesses together under the roof of CCI.
The second step of this restructuring process was
the successful listing of 23% of CCI’s shares in the
Istanbul Stock Exchange in May 2006. Following
these important stages we merged CCI and its 87.6%
subsidiary Efes Invest, which were conducting the
Turkey and international soft drinks operations
separately, under CCI and created a single entity
operating in Turkey, Kazakhstan, Azerbaijan,
Kyrgyzstan, Jordan, Turkmenistan and Iraq. Creation
of a larger and stronger system which operates in
high growth potential markets through the
combination of CCI’s best business practices in
Turkey and the operational skills of Efes Invest in
emerging markets is the underlying goal of this
strategic decision.
In 2006 total soft drinks sales volume in Turkey,
accounting for 81% of our overall soft drinks volume,
was up by 10% to 344 million unit cases whereas
the total sales volume of our international soft drinks
operations grew by 62% to 80 million unit cases
delivering 19% of our overall soft drinks volume.
Our Valued Shareholders,
I am sure that we will dynamically accommodate the
new conditions brought forth in all of our operating
territories in the future. I know that we have the
experience, determination and commitment to
continue our thriving performance and best respond
to market demand.
We will maintain to explore new markets and
opportunities in both our beer and soft drinks
businesses in addition to the pursuit of market share
gains in our operating markets.
On behalf of our Board of Directors I would like
extend my most sincere gratitude to our esteemed
shareholders for the belief and substantial contribution
to the growth of our Company.
Yours sincerely,
Kamil Yazıcı
Chairman of the Board (2006)