Efes Breweries International Became the Third Largest Brewer in Serbia-Montenegro

Efes Breweries International Became the Third Largest Brewer in Serbia-Montenegro

Efes Breweries International N.V. (“EBI”), the Holland based subsidiary of Anadolu Efes, completed its acquisition of the 7 Septambar A.D. Zajecar Brewery (“Zajecar”) located in Zajecar, Serbia-Montenegro and purchased 64.4% stake through a tender offer.

Based on approximately €18.5 million value for 100% of Zajecar shares, EBI paid approximately €12 million for the 64.4% stake acquired .
Zajecar brewery has 100 million litres of annual brewing capacity and produces “Pils Plus” and “Zajecarsko” brands. The brewery sold approximately 44 million litres of beer in 2003. EBI entered the Serbia-Montenegro beer market through the acquisition of the Weifert Brewery in Pancevo in August 2003. After the re-launch of the “Weifert” brand in December 2003, the business started to develop rapidly, with sales volumes growing by 91% in 1H2004 over 1H2003.
Following the acquisition of the Zajecar Brewery and together with the Weifert Brewery, EBI increased its total capacity to 140 million litres and its share in the beer market to 10.4%, becoming the third largest brewer in in Serbia-Montenegro.
According to the Brewer's Association, the total beer production in Serbia-Montenegro for the January – August 2004 period increased by 2.2% over the same period of 2003, to around 430 million hectoliters.

EBI with a presence across the Commonwealth of Independent States (CIS), Eastern Europe and the Balkans, is an 85% owned subsidiary of Anadolu Efes, the leading Turkish beverage company. EBI is responsible for the international beer operations of Anadolu Efes, operating nine breweries and two malteries in Russia, Romania, Republic of Kazakhstan, Moldova and Serbia-Montenegro. EBI is one of the major brewers in the region with total annual production capacity of approximately 1.1 billion litres and malt production capacity of 50,000 tons. Since the start of the commercial production in 1998, EBI has generated a 121% sales CAGR until 2003, through a product portfolio including a combination of strong local brands many of which are market leaders in their respective market segments, and the Efes Pilsener international brand which is currently being sold in over 40 countries.

Anadolu Efes, listed in the Istanbul Stock Exchange (AEFES.IS), is the holding company of Efes Beverage Group's beverage interests as well as an operating company, under which Turkey beer operations are managed. The Efes Beverage Group is composed of Anadolu Efes and its subsidiaries and affiliates that produce and market beer, malt, soft drinks across a geography including Turkey, Russia, the CIS countries and Southeast Europe. The Group operates with 14 breweries, 4 malteries and 9 Coca-Cola bottling facilities in 10 countries and has an annual brewing capacity of around 2 billion liters, malting capacity of 150,000 tons and Coca-Cola bottling capacity of 420 million unit cases per year.<