Aysu Gida Senaye Ltd Mmc Soft Drinks Company in Azerbaijan
Aysu Gida Senaye Ltd Mmc
Strategic Direction
·
The main strategic direction of
the company is aimed at enlarging its distribution network and maintaining a
strong position in soft drinks in Azerbaijan. The company is expected to
further penetrate the very competitive fruit/vegetable juice and carbonates
categories by attracting consumers with packaging designs, quality products and
affordable prices.
Key Facts
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Full name
of company:
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Aysu Gida
Senaye Ltd MMC
|
|
|
Address:
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Sumgait
Highway 13km, Baku, Azerbaijan
|
|
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Tel:
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+994 (12)44
290 40
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Fax:
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+994 (12)44
290 40
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www:
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www.aysu-ltd.az
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Activities:
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Producer of
savoury snacks, flour, sugar, bottled water, carbonates, fruit/vegetable
juice
|
|
Source: Euromonitor International from
company reports, trade press
|
|
2005
|
2006
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2007
|
|
Net sales
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n/a
|
AZN0.11
million (estimated)
|
AZN0.48
million (estimated)
|
Source: Trade interviews, Euromonitor
International estimates
Company Background
·
The company was founded on 26
April 2004, as Muzefferli Qida Senaye Ltd MMC. On 1 May 2006, the company was
renamed Aysu Gida Senaye Ltd MMC.
·
Apart from manufacturing
fruit/vegetable juice, flavoured bottled water and carbonates (non-cola
carbonates), in 2008 the company started to produce sugar, savoury snacks,
flour and other grocery products.
·
The company has a regional
coverage, concentrated in Baku and adjacent small and big cities. However, the
company lacks wide distribution in Baku, and it is expected to try to develop
nationwide coverage in the short-to-medium term.
·
The company’s strategic
direction includes branding (the use of attractive names such as “Paradise”),
and the manufacture of quality products using natural ingredients. In terms of
juice production, the company uses freshly squeezed fruits. While the company’s
production is targeted at the domestic market, Aysu Gida Senaye plans to seek
international partners in CIS (Commonwealth of Independent States).
·
The company is not actively
looking for external funding or IPO (Initial Public Offering) to realise its
growth strategies.
·
In 2008, the company extended
its manufacturing operation into other packaged food categories, such as
savoury snacks (mainly in the chips/crisps category), sugar and flour
processing.
Production
·
Aysu Gida Senaye supplies the
local market from within the country. However, it imports exotic fruits for the
production of juice from Turkey and Iran.
·
The company’s production capacity
consists of still bottled water (30% of total production), juice (15%),
carbonates (20%) and other categories (35% - packaged and unpackaged food). The
company still lacks a wide distribution network. However, as sales increase,
Aysu Gida Senaye plans to upgrade its facilities in the short term, which will
create favourable conditions for the manufacture of higher quality products in
attractive packaging at affordable prices.
·
Although the company has not
established a stable export strategy, one of its main short-term plans is to
expand into neighbouring markets.
·
The company does not
manufacture products for third parties, either under licence for branded
players or private label items for large retailers.
Competitive Positioning
·
The company was ranked 15th in
fruit/vegetable juice in 2008 with a 0.5% share of off-trade value sales. In
bottled water, it was the 19th ranked player with less than a 0.3% share of
off-trade value sales.
·
The company’s presence in soft
drinks is characterised by the production of quality and competitive
carbonates, juice and flavoured bottled water. Moreover, the company plans to
expand its range of flavours beyond lemon in flavoured bottled water.
·
The company entered the soft
drinks industry in 2007, launching the flavoured bottled water brand, Aysu
Lemon. The company’s overall share has grown, largely due to the expansion of
its soft drink manufacturing operation.
·
The company is positioned in
the more developed soft drinks categories, which continued to witness strong
total volume and value sales growth in 2008.
·
In general, the company markets
a wide product portfolio, including diverse fruit flavours. However, it lacks
wide distribution, and its brands cannot be found in all distribution channels.
·
Aysu Gida Senaye positions its
products mainly in the economy segment.
·
Aysu Gida Senaye Ltd MMC
introduced a new product, under the Aysu Paradise Nektar brand, in plastic
bottles. More consumers appreciate the convenience offered by this new pack
type, especially in terms of on-the-go consumption. It typically follows the
successful marketing strategies of rivals in the very competitive non-cola
carbonate, unfrozen nectar, and still and flavoured bottled water categories.
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Product
type
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Value share
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Rank
|
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Fruit/vegetable
juice
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0.5%
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15
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Bottled
water
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0.3%
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19
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Source: Euromonitor International
