BELUGA GROUP announces operating results for 4Q and full 2019
- Company's overall sales demonstrated positive upward trend: +15.3% and +9.3% correspondingly
- Sales of the company's own products increased by 7.6% in 2019 and by 13.4% in the 4Q
- Sales of imported brands showed double-digit growth — +31% in 4Q and 26.2% in 2019
- Beluga brand strengthened its positions on the global market: exports in 2019 increased by 20%
The company’s overall sales for the full year 2019 were 15 694K 9L cases, with strong growth +9.3 %. The sales of the company’s own brands increased up 7,6 % to 14 014K 9L cases in comparison to the same period. In the 4Q, overall sales increased by 15.3%, reaching 5,312K 9L cases, and sales of the company’s own brands grew by 13.4% up to 4,673K 9L cases in comparison to the same period of 2018.
Imported brands exclusively represented by the company in Russia continue to show double-digit growth. Their sales in the 4Q increased by 31% up to 639K 9L cases, and in 2019 — by 26.2% up to 1,680K 9L cases. Impressive results were demonstrated by brands from William Grant & Sons portfolio, particularly Grant's and Tullamore D.E.W. Excellent results were also shown by Ron Barcelo rum, which is one of the TOP-3 brands of rum in Russia. Wine business grows steadily — total sales of wines represented by the group exceeded 1M cases.
Beluga brand sales also showed a significant positive trend growing by 22%. Brand export grew by 20%. Good results are achieved in Israel, Germany, Italy, the Netherlands, The USA, Poland, Turkey, Australia and China.
Alexander Mechetin, Chief Executive Officer of the BELUGA GROUP, commented on the results: "2019 was a very successful year for our company. Consistent implementation of a strategy to develop a premium category and diversify business gave us remarkable results. It allowed our company to show good quantitative and, more importantly, qualitative growth.
Beluga brand strengthening was one of the major achievements of the year. Global awareness of our brand is ensured by big international projects, such as decorating store-fronts in brand style in the best hotels and restaurants of the world in London, Paris, Monaco, Hong Kong, Vienna and other cities, joint project with Selfridges, educational bartender program Beluga Signature and increasing presence of Beluga in Duty-Free. The successful launch of still wines Golubitskoe Estate was another important project for business diversification in 2019. Although these wines were presented only in spring, they were awarded by a dozen relevant contests. In 2020 "Golubitskoe Estate" winery will launch a premium brand of sparkling wine Tete de Cheval, produced by the traditional method of champagnization. While on the subject of diversification, we should note sustainable results of the group in such categories as Russian cognac and whiskey. It's also worth highlighting the line of business developing imported brands — here, we see double-digit organic growth. Import of wine reached 1M cases; sales by volume increased threefold in comparison to 2016. The group has leading positions among distributors of wine and spirits in Russia. In 2019 we continued to develop the "Winelab" network. By the end of the year, the number of stores exceeded 600 outlets.
The positive results of the group are achieved together by all our employees who still are the main asset of the company and driver of growth. They helped BELUGA GROUP perform exceptionally well in 2019 and allow confidently set global goals for 2020."