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Novabev Group is a producer and distributor of alcoholic beverages and also the owner of its own retail chain. The company makes spirits and wine under its own brands and imports those of others. Its shares trade on the Moscow Exchange under the ticker BELU.
The combination of production and retail is rare for the industry and gives the group a distinctive position. A producer usually depends on the retail chains: they decide whether its bottle gets onto the shelf and at what price. Owning the stores removes that dependence — the group's own goods are always on display, and the retail margin stays inside the group.
Imports of third-party brands complement the group's own production: the chain has to offer a full range, including what the group does not make itself. The margin on imports is lower, but they bring the customer in.
The industry's constraints are tight: excise duty makes up a significant part of the price, alcohol advertising is banned, and the rules of sale are regulated right down to a store's opening hours.
Spirits and wine under the group's own brands.
Importing and selling the brands of third-party producers.
The group's own stores, which carry both its products and imports.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company produces spirits and wine under its own brands, imports the beverages of other producers and sells all of this through its own retail chain and through other retail chains.
So as not to depend on the retail chains' decisions about whether its bottle gets onto the shelf. In its own store the group's products are always on display, and the retail margin stays inside the company.
It makes up a significant part of the price of a bottle and is paid by the producer. A rate increase pushes up the shelf price and reduces demand, and offsetting this by cutting production costs is almost impossible.