Bavaria Moscow City Races - An Interview with Peer Swinkles, Marketing Director of Bavaria Beer

EER: How does the Russian beer market differ from the European and global markets?  What benefits or challenges does this provide when marketing Bavaria Beer in Russia?

PS: The Russian bear market has expanded considerably in the last 20 years, especially in comparison to the rest of Europe. It is notable, that Russians like to drink beer from a PET bottle unlike consumers in Western Europe. With our history in Russia, even in a highly competitive market we are challenged to exceed the average market growth. 

EER: In what ways has the economic crisis affected Bavaria and has this affected the way Bavaria sponsors events like the City Races?

PS: Bavaria in total in not experiencing a lot of damage because of the crisis. As an independent family brewery Bavaria holds a unique position on the international beer market. For seven generations, the company has been managed by the Swinkels family. We think in generations. The financial position is very stable because we never borrowed a lot of money compared to many companies who are currently in trouble. We think on a long term scale, this applies to our marketing investments. These are stable and focused on strengthening our brand.

EER: How has Bavaria's market share in Russia increased in the last 5 years and what are the plans for the next five years regarding boosting sales?

PS: Five years ago we made a decision to start brewing our beer in Russia, which increased our market share within the premium segment of the beer market. We expect to grow more in the next 5 years. In this goal on-trade will be important.

EER:  What benefits are there to Bavaria in sponsoring the Moscow City Races and in what ways does this affect the image of Bavaria Beer?

PS: Bavaria Moscow City Racing is a perfect platform to communicate our brand. This concept helps us to promote our brand ‘360 degrees’ by promotions, PR, television, billboards, internet, etc.

The combination of Bavaria and racing is useful for our sponsor platform and for international positioning. Racing is manly, sexy and strong. Characteristics which fit very well to our brand.

EER:  What are the most successful recent advertising campaigns that Bavaria have done in Russia?

PS: Not only the Bavaria City Racing event, we also invested lot of money in TV commercials and billboards. They made our brand stronger in the last few years.

EER:  What made Bavaria decide to brew their beer in Russia rather than import it like they do in other countries?

PS: The price was the most important factor. Importing in Russia is so expensive that we cannot reach the total market. The benefit of brewing locally is that we have no currency risk. During the crisis in 1998 we saw how important that was. Another benefit, which was down to decision-making, was that we could brew on a very high quality, like in Holland. That’s why we started.

EER:  Has Russia been one of the best performing markets for Bavaria and was it a good move to enter the Russian Market?  What makes the Russian market so appealing?

PS: Until the Rouble crisis in 1998 Bavaria was the best sold foreign beer brand in Russia. That’s why Russia is very important to Bavaria. Is it our 2^nd largest beer market worldwide. What makes Russia so attractive: it has a large market and Russians started to drink more beer. The taste and image of our brand is very much appreciated in Russia and that makes it even more interesting.

EER: Have there been any major problems from a business and operational point of view when working in the Russian Marketplace?

PS: You need good, trust-worthy local partners in Russia to get things done. We have always had those.

EER:  How successful an event was the Moscow City Races this year?  Did many people attend?  Were there any things that Bavaria would do differently next year?

PS: Moscow City Races was very successful with 250.000 people attending the event. Our promotional activities in the supermarket were also very successful. Every year the event will be more spectacular!

EER:  Do you think F1 will be held in Russian any time soon and how do you think this can be achieved.

PS: Bavaria City Racing will certainly help to start F1 GP in Russia. But when, is hard to say. It is in hands of the F1 organisation.

  EER would like to thank Mr Peer Swinkles for taking the time to answer hese questions.