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Application

Application1. Interview with GR-manager AB InBev part of AB InBev Efes Group

Respondent is Mazanov Alexander, Head of the Department for Interaction with Federal Authorities, AB InBev part of AB InBev Efes Group.

1. Does your brewery belong to an association / nonprofit organization of the brewing industry?

Yes, it is a member of three associations: the Union of Russian Brewers, the RusBrand Commonwealth, the Industry for the Environment Association RusPEC.

2. How does your brewing company implement the GR strategy, independently or assign it to the association / non-profit organization that it includes?

GR-strategy is developed by our company independently. Our company has a national strategy, as well as a local one. As a rule, a local strategy for any international company is a reflection of the strategy at the global level. In Russia, we are implementing our strategy for Western Europe. It includes certain projects specific to this geographic area.

3. What is the type of interaction between the brewing company and the state: separate or unified for the whole industry?

The brewing industry is scrupulous enough. We have a double responsibility, because we work with alcohol, we have a certain influence on society. The brewing industry in Russia pays 50% of excises. This is about 150 billion rubles a year. For comparison, producers of strong alcohol give the budget 190 billion rubles a year.

Breweries are large taxpayers. All large companies (Carlsberg, Heineken, AbInbev, Anadolu Efes) are 80% of the brewing industry in Russia. Only the general position of these companies can be heard by public authorities. Companies communicate with state authorities at the regional level on narrowly focused issues.

Large companies agree on their positions in a single and only after that the companies turn to the state. If companies have contradictions on some problem, the Union does not have a single strategy, such position is not voiced for the authorities. Representatives of state bodies want to hear the common opinion of the industry.

Many believe that the Union of Russian Brewers is friendly, since it always acts with an agreed position. This is because the non-agreed position is not sectoral. All disagreements are resolved and discussed within the Union.

4. How do you assess the success of GR-relationship of your company and the industry as a whole? What is more in the percentage, wins or losses of GR-campaigns?

In this moment it is difficult to separate our company from the Union of Russian Brewers. In general, our company is quite successful in the region. This is expressed in subsidies, benefits.

Now the big project of FIFA (we are its partners) is very helpful in GR. As a partner company, we are perceived positively by state authorities.

In general, the industry has a difficult situation in GR since 2008. Since 2011, the decline in the sale of beer began, beer was equated to strong alcohol. Since 2011, we are trying to remedy this. We are trying to divide the legislation of the brewing and strong alcohol industry.

Last year the branch had a considerable victory: we have achieved permission to export beer in a container 1,5l.

Every year in the GR of our company and the industry as a whole there are many risks with serious financial effects.

5. What is the main strategy of GR? What is this participation, passive (analysis of government actions, bills) or active (participation in the discussion of laws, expert activity)?

Our GR strategy implies both passive and active participation. We monitor the legislation in order to respond as quickly and efficiently as possible. What is important: new restrictions are constantly being introduced, so we are loaded with reactive work.

Nevertheless, the brewing industry is the initiator of separate regulation. Now we are preparing the first text of the bill. Today there are 171 federal laws that regulate the turnover of all ethyl alcohol. This law is complex; it is understood only by professional lawyers and confident market players. We want the law to be understandable for all market participants, including those who want to enter it. This is an important area of our activity. We believe that the state will not object if the industry offers him a project in which it will be described how to regulate the industry. We are developing a law that would make us comfortable to exist, and that would satisfy the interests of the state.

6. Who performs the main tasks of the GR, company employees or third-party organizations and consultants?

All tasks within the company are performed by employees. We have external consultants, but we address them point-by-point.

7. In your opinion, do associations / non-profit organizations effectively implement the GR-strategy (= positive result)?

All that the company does is in 99% happens with the support of the association. All projects pass through the Union of Russian Brewers. This is done to ensure that the state correctly perceives the message of the project, without contact with the brand. If we express the state some position from the company, the state can perceive it in connection with the brand.

If you interact with the state through an association, the state will hear the direct message of the position. Such interaction will be more effective.

8. Does your company's GR use the experience of the West or have to find its own way?

All together. Before implementing any GR strategy or project, we always look at how it happened in the world. We gather experience, learn some lessons, turn to international regulation. We are looking at what has already been done. We have a strong division in New York, it collects information, draws conclusions.

If the state looks to the west and takes as a base the experience of one country, fragmentarily, then we have something to appeal to. We show the experience of different countries, where it happened, and where not. It is important for us to have a balanced approach, it is important to assess everything and not to harm the business.

GR in Russia is different from the US, Europe or Britain. We have different rules, our own way. In Russia, the political system is very mobile, there is a frequent change of politicians, there are certain factors (sanctions, counter-sanctions) that are not available in other countries of the world. We apply the experience of the West, but taking into account the Russian features.

Application 2. Interview with GR-manager Heineken

Respondent is Arina Flyugova, Public and Governement Relations Manager, Heineken.

1. Does your brewery belong to an association / nonprofit organization of the brewing industry?

Yes (Union of Russian Brewers).

2. How does your brewing company implement the GR strategy, independently or assign it to the association / non-profit organization that it includes?

Both ways, while we are actively involved in the work of the Union of Russian Brewers.

3. What is the type of interaction between the brewing company and the state: separate or unified for the whole industry?

Unified for the industry as a whole.

4. How do you assess the success of GR-relationship of your company and the industry as a whole? What is more in the percentage, wins or losses of GR-campaigns?

It is difficult to estimate as a percentage. A positive factor is that the state listens to the opinion of the industry, in GR it turns out to reach compromise solutions.

5. What is the main strategy of GR? What is this participation, passive (analysis of government actions, bills) or active (participation in the discussion of laws, expert activity)?

Undoubtedly active involvement.

6. Who performs the main tasks of the GR, company employees or third-party organizations and consultants?

Mainly employees of the company and associations, with the involvement of experts.

7. In your opinion, do associations / non-profit organizations effectively implement the GR-strategy (= positive result)?

We must understand that associations are not some sort of alienated organization. In the Union, for example, there are commissions on major issues, of which members are representatives of companies. Consequently decisions are taken only with the approval of members.

8. Does your company's GR use the experience of the West or have to find its own way?

Any experience is applied in the context of where the business is located. GR-processes are similar.

Application 3. Interview with GR-manager Baltika Brewery (Carlsberg Group)

Respondent is Irina Fedorova, Senior GR director ЕЕ Baltika Brewery (part of Carlsberg Group).

1. Does your brewery belong to an association / nonprofit organization of the brewing industry?

Included in the Union of Russian Brewers.

2. How does your brewing company implement the GR strategy, independently or assign it to the association / non-profit organization that it includes?

It depends on the tasks. GR strategy is entrusted to the management, tasks within the strategy are implemented by various instruments within the framework of Russian legislation.

3. What is the type of interaction between the brewing company and the state: separate or unified for the whole industry?

The task of the service within the company is to protect the right to conduct business. Those changes in legislation that have the same effect on the industry and do not cause conflicts of interest are worked out by the Union.

4. How do you assess the success of GR-relationship of your company and the industry as a whole? What is more in the percentage, wins or losses of GR-campaigns?

No risk (federal) in 2017 was realized.

5. What is the main strategy of GR? What is this participation, passive (analysis of government actions, bills) or active (participation in the discussion of laws, expert activity)?

No answer.

6. Who performs the main tasks of the GR, company employees or third-party organizations and consultants?

The main tasks are assigned to the employees and are their KPIs.

7. In your opinion, do associations / non-profit organizations effectively implement the GR-strategy (= positive result)?

Depends on industry.

8. Does your company's GR use the experience of the West or have to find its own way?

We are a Western company and we use the experience of our colleagues, but at the same time the specifics dictate the need for us to "reinvent the wheel".

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