Russia: Baltika to extend the capacity of the brewery in Samara to 6.5 million hl

Baltika Brewery, 50 per cent owned by Carlsberg, will now try to keep up with the continuously growing demand for beer in Russia by extending the brewery in Samara in the south western part of the country, Borsen released September 11.

“It is correct that we extend the capacity at the brewery in Samara to 6.5 million hl from earlier 2.5 million,” Jorgen Buhl Rasmussen, managing director of Carlsberg and vice chairman of Baltic Beverages Holding (BBH), told the news agency Direkt.

The investment will amount to DKK730 million (USD125 million), and according to the managing director it is in principle all parts of the brewery which will be extended.

Mr Rasmussen notes that Baltika started the extension already a month ago.

“We expect a strong growth in the Russian market, and we have to make sure that we shall have the necessary capacity,” he said.

At present BBH has a market share of about 36 per cent of the Russian beer market. In the Moscow area and in the area near the Ural mountains the company will increase its efforts in the coming years, however.

As Baltika Beverages Holding gets the three other breweries, Yarpivo, Vena, and Pikra, integrated, it is the intention that many beer brands shall be brewed at the different breweries in order to reduce the distribution costs and time.

The fact that the brewery in Samara is located near the border to former neighbour republics may furthermore allow exports of beer to countries where Baltika is not yet present.

13 September, 2006