E-Malt.com News article: 3752

Russia: Australian Foster’s Brewing International and its licence partner Scottish & Newcastle (S&N) announced on Monday, November 29, that Foster’s Lager would be brewed, marketed and distributed in Russia through Baltika Breweries (Baltika), Russia’s leading brewer. Russia is the 5th largest beer market in the world with annual consumption of 80 million hectolitres. The Russian beer market is also one of the fastest growing in the world, having almost doubled in size over the past five years. Significantly, the international premium licenced beer segment is forecast to double over the next 3 years.

Foster’s Brewing International Managing Director Rick Scully said, “I am delighted that Foster’s - Australia’s most famous beer - will be launched into one of the world’s fastest growing beer markets. “Foster’s is the world’s 7th largest international beer brand, but to date has been under-represented in Eastern Europe and the former CIS countries. “This is an excellent opportunity to build a stronger, significantly expanded presence for Foster’s in Russia as an international brand with a distinctive, premium positioning.”

John Nicolson, Chairman Greater Europe / USA, of S&N said, “The Russian beer market has experienced rapid growth over the last five years and international brands are the fastest growing segment of the Russian market. Our agreement with Baltika creates an ideal platform from which to launch the Foster’s brand into this exciting market.” Taimuraz Bolloyev, President of Baltika said, “We are delighted to be able to lead the expansion of Foster’s into Russia. I believe that Foster’s will be an attractive choice for Russian beer consumers due to the unique Australian-ness of the Foster’s brand, together with Foster’s Brewing International’s stringent focus on freshness and dedication to product quality.”

Sold in over 150 countries, Foster’s is the number one selling beer in London (a position it has held for more than ten years); the 7th highest selling brand in Western Europe and the only non-European beer brand in the top 15; and the 8th largest imported beer brand in the very competitive United States market. Foster’s is ranked as the most recognisable beer across Asia and 5th most recognisable brand across all product categories. Foster’s has won gold medals three times at the prestigious bi-annual International Brewing Industry Awards, with a 4th medal awarded in 2002.

Maintaining and accelerating the growth of Foster’s in all markets by continuously improving the brand to meet the demands of consumers is a key strategic priority for Foster’s Group. In line with this strategy, in 2004, Foster’s Brewing International established a total quality improvement program focused on the four key areas of product, presentation, the environment in which Foster’s Lager is sold and consumed, and endorsement. A major focus of this program is on product quality and freshness and providing the freshest beer in the world to consumers – in every market, every time. The program aims to elevate Foster’s from its current position as the number seven international premium beer brand to take its place amongst the top five within three years, and the number three brand within five years.

Scottish & Newcastle is the leading brewer in the UK and one of the largest in Europe. Scottish & Newcastle produces, distributes and markets the Foster’s brand under license in the UK and Western Europe.

Baltika Breweries is Russia’s leading brewer and the key subsidiary of Baltic Beverage Holdings – Russia’s largest brewing Group, a 50:50 joint venture between Scottish & Newcastle and Carlsberg. BBH has a 36% market share across Russia and holds leading positions across six Eastern European markets. Scottish & Newcastle brews, markets and distributes Foster’s within Europe under a licence partnership with Foster’s Group. Baltika is Russia’s largest individual brewing company, with a 36% market share. Baltika has annual sales of over 15 million hectolitres – nearly as much as the total Australian beer market. Baltika beers have over 90% distribution in the Russian market. Baltika brews Russia’s top selling beer brands, and has sales more than double it’s nearest competitor. Moscow & St Petersburg dominate premium beer consumption, accounting for 54% of sales.



01 December, 2004