E-Malt.com News article: Azerbaijan & Georgia: Baltika-Baku in search of a new distributor to resume shipments to Georgia

Baltika-Baku has not yet supplied its products to Georgia in connection with the search for a new distributor, the company reported on July, 4.

Previously, the company had a contract with Kapitalpoint to sell Baltika-Baku products in Georgia. However, the document has expired.

"Several Azerbaijan media outlets informed that the Georgian Quality Foundation informed in an official letter the Azerbaijani Union of Free Consumers that Baltika-Baku products in the amount of $150,000 were withdrawn from sale in Georgia due to the discrepancy of the required standards," the company said.

Baltika-Baku officially refutes information about the ban on the sales of its products in Georgia.

Baltika-Baku has reported that its products, particularly products supplied to Georgia, are confirmed by laboratory examination of the State Committee on Standardization, Metrology and Patents and the conclusion of the Azerbaijan Commerce Chamber's Examination Center, as well as numerous certificates of conformity issued by the Azerbaijani state bodies.

"We are surprised by the appearance of the media publications based on the unconfirmed evidence in most cases without comment from our company. It is not enough that the company's products are not represented in Georgia's market today and the figure of $150,000, which appears in materials, is similar to the sum of Baltika-Baku's former distributor Kapitalpoint's debt. Kapitalpoint has to pay us money for the products supplied in 2010. In May 2011, we were forced to appeal to the Sumgayit Administrative and Economic Court to recover debt from Kapitalpoint. The claim has been satisfied. The court made a decision to withdraw this amount from Kapitalpoint's account. We assume that the publications may be associated with this situation," General Director Adam Tlekhurai said.

Baltika finished purchasing the brewery in Azerbaijan in August, 2008. As a result, Baltika became full owner of 90 percent in Baku-Kastel brewery.

The company has increased its capacity to 10 million deciliters per annum and launched export to neighboring countries. The plant produces brands starting with Baltika No.3, Baltika No.5, Baltika No.7, Baltika Kuler, as well as Arsenalnoye brand.

In 2009, Baltika had a major reconstruction in the Azerbaijani production platform. Total investments at the end of the investment program were approximately $20 million.

The plant has started exporting the beer to Georgia since 2009. The company exported 9000 hl to Georgia in 2010. The major export brands were Baltika No. 9 Krepkoe, Baltika No. 7 Expor, Baltika Cooler and Arsenalnoe.

Baltika Brewery operates breweries in 10 cities of Russia and a factory in Azerbaijan. It is the leader on the Russian beer market.



06 July, 2011