Scandinavian Baltic Beverages Holding (BBH) is selling Slavuta malt factory, based in the Khmelnytsky region in Ukraine, to France's Soufflet Group. Slavuta malt factory is a leader in malt production in CIS countries (former USSR). Slavuta malt factory produces barley malt and registered a profit of US$ 360 thousand in 2002. Meanwhile, Baltika brewery, 75% owned by BBH, started building its own malting plant in Russia, Tula, in June. The production capacity is planned to be of 100 thousand tons per year. The company is to invest US$32 million. The plant will start producing malt in early 2004 and will cover completely the company’s needs, said the CEO of Baltika. Now Baltika is supplied with malt from Soufflet Group.

Russian brewers use about 1.2-1.5 million tons of malt per year. If a year and a half ago Russia used to import malt from Europe, now about 80% of beer in Russia is produced using cheaper national malt. However, the quality of Russian malt is far worse than of the imported one.

15 July, 2003