Ukraine: Russia's biggest brewer, Baltic Beverages Holding (BBH), is to launch its new 50 million-euro brewery in Ukraine in June, the Association of Ukrainian Beer Producers said on February 9. BBH is a joint venture between Danish brewer Carlsberg and Finland's Hartwall, which was bought in 2002 by Britain's biggest brewer Scottish & Newcastle.

BBH has about an 18 percent market share in Ukraine and is hoping to increase its slice of the 48-million strong market, according to Reuters. "Construction was started about a year ago and today the installation of equipment is being completed. The equipment is being tested right now," the association said in a statement.

The plant located in the Ukrainian capital Kiev would have a capacity to produce about 12 million hectolitres of beer a year. BBH already controls two breweries in Ukraine.

Ukraine's beer market has grown by about 10 percent annually over the last five years. Beer production grew to 166.4 million hectolitres in 2003 compared with 149.8 million hectolitres in the previous year.

BBH was formed in 1991 and was the first western European brewer to invest in the former Soviet Union. It has 10 breweries in Russia and also operates in Kazakhstan and the Baltic states.

11 February, 2004