Ukraine, Kiev: East European brewer Baltic Beverages Holding (BBH) opened a new 50 million euro ($62 million) plant in Ukraine on June 7 in hopes of gaining more of the country's fast-growing beer market. BBH, owned 50-50 by Britain's Scottish&Newscastle PLc and Denmark's Carlsberg, already controls two beer plants in Ukraine and has 20 % of the market. It plans to boost its market share to 23 % in 2004. "We have invested 50 million euros to build the plant. Total investment in Ukraine has reached about $170 million," BBH Chief Executive Christian Ramm-Schmidt told reporters at the opening ceremony.

"If the market grows further, we will continue investments." The two BBH breweries in Ukraine increased its sales by 21 % year-on-year in the first five months of the year, officials said, without giving exact figures. BBH's major rivals in Ukraine are Belgium's Interbrew and two Ukrainian private firms -- Obolon and Sarmat.

The new BBH plant employs about 400 people and has a capacity of 12 million litres of beer a month.

Ukraine's beer market has grown by about 10 % annually over the last five years. Industry analysts say there is large potential for further growth. The country's beer consumption stands at about 31 litres per capita per year, far below 51 litres in neighboring Russia and the EU average of 76 litres.

08 June, 2004