Russian brewer based in St. Petersburg, JSC "Baltika Brewery", intends to increase its output by 17.8% in 2002, boost exports to Europe and Asia and franchise production of its beer abroad, The Moscow times.com reported.

"We plan to export 1 million hl this year. Last year we exported 400,000 hl. Exports account for 6% of Baltika's total sales, but the company's aim is to increase this figure to 10% by 2005, thus making Baltika a truly international brand," the company's export director, Dmitry Kistev, said.

Baltika exports its beer to 27 countries, like Germany, Israel, Greece, Portugal, France. 80% of its exports go to the Baltics.

Baltika controls about a quarter of the Russian market. Now it intends to enter the untapped Asian market. "We are studying the possibility of exporting to Asia, especially to countries Russia has borders with, such as China," Kistev said. Baltica is also looking at producing its own beer in Europe on a franchise basis. "Baltika is carrying out a pilot project in Latvia, where our beer is produced under franchise. If the project proves successful, Baltika will try to set up similar franchises in Europe," Kistev reported.

Baltica is owned by Finnish/Danish Baltic Beverage Holding (BBH). BBH is owned by Finland's Hartwall, which is in the process of being acquired by Scottish & Newcastle, and Denmark's Carlsberg.

09 October, 2002