E-Malt.com News article: 2323

Ukraine: The Soufflet Group and Baltic Beverages Holding (BBH) signed a final agreement regarding purchasing Slavuta Maltings’s shares on March 8. The deal will be finished on October 1, 2004 when The Soufflet Group takes a full control of Slavuta plant. The Slavuta Maltings are the major Ukrainian maltings, with a production capacity of 70.000 tonnes per annum. B.B.H., who acquired the Slavuta Maltings in 1999, has decided to concentrate its efforts on the Brewing industry. BBH and Slavutich Brewery own 90% of Slavuta Maltings.

With this operation, the Soufflet Group, the world's largest maltster, continues its development in Eastern Europe, which started in 1998. Soufflet Maltings will be producing in eight countries: France, Poland, the Czech Republic, Hungary, Romania, Russia, Kazakhstan, and Ukraine. With this acquisition, the Soufflet Group malting capacity reaches 1,355,000 tonnes. The Soufflet Group will develop the malting barley production in Ukraine for the supply of the Slavuta Maltings. It is intended to increase the Maltings' production capacity in order to accompany the important development of the BBH breweries in this country.

The preliminary agreement regarding selling Slavuta Maltings was confirmed in July 2003 and finally signed on March 8, 2004.

In 2003 the sales volume of BBH came to 3,135 million litres or EUR 1,161 million in money terms, moreover the company’s EBITA reached EUR 264 million. BBH owns 18 breweries: ten in Russia, two in Ukraine, four in Baltic States and two in Kazakhstan. Besides the company is to launch a new brewery in Kiev this summer. BBH is a selling leader in Baltic States, Kazakhstan and Russia, where it holds 33% of the market, by the data of 2003. In Ukraine BBH holds the second place with 22% of the market. The main brands of BBH in Ukraine are: Slavutich, Lvivske, Arsenal. BBH’s shares are owned 50:50 by Carlsberg Breweries A/S and Scottish & Newcastle plc.


12 March, 2004