E-Malt.com News article: Russia: SABMiller to invest US$170 million in a new brewery in Russia

SABMiller plc, one of the world’s leading brewers, announces that its Russian operations will invest approximately US$170 million in the construction of a new brewery outside the city of Ulyanovsk, which is located approximately 1000 kilometres East of Moscow, according to SABMiller’s news room, March 26. The city of Ulyanovsk, which lies on the Volga river, enjoys good road and rail links and is home to a number of raw material suppliers.

The new brewery, which will have an initial capacity of 3 million hectolitres, is expected to be operational in early 2009 and will complement the group’s existing brewery in Kaluga, which is located some 180 kilometres south west of Moscow. SABMiller’s business in Russia has enjoyed compound annual volume growth of approximately 30% over the last 5 years, and its Kaluga site has now been expanded to a capacity of 6 million hectolitres. Both breweries will produce SABMiller’s Russian brands, including Zolotaya Bochka (“Golden Barrel”), Miller Genuine Draft and Velkopopovicky Kozel; which together comprise 3 of Russia’s top 10 leading brands in the premium segment.

“Russia remains a strategically important market for SABMiller and this investment will enable us to maintain our strong growth profile in the premium segment, whilst optimising our transport costs and at the same time improving our service levels to distributors and big retailers,“ Alan Clark, managing director of SABMiller Europe, commented.

SABMiller’s current market share in Russia is 6% on a volume basis, or an estimated 15% of industry profitability. In the year to March 2006, the company generated volume growth of 14% in Russia, twice the rate of the market.

About SABMiller plc

SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across six continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2006, the group reported US$15,307 million in revenue and profit before tax of $2,453 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.


30 March, 2007