Baltika takes 10% stake in merged brewer

Baltika takes 10% stake in merged brewer

Baltika Breweries has taken a 10% stake in fellow Carlsberg subsidiary DERBES Brewery in the Republic of Kazakhstan.

The deal, announced by Baltika this week, follows Carlsberg's decision to merge Baltika and DERBES operations in Kazakhstan. Financial details were not disclosed.

"The integration of the companies’ business creates additional opportunities to increase the combined portfolio of brands and to reinforce the Carlsberg Group’s leading positions in the Republic," said Baltika's president, Anton Artemiev. "It will consequently enable us to develop our business more dynamically on this growing market," he said.

In January 2010, Baltika agreed for DERBES to brew, sell and promote its namesake beer and the Nevskoye brand in Kazakhstan, which has a per capita beer consumption of 34 litres. The contract runs until the end of 2029. DERBES has an annual brewing capacity of 2m hectolitres.
 
Baltika is the leading brewer on Russia's beer market, with a 40% volume share. Earlier this week, Carlsberg doubled its profits forecast for 2010 after a beer sales decline in Russia proved to be less than initially feared.