RUSSIA: Baltika plans double purchase in export drive

By just-drinks.com editorial team | 2 February 2001

The East European brewer Baltika is to spend $100m over the next year in a plan to expand production capabilities and lower the cost of output. The project includes the purchase of two breweries, most likely located somewhere within the CIS countries.

A report in Interfax yesterday said that Baltika would have most interest in Belarus and the Republics of Central Asia, particularly Uzbekistan, where beer production and consumption is relatively low.

The money, which mirrors a scheme the company followed last year, should see production expand by 17%. There are also plans to improve Baltika's distribution network, which includes 14 subdivisions in Russia's largest cities, and its material and technical base.

Exports account for only 2% of Baltika's total sales, but the introduction of these plans and the launch of a canned beer product will see exports reach 10% of volumes, the company said.

Companies: Baltika