In the third paragraph we mistakenly said that Baltika's main export markets were the Baltic States, accounting for around 80-85% of exports. In fact the CIS countries (former Soviet Union) are the largest foreign markets.

The leading Russian brewer, Baltika, has announced ambitious expansion plans. The brewer, owned by Baltic Beverage Holdings (BBH), is planning to increase output, expand its export business in Europe and Asia and licence production of its own beer in other markets. The company said it was aiming to raise its output by 17.8% in 2002.

The company is also bullish about export expansion. "We plan to export 1m hectolitres this year. Last year we exported 0.4m hectolitres," said Baltika's export director Dmitry Kistev. "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."

Kistev said the company would be investing some $180m to expand production, reduce costs and develop distribution. The Baltika brand is currently sold in 27 countries, including Germany, Israel, Greece, Portugal and France, although the company's main export markets are the CIS countries (former Soviet Union). The company also claims around a 25% share of the Russian beer market.

"We are developing our exports gradually. We are starting from neighbouring countries and continuing to expand operations to more distant countries," said Kistev. "We are studying the possibility of exporting to Asia, especially to countries Russia has borders with, such as China."