Baltika intends to source its malt locally, instead of relying on expensive European malt. The brewer said yesterday (7 October) that it will not have to import malt next year, as local supplies are cheaper.

The appreciation of the euro against the ruble has seen production costs at Baltika soar. The company was estimated to import around 50% of the malt it required for beer production.

Baltika intends to buy 30% of its malt from local malt company OAO Russian Solod next year, with another 50% coming from its own malt production facility. The remaining 20% will come from a St-Petersburg-based maltery built jointly by France's Soufflet and Baltika. The company will only use imported malt if it is able to increase production beyond its forecasts.

Baltika is owned by Baltic Beverages Holding, a joint-venture between Carlsberg and Scottish & Newcastle.