The Moscow-based drinks group, Ochakovo, has announced that it is to build a $6m winery at Krasnodar. The new winery will have an annual production capacity of around 7m litres and will be supplied by the company's own vineyards.

The company said that fine wines produced at Krasnodar would be available around two years after the winery becomes operational but some of the budget-priced wines would be on the market four to five months after the launch of the new winery.

Ochakovo was privatized in 1993, with the company's employees owning 100% of the capital. Beer production at Ochakovo in 2001 rose by 30% to 500m litres and the company is forecasting beer sales of  600m litres for 2002.