Royal Unibrew is reportedly planning to build a new brewery in Latvia to meet growing demand in the Baltic state.

Denmark's second-largest brewer plans to spend up to EUR14m (US$18m) on the project to be based in the eastern town of Lielvarde, according to local reports.

The company already owns Latvia's fourth-largest brewer, Lacplesa Alus, as well as the country's biggest soft drinks group Cido.

Work on the site in Lielvarde is slated to begin in a few years, Baltic Business Weekly said earlier this week.

"Planning of the new brewery's design and infrastructure is underway, but before construction works can begin in Lielvarde, these plans have to be approved by the respective state authorities," Lacplesa Alus board chairwoman Conny Astrup-Larsen was quoted as saying.

Officials at Royal Unibrew were not available for comment when contacted by just-drinks yesterday (16 August).

Last week, the brewer announced a wide-scale restructuring of its business in the Baltic region. The company plans to close its brewery in the Lithuanian capital of Vilnius.