RUSSIA: SABMiller outlines brewery build plans

By just-drinks.com editorial team | 29 March 2007

SABMiller is to build its second brewery in Russia as it looks to capitalise on growing sales in the country.

The London-listed brewing giant is to spend around US$170m on building a facility near the city of Ulyanovsk, which is situated around 1000km east of Moscow.

SABMiller, which has focused its efforts in Russia on meeting the demand for premium licensed beers in the country's major cities, already has one brewery in Kaluga, south-west of Moscow.

The brewer's strategy has meant it commands only 6% of Russia's beer market, behind rivals including market leader Baltika, SUN InBev and Heineken.

Alan Clark, MD of SABMiller Europe, said today (29 March) that the investment would help the brewer "optimise" its transport costs and improve its service to Russian distributors and retailers.

The Ulyanovsk brewery, which is expected to be up and running in early 2009 and have a capacity of 3m hectolitres, will produce Zolotaya Bochka, Czech beer Velkopopovicky Kozel and Miller Genuine Draft.

In the six months to 30 September last year, SABMiller saw its sales in Russia rise by over 20% in volume terms.

Sectors: Beer & cider

Companies: SABMiller, Baltika, InBev, Heineken