Blog: Chris Brook-CarterThe difference between UK and Russia? £3.03

Chris Brook-Carter | 13 July 2004

A regular news topic in UK newspapers over the past few years has focussed on “Rip-Off Britain” – the perception that UK citizens pay over the odds for goods compared to their European or American counterparts.

In the quest for a slice of the ultra premium beer segment, however, Scottish & Newcastle has moved things to a whole new plain.

The British brewer started selling Baltika No3 beer in British style bars last year. The beer is made in Russia by Baltika, which is part-owned by S&N and Carlsberg’s joint venture, Baltic Beverage Holdings.

A 500 ml bottle of the brew from any kiosk or market on the streets of St Petersburg will set you back all of 18 pence. Quaff the same sized bottle in a bar in the UK, however, and expect to pay from £3.21.

Although it’s too early to tell how successful Baltika No3 will be in the UK, if it proves to be an earner for S&N, the company deserves a round of applause for prising that amount of margin from the brand.


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