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RUSSIA: Baltika confirms Siberia expansion plans

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Baltika Breweries has confirmed that it will begin building a brewery in the Siberian city of Novosibirsk next year.

Russia's largest brewer was mulling plans to extend its footprint in Siberia and yesterday it confirmed it would start construction on the greenfield site.

The project, which will cost EUR65m (US$85.5m), will see the brewery have an annual capacity of 2m hectolitres. Baltika said it expects the plant to be up and running during the second quarter of 2008.

A Baltika spokesman told just-drinks today (21 December) that the brewer wanted to bolster its presence in Siberia, where it sees "the potential for growth".

He said: "Beer consumption in Siberia is around 50 litres per person; if you go to St Petersburg or Moscow, consumption is around 100 litres a year. There is potential for growth in Siberia."

Baltika is busy completing its merger with three other Russian brewers, Yarpivo, Vena and Pikra, a process it expects to complete at the end of the year.

Once the integration is complete, Baltika will also own Pikra's brewery in the Siberian city of Krasnoyarsk.


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