Baltika Brewery announced the opening of its first office in Ukraine follows similar new ventures in the former Soviet Union republics of Moldova, Kyrgyzstan, Belarus and Kazakhstan. The company stated such a move was designed to improve exports.
The former Soviet republics represent a good alternative to the Russian market, which fell 5% in the first quarter of the year. The republics have sizable populations and a cultural affinity with Russia which assists marketing.
The Ukrainian market, with a population of 50 million, is currently dominated by Russia’s second-largest brewer, Sun Interbrew Ltd., a unit of Belgium’s Interbrew SA. Sun Interbrew owes most of its growth in sales volume and profit to Ukraine.
Baltika, Russia’s largest brewer, is controlled by Baltic Beverage Holding, a joint venture between Carlsberg AS and Scottish & Newcastle.
