Belarus: Krinitsa Brewery put up for sale

The refusal of Belarus to sell the majority stake in Krinitsa Brewery Holding to Russia’s Baltika in 2000 hasn’t terminated its plans to make private the brewing leader of the country, Kommersant published June 7.

The assets, which worth is estimated at $200 million, are being claimed by SABMiller, Heineken and BBH.
All Krinitsa, including breweries in Minsk and Brest (the aggregate capacity of 1.8 million hectoliters) and Belarus-biggest malthouse Belsolod, has been put up for sale, said a source with a brewing company operating in Belarus. Krinitsa covers 40 percent of the local market and its estimate is $200 million. The tender results could be expected in a month and a half.

“SABMiller, BBH, Heineken, Sun InBev and Detroit Belarus Brewing Company bid at the first stage of the tender, but only SABMiller, BBH and Heineken have survived,” the source said.

Belgospishcheprom chief Ivan Danchenko and Krinitsa Director Grigory Pitkevich confirmed the information. According to Danchenko, $200 million is “the estimate given to the brewery by potential buyers but the final price will be established during the tender.”

The tender for Krinitsa is the second attempt of Belarus to dispose of it. In 2000, BBH-owned Baltika endeavored to acquire 50 percent plus a stock in Krinitsa for $50 million and even transferred the first tranche of $10.5 million. But the authorities of Belarus had second thoughts about selling the asset and the company was able to get back its money only in 2005.

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