Russia: Russia's top brewer, Baltika, controlled by Denmark's Carlsberg and Scottish & Newcastle, plans to raise its 2005 output by 10-16 %, its head was quoted as saying on Tuesday, November 2, under the Reuters report. Baltika said it produced 6.35 million hectolitres of beer in the first 9 months of 2004. Last year its sales were 16.2 million hectolitres. "We hope to increase production by 10-16 percent," Baltika head Teimuraz Bolloyev was quoted by Vedomosti business daily as saying.

Bolloyev said Russia's beer market growth would slow from last year's levels, however. "According to my estimates, this year's growth will be lower than last year: 8 to 10 % and no more than 5 to 6 % in 2005," Bolloyev said. He said Russia's beer consumption was 55 litres per head. "I was sure before that we will be close to the 70 litre level during 2005, but it will not happen," Bolloyev said.

Baltika, which doubled its advertising and marketing budget this year over 2003 levels, will cut investment to $100 million from this year's $150 million, according to Reuters. "Next year it will be used to promote our goods," Bolloyev said. "Previously we did not so much spend money on advertising but on increasing capacity and the construction of new facilities."

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