Russia: Baltic Beverages Holding AB (“BBH”), the 50:50 owned joint-venture between Scottish & Newcastle plc and Carlsberg Breweries A/S, informed the press on December 14 that Mr Taimuraz Bolloev, the President of the Baltika Brewing Company, has announced his decision to resign from his position as the head of the largest Russian brewing company.

Mr Taimuraz Bolloev, who has been the President of Baltika for the past 13 years, has decided to resign his position, effective from the end of the year. The Baltika Board of Directors respects Mr Bolloev’s decision and has accepted the resignation. The Board thanks him wholeheartedly for his incomparable achievements in the building of the flagship company of the Russian brewing and consumer goods industry.

Mr Christian Ramm-Schmidt, the President of BBH and the Chairman of the Baltika Board of Directors said: “On behalf of BBH, we would like to pay tribute to Mr Bolloev’s achievements over the last 13 years. Under his visionary leadership Baltika has grown and developed to become one of the most modern and dynamic consumer goods companies in Russia: Baltika is the leading brewer in Russia, which is the fifth largest beer market in the world. The brand Baltika has become the second largest beer brand in the whole of Europe, and the beer is gaining recognition internationally. Mr Bolloev is leaving the Baltika business in tremendously good shape, which we are proud of. The results for the third quarter of 2004 show the power of the Baltika business following the completion of the new sales and distribution system and our successfully renewed marketing strategy. Baltika achieved a record 24% market share during the third quarter. Baltika’s leadership position has therefore been further strengthened. Mr Bolloev is not only the number one brewer in Russia, but also one of the most respected and recognized business leaders, an honoured citizen of Russia.”

Mr Bolloev said: “I am confident that the management team and employees at Baltika will continue to work hard and achieve strong results also in the future. On my behalf I would like to thank all those people who have worked with me for many years making Baltika a great success.”

Prior to the appointment of a new permanent President of Baltika, Mr Anton Artemiev, the Executive Vice President of BBH has been appointed as the acting President. Mr Artemiev, 43, a Russian national, has been a senior Executive of the BBH since 2000. Mr Artemiev has been a member of the Baltika Board of Directors since 2001, and has been closely involved in the highly successful development of the company.

Baltika Brewery was founded in 1990. Today it is the largest Russian brewing company with Q3 2004 market share of 24.4%. About 8 000 employees. Baltika consists of five breweries (St Petersburg, Tula, Rostov-on-Don, Samara, Khabarovsk), a new malt house in Tula and 32 distribution centres. In 2003 Baltika sold was 16,2 million hl of beer. According to US GAAP standards Baltika net sales in 2003 were 805 million USD and net profits 123 million USD. Baltika Brewery holds the top two Russian beer brands: Baltika and Arsenalnoye. International brands Carlsberg and Foster’s are brewed under licence. Other major Baltika brands are Samara, DV, Don, Parnas, Medovoye, Leningradskoye, Zigulevskoye. Baltika brand is the second largest beer brand in Europe by volume. Baltika beers are exported to 36 countries around the world. The beers have received numerous international awards for high quality and excellence in brewing. Baltika is listed in the Moscow Stock Exchange RTS. Largest shareholder is BBH.

BBH (BALTIC BEVERAGES HOLDING AB) sales volume was 31 million hl in 2003. Net sales in 2003 were EUR 1,161 million and EBITA EUR 264 million. BBH operates 18 breweries: ten in Russia, three in Ukraine, four in the Baltic countries and one in Kazakhstan. Russian BBH companies include: Baltika Group (five breweries), Yarpivo Group (two breweries), Pikra, Vena/ Zolotoy Ural. Market leader in the Baltics, Kazakhstan and Russia, where 33% market share in 2003. In Ukraine BBH is No.2 with 22% of the market. About 15,000 employees. BBH is a 50:50 owned joint-venture company between Carlsberg Breweries A/S and Scottish & Newcastle plc.

Taimuraz Kazbekovits Bolloev, born in 1953. Graduated from Moscow Institute of Drinks Industry. Worked in 1980-1991 at brewing company Stepan Razin. Since 1991 the General Director, and as of 1998 the President of Baltika Brewery. Has received several personal prestigious awards and nominations for serving his home country and city, and for achievements in the industry. Voted as the best Russian Manager; Chairman of the Russian Brewers Union.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .