Russia: Heineken is planning to invest about EUR 60 million in the modernisation of OAO Volga Brewing Company, the largest beer-maker of Nizhny Novgorod Region, Hanz Hermann, the production director of Heineken Russia group, announced on March 22 at the presentation of the reconstruction project of Volga company for 2005-2008 years. The main investments will be made in 2005: EUR 37-38 million.

Heineken Russia said that as a result of production modernisation by the end of 2006 the volume of beer output at Volga will triple up to 2.2 million hl per annum. Heineken is planning to hold 15-20% of Russian beer market in future. To this purpose Heineken is considering possible acquisitions in other Russian cities.

On August 10 2004 the Dutch brewing concern Heineken NV signed a contract about 100% acquisition of brewing company Volga. At the moment Heineken Russia embodies a group of 4 non listed companies located in different parts of the Russian Federation: Heineken Brewery LLC in St Petersburg with brand portfolio consisting of locally produced Heineken, national brands Bochkarev, Ohota, licensed Bavarian Lowenbrau, Buckler and imported Amstel and Murphy's; Volga brewery in Nizhny Novgorod with key regional brands Rusich, Okskoye and Volga; Shikhan brewery in Sterlitamak (Bashkortostan) with popular local brands Shikhan, Solyanaya Pristan and Sedoy Ural; and Sobol Beer in Novosibirsk famous for Sobol brand.

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