Russia: Future business organisation of the BBH Russian breweries

Baltic Beverages Holding (BBH) announced on May 11 the future organization and the senior management team that is set to lead the development and integration of its Russian brewing operations.

In line with its long standing strategy, the group will intensify the operational coordination of its brewing businesses in Russia. This is a natural step in the development of the business: the group has tremendous strengths to build on, and the time has come to start benefiting from the nation wide network that the group and the companies in it have developed during the past 12 years of BBH operations in Russia. The new structure will be centred on Baltika, the biggest of the companies.

The appointed persons for the above positions originate from the different parts of the BBH group and are (new position, name, age, present position):

CEO: Anton Artemiev, 44, President of Baltika Brewery, appointed on May 10, 2005. Acting President of Baltika since January 1, 2005. Previously Vice-President BBH.

Finance & Administration: Peter Chernyshov, 36, General Director, Vena Brewery

Operations: Alexander Dedegkaev, 31, Vice-President Production, Baltika Brewery

Marketing: Andrei Rukavishnikov, 34, Marketing Director, Baltika Brewery

West /Export: Gavriil Navrotsky, 33, Sales Director, Baltika Brewery

Center: Viktor Semak, 35, Sales Director, Vena Brewery

East: Daniil Briman, 33, General Director, Pikra Brewery

Development & Integration: Adam Tlekhurai, 46, Vice-President, Baltika Brewery

Legal Affairs: Anton Rogachevsky, 34, Director Legal Affairs, Baltika Brewery since January 11, 2005. Previously Senior Legal Counsel, BBH

Corporate Affairs: Mervi Heinaro, 38, Director Corporate Affairs, Baltika Brewery since May 4, 2005. Previously Director Corporate Affairs, BBH

Security: Vladimir Bezugly, 49, Director HR/Admin, Baltika Brewery

Sales Development: Gavriil Navrotsky, 33, Sales Director, Baltika Brewery

During the rest of 2005 intensive planning, preoperational work and implementation of new organizational structures will be carried out, lead by the team announced today. This senior management team will assume operational responsibility function by function at the latest by January 1,2006. At that date the operational structures of the companies Baltika, Vena and Pikra will start working as one. Yarpivo that also belongs to the BBH group continues to work in close co-operation and will intensify collaboration in e.g. sales with the rest of the group companies. The suggested changes will be discussed in the Boards of the different companies.

Anton Artemiev, the newly appointed President of Baltika and the CEO of the new organization aid: “The goal is to move toward a more commercially and consumer oriented set-up, with three strong geographical business units and one national brewing and logistics network. The headquarters will be located in St. Petersburg. I am very excited about our new team that combines expertise with strong drive and motivation. I am also convinced that only by joining our forces we can achieve success in this very demanding phase of business development”.

BBH (BALTIC BEVERAGES HOLDING AB) IN BRIEF

BBH sales volume was 3,699 million litres in 2004

Net sales in 2004 were 1,377 M€ and EBITA 276 M€

BBH operates 18 breweries: ten in Russia, three in Ukraine, four in the Baltic countries and one in Kazakhstan

BBH Group’s Russian operations consist of Baltika (St Petersburg, Tula, Rostov-na-Donu, Samara, Khabarovsk), Vena (St Petersburg, Chelyabinsk), Pikra (Krasnoyarsk) and Yarpivo (Yaroslavl, Voronezh)

See www.baltika.ru, www.vena.ru, www.pikra.com , www.yarpivo.ru, www.bbh.se

About 14,000 employees

BBH is a 50:50 owned joint-venture between Carlsberg A/S and Scottish & Newcastle plc.

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