Russia: SUN Interbrew is to produce and distribute Löwenbräu® in Russia
Heineken Russia and SUN Interbrew Limited (SIL) announced on October 7 the signing of an agreement to transfer rights related to the production and distribution of the Löwenbräu® brand in the territory of the Russian Federation.
Originally belonging to the Spaten-Löwenbräu group, the Löwenbräu® brand was acquired by InBev in 2004. Löwenbräu® was brewed by Heineken for over six years at its facility in St. Petersburg. Now Heineken Russia and InBev have agreed that the famous Bavarian brand can be transferred to SUN Interbrew, InBev’s Russian subsidiary.
Effective November 3, 2005, SUN Interbrew will be responsible for the distribution of Löwenbräu® beer in Russia. In the meantime, Heineken Brewery LLC in St. Petersburg will continue brewing Löwenbräu® for SIL until February 28, 2006. As from March 1, 2006, SUN Interbrew will have full responsibility for the production and distribution of Löwenbräu® in Russia.
Heineken Russia will receive financial compensation in relation to the changes related to the Löwenbräu® brand. The parties have agreed that the amount of such compensation will remain confidential.
Heineken Russia embodies a group of 10 non-listed companies located in different parts of the Russian Federation. Heineken NV acquired the first brewery in 2002 in St. Petersburg (Heineken Brewery LLC), complementing its portfolio with the well-known national brands such as Bochkarev, Ohota and licensed Bavarian Lowenbrau. Local production of Heineken and Buckler beers started in 2003. In July 2005, Guinness Foreign Extra Stout was launched, together with exclusive distribution contract of Draught Guinness and Kilkenny. Other breweries that joined Heineken Russia 2004-2005 are: Volga brewery in Nizhni Novgorod, Shikhan brewery in Sterlitamak (Bashkortostan republic), Sobol Beer in Novosibirsk, Patra brewery in Yekaterinburg, Stepan Razin brewery in St. Petersburg, Baikal brewery in Irkutsk, and Ivan Taranov Breweries (ITB) located in Kaliningrad, Novotroitsk and Khabarovsk. Altogether there are 33 brands in the existing brand portfolio of Heineken Russia. The acquisitions provided the company with market share of 14 %. Heineken Russia is employer of over 7500 people.
SUN Interbrew Limited (SIL) is the second largest brewer in Russia and the market leader in Ukraine. The company was set up in 1999 as a strategic partnership between InBev, the No. 1 global brewer, and the SUN Group, operating in the region since 1958, and in the beer sector of Russia and CIS since the beginning of 1990s. Now SUN Interbrew is a full member of InBev’s group of companies who own an almost 100% economic interest in SIL. SUN Interbrew has production facilities located in 9 cities in Russia and 3 in Ukraine and its own distribution network. The company’s main brands are Stella Artois®, Beck’s®, Staropramen®, BRAHMA®, Sibirskaya Korona, Tinkoff, Klinskoye, T, Tolstiak, Chernigivske, Rogan, and Yantar. SUN Interbrew employs some 9,000 people in Russia and Ukraine.
For more information please visit www.suninterbrew.ru
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