Ukraine: “Baltika” beer will be produced in Ukraine by Slavutich Brewery

Slavutich Brewery announced on March 16 that the trial brewing took place in February 2006 and in March 2006 the industrial production of “Baltika #3 Classical” and “Baltika #9 Strong” was started. In 2007 they plan to start producing “Baltika #0 Non-alcoholic”. Due to the licensed production “Baltika” plans to strengthen its positions on Ukrainian market.

Acting Managing Director of “Slavutich Brewery”, OJSC Yuriy Bykoriz commented: “The license agreement is of mutual beneficial for both companies. While making the decision we took into consideration several economic factors: logistics costs, sharing of brand promotion costs. Moreover, “Baltika” releases the production capacities for production of beer for Russia. After the start of the licensed production “Baltika” will become one of the main “Slavutich Brewery” brands. In its turn “Slavutich” will receive the direct revenue proportional to “Baltika” sales volumes and is interested in the brand development on the Ukrainian market”.

The President of “Baltika Brewery” Anton Artemyev said: “The agreement became a logical development of the export activity of our company. Due to the agreement signed, “Baltika” brand will become the indisputable leader of the licensed segment of the Ukrainian market and will increase its share to 5% in the nearest 3-4 years on the beer market of the country”.

In 2006 “Slavutich Brewery”, OJSC will produce more than 2.7 million dal of “Baltika”, 2.3 million dal of which will be “Baltika #3 Classical” and the remaining 400 thousand dal of “Baltika #9 Strong”. In 2007 they plan to increase the production volume not less than by 20%.

At “Slavutich Brewery”, OJSC there was initiated a profound audit. The specialists highly estimated the quality of the equipment at the enterprise. The equipment at “Slavutich Brewery”, OJSC does not yield to “Baltika’s” in its technical characteristics. The samples of the trial consignment of “Baltika #3 Classical” brewed at “Slavutich Brewery” underwent the tests and examinations. In St Petersburg there was initiated a physico-chemical analysis and tasting panel of the first consignment of beer produced in Kiev. And according to the results there was made a decision allowing “Baltika’s” production in Ukraine.

“Baltika Brewery” has been supplying Ukraine with its products since 2000. According to the results of the previous year the sales volumes of the company made up 620 thousand dal that allowed “Baltika” to take 1.5% of Ukrainian beer market.

“Slavutich Brewery”, OJSC is one of the biggest companies on the Ukrainian beer market. “Slavutich Brewery” is represented by two breweries - one in Zaporozhye and one in Kiev. The total production capacity of both amounts to more than 440 million liters per year. “Slavutich Brewery”, OJSC and “Lvivska Brewery”, OJSC belong to BBH–Ukraine group. In 2005 BBH in Ukraine sold 4.1 million HL of beer that 13% more in comparison with the result of the last year. The main brands of the company are “Slavutich”, “Lvivske”, “Arsenal”, “Tuborg” “Baltika”. The hop beverages of the group are exported to 19 countries of the world.

“Baltika Brewery”, OJSC is the biggest beer producer of Russia and Eastern Europe. The company was founded in St. Petersburg in 1990 and since 1996 is an indisputable leader of the Russian beer industry. “Baltika Brewery” owns five breweries situated in St. Petersburg, Rostov-pon-Don, Tula, Samara and Khabarovsk with the total production capacity of 24 million HL per year. In 2005 “Baltika Brewery” sold 22.4 million HL of beer. The main brands of the company are “Baltika”, “Arsenalnoye”, licensed brands “Foster’s” and “Carlsberg” as well as a number of regional brands including “DV”, “Samara” and “Don”. These brands are sold in Russia and in 38 countries of the world. The personnel at “Baltika Brewery” amount to 7,500 people. According to the results of 2005 “Baltika Brewery”, OJSC increased the volume of its export sales by 23% compared to 2004 that made up 13.9 million dal.

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