Russia: BBH reported beer volume growth of 16% in July and August, compared to market growth of 14%

Baltic Beverage Holding (BBH) reported that in the months of July and August, its beer volume in Russia has grown by 16% versus a market growth of 14%. A major driver for the exceptional Russian market growth in these months has been disruption in spirits and wine supply. The newly integrated Baltika sales and distribution network has been well positioned to build on the performance in the first half.

In August, BBH announced its results for the half year ending 30 June 2006, which showed volume growth of 6% and EBIT growth in Euros of 31%.

Given the better than expected market performance in July and August, BBH is very confident of achieving the guidance given at the half year results. The brewer added that the newly integrated Baltika sales and distribution network has been well positioned to build on the performance in the first half. A further update will be given at the third quarter BBH results on 8 November 2006.

Baltic Beverages Holding is a 50:50 joint venture between Scottish & Newcastle plc and Carlsberg A/S. It operates in six countries in Eastern Europe, including Russia where it is the market leader with a 36% market share.

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