Beverages News
- Baltika brews up expansion plans
Date: 8-Aug-2007 Sources: (People's Daily)
Russia's largest brewer Baltika plans to double its sales in China this year, with projected growth of 10 times that figure over the next five years.
Baltika Breweries hopes to boost sales in the country from 240,000 liters in 2006 to 500,000 this year, according to its president, Anton Artemiev.
'It (Baltika's sales) can reach 5 million liters in five years' time at the current pace,' said Artemiev.
'When our market reaches 5 to 10 million liters here, we will consider producing locally in China by either building our own factory or through a license agreement with Chinese partners.'
All of Baltika's nine beer products sold in China are imported.
Tianjin Foodstuffs Import and Export Co Ltd is the sole distributor for Baltika. The beer goes to 400 bars and restaurants and retails at 10 to 35 yuan. The bulk of its sales are in Beijing, as well as Shandong, Shanxi, Heilongjiang and Henan provinces.
The company has market share of 37 percent in Russia.
It plans to find more local partners to penetrate the eastern and southern regions of China, Artemiev said.
The brewery will also double its sales points in Beijing from the existing 60 to cash in on Russian sports fans traveling to the city for the Olympics next year.
'A large number of Russian sports fans will travel to Beijing for the event. If Baltika is widely available in the city at this time it will help to enhance its brand value in the Russian market,' Artemiev said.
He said he is confident the brewery can compete with other imported beers in the local market.
China is the world's largest and fastest-growing beer market, accounting for 18 percent of global consumption, or 28.6 billion liters, according to Baltika.
Baltika began exporting to China in October 2004. It was the first Russian brewer to enter the local market.
Its brewery supplies 42 countries and regions, accounting for over 70 percent of all Russian beer exports. It sold a total of 180 million liters abroad last year, including licensed production.
Baltika Breweries is jointly controlled by Scottish & Newcastle Plc and Carlsberg. Scottish & Newcastle, the UK's largest brewer, said yesterday its net income fell 3.1 percent to 124 million pounds ($252 million), or 13 pence a share, from 128 million pounds, or 14 pence, a year earlier, missing analysts' estimates.
Sponsor Results:
