...

Baltika increases investments Azerbaijan brewery

Business Materials 22 April 2011 13:49 (UTC +04:00)

Azerbaijan, Baku, April 22 / Trend I. Khalilova /

Baltika Breweries president Anton Artemyev (Senior Vice President of Carlsberg Group in Eastern Europe) paid a working visit to Azerbaijan to attend a meeting of the Board of Directors of "Baltika-Baku" brewery. The results of the last year and plans for 2011 were discussed at a meeting in Baku yesterday, Artemyev said in an interview with Trend.

"In general, we characterize the results of the Baltika-Baku brewery as successful, as we got a profit of 11 million manat last year," he said. "The taxes worth 11 million manat, with an 8 percent growth since the previous year, were paid to the Azerbaijani state budget."

He said that the production volume at the plant increased by 11 percent last year; if taking into account export supplies, the plant's production volume has increased by 13 percent.

"However, during the meeting there were some questions about the development of our share in the Azerbaijani market," he said. "According to the research, it slightly decreased. But this does not cause significant concerns because the current level is still quite high. It hits about 80 percent."

This figure covers the beer market in Baku, the surrounding regions and, though slightly, the more remote areas. Moreover, major efforts on the plant's sales development and accelerating the market share have been recently brought into the regions.

"We have always had a very high percentage in Baku," he said. "We consider the situation as stable. We have implemented very serious investments, improved product quality and began producing the beer that was previously imported to Azerbaijan since 2009."

He said that it is very important for the plant.

At present, the maximum capacity of the "Baltika-Baku" brewery is 10 million decaliter a year, while the needs of the Azerbaijani market are estimated at 6 million decaliter. Last year the plant produced more than 330,000 dal of beer (with an increase by 13 percent compared to 2009).

"The plans on accelerating the production volumes for 2011 will depend on weather conditions, but due to the stable economic situation in Azerbaijan we rely on increasing the volumes of the beer market," he said.

The Board of Directors of the brewery also discussed the investment plans of the brewery for 2011.
"After the investment program was implemented in 2009, estimated at over $20 million, we have production volumes of quality products to the amount of 10 million dal," he said. "That is why today's capacity is sufficient to fully meet the needs of the beer in the country even during the peak period".

He said that the significant investments in modernizing the line of canned beer, purchasing the refrigeration and implementing other measures are planned to be made this year.

The Khirdalan brewery, launched in 1969, belonged to the Baku-Beer production union. It was one of six major breweries in the USSR. The plant moved to the management of French Group Castel concern in 1997. The brewery was mainly reconstructed in 1999.

The Baku Castel brewery was opened in 2000. Its annual output hit six million deciliter of beer with room for growth of up to 10 million deciliter.

By 2008 production covered more than 70 percent of the beer market in Azerbaijan. "Baltika" and Brasseries Internationales Holding (Eastern) Ltd (BIH Eastern) signed an agreement to buy the brewery in Khirdalan on May 15, 2008. After the deal was approved by Azerbaijani antitrust authorities, the brewery became a part of "Baltika". The brewery was renamed to "Baltika-Baku" in early 2009.

Baltika Breweries is the leader of the Russian beer market since 1996. The company has breweries in 10 cities of Russia, one plant in Azerbaijan, a broad portfolio of more than 40 brands including such well known brands as Baltika, Neva, Yarpivo, Arsenalnoye, Tuborg and Carlsberg. Baltika brand ranks first in European sales.

The official exchange rate is 0.7917 manat to $1.

Latest

Latest