SABMiller invests in second Russian brewery

LONDON – Brewing giant SABMiller Plc said yesterday it was to invest around US$170 million to build a second brewery in Russia to boost its presence in one of the world’s fastest growing beer markets.

The world’s second biggest brewer said the brewery, outside the city of Ulyanovsk – around 1 000 km east of Moscow on the River Volga – will have an initial capacity of 3 million hectolitres, and is set to start production in early 2009. The new brewery will complement the London-based group’s existing Russian brewery in Kaluga, some 180 km south west of Moscow, which has an annual capacity of 6 million hectolitres.Russia is the world’s fifth largest beer market behind China, the United States, Germany and Brazil and along with China is one of the world’s fastest growing, and currently has been boosted by an exceptional mild winter.SABMiller, whose main beer brands includes Castle, Miller Lite, Peroni and Snow, is Russia’s fifth largest brewer with a market share of six per cent, but is well behind market leader Baltic Beverages Holding (BBH) with 36,4 per cent and also InBev, Heineken NV and Efes.The Baltika-brewer BBH is jointly owned by Scottish and Newcastle Plc and Carlsberg A/S.Both SABMiller breweries will produce its Russian brands including Zolotaya Bochka (Golden Barrel), international brand Miller Genuine Draft and Czech beer Velkopopovicky Kozel, which are three of Russia’s top 10 premium beers.The group said in the year to March 2006, it grew volumes by 14 per cent in Russia, or at about twice the rate of the market.Nampa-ReutersThe new brewery will complement the London-based group’s existing Russian brewery in Kaluga, some 180 km south west of Moscow, which has an annual capacity of 6 million hectolitres.Russia is the world’s fifth largest beer market behind China, the United States, Germany and Brazil and along with China is one of the world’s fastest growing, and currently has been boosted by an exceptional mild winter.SABMiller, whose main beer brands includes Castle, Miller Lite, Peroni and Snow, is Russia’s fifth largest brewer with a market share of six per cent, but is well behind market leader Baltic Beverages Holding (BBH) with 36,4 per cent and also InBev, Heineken NV and Efes.The Baltika-brewer BBH is jointly owned by Scottish and Newcastle Plc and Carlsberg A/S.Both SABMiller breweries will produce its Russian brands including Zolotaya Bochka (Golden Barrel), international brand Miller Genuine Draft and Czech beer Velkopopovicky Kozel, which are three of Russia’s top 10 premium beers.The group said in the year to March 2006, it grew volumes by 14 per cent in Russia, or at about twice the rate of the market.Nampa-Reuters