President of Baltika Breweries Anton Artemyev and Director of Scottish & Newcastle Plc. John Nicolson signed a license agreement for production of the Baltika No. 3 Classic beer in the U.K. until 2022.
"The start of licensed production in Western Europe of Baltika, one of Russia's most popular brands, is a natural step in the process of integrating Russia into the world economy," Artemyev said.
Starting in May 2007, Russia's number one beer brand will be produced and bottled at the Camerons Brewery in the city of Hartlepool, the company said.
According to consumer polls in the U.K., Baltika is considered the most popular Russian brand in the country. More than 500,000 liters of Baltika No. 3 was sold there in 2006.
Baltika No. 3 has been placed in the U.K. in the segment of International Specialty Beers (or World Beers) and has a premium price positioning. The brand targets well-educated cosmopolitan consumers, aged 25-35.
Baltika also plans to extend its distribution network in the U.K. to 2,800 points of sale (bars, restaurants, cafes) and 1,500 retail outlets by the year-end.
Estimated sales of Baltika No. 3 in the U.K. this year will exceed 1 mln liters, the company said.
Baltika Breweries began exporting its products in 1999. At present, it accounts for more than 80% of all Russian beer exports.
In February 2006, production of Baltika brand was launched in Ukraine. By the end of the year, sales of Baltika beer in Ukraine had grown by 37%, more than double the rate of growth of the Ukrainian beer market as a whole.
Baltika Breweries is a leader on the Russian beer market with a share over 36% and one of the leading European beer producers.
In 2006, Baltika Breweries sold 18 million deciliters of beer abroad (including license-produced beer), which is 27% more than in 2005. The Baltika brand accounted for more than 80% of the company's sales abroad.
Since 1993, the majority shareholder of the company has been Baltic Beverages Holding AB (BBH), which, in turn, is owned by Carlsberg Breweries A/S (50%) and Scottish & Newcastle Plc. (50%). BBH owns 85.6% of Baltika Breweries shares.
