30 Nov 2010 19:10

Ochakovo expects revenue to rise 9.4% in 2010

MOSCOW. Nov 30 (Interfax) - Russian brewer Ochakovo Group expects revenue to rise to 17.5 billion rubles in 2010, an increase of 9.4% over revenue of about 16 billion rubles last year, President Alexei Kochetov told Interfax.

The excise tax hike made 2010 a difficult year for Ochakovo, Kochetov said. "As we anticipated, there was significant drop in beer sales," he said.

Beer sales will be 10% below this year's target of 38 million dekaliters, the same as in 2009. Ochakovo's share of the Russian market is estimated to equal 4.5%-5%.

However, sales of kvass rose to 24 million dal, up from 15 million dal in 2009, mainly due to the heat wave in July and August. Kvass generated 31% of sales revenue, compared with 57% for beer.

Ochakovo produces other non-alcoholic beverages, premixed cocktails, wine and liquor. Sales of those lines also increased in 2010, "but not to the same extent as kvass," he said.

Ochakovo plans to boost sales in natural terms at least 8% in 2011, Kochetov said. Revenue will increase at least 10% because product prices will rise owing to higher costs for grain, sugar and spirits.

Ochakovo includes 18 enterprises that produce beer, non-alcoholic beverages, malt and wine. The group also owns Saturn, which manufactures solar cells and batteries used in space vehicles.

The company's core facility is the Ochakovo beer and non-alcoholic beverages plant in Moscow, created in 1978 and privatized in 1993. Company executives own major stakes in the company, including Kochetov (38%), Vice President Nina Metlenko (23.9%), Kochetov's daughter Inna Kochetova (16.3%) and Vladimir Antonov (2.8%).