Baltika plans sell license to brew beer in Kazakhstan for EUR 90 mln
MOSCOW. Nov 2 (Interfax) - Baltika Breweries , one of Russia's leading beer makers, plans to organize production in Kazakhstan and to make EUR 90 million from the sale of its license there, Baltika said in materials for an EGM which will vote on the issue on December 2.
Baltika would sign a deal with Kazakh brewer Derbes, and receive a quarterly royalty of 4.5% of net revenue from the sale of licensed beer.
The contract would expire on December 31, 2029.
Derbes, like Baltika, is a member of the Carlsberg group.
Baltika has been shipping beer to Kazakhstan since 2000. Its sales in Kazakhstan grew 18% to more than 9.5 million dal in 2008.
Nielsen market research indicates Baltika had 24% of the Kazakh market.
Derbes had 21% of the Kazkah market as of August this year and us capable of producing over 2.2 million hectoliters of beer annually at its breweries.
Baltika beers are already produced under license in Ukraine, Uzbekistan, Britain and Australia.
Baltika Breweries is the largest FMCG producer in Russia. Since 1996 it has been the leader on the Russian beer market. The Company comprises breweries in 10 cities around Russia and one brewery in Azerbaijan. It has a broad portfolio of more than 40 brands, including such famous brands as Baltika, Nevskoye, Yarpivo, Arsenalnoye, Tuborg, and Carlsberg.
The Carlsberg-owned Baltic Beverages Holding (BBH) owns 85.6% of Baltika.