SABMiller Proclaims New Brewery Investment in its Russian Operations
SABMiller’s business in Russia has enjoyed compound annual volume growth of approximately 30% over the last 5 years, and its Kaluga site has now been expanded to a capacity of 6 million hectolitres.
19/04/07 SABMiller plc, one of the world’s leading brewers, announces that its Russian operations will invest approximately US$170 million in the construction of a new brewery outside the city of Ulyanovsk, which is located approximately 1000 kilometres East of Moscow. The city of Ulyanovsk, which lies on the Volga river, enjoys good road and rail links and is home to a number of raw material suppliers.
The new brewery, which will have an initial capacity of 3 million hectolitres, is expected to be operational in early 2009 and will complement the group’s existing brewery in Kaluga, which is located some 180 kilometres south west of Moscow. SABMiller’s business in Russia has enjoyed compound annual volume growth of approximately 30% over the last 5 years, and its Kaluga site has now been expanded to a capacity of 6 million hectolitres. Both breweries will produce SABMiller’s Russian brands, including Zolotaya Bochka (“Golden Barrel”), Miller Genuine Draft and Velkopopovicky Kozel; which together comprise 3 of Russia’s top 10 leading brands in the premium segment.
Alan Clark, managing director of SABMiller Europe, commented:
“Russia remains a strategically important market for SABMiller and this investment will enable us to maintain our strong growth profile in the premium segment, whilst optimising our transport costs and at the same time improving our service levels to distributors and big retailers.“
SABMiller’s current market share in Russia is 6% on a volume basis, or an estimated 15% of industry profitability. In the year to March 2006, the company generated volume growth of 14% in Russia, twice the rate of the market.
