Baltika Breweries

Baltika Brewery (Russian: Пивоваренная компания "Балтика") is the second largest brewing company in Europe[1] and the leader of the Russian beer market with over 38% market share. It is headquartered in St. Petersburg and owned by the Danish brewing company Carlsberg.

"Baltika" redirects here. For other uses, see Baltica.

Baltika
Native name
Балтика
Limited liability company
IndustryBeverages
Founded1990
HeadquartersSaint Petersburg, Russia
Key people
Isaac Sheps (President)
RevenueRUB 89.3 billion (2012)
RUB 6.3 billion (2012)
Number of employees
approx. 9000
ParentCarlsberg Group
Websitewww.baltika.ru

The Baltika brand was one of the two Russian brands (together with Lukoil) included in the Financial Times Top100 Most Valuable Global Brands list in 2007. However, Baltika did not enter this ranking in 2009. Baltika is one of the top-three brands in the Interbrand Best Global Brands 2012 report.

History
Tins of Baltika (No.3 and No.7)

Baltika Breweries launched production in St.Petersburg in 1990. It was co-founded by Afghan born Naif Achakzai and Nikita Kefirov. After privatization in 1992 the company was reorganized into an open joint stock company. In 1993 Baltic Beverages Holding Brewing Concern became the company's largest shareholder. In 1998 the name of the enterprise was changed to Open Joint Stock Company Baltika Breweries. 2000 saw the opening of the largest Soufflet Malting Plant in Russia built by Baltika in St.Petersburg together with the French company "Groupe Soufflet". The French partners invested approx. $35 million in the project and received 70% ownership of the plant. Baltika covered the rest of the expenses and received 30% of the shares.

The company listed on the Rts stock exchange in September 2001; by January 2002 it had reached a market capitalization of $1.3 billion.[2]

At the end of 2006, Baltika merged with three Russian breweries – Vena, Pikra and, Yarpivo, and in 2007 they became one legal entity.[3]

In April 2008, Baltika became part of the International Carlsberg Group. Baltika is now a part of its Eastern Europe region which also includes Azerbaijan, Belarus, Kazakhstan, Ukraine, Uzbekistan, Georgia and Moldova. In 2008 Baltika bought a brewery in Azerbaijan.

Following the purchase of the company by the Carlsberg Group, Baltika delisted from the Moscow stock exchange in October 2012.[4]

Capacity

Baltika's monthly production capacity is over 5.2 million litres. The company portfolio includes more than 30 beer brands and 9 non-beer brands available in 98% of the points of sale around Russia. According to the company data, in 2012 its products were exported to over 60 countries around the world including countries of Western Europe, North America and Asia-Pacific regions.

Company Structure

The personnel numbers approximately 9000 people. In 2012 Baltika sold 34.6 million hectolitres of beer. Total sales abroad amounted to 2.8 million hectolitres including licensed production. This is 7.5% of the total company sales. This figure also includes sales of the company's brands in the licensed markets. Baltika's brands are produced under the license in Ukraine, Kazakhstan, and Azerbaijan. Baltika No. 3 is the only Russian beer produced under contract in Germany.

According to Russian accounting standards, Baltika's revenue in 2012 amounted to approx. RUB 89.3 billion; net profit was RUB 6.3 billion. Year-end 2012 Baltika's share in the Russian beer market was 38.2% (according to AC Nielsen). The volume of total tax deductions to all budget levels and non-budget funds amounted to RUB 60.2 billion in 2012.

Owners and management

The Scandinavian brewing concern Baltic Beverages Holding (part of Carlsberg Group, 100% ownership) is Baltika's main owner. In November 2012 Carlsberg Group finished the buy-out of Baltika shares.[5]

President of Baltika Breweries is Isaac Sheps.

Production sites

The company has several production sites:

  • Headquarters and Baltika – St Petersburg brewery
  • Baltika-Baku brewery (Baku, Azerbaijan)
  • Baltika-Voronezh brewery
  • Baltika-Novosibirsk brewery
  • Baltika-Rostov brewery
  • Baltika-Samara brewery
  • Baltika-Tula brewery
  • Baltika-Khabarovsk brewery
  • Baltika-Yaroslavl brewery

Baltika's brands

Many varieties of Baltika are commonly available in Russia
Baltika Krepkoe – Baltika's strongest beer.

Baltika

Baltika No. 0, non-alcoholic beer (less than 0.5% alcohol). Export markets include the United States, Cuba, Japan and New Zealand.

Carlsberg

Carlsberg was first brewed in 1847 in Denmark. Today it is available in 140 countries around the world. Since 2002, Carlsberg has been produced at Baltika breweries. The alcohol content is not less than 5.0%, pasteurized, unpreserved.

  • Carlsberg (alcohol content – not less than 4.6%)
  • Carlsberg non-alcoholic beer (alcohol content – not less than 0.5%)

Tuborg

Tuborg appeared in Denmark in 1873. Since 2000 produced under license in St Petersburg.

  • Tuborg Green (alcohol content – not less than 4.6%)
  • Tuborg Black (alcohol content – not less than 4.8%)

Holsten

Produced in Germany since 1953, Baltika started its production under license in 2004. Holsten is brewed in the German Reinheitsgebot tradition [6]

  • Holsten (alcohol content – not less than 4.8%)
  • Holsten Weiss (alcohol content – not less than 5%)

Kronenbourg 1664

Produced in Russia since November 2004. Alcohol content is not less than 5.0%. The beer is packaged in aluminium cans and glass bottles (0.46-liter), pasteurized and unpreserved.

  • Kronenbourg 1664 (alcohol content – not less than 4.5%)
  • Kronenbourg 1664 Blank (alcohol content – not less than 4.5%)

Corona Extra

The beer is exclusively produced in Mexico by the Grupo Modelo Company and exported to more than 150 countries around the world. Baltika is the only distributor in Russia, Belarus, Kyrgyzstan, Turkmenistan, and Uzbekistan.

Old Bobby[7]

The beer is brewed according to the traditional English recipes using the English Pale Ale Malt. Available in Russia since November 2010.

  • Old Bobby Lager (pale, alcohol content – not less than 4.5%)
  • Old Bobby Ale (dark, alcohol content – not less than 4.5%)

Asahi Super Dry

This Japanese beer was first brewed on 17 March 1987. Today Asahi Super Dry is available in more than 50 countries and produced under license in China, Thailand, the Czech Republic, Great Britain, Canada, and Russia under the constant control of Japanese brewers.

Eve

Since December 2009 Eve is produced in Russia under the license of Carlsberg Breweries. It is specially designed for women, contains only natural ingredients and has three variants:

  • Eve with Passion Fruit Juice (alcohol content – not less than 3.1%)
  • Eve with Grapefruit Juice (alcohol content – not less than 3.1%)
  • Eve with Peach Juice (alcohol content – not less than 3.1%)

Karmi

Produced by Baltika under Carlsberg Group license, launched in 2013.

Nevskoe

The Nevskoe (Russian: Невское) beer appeared on the market at the beginning of the 1990s. Today this brand has five sorts:

  • “Nevskoe Original” (Russian: "Невское Оригинальное") (alcohol content – not less than 5.7%)
  • "Nevskoe Pale" (Russian: "Невское Светлое") (alcohol content – not less than 4.6%)
  • "Nevskoe Classic" (Russian: "Невское Классическое") (alcohol content – not less than 5%)
  • "Nevskoe ICE" (Russian: "Невское ICE") (alcohol content – not less than 4.7%)
  • "Nevskoe Live" (Russian: "Невское Живое") (alcohol content – not less than 4.8%)

Yarpivo

The brand was rolled out in 1998 in Yaroslavl. Now it has five sorts produced at the company breweries in Chelyabinsk, Voronezh, St Petersburg, Tula, Khabarovsk, and Samara.

  • "Yarpivo Strong" (Russian: "Ярпиво Крепкое") (alcohol content – not less than 7.2%)
  • "Yarpivo Amber" (Russian: "Ярпиво Янтарное") (alcohol content – not less than 5.3%)
  • "Yarpivo Ice" (Russian: "Ярпиво Ледяное") (alcohol content – not less than 4.9%)
  • "Yarpivo Original" (Russian: "Ярпиво Оригинальное") (alcohol content – not less than 4.7%)

Zatecky Gus

The beer is brewed according to the original recipe using aromatic Zatecky hop from the Czech Republic. Zatecky Gus Cerny was launched in May 2010 and Zatecky Gus Domaciz Taverny appeared in 2012.

  • "Zatecky Gus" (alcohol content – not less than 4.6%) – pale.
  • "Zatecky Gus Cerny" (alcohol content – not less than 3.5%) – dark.
  • "Žatecký Gus Ležák"

Koff

Koff is produced under license of Sinebrychoff Oy (Finland) since 2012.

Dargon

Since 2012, Dargon is available in Russia. It is brewed according to the traditional Asian recipe using rice.

Arsenalnoye

The Arsenalnoye beer (Russian: "Арсенальное") was produced for the first time in Tula in 2000. Today this brand includes six varieties:

  • “Arsenalnoye Traditional” (Russian: "Арсенальное Традиционное") (alcohol content – not less than 5.1%)
  • "Arsenalnoye Strong" (Russian: "Арсенальное Крепкое") (alcohol content – not less than 7%)
  • "Arsenalnoye Classic" (Russian: "Арсенальное Классическое") (alcohol content – not less than 4.5%)
  • "Arsenalnoye Live" (Russian: "Арсенальное Живое") (alcohol content – not less than 4.0%)
  • "Arsenalnoye Ice" (Russian: "Ледяное") (alcohol content – not less than 4.7%) – since February 2013.

Bolshaya Kruzhka

Bolshaya Kruzhka (Russian: "Большая Кружка") is brewed with the use of "long fermentation" traditional technology. It is available around Russia and exported to other countries.

  • "Bolshaya Kruzhka Live" (Russian: "Большая Кружка Живое") (alcohol content – not less than 4%)
  • "Bolshaya Kruzhka Strong" (Russian: "Большая Кружка Крепкое") (alcohol content – not less than 7%)
  • "Bolshaya Kruzhka Amber" (Russian: "Большая Кружка Янтарное") (alcohol content – not less than 4%)
  • "Bolshaya Kruzhka Cask Barley Beer" (Russian: "Большая Кружка Ячменное Бочковое") (alcohol content – not less than 4.5%)

Zhigulevskoye

Produced since 1990 when Baltika Breweries was founded. Zhigulevskoye (Russian: "Жигулевское") is available in Russia and exported to Germany, Israel, Greece, Portugal, the USA, Mongolia, the Baltics and the CIS.

Don

Don (Russian: "Дон") is a regional brand launched in spring 1998 at Baltika-Rostov brewery. It was specially created for the residents of South Russia.

  • "Don Live" (Russian: "Дон Живое") (alcohol content – not less than 4.0%)
  • "Don Classic" (Russian: "Дон Классическое") (alcohol content – not less than 4.5%)
  • "Don Ice" (Russian: "Дон Ледяное") (alcohol content – not less than 4.2%)
  • "Don Home" (Russian: "Дон Домашнее") (alcohol content – not less than 3.8%)

Sibirsky Bochonok

Sibirsky Bochonok is a regional brand specially introduced to the market in May 2008 for the occasion of Baltika – Novosibirsk brewery opening.

  • Classic (alcohol content – not less than 4.7%)
  • Strong (alcohol content – not less than 8%)
  • Frosty (alcohol content – not less than 4.5%)
  • Live (alcohol content – not less than 4%)

DV

DV is a regional brand and pride of Baltika-Khabarovsk brewery. Produced since April 2003.

  • Live (alcohol content – not less than 4.4%)
  • Classic (alcohol content – not less than 4.7%)
  • Strong (alcohol content – not less than 7%)
  • Ice (alcohol content – not less than 4.5%)
  • Rice (alcohol content – not less than 4.2%)

Samara

Samara is a regional brand produced since 2003 at Baltika-Samara brewery. The first batch was brewed on the day of its opening.

  • Live (alcohol content – not less than 4.0%)
  • Classic (alcohol content – not less than 5.0%)
  • Pale, ice filtration (alcohol content – not less than 4.0%)

Other drinks
  • "Khlebny Krai Traditional" kvass (alcohol content – not more than 1.2%)
  • "Khlebny Krai 7 Grains" kvass (alcohol content – not more than 1.2%)
  • "Zhivoy Ruchey" water
  • "Flash Up" – energy soft drink

Low-alcohol cocktails:

  • Sinebrychoff
  • Morsberry
  • Indiana Juice
  • Crazy Cola (three types):
    • Crazy Cola
    • Crazy Lemon
    • Crazy Orange

Interesting facts
  • In 2003, the Baltika brand became available in the United Kingdom. This brand was considered to exist within the 'super-premium' sector of the market, with a 500ml bottle costing $6-7 USD within the country, compared to $2-3 USD within the United States at the time.
  • In 2008, Baltika started "Beer Patrol" initiative to raise awareness of minors' access to beer.
  • In 2011, Baltika launched the "Beer sommelier" project to promote responsible consumption culture and educate about beer brewing technology, different beer sorts, and tasting rules.
  • According to Forbes data, Baltika is one of the ten most dynamic Russian brands.
  • Baltika brewery in St. Petersburg is considered to be the largest brewery in Europe. The area occupied by the brewery is equal to that of the Vatican.
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See also

References
  1. "The Second Largest Brewery in Europe". www.panorama.com. Panorama. Archived from the original on 17 June 2016. Retrieved 28 July 2015.
  2. ""Балтика" дороже всех". Газета "Коммерсантъ С-Петербург". 21 January 2002. p. 2. Retrieved 29 August 2017.
  3. "The successful merger of Baltika, Vena, Yarpivo and Pikra companies made it possible to achieve high financial results in 2006". eng.baltika.ru/. Baltika. Retrieved 15 March 2007.
  4. "Carlsberg says gets approval for Baltika delisting". Reuters. 2012. Retrieved 29 August 2017.
  5. Loh, David (29 November 2012). "Carlsberg buys out Russia´s Baltika". Reuters. Reuters.
  6. "Holsten Pilsner". Carlsberg Group. Carlsberg Group. Retrieved 26 September 2016.
  7. "Old Bobby". eng.baltika.ru. Baltika. Archived from the original on 25 March 2016. Retrieved 19 April 2016.
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