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Guinness to be sold in Russia
Thu Jan 20, 2005 01:56 PM GMT
By Melanie Cheary
AMSTERDAM (Reuters) - Dutch brewer Heineken says it will make and distribute Guinness stout in Russia with drinks giant Diageo, and that it plans further expansion in the growing Russian beer market.
Heineken Brewery will become the authorised importer and distributor of Guinness and Kilkenny brands in Russia from July 1, the company said in a statement on Thursday.
Heineken NV, the world's fourth largest brewer in terms of sales, said it will start local production of Guinness Foreign Extra Stout under license in St Petersburg before July 2005.
The deal opens up lucrative revenue streams for Heineken and Diageo (DGE.L: Quote, Profile, Research) as they tap into the fast-growing international licensed brand segment of the Russian beer market.
The companies did not reveal the financial terms of the deal.
"Heineken becomes the first one to start brewing the real stout proposition brand on the Russian beer market," Roland Pirmez, chief executive of Heineken Russia, said in a statement.
Heineken, which is rumoured to be in talks on raising its stake in China's Kingway Brewery Holdings, has identified Russia as a key growth market and reiterated on Thursday that it plans to expand there.
"We really want to expand autonomously and through acquisitions in Russia," a Heineken spokeswoman said.
The Dutch brewer, which in Russia holds the Bochkarav brand, said last October that it was buying West Siberia's Sobol Beer brewery, which has an annual production capacity of 1.2 million hectolitres. Last August, Heineken acquired Central European Brewing Company and Volga Brewery.
The market leader in Russia is Baltic Beverages Holding, a joint venture of Scottish & Newcastle (SCTN.L: Quote, Profile, Research) and Denmark's Carlsberg.
Heineken shares were down 0.65 percent at 25.81 euros while Diageo shares were 0.27 percent lower at 736-1/2 pence.
? Reuters 2005. All Rights Reserved
--------------------------------------------------------------------------------
Guinness to be sold in Russia
Thu Jan 20, 2005 01:56 PM GMT
By Melanie Cheary
AMSTERDAM (Reuters) - Dutch brewer Heineken says it will make and distribute Guinness stout in Russia with drinks giant Diageo, and that it plans further expansion in the growing Russian beer market.
Heineken Brewery will become the authorised importer and distributor of Guinness and Kilkenny brands in Russia from July 1, the company said in a statement on Thursday.
Heineken NV, the world's fourth largest brewer in terms of sales, said it will start local production of Guinness Foreign Extra Stout under license in St Petersburg before July 2005.
The deal opens up lucrative revenue streams for Heineken and Diageo (DGE.L: Quote, Profile, Research) as they tap into the fast-growing international licensed brand segment of the Russian beer market.
The companies did not reveal the financial terms of the deal.
"Heineken becomes the first one to start brewing the real stout proposition brand on the Russian beer market," Roland Pirmez, chief executive of Heineken Russia, said in a statement.
Heineken, which is rumoured to be in talks on raising its stake in China's Kingway Brewery Holdings, has identified Russia as a key growth market and reiterated on Thursday that it plans to expand there.
"We really want to expand autonomously and through acquisitions in Russia," a Heineken spokeswoman said.
The Dutch brewer, which in Russia holds the Bochkarav brand, said last October that it was buying West Siberia's Sobol Beer brewery, which has an annual production capacity of 1.2 million hectolitres. Last August, Heineken acquired Central European Brewing Company and Volga Brewery.
The market leader in Russia is Baltic Beverages Holding, a joint venture of Scottish & Newcastle (SCTN.L: Quote, Profile, Research) and Denmark's Carlsberg.
Heineken shares were down 0.65 percent at 25.81 euros while Diageo shares were 0.27 percent lower at 736-1/2 pence.
? Reuters 2005. All Rights Reserved
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