Russia: Baltika Brewing in talks to buy two large Russian beer maker

Baltika Brewing Company LLC is holding negotiations to buy two large breweries in Chuvashia and Tatarstan, Buket Chuvashii and Bulgarpivo, business daily Vedomosti reported on November 14, citing three sources familiar with the progress of the talks.

Baltika is interested in Buket Chuvashii primarily because it has its own malt production, one of the sources told the paper.

The deal is already in the approval process at the Federal Antimonopoly Service (FAS).

The sources did not specify the price. Analysts estimate the two breweries are worth about 3 billion rubles, the paper said.

Baltika's press service declined to comment, and Buket Chuvashii, Bulgarpivo and the FAS did not respond to questions, Vedomosti said.

Buket Chuvashii, which opened in 1974, has capacity to produce over 80 million liters of beer annually. It also produces barley and rye malt, kvas and other products, and operates 22 stores under the Diky Los brand.

Bulgarpivo, which was founded in Naberezhnye Chelny in 1981, is the "largest brewery in the Kama region," according to its website. The brewery makes 40 types of products, including beer, kvas, nonalcoholic beverages, and mineral and drinking water, and has capacity to produce 130 million liters per year.

The Tatarstan division of Russia's Federal Tax Service, which had filed a bankruptcy lawsuit against Bulgarpivo over back taxes, reached a settlement with the brewery in October 2023 under which the latter pledged to pay 487.7 million rubles in debt on social security contributions, taxes and penalties.

Baltika is Russia's second largest brewer, with eight breweries.