Ukraine: Obolon will invest US$25-30million in the reconstruction of the former Fastovsk brewery

Obolon intends to increase in the upcoming years the brewing capacity of its subsidiary Zibert Brewery (former Fastovsk brewery) aiming to lift its annual beer output to 1 million hl. The project may require investments ranking between US$25-30 million, The Russian Brewers Union said October 16.

In particular, Obolon plans to reconstruct the brewery and to install new brewing and bottling equipment. According to Obolon president, Alexander Slobodian, Zibert Brewery plans to brew 120,000 l of beer and 210,000 l of non-alcoholic drinks.

In the first 9 months of 2006, the Ukrainian beer market saw a growth of 13-14%. Obolon’s share in the national beer output in September 2006 totaled 38.9% (+5.5% year-on-year). The company’s share on the national beer market has grown by 5.7% up to 33.7% in September 2006.

According to the Ukrpivo findings, Obolon controls 28% (25.2% in 2005) of the domestic beer market being ranked the second (28%, 25.2% in 2005) among other sector leaders, behind InBev which holds a 36.8% (36.3% in 2005) stake in the national beer market. BBH-Ukraine is the third, controlling 17.7% of the Ukrainian beer market (19.9% a year earlier). Sarmat ends the leaders’ group whit a 12.3% (13.2% in 2006) stake in the domestic beer market.

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