Russia: "Heineken" expects to seize 20 % of Russian beer market

Dutch brewing company "Heineken" intends to get its control over more than 20 % of the Russian beer market and plans to lead re-structuring of its assets in Russia, and even to close some of its factories. The company has already accepted a development strategy which stipulates the expansion of basic brands manufacturing, a general pro-innovation approach, the increase of Russian beer market share, the improvement of USA operations efficiency and the reduction of costs, The Union of Russian Brewers communicated June 09.

As "Heineken" financial director Rene Grafland has declared, the company expects "to be on the first or second place, or at least on a strong third place. Our 14 % share of the market represents a good base for further growing. In long-term prospect we should increase our market share at least up to 20 %. We are absolutely sure that we shall reach these purposes... You will see in next three years a completely changed company, "- he said. It is supposed that expansion of "Heineken" beer manufacture will improve company’s activity financial results, as it gives the company about 40 % of profit at a twice smaller share in total amount of sales.

Russia is the world’s fifth largest beer market and "Heineken" has been the last beer giant who entered this market. "Baltic Beverages Holding" along with “Sun Interbrew " are leaders of the Russian beer market with shares of 34.9 % and 19.4 % respectively. BBH is owned by "Carlsberg" and "Scottish & Newcastle” while “Sun Interbrew” is a subsidiary of the Belgium beer giant "InBev".

"Heineken" is the world’s fourth beer manufacturer. The company is the third brewer by volume in Russia and is the owner of 10 local breweries. The next 5 years "Heineken" plans to focus on consolidating distribution activities in Ukraine.

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