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Home > BizTimes Daily > Archives > March 29, 2007
Miller to build new brewery in Russia
Published March 29, 2007 - BizTimes Daily
SABMiller plc, the parent company of Milwaukee-based Miller Brewing Co., announced today that its Russian operations will invest approximately $170 million in the construction of a new brewery outside the city of Ulyanovsk.
Ulyanovsk, which lies along the Volga river, has road and rail links and is home to several raw material suppliers.
The new brewery, which will have an initial capacity of 3 million hectolitres, is expected to be operational in early 2009 and will complement the group's existing brewery in Kaluga.
SABMiller's business in Russia has achieved compound annual volume growth of approximately 30 percent over the past five years, and its Kaluga site has been expanded to a capacity of 6 million hectolitres.
Both breweries will produce SABMiller's Russian brands, including Zolotaya Bochka ("Golden Barrel"), Miller Genuine Draft and Velkopopovicky Kozel.
Alan Clark, managing director of SABMiller Europe, said, "Russia remains a strategically important market for SABMiller, and this investment will enable us to maintain our strong growth profile in the premium segment, whilst optimising our transport costs and at the same time improving our service levels to distributors and big retailers."
London-based SABMiller currently sells 6 percent of the beer in the Russian market, but its volume in the market increased 14 percent in the past fiscal year.
