Sun Interbrew focuses investment on Siberia

Related tags Investment

Sun Interbrew has confirmed that it is preparing to invest
significantly in a number of its production facilities in Russia
and that the programme will focus considerably on its Omsk facility
in Siberia.

Although Sun Interbrew​ would not confirm the amount it was prepared to spend on the programme, a report from Siberian news service RIA said that the company was planning to spend €50 million on the first stage of the programme to upgrade the facility, whilst a second stage was mooted for an €85 million investment.

"There is particularly strong growth in eastern Russia and this is the geographical area that the Omsk facility services,"​ said Ben Foster, an analyst at Financial Dynamics. "Although Sun Interbrew has said that investment will be made in a number of production facilities throughout Russia, investments are expected to be significant in the Omsk facility because of the market growth in the region."

Foster also confirmed that the investment to expand the Omsk facility was already underway.

The Omsk brewery was first built in 1980 and in 1998 it underwent a major programme to renovate and extend the facilities. In 1999 the then owner ZAO Rosar was bought up by Sun Interbrew and since then the facility has become one of the most successful business ventures in Siberia.

"Currently the group is growing its beer volumes well ahead of the national average of 6.5 per cent,"​ said Foster. "Last year Sun Interbrew beer production in Russia grew by 28.6 per cent to 16.1 million hecolitres. Obviously with this rate of growth the company's production facilities are racing to keep up with demand."

Sun Interbrew has production facilities throughout Russia, including St. Petersburg, Klin, Ivanovo, Kursk, Perm, Saransk, Volzhsky, Novocheboksarsk as well as a further three facilities in Ukraine.

Recently the company released its 1st quarter results, which showed that the company's beer volumes had grown 43 per cent compared to the previous year. In turn net turnover had increased 70 per cent on the previous quarter, allowing the company to cut back its net losses from €7.1 million to €1.8 million.

Related topics Market trends

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