SABMiller acquires Russia's LLC Vladpivo

13 Jun 2008

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UK-based brewer SABMiller has announced its acquisition of Russian brewer LLC Vladpivo, which has an annual capacity of one million hectoliters of beer for an undisclosed amount, only saying that the value of the gross assets to be acquired was about $69-million. 

The acquistion would shore up its position in the Rusian beer market after the largest Russian brewer, Baltic Beverages Holding, was acquired jointly by Carlsberg and Heinekin, when the two took over Scottish & Newcastle in January, this year.

SABMiller itself was keen on bidding for Scottish & Newcastle, which along with Carlsberg had jointly owned Baltic Beverages Holding, but was outbid by the Carlsberg-Heineken combine.

Now, the Vladpivo acquisition gives SABMiller its third brewery in Russia, where it has a facilty in Kaluga and is building another at Ulyanovsk, scheduled for completion in 2009, in the Rusian far east, the fastest growing beer market in Russia with a current market share of 7.6 per cent.

Between 2007 and 2013, the region is expected to grow faster than the entire Rusian beer market and through the acquisition of Vladpivo, SABMiller expects to boost its sales in the region.

However, beforeit commences production of its premium brand Rus, it would make a substantial investment in modernising the Russian plants to the group's global standards since it focuses primarily on the premium beer segment in Rusia.

A consortium of  A1 - Detroit Investments - International Finance Corporation were the beneficial owners of Vladpivo.

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