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5 Oct, 2006 06:04

Baltika eyes UK market

Baltika eyes UK market

Russia’s top brewer Baltika is planning to expand into the UK. It is negotiating with UK company Scottish and Newcastle to start brewing Baltika beer in Manchester. It is the first time a Russian beer will be brewed outside the Commonwealth of Independent

The companies did not disclose the financial details of the deal. They will brew Baltica 3, the most famous Baltika brand in Russia and distribute it through the network of Scottish and Newcastle.

The beer giant is one of the main shareholders in Baltika and British bars have been serving the beer for several years. Baltika exports its beer to 38 counties outside Russia, including the USA and Western Europe.

However, some analysts think that a Russian beer stands little chance of penetrating a saturated British beer market and competing with Western brands. They say the product may occupy a niche market.