Thursday, January 29, 2015

“Baltika” closed two plants because of the difficult situation on the market – RBC

"Baltika" closed two plants because of the difficult situation on the market – RBC

«Baltika” announced the decision to close their plants in Chelyabinsk and Krasnoyarsk due to the difficult situation on the beer market. In a statement, the company stated that production would stop his work with April 30, 2015.

«The decision to terminate the activities of the two branches of” Baltika-Pikra “and” Baltika-Chelyabinsk “from April 30, 2015 was the result of a thorough technical , logistics and financial analysis of the structure of production and logistics “Baltika” – said in a press release. The company explained that its production network “optimization required for several years,” but “Baltika” tried to improve the efficiency without closing plants.

Representatives of “Baltika” led Rosstat data, according to which “for the period from 2008 to 2014 beer market in Russia declined by more than 30% ».

The company also noted that” legal restrictions and tax regulation beer industry in Russia at the moment are among the most imbalanced in the world. ” Among the factors that lead to a drop in the market, called the ban on beer sales in non-stationary outlets and disproportionately increase the tax burden. As a result of the closing of two factories manufacturing capacity “Baltika” in Russia will decrease by about 15%.

«The Fall of the Russian market in recent years and the uncertainty of the macro environment led us to this difficult decision that will affect many people. Despite the fact that the “Baltic” managed to maintain its market position in a very difficult environment, we have to adjust our production structure and adapt to changes in our business in order to provide the necessary profitability of the company and its further sustainable development “, – said the vice president for the production of “Baltika” Yuri Bykoriz.

The company is currently engaged in negotiations with the government of the Chelyabinsk region and the Krasnoyarsk Territory, to find a solution for the future use of sites and help employees solve the problem of employment. In total, the plants that are going to eliminate work 766 people. As a result of the closure of “Baltika” will be forced to part with about 560 employees, the total value of the compensation package and support programs which reach more than 300 million rubles.

Beer production at plants in Chelyabinsk and Krasnoyarsk was suspended in September 2014 . Vice-President of “Baltika” Alex explained Cedrenus then RBC that this decision is due to the seasonal decline in demand for beer in the background of a general reduction in the Russian beer market. He promised to resume production if the market starts to grow again, and promised not to close plants.

Closing breweries in Russia began in 2012. «SUN InBev”, “daughter” of global Anheuser Busch InBev, has closed three facilities – in Perm, Kursk and Novocheboksarsk. Efes Rus ceased production in Moscow and Rostov-on-Don.

“Baltika” is part of the Carlsberg Group. It accounts for 67% of all Russian beer exports. The company, with the plants in Krasnoyarsk and Chelyabinsk has 10 plants. She also owns a plant in Azerbaijan and two malting plants in Tula and Yaroslavl.

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