Azernews.Az

Baltika Breweries, an Eastern European venture of Denmark's largest brewer, Carlsberg AS, has purchased Baku-Castel brewery, one of the largest and up-to-date companies in Azerbaijan.
Once the trasaction goes into effect, the Russian company will own 90 per cent of the company's shares. Ownership of the remaining stock will be open to local private entrepreneurs and businesses.
Baltika president Anton Artyomov explained the decision by favorable business climate in the Azerbaijani market, the prospect of selling beer to Georgia, Turkmenistan and southern Russia in the future, and vast potential of the domestic market.
Although the sum of the transaction is not disclosed, Baltika executives say about $20 million will be invested in Baku-Castel. The company also plans to launch production of its own brands by 2009.
Baltika Breweries, which has been supplying beer to Azerbaijan since 2000, currently has a 3.5 percent share of the local beer market. Baku-Castel has a 70% market share.
Baltika Breweries, which has been in business since 1990, owns 11 breweries in Russia and exports beer to 47 countries. Baltika is the second most sold brand in Europe.
The annual growth rate of the Azerbaijani beer market in the next three years is estimated at 12 to 14 percent.