OREANDA-NEWS. On 26 March 2009 was announced, that Baltika Breweries has received the exclusive right to sell licensed Carlsberg and Tuborg beer brands on the territory of Mongolia. The first shipment will appear in stores around the country in April. All calculations with importer under the contract to be produced in Russian rubles.

Baltika has a great deal of experience working on foreign markets, including in Mongolia. But this is the first time in the Company’s export activity that shipments of licensed brands are being sent beyond the frontiers of the CIS. Mongolia will be receiving Carlsberg and Tuborg beer produced under license at Baltika Breweries in Krasnoyarsk, St. Petersburg and Novosibirsk.

Konstantin Sabelnikov, Sales Executive for the Countries of the Asia-Pacific Region at Baltika Breweries: "Baltika is a unique example in Russia where an optimal production and logistics system has been built. The Company’s breweries are located in 10 cities across Russia and in Azerbaijan. This allows us to plan export shipments with minimal transport expenses and to deliver fresher beer to the consumer. The fact that Baltika has been granted the right to export licensed varieties of Carlsberg and Tuborg to Mongolia is one more proof of the quality of the beer produced at all the Company’s facilities".

The distribution system for Baltika products in Mongolia takes in the large retail store chains, small stores, as well as the wholesale centres in Ulan-Bator and the regions-aimaks*. Baltika solidly occupies its place in the premium segment of the Mongolian beer market. The distributor has already concluded agreements for supply of Carlsberg and Tuborg to most of the Mongolian retail chains and large wholesalers. The retail price of a 0.5-litre bottle of Carlsberg or Tuborg beer will be more than USD 1.50.

In 2008, around 2 million litres of the Baltika Breweries products were sold in Mongolia, a number which is several times greater than in 2007. For the year, Baltika’s share in the segment of imported beer amounted to 14.5%. This result could be achieved thanks to the well-arranged system of interaction between Baltika Breweries and the importer. In Mongolia, there is a specially trained staff of trade representatives working with products of the Russian company. The importer has a proprietary fleet of delivery vehicles. Work is done on reserve stock kept in warehouses, as well as with wholesale and retail companies around the country. At present the Company’s exports to Mongolia include Baltika № 3, Baltika № 5, Baltika № 7, Baltika № 9, Arsenalnoye, DV Classic, Sibirsky Bochonok and Bolshaya Kruzhka.

Mongolia (from 1921 to 1992, known as the People’s Republic of Mongolia) is a state in Central Asia. To the North, it borders on Russia; to the East, South and West, on China. The surface area of the country is around 1,565,000 sq. km. Its capital city, Ulan-Bator, has a population of 920,000. Food products consumed in the country are largely imported from Russia. According to estimates by the international agency Canadean, in 2008 the volume of the beer market in Mongolia amounted to 188,000 hl, including 133,000 of imports.

* A region-aimak is a territorial administrative unit.