Baltika beer will be available in North Korea

april 17, 2007

Baltika Breweries widens expansion to foreign markets: in April the Company has started export of its production to North Korea. Now Baltika beer is presented in 41 foreign markets.

First set of Baltika №5 Zolotoye was received by Korean Trading Company at railway station Tumangan (Democratic People's Republic of Korea, board with Russia) on 13th of April. The volume of the first delivery was 72,000 bottles.

The retail price of №5 in the country is around 1,600 won (=0.80 USD).

Dmitry Kistev, Director Export Sales of Baltika Breweries: Baltika beer is successfully delivered in the countries with developed beer culture and in exotic world markets. The appearance of the Company’s production in the market of Korea is one of the most extraordinary projects. Very soon, due to the well-built distribution system, many citizens of North Korea will be able to enjoy the taste of Russian beer. Besides, the beer, brewed in "the cradle of socialist revolution" (Baltika beer will be positioned in North Korea in such a way) will be estimated by foreign tourists as well."

Democratic People's Republic of Korea was formed in 1948. It is situated in the northern part of the Korean Peninsula. It borders upon South Korea, China and Russia. Its territory is 122,800 sq.km.

Democratic People's Republic of Korea is a socialist State, which consists of 9 provinces and the city of the central control Pyongyang.

The negotiations about cooperation of Baltika Breweries with Democratic People's Republic of Korea lasted for more than 3 years. In summer of 2001 the North Korea leader Kim Chen Ir visited Baltika Brewery in St. Petersburg. After having been familiar with the brewery production, Kim Chen Ir said about his wish so that Baltika would be a consultant for its Korean colleagues as the biggest brewing company in Russia and Eastern Europe.

In 2002 a group of engineers from North Korea visited Baltika brewery in St. Petersburg, where they studied the process of brewing under direction of the Russian specialists. In 2003 the negotiations about deliveries of Baltika beer to the Republic started with trade delegates of Democratic People's Republic of Korea in Khabarovsk and Moscow. Only in the end of 2006 the agreement has been reached about Baltika import to Korea.

In 2006 Baltika Breweries developed successfully the export direction of its activity. Total sales volume abroad, taking into account the production under license, exceeded 1.8 mln hl in 2006, which is 27% more, than in 2005.

The share of the Company production in all Russian beer export exceeds 70%, which emphasizes Baltika status as an international company. At present, each eighth bottle of Baltika brand is sold abroad. In 2006 the Ministry of Economic Development of Russian Federation awarded the Company as the Best Russian Exporter for a fifth time.

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