Baltika Breweries contributed to the state budget 113 bn rubles and reduced CO2 emissions in 2016

june 8, 2017

Sustainability reportIn spite of the Russian beer market decline, Baltika generated government revenue amounting to 112.9 bn rubles, 78 942 jobs, invested in business 3.1 bn rubles, including environmental projects, and reduced СО2 by 16%, specific water consumption – by 22% in comparison with 2010. 

Baltika Breweries, part of the Carlsberg Group, has published its 2016 sustainability report. The company disclosed main indicators in sustainability area and its contribution to the economy of the country. 

“Sustainability principles are important orienting points for Baltika, which ensure our leadership on the Russian beer market. Following them, we brew beer today to create opportunities and better tomorrow. In the Carlsberg Group new strategy SAIL’22 a special focus is on Russia as a key market, and we will continue to make efforts for sustainable development of the company and well-being of communities in the regions where we operate,” – commented Jacek Pastuszka, president of Baltika Breweries LLC, executive VP Carlsberg Group Eastern Europe Region.

Sustainability is embedded in Baltika and the Carlsberg Group strategy SAIL’22. The four priority areas identified as most crucial for the business and stakeholders are Energy & carbon, Water, Responsible drinking and Health & safety. Moreover, Baltika and the Carlsberg Group evaluate their economic impact, which is an important indicator of the companies’ sustainable development. 

Economic impact

Due to the fact that Baltika’s activities are integrated into a long supply chain, its economic impact in Russia is reflected both directly and indirectly.

  • 112.9 bn rubles – total government revenues generated by Baltika across all levels directly and indirectly in 2016. The company’s activities indirectly generated 43.4 bn rubles tax proceeds to the government budget by means of payments made by Baltika’s suppliers, hospitality industry and retail – VAT and individual income tax payments, as well as payments to non-budgetary funds.
  • 100% of malting barley was purchased by Baltika from domestic producers.
  • 90% − the share of local companies supplying materials and packaging to Baltika in 2016.
  • In the report year, the company’s average headcount was 7,406 people. In total Baltika created directly and in related industries 78,942 jobs. Thus, each Baltika employee indirectly ensures 10 jobs in related sectors: agriculture, packaging production, logistics etc.
  • 3.1 bn rubles – the total company’s investments in 2016, including 1.4 bn rubles in production area.

Energy

Energy & carbon
  • 16% − reduction of CO2 emissions in 2016 compared to 2010.
  • 24% − reduction of specific electricity consumption, 35% − reduction of specific thermal energy consumption during the period 2010-2016.
  • 4 Baltika’s sites have plants that recover biogas from wastewater which is then used as an alternative renewable energy source for running boiler-houses. It’s use allows to reduce natural resources consumption and СО2 emissions.
  • To minimize environmental impact, since 2013 Baltika realizes the project “Benefit your city”,  which improves recycling and reuse of materials by developing a separate waste collection system in Russia. In cooperation with packaging collectors Baltika installed more than 2000 special containers in 12 Russian cities. Glass, aluminum cans and PET-bottles are collected separately and sent for recycling.

Water

Water
  • 22% − reduction of specific water consumption at Baltika’s sites in 2016 compared to 2010.
  • 240 mln rubles − investments in the modernization of the wastewater treatment facilities at the Baltika-Khabarovsk in 2016. Owing to the project the efficiency of the treatment facilities will increase.
  • At the wastewater treatment facilities of the Baltika-Tula  a new flotation machine installed which is one of the important preparation stages before wastewater moves for further treatment.

Responsible drinking

Responsible drinking
  • 5 consumer-facing responsible drinking activities held at the music festivals Prostor, Sybirfest, Uralfest, DasFest, Donfest.
  • 6 activities to prevent drinking and driving initiated by Baltika in 2016.
  • For the second year in a raw Baltika in cooperation with the other member of the Russian Beer Union supported the initiative Global Beer Responsibility Day and continued the campaign “18+ Rules for All, Responsibilities for Everyone”. The project’s major aim is to consolidate brewers, retailers and consumers in order to undertake joint efforts in preventing sales of alcohol to underage people. In 2016, the campaign reached 90,000 points of sale in 120 Russian cities.

Health and safety

Health and safety
  • 7% reduction of lost-time accidents rate in 2016 compared to 2015.
  • 2,585 employees successfully undergone training and passed state labour safety test.
  • Warehouses Safety Standard. In 2016, Baltika started to implement unified safety standard. The document includes requirements of more than 20 legislative acts of the Russian Federation, the best international practices in the safety area and expertise of the Carlsberg Group companies.

For the full version of the report please go here.

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Baltika Breweries LLC, part of the Carlsberg Group is one of the largest FMCG producers in Russia. Since 1996, the company has been ranked Number One in the Russian beer market. Baltika owns 8 breweries in Russia and enjoys an expanded brand portfolio. The company forms a significant part of the Carlsberg Group and its Eastern European region including Azerbaijan, Belarus, Kazakhstan and Ukraine. Baltika Breweries is a top exporter of Russian beer: Baltika’s reach includes over 75 countries, in 43 of them the company is the only Russian exporter of beer. Its brands have won over 670 Russian and international professional and consumer awards.

The Carlsberg Group is one of the leading brewery groups in the world, with a large portfolio of beer and other beverage brands. Our flagship brand – Carlsberg – is one of the best-known beer brands in the world and the Baltika, Carlsberg and Tuborg brands are among the eight biggest brands in Europe. More than 42,000 people work for the Carlsberg Group, and our products are sold in more than 150 markets. In 2016, the Carlsberg Group sold 117 million hectolitres of beer.

About sustainability in Baltika Breweries and the Carlsberg Group
The Carlsberg Group’s four sustainability priority areas are: Energy & carbon, Water, Responsible drinking and Health & safety. The same holistic approach is applied in all four areas and integrated throughout the value chain. In practice, this means embedding sustainability in existing corporate strategy and business processes, developing policies to ensure that standards are met, collaborating with partners to achieve scale, and setting measurable targets to track progress both year on year and in the longer term.

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