Efes, the Turkish brewer, is to extend its presence in the Russian market with the acquisition of the Amstar brewery, an independent beer maker based in the Urals.
The price paid was not disclosed. Efes will take 100 per cent of Amstar, including a minority shareholding previously held by the European Bank for Reconstruction and Development.
The EBRD has partnered Efes in its development in the Russian market, with several loans which the company used to expand capacity at its Efes Moscow Brewery. The company now produces 3 million hl there, and the addition of the Amstar business will take its total production to 4.2 million hl. A further 1 million hl will be added once Efes' brewery in Rostov is completed.
Efes entered the Russian market in 1998 when construction of its Moscow plant began, and by 2001 had become one of the biggest brewers in the Moscow region, along with other international groups such as Interbrew and Carlsberg. Last year it increased its presence there further with an agreement with brewer Warsteiner giving it the rights to brew the German brand for the Russian market.
The company has said that it sees the most growth in the Russian beer market in the various regions - the Moscow market being saturated - and the Amstar deal is likely to be followed by others as the group extends into other Russian regions in a bid to kickstart growth once again.
Efes produces its own Efes Pilsner and Stary Melnik brands in Russia as well as Warsteiner, and will now add Amstar's Beliy Medved and Sokol (a premium non-alcoholic beer) brands to its local portfolio.
Efes is the sixth-largest brewer in Russia with a 4 per cent market share.