BELARUSIAN ECONOMY & TRADE

They have installed the new German boilery, which is expected to boost the capacity of the equipment from 2.3 million to 7 million decaliters of beer a year and to improve the quality of the drink to comply with the standards of the European Brewery Convention. This year, Olivaria plans to brew 3 million decalitres of beer as against 2.56 million decalitres in 2004.

The company they have developed several new kinds of produce. In particular, they will start brewing new “premium” class beer.

The installation of equipment completes the first stage of the company’s modernisation. The reconstruction is sponsored by loan funds and the company’s own resources. Next year the enterprise will continue modernisation.

The brewer embarked on the reconstruction in 1998. Olivaria produces 7 varieties of lager, including alcohol-free varieties.

It started producing beer in 1864. Olivaria brewery sells around half of the make in Minsk and the region. In 1994 the company was reformed into a joint stock company. All shares in the enterprise belong to individuals. The company employs 400 people.

24/02/2005

GORODEYA SUGAR REFINERY TO INCREASE PROCESSING CAPACITY in 2005

(on the information from Interfax)

OJSC Gorodeya Sugar Refinery (Nesvizh District, Minsk Region) plans to increase the processing capacity by 20% for the next season to a total of 7-7.5 thousand tons daily, the company informed.

For the last year’s sugar beet harvest the company increased capacity up to 6,000 tons.

Last year the company stockpiled around 755,000 tons of beet to produce 97,400 tons of sugar. The company finished processing the feedstock on January 31 and started producing sugar out of raws. This year the company is allowed to import 32,000 tons of raws, while the monthly demand of the company makes 25,000 tons. Company officials are concerned about prolonged decision-making on quotas for the company.

In 2004 Gorodeya Sugar Refinery produced 213,300 tons of white sugar (116% as against 2003), including 124,600 tons out of raws (99.5%) and 87,900 tons out of beet (155.4%). The company used to ship the sugar to Russia, but ceased exports in January due to Christmas holidays in Russia and ambiguity related to the VAT collection.

Gorodeya Sugar Refinery was founded in 1959. It was incorporated in 1996 into a joint-stock company. At present the state owns 99.8% of the statutory fund, with natural persons and agricultural companies owning 0.2%.

AKVADIV PLANT DOUBLES EXPORTS IN 2004

(on the information from Interfax)

Malinovschina-based distillery Akvadiv (Minsk) exported 6,600 decalitres of vodka and alcoholic beverages in 2004, twice as much as in 2003.

The company shipped 4 titles (Akvadiv Lux, Akvadiv Prestige, Akvadiv Elite, and Akvadiv Pepper) to the USA, Latvia, and Lithuania.

This year the company plans to continue shipping the make to the Baltic States.

The company offers ten titles of vodka, with two of them – Admiral and Tradition – produced on the order of joint venture Vuador. The vodka is poured in 0.5-litre and 0.375-litre bottles as well as souvenir bottles with the capacity ranging from 0.25 litre to 1 litre.

In January 2005 the company turned out 71,000 decalitres of alcoholic beverages, 111% as against the respective period of 2003.

Akvadiv also produces fruit wines and mineral water. This January the company produced 66,000 decalitres of wine (85.7% as against January 2003).

In 2004 Akvadiv produced 491,000 decalitres of vodka and alcoholic beverages (110%) and 952,000 decalitres of wine (109.3% as against 2003).

Malinovschina-based distillery Akvadiv was founded in 1996 as Belarusian-German joint venture on the basis of a distillery, which had been set up in 1871. In March 2004 the company was converted into Akvadiv LLC. The company founders are Kristall Company, Sen joint venture, and Stolibet Trading Ltd (Cyprus).

BELARUS’ VODKA, HARD LIQUOR OUTPUT UP 6.4% ON YEAR IN JAN

MINSK, Feb 23 (Prime-Tass) -- Belarus’ vodka and hard liquor output increased 6.4% on the year in January to 744,000 decaliters, an official with Belarus’ Statistics Ministry told Prime-Tass Wednesday.

In January, "cognac" output amounted to 5,000 decaliters, up from 1,000 decaliters in the same period last year, while brandy output declined 78.6% on the year to 6,000 decaliters.

The brand name "cognac" is used in Russia and CIS countries to refer to a type of brandy.

Belarus' output of grape wine rose 20.3% on the year to 95,000 decaliters, while the output of fruit wine declined 7.7% to 1.8 million decaliters.

The output of sparkling wine rose 3.4% on the year in the period to 90,000 decaliters.

Beer output rose 27.3% to 1.7 million decaliters.

Vodka sales increased 9.6% on the year in the period to 602,100 decaliters, and its share in the sales of alcoholic beverages [in absolute alcohol terms] in Belarus fell to 38.3% from 40.3% in January 2004. The sales of other hard drinks rose 34.4% to 78,200 decaliters, with their share rising 1 percentage point to 4.3%.

The sales of grape wines increased 26.5% on the year in January 2005 to 193,100 decaliters. Their share in alcohol sales rose 0.9 percentage points to 4.9%

Beer sales amounted to 1.5 million decaliters, up 22.4% on the year, with beer accounting for 8.7% of total alcohol sales, a rise of 1.3 percentage points on the year.

Fruit wine sales fell 6.5% on the year to 1.4 million decaliters, with the share of these wines declining 4.5 percentage points to 40.3%.

Sales of cognac and sparkling wines rose 8.9% and 19.8% respectively, to 13,400 decaliters and 84,200 decaliters. End

21/02/2005

Krinitsa’s AGM to consider results of ‘04, plans for ‘05 on Mar 22

MINSK, Feb 21 (Prime-Tass) -- The shareholders of Belarus’ largest brewery Krinitsa plans to consider on March 22 at the annual general meeting (AGM) the performance in 2004 and plans for 2005, an official with the brewery told Prime-Tass Monday.

The agenda for the AGM includes the distribution of net profit in 2005, auditor’s report, the report of the general director, payment of dividends and election of members of the supervisory council and revision commission.

It is also planned to approve accounting for 2004 and amendments to the provision regarding the use of net profits.

Krinitsa was established in January 2001, with 80.57% of shares owned by the state and 19.43% by the company’s employees.

In June 2003, the state’s stake in Krinitsa, was handed to the country’s largest private bank Priorbank in trust.

In 2004 Krinitsa’s beer output rose 34.8% on the year to 11.691 decaliters. End

17/02/2005

Belarus regulates markups on fish, seafood sales

MINSK, Feb 17 (Prime-Tass) -- The Ministry of Economy of Belarus has introduced a ceiling wholesale markup and reduced the ceiling retail markup on sales of fish and seafood to prevent an increase in fish prices, in line with ruling 17 of the Economy Ministry, which came into effect on Thursday.

The wholesale markup on fish, canned fish and fish goods (except for specialties and red and black caviar) is not to exceed 30% of the total contract prices, customs payments and import expenses.

The ceiling retail markup has been reduced to 23% from 30% for trade companies and individuals and to 24% for consumer cooperation organizations.

According to the Presidential Property Management Department, the government plans to prepare a ruling to keep fish and seafood on the list of socially significant goods subject to a preferential VAT of 10%. End

Minsk Econ Court studies validity of Baltika’s suit against Krinitsa

MINSK, Feb 17 (Prime-Tass) -- Minsk Economic Court is studying the validity of the decision of Moscow Arbitrage on collection of a U.S. $1.23 million penalty from Belarus’ Krinitsa in favor of Russian brewery Baltika, First Deputy Chairman of the Supreme Economic Court Yevgeny Smirnov told reporters Thursday.

“The preliminary check carried out by the tax inspection of the Partizansky district of the city of Minsk revealed overpricing of the reconstruction [carried out by Baltika]. Besides, some work, which had been paid for in advance and presented for payment, had not been carried out,” Smirnov said.

Baltika filed a $3.5 million suit against Krinitsa in Moscow Arbitrage in August 2004. This figure is equal to the remaining debt of the Belarusian brewery for Baltika’s $10.5 million investments in the upgrade of Krinitsa. The court ruled that Krinitsa had to pay $1.23 million.

“If we find out that this sum includes not only the debt, but also expenses of non-existent contractors or overpriced contracts, then the state, Krinitsa or the prosecutor’s office may appeal the court decision in the arbitrage to protect Belarus’ economic interests,” Smirnov said.

According to him, it would be next to impossible to overrule the decision of the Russian court. “At the same time, this is possible, if we find true contradictions,” Smirnov said.

If new circumstances emerge, Baltika and Krinitsa may come to amicable agreement or a mediation agreement.

In 2001 Baltika invested $10.5 million in upgrade of Krinitsa and planned to complete the first stage in April 2002. The project was suspended in December 2001, though, when the Belarusian government refused to give Baltika the controlling stake.

In December the government provided a U.S. $10.831 million loan to Krinitsa under 7% to repay the debt to Baltika after Belarus’ President Alexander Lukashenko signed a corresponding ruling.

In June 2003, the state’s stake in Krinitsa, was handed to the country’s largest private bank Priorbank in trust.

Krinitsa was established in January 2001, with 80.57% of shares owned by the state and 19.43% by the company’s employees.

In 2004 Krinitsa’s beer output rose 34.8% on the year to 11.691 decaliters. End

16/02/2005

Mogilev dairy to supply milk produce to Russia’s Vimm-Bill-Dann

MINSK, Feb 16 (Prime-Tass) -- Belarus’ Mogilev-based dairy, the largest dairy in the region, plans to start supplying dairy produce to Russia’s Vimm-Bill-Dann Foodstuffs to sell them using the brand names of that Russian company, the director of the Mogilev dairy, Igor Kononchuk, told Prime-Tass Wednesday.

The dairy will supply to Russia deep-processed milk and cottage cheese with an extended shelf-life.

The Russian side will provide its package, the director said, without elaborating as to the sum of the contract or supplies volume.

The contract with the Russian company will allow the Belarusian dairy to boost exports, which is the key target, Kononchuk said. Currently exports account for 50% of the dairy’s output.

According to the director, Vimm-Bill-Dann wanted to buy a stake in the dairy, however, the administration of the Belarusian company refused. “This may be a good idea for less successful companies of our region”, Kononchuk said.

As was reported earlier, the administration of the region proposed Vimm-Bill-Dann a list of 17 dairies to invest in, but the Mogilev-based one is not on the list.

The dairy is ready to cooperate with other Russian milk produce traders. Representatives with the dairy are to hold talks with Ochakovo dairy specialists Thursday.

Mogilev dairy was established in 1965. The state holds 88.1% in the dairy, employees have a 2.7% stake, and state farms control 0.3%. The rest belongs to unspecified individuals.

The capacity of the company is at 600 tonnes of milk produce a day. The dairy employs 680 people.

Vimm-Bill-Dann was founded in 1992. It includes 24 production facilities in 20 Russian regions with a total staff of above 18,000 people. End

15/02/2005

Alcohol sales in Belarus up 2.4%yr in 2004 to 8.214 mln decaliters

MINSK, Feb 15 (Prime-Tass) -- Alcohol and beer sales in Belarus rose 2.4% on the year in 2004 to 8.214 million decaliters, the Statistics Ministry told Prime-Tass Tuesday.

Sales per capita amounted to 8.32 liters in 2004 against 8.1 liters in 2003.

Beer consumption per capita rose to 22.24 liters in 2004 from 19.39 liters in 2003. Grape wine consumption rose to 2.21 liters from 1.79 liters. Vodka and hard drinks consumption increased to 0.92 liters from 0.65 liters.

Fruit wine consumption increased to 20.73 liters per capita in 2004 from 20.56 liters; cognac and cognac drinks consumption rose to 0.17 liters from 0.15 liters, and sparkling wine consumption rose to 0.92 liters from 0.74 liters.

The brand name "cognac" is used in Russia and CIS countries to refer to a type of brandy.

Vodka consumption per capita decreased to 7.07 liters in 2004 from 7.19 liters in 2003; grape wine beverages consumption declined to 0.19 liters from 0.2 liters, and fruit wine beverages consumption fell to 0.45 liters from 0.74 liters.

Vodka sales declined 1.9% on the year in 2004 to 6.980 million decaliters, while the sales of other hard drinks hiked 40% to 904,000 decaliters, and grape wine sales increased 25.3% to 2.183 million decaliters.

The sales of grape wine beverages declined 7.6% on the year in 2004 to 184,800 decaliters, fruit wine sales edged up 0.5% to 20.469 million decaliters, and fruit wine beverages sales fell 39.7% to 440,800 decaliters.

Cognac and cognac beverages sales amounted to 164,700 decaliters last year, a rise of 12.3% on the year; sparkling wine sales rose 25.9% on the year to 910,500 decaliters, and beer sales rose 13.9% to 21.957 million decaliters.

Belarus’ vodka and hard liquor output fell 7.3% on the year to 7.420 million decaliters in 2004. Cognac output amounted to 44,000 decaliters, down 12% on the year, while brandy output rose 31.3% on the year to 126,000 decaliters.

Belarus' output of grape wine rose 37.1% on the year to 1.603 million decaliters, while the output of fruit wine declined 1.1% to 26.4 million decaliters. The output of sparkling wine rose 7.6% on the year in the period to 949,000 decaliters.

Alcohol and beer sales in Russia rose 4.7% on the year in 2004 to 137.2 million decaliters, according to the National Alcohol Association. Sales per capita amounted to 9.5 liters. No comparison was available.

Vodka and hard drinks sales rose 1.9% on the year in 2004 to 220.6 million decaliters, grape and fruit wine sales increased 8.9% to 78.6 million decaliters, cognac sales rose 9.4% to 6.4 million decaliters, sparkling wine sales rose 4% to 19.5 million decaliters, and beer sales hiked 10.8% to 844.7 million decaliters. End

13/02/2005

Belarus-based Rechitsapivo puts off upgrade till 2006

MINSK, Feb 11 (Prime-Tass) -- The Belarusian-Lithuanian brewery Rechitsapivo, located in the Gomel Region, has decided to postpone the introduction of additional capacities until 2006 due to the real demand for its beer, an official with the administration of the brewery told Prime-Tass Friday commenting on the performance of the brewery in 2004.

Earlier, the company planned to raise its annual output capacity 34% on the year in 2005 to 5.5 million decaliters.

In 2005 Rechitsapivo plans to focus on Lebenbeer premium class beer, which was launched in 2004. The share of Lebenbeer in the total output is to double this year to 10%. To encourage the demand for this beer it is planned to use a new bottle that corresponds to beer quality.

Besides, the brewery plans to increase output in plastic bottles, the official said.

The brewery expects its output to rise 18% on the year in 2005 to 3,470 million decaliters. In 2004 beer output fell 7% to 2.937 million decaliters.

In 2003-2004 the company launcher a new brewing and bottling line produced by Germany’s Wiedenbach Apparatebau GmbH and a kegging line with a capacity of 120 kegs per hour.

The upgrade cost Rechitspivo U.S. $3.117 million of own funds and direct foreign investments, and $1.779 million of bank loans.

The brewery was founded in 1975 and went public in 1996. In 2000 Rechitsapivo became a joint venture with a Lithuanian share of 32%. End

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