OREANDA-NEWS. The methodology of the listings has been certified by all the leading audit companies. The value of each brand was determined on the basis of the share of revenues which a given company receives from the brand and the strength of the brand, i.e., its position on the market, stability and capacity for overcoming geographic borders and cultural barriers.

Marcho Kuyumdzhiev, Vice President, Marketing of Baltika Breweries commented on the rating results as follows:

"In 2007, we have been directing our main efforts towards promotion of the Baltika brand. The rating established by Interbrand confirms our own evaluation of the prospects for our Company’s leading brand. According to the research carried out, Baltika compares favourably not only with the FMCG category, but with the market as a whole. H1 2007 results indicate that the brand occupies 11.8% of the market and shows a clear tendency to further increase its share. The advantage of Baltika is that it is the only brand which is simultaneously represented both in the mainstream and in the premium segments. Its success has resulted from the correct portfolio strategy and very effective marketing communications. We believe that in the coming years it will reach first place in Europe in terms of sales volume. And it is doubly pleasant for us that the brands Arsenalnoye and Yarpivo have taken worthy places in the ratings."

Unlike many other world beer markets, the Russian market is very fragmented and the shares of the main players are not big. The Baltika brand is the one exception. This is confirmed by the results of the brand’s development in the first half of 2007: its share of the Russian beer market reached 11.8%. Baltika is twice as big as its nearest competitor (according to data from a retail audit carried out by the agency Business Analytica in July 2007). According to Millward Brown Optimor, the Baltika brand is one of the most attractive assets in the world beer market, with greatest potential for further growth.

The Baltika brand is unique both in terms of its history and architecture and in terms of the portfolio of sub-brands. Baltika is 10 different beer varieties which have their own characteristic peculiarities and are positioned in various price segments. Baltika is available for sale in 98% of the retail outlets in Russia and in 45 countries around the world. The growth in its sales volume is running ahead of the market’s growth, which allows it to grow share in all segments. One of the most positive changes in the development of the portfolio of Baltika brands has been the strengthening of the position of its premium line-up headed by Baltika №7, which is demonstrating superb results and has been increasing its market share during all of 2007.

Baltika is the unconditional leader in the introduction of innovative solutions in the Russian beer market. The sub-brand Baltika Cooler deserves special attention: it has a very precise positioning in the Baltika portfolio. In less than one and a half years, it managed to occupy a worthy place among the ‘elite of Russian beers’ according to data furnished by Business Analytica (May 2007): its share in the mainstream segment is more than 7%. In 2007, sub-brands like Baltika №3 and Baltika №7 also underwent changes. One of the most recent and most successful innovations has been packaging these varieties in a one-litre can. Baltika is the first and only company in Russia to use such packaging.
The brand’s achievements have been repeatedly remarked upon by beer connoisseurs and consumers. Baltika brand has won more than 200 professional and consumer awards. According to data supplied by Business Analytica, as of July 2007 the Arsenalnoye brand occupied second place on the Russian beer market in terms of sales volume, with a market share of 4.7%. The market share of Yarpivo is 2.8%.