OREANDA-NEWS. December 13, 2007. Baltika is beginning to deliver beer to Germany in PET plastic bottles, the company's press service reports. Prior to bringing out the new SKU, the Company undertook measures to be included in the list of registered operators whose products are sold in Germany in single-use packaging. With the introduction in Germany of a new law on packaging, it became mandatory for the Company to be enrolled in the system for handling and deposits relating to disposable packaging. The official participant in the system of obligatory deposit for disposable packaging is Baltika Deutschland GmbH. The deposit system brings together all participants in the process: producers of beverages, suppliers of packaging, distributors, the retail trade and consumers, forming one unified chain. Administration of the system of circulation and deposit of disposable packaging is performed by a specially created organisation: DPG (Deutsche Pfandsystem GmbH). Its responsibilities include: the registration of companies, technical support of a database, certification of producers of labels and automated collection points where used packaging is turned in. A deposit of 0.25 Euro is collected from all beverages, excluding juice, milk and dietetic drinks sold in plastic and metal packaging containing between 0.1 to 3 litres. This deposit is collected at all stages of distribution, from the importer right up to the final consumer. The amount of the deposit is included in the price of the product to the end user, who gets the deposit back when he returns the packaging to a point of sale. The consumer places the used packaging in a special machine which gives him a check and the amount shown on the check is then accepted in payments at the point of sale. For the system to function, all companies bringing products to market in Germany (producers of beverages as well as importers) have to be registered in the DPG system, pay annual fees and make payments to the company reprocessing the packaging.

Once a company has been registered and opened a "deposit" account, every SKU is assigned a unique bar code and the presence of the symbol of the DPG system on the label confirms the status of the participant in the deposit system. Only certified typographies are allowed to print the special labels with unique bar code printed in a special ink and the DPG symbol. The bar codes printed in special ink are read by the machines accepting return packaging. Upon official confirmation and verification by an independent expert that the packaging has gone to be reprocessed, the virtual money is turned into ‘cash’ and is returned to the sellers who accepted packaging from consumers and returned their deposit to them.

As a result of the introduction of obligatory deposit, importers faced the requirement not only to register with the DPG and open deposit accounts but also had to order the special labels. Baltika Deutschland GmbH completed its registration with the DPG, concluded a contract with a specialised company for management of the "deposit account" and dealing with the retailers over acceptance of return packaging. Baltika №3 in 1-litre PET packaging bearing the unique bar code and DPG symbol will soon appear on sale in Germany.

Baltika is the only Russian company to have completed registration with the DPG in full accordance with the requirements of German legislation.

Baltika Breweries is the leader on the Russian beer market. In 2006, Baltika merged with the companies Vena, Pikra and Yarpivo. Baltika today comprises 11 breweries in 9 regions across Russia. It owns a broad portfolio of brands and has around 12,000 employees. The Company's products are exported to 45 countries around the world. The Company accounts for more than 70% of total Russian export of beer. At present, every eighth bottle of the Baltika brand is sold abroad. Deliveries have been made to Germany ever since the year 2000.