Dutch brewer Heineken said today it will make and distribute Guinness stout in Russia with drinks giant Diageo, and that it plans further expansion in the growing Russian beer market.
Heineken Brewery LLC will become the authorised importer and distributor of Guinness and Kilkenny brands in Russia from July 1st, the company said.
Heineken, the world's fourth-largest brewer in terms of sales, said it will start local production of Guinness Foreign Extra Stout under licence in St Petersburg before July 2005.
The deal opens up lucrative revenue streams for Heineken and Diageo as they tap into the fast-growing international licensed brand segment of the Russian beer market.
Heineken, which is rumoured to be in talks on raising its stake in China's Kingway Brewery Holdings, has identified Russia as a key growth market and reiterated on Thursday that it plans to expand there.
The Dutch brewer, which in Russia holds the Bochkarav brand, said last October that it was buying West Siberia's Sobol Beer LCC brewery, which has an annual production capacity of 1.2 million hectolitres. Last August, Heineken acquired Central European Brewing Company and Volga Brewery.
The market leader in Russia is Baltic Beverages Holding, a joint venture of Scottish & Newcastle and Denmark's Carlsberg.