United Breweries bought the plant from Tatspirtprom

The third beer producer in Russia, United Brewery, created on the basis of former Heineken assets in the Russian Federation and owning the Okhota and Bochkarev brands, bought the White Kremlin plant from Tatspirtprom. The latter is capable of producing 15 million decaliters of beer per year, the transaction amount could be 4–6 billion rubles. Experts see opportunities for the development of local Russian brands, but warn that it will be difficult to fully utilize capacity.

United Breweries (UBB) acquired the White Kremlin brewery from Tatspirtprom, owned by the government of Tatarstan, the parties to the transaction told Kommersant. The enterprise with a capacity of 15 million decaliters per year was built in 2018 in Chistopol. The brand portfolio includes “White Kremlin”, “Hmelnye Raki”, “Zolotoy Boar”. The plant also produces beer under its own private label brands. The cost of the transaction is not disclosed.

OPH includes seven factories in different cities, producing beer “Okhota”, “Bochkarev”, “Three Bears”, Dr. Diesel, cider “Mr. Fox”, etc. Previously, OPH was part of the Dutch concern Heineken, and in August 2023 In 2009, the assets were acquired by the Arnest group of Alexei Sagal, which is also involved in the production of household chemicals, cosmetics and aluminum cans.

According to data available to Kommersant from market participants, in 2022, OPC were the third largest beer producer in Russia, producing more than 47 million decaliters. The first place was taken by AB InBev Efes (Velkopopovicky Kozel, Klinskoye, etc.) with almost 116 thousand decalitres, the second place was taken by Baltika (part of the Carlsberg Group, now under temporary management of the Federal Property Management Agency) with 99 thousand decalitres. Tatspirtprom sold 12.29 thousand decaliters of beer in 2022. AB InBev Efes and Baltika do not comment on the actions of their competitors.

As Alexey Sagal noted, OPH will continue to develop the White Kremlin brands, they plan to produce OPH brands at the plant and begin the development of a non-alcoholic direction. General Director of Tatspirtprom Ruslan Maksudov says that the company decided to focus on its core business, noting that new projects in the category of strong alcoholic beverages require special attention and effort.

Investment banker Ilya Shumov estimates the cost of the White Kremlin at 4–6 billion rubles, based on capacity multipliers. 5.6 billion rubles were invested in the construction of the plant. General Director of Volkovskaya Brewery Alexey Aksel notes that the purchase of White Kremlin will allow the enterprise to take a significant share in Tatarstan, a fairly wealthy region. Although independent expert Alexey Nebolsin points out that the beer market in Tatarstan and the Volga region is characterized by “fierce competition, including on price,” which could be one of the reasons for the sale of the asset.

Nikolai Zhelagin, founder of the Beru Vodnoy beer store chain, says that the White Kremlin brands are not very widely represented at the federal level. But the market is still experiencing turbulence due to the declining share of well-known foreign brands and there are opportunities for local brands, he points out. As Alexey Aksel notes, due to its scale, White Kremlin can produce beer at a competitive price, which becomes especially important for chains and consumers.

According to Alexey Sagal, after the purchase of White Kremlin, OPH will have about 40% of free capacity, which the holding intends to utilize through the development of distribution, export and production of brands under contract. Igor Khavsky, co-owner of the distributor SWAM Group and the Gletcher brewery, points out that the production of private label beer does not bring much profit, and large chains are actively developing their own imports. Bringing the brand to export, Mr. Khavsky adds, will also require time and investment. Alexey Nebolsin considers the bet on exports justified, noting that the markets of China and India can absorb almost any volume.

According to Rosstat, in January-October, beer production increased by 0.4%, to 705 million decaliters. In the third quarter, a slight increase in sales was recorded and an upward trend has emerged compared to the first half of the year, AB InBev Efes reported. The company noted that they hope for the market to recover in the absence of additional administrative pressure on bona fide producers and geopolitical risks.

Anatoly Kostyrev