2/21/2001 9:00 

On 9 November 2000, the Lithuanian competition authorities approved the establishment of Carlsberg Breweries A/S on the condition that one of the three breweries owned by Carlsberg Breweries and Baltic Beverages Holding (BBH) AB, be sold.

The Board of Directors of BBH has therefore decided to sell its 87% stake in the Kalnapilis brewery and the sales process will start immediately.

In addition, the Board of Directors of BBH is considering merging the Carlsberg Breweries-owned brewery Svyturys with the BBH-owned brewery Utenos Alus at a later date. This will have to be approved by minority shareholders and the Lithuanian competition authorities. Conditional on the merger of the two breweries, Thomas Kucinskas, currently Managing Director of Svyturys will be appointed Managing Director of the combined activities of BBH in Lithuania.

Kalnapilis became a BBH brewery in 1994. Since then major investments have been made to modernise the brewery. Today, Kalnapilis is technically the most modern brewery in Lithuania. During the years 1997 to 1999 Kalnapilis has achieved a strong position in the market.

The Utenos brewery is from 1977 and was originally designed as the largest brewery in the Baltic States. For almost 20 years the brewery was one of the most modern in the region and a leading player in the Lithuanian beer market. This position was taken over by Kalnapilis when it became part of BBH, but later it had to pass the yellow jersey to Svyturys.

Svyturys dates back to 1784 and is thus the oldest brewery in Lithuania. With a market share of about 26% it is the leading brewery and last summer local production of Carlsberg was launched. Carlsberg Breweries owns 57% of Svyturys.

BBH is owned on a 50-50 basis by Carlsberg Breweries A/S and Oyj Hartwall Abp. BBH has a total of twelve breweries: four in the Baltic countries, six in Russia and two in the Ukraine. BBH is also a shareholder in five malt houses. BBH's net turnover in 2000 amounted to DKK 4.8 billion and operating profit totalled DKK 1.2 billion. Compared to the previous year, the total production volume increased by 43% to 18.29 million hectolitres. BBH employs approx. 10,000 people.

Further information

Margrethe Skov
Carlsberg A/S
Phone: (+ 45) 33 27 14 10