Baltika Brewing Company LLC, one of Russia’s leading brewing groups and currently under state control, is according to report by Interfax reportedly in advanced talks to acquire two significant breweries, Buket Chuvashii in Chuvashia and Bulgarpivo in Tatarstan. These strategic acquisitions could enhance Baltika’s production capacity and supply chain while reinforcing its position in the Russian beer market.
The potential acquisition of Buket Chuvashii is particularly appealing to Baltika because the brewery includes an in-house malt production facility. This could provide a reliable source of high-quality malt, a crucial ingredient in beer production in the region, and help Baltika streamline its supply chain.
Established in 1974, Buket Chuvashii boasts a production capacity of over 800.000 hectoliters of beer annually and offers additional products such as kvas and malt. It also operates a retail network of 22 stores under the Diky Los brand.
Bulgarpivo, founded in Naberezhnye Chelny in 1981, is the largest brewery in the Kama region. With a production capacity of 1,3 million hectoliters per year, it manufactures a diverse range of 40 products, including beer, kvas, and nonalcoholic beverages. Despite recent financial challenges, including a bankruptcy lawsuit in 2023 over back taxes, Bulgarpivo reached a settlement to resolve debts totaling 487.7 million rubles.
The negotiations are currently undergoing review by the Federal Antimonopoly Service (FAS), though details on pricing have not been disclosed. Analysts estimate the combined value of the two breweries at approximately RUB 3 billion (USD 30 million).
If successful, this acquisition would significantly boost Baltika’s production footprint, adding nearly 2.1 million hectoliters of capacity annually to its existing operations. With eight breweries already under its umbrella, the company is looking to solidify its presence in key regions like Chuvashia and Tatarstan, where both breweries have established local markets.
The move reflects Baltika’s strategy to adapt to the evolving beer market, where efficiency, diversification, and supply chain control are becoming critical. Owning a brewery with malt production capabilities, as in the case of Buket Chuvashii, could also provide a competitive edge in cost management.
Baltika was a subsidiary of the Danish Carlsberg Group. However, following Russia’s invasion of Ukraine and the imposition of Western sanctions on Russia, Carlsberg decided to exit the Russian market. In 2023, shortly after Carlsberg announced it had found a buyer, Russian President Vladimir Putin issued a decree that effectively nullified Carlsberg's control over the brewery, derailed its planned sale, and forced the company to write off its Russian assets entirely (inside.beer, 7.2.2024).
