Ukraine's Nemiroff to organize licensed production facilities in Belarus


Ukraine's Nemiroff, one of the key vodka producers in the CIS, plans to set up licensed production facilities in Belarus and to occupy 10-15% of the vodka market in the country in the near term.

"We've signed a memorandum on cooperation with Belgospischeprom concern, and soon we'll receive a chance to set up production in Belarus," the board chairman of Nemiroff Holding, Oleksandr Hlus, said at a press conference on October 16.

He said that the sides agreed in the near future to select a production facility, on the basis of which the company can develop its own production.

He also said that the company expects that some of the products made in Belarus would be exported. He said that in Russia, Nemiroff installed the whole classical Nemiroff production cycle in four-five months.

The terms of the memo foresee that Belgospischeprom is to present within 14 days a production facility for Nemiroff vodka bottling. The company plans to conduct a technical and technological audit and assess the opportunities for making of its products. The sides would agree on the production volume, although the company's specialists say that there is an alcohol imports quota system in Belarus.

Commercial director of Nemiroff managing company, Serhiy Bleskun, said that the company could fight for 10-15% of the Belarusian market in the future.

He said that the size of the Belarusian vodka market is 8.5 million decaliters. At present, the company only exports vodka to Belarus. Some 5,000 decaliters out of 27,000 decaliters of the country's total vodka imports are Nemiroff vodka.

Nemiroff Holding produces over 7.5 million decaliters of alcohol every year and sells it in 55 countries. It has two distilleries, both located in the city of Nemyriv in Vinnytsia region. The company produces products for the Russian market at the Yaroslavsky Distillery.

The company sold 7.7 million decaliters of product in 2008, posting sales of $482.9 million, 0.8% more than in 2007.



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