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SABMiller in Ukrainian takeover

By Morag Dickson on May 08 2008

SABMiller plc is to capitalise on the fast-growing beer market in Ukraine.

The drinks giant has agreed to purchase CJSC Sarmat (Sarmat), producer of Sarmat, Dnipro and Drive Max brands, from owner and holdco System Capital Management. The value of SABMiller’s 99.8 per cent stake remains under wraps, although Sarmat’s gross assets currently total $130 million (£66.5 million).

Alan Clarke, SAB Miller Europe MD, observes that the Ukrainian beer market has recorded exceptional expansion in recent years and cites strong economic growth as the key driver. He also notes that the market still remains behind its Central and Eastern European (CEE) counterparts in terms of consumption per capita.

Sarmat has brewing facilities in Donetsk in the east of the country and is reported to be one of the nation’s largest brewers.

Ukraine’s beer market achieved annual growth of 14 per cent in the four years to 2006 and its medium-term forecast is expected to surpass that of its CEE neighbours.

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