BALTIKA BREWERIES IN 2012

BALTIKA BREWERIES IN 2012
4
COMPANY INFORMATION
6
HIGHLIGHTS OF 2012
8
COMPANY AMBITION
AND STRATEGY
9
THE COMPANY’S POSITION ON
THE BEER MARKET
15
BRAND PORTFOLIO
25
INVESTMENT
28
CORPORATE SOCIAL
RESPONSIBILITY
48
CONTACT INFORMATION
CONTENTS
3
COMPANY
INFORMATION
BALTIKA BREWERIES WAS FOUNDED IN 1990 IN ST.
PETERSBURG, RUSSIA. MODERN EQUIPMENT, ADVANCED
TECHNOLOGY, AND EXPERIENCED BREWERS HAVE ENSURED
THE HIGHEST QUALITY OF COMPANY’S PRODUCTS, AND AS A
RESULT, SINCE 1996, BALTIKA HAS BEEN NUMBER ONE ON THE
RUSSIAN BEER MARKET.
HISTORY OF THE COMPANY
Throughout its history, Baltika has grown rapidly: it
acquired breweries, built new ones from scratch,
employed the best experts, and actively developed
its supply chain.
At the end of 2006, Baltika merged with three other Russian brewing companies: Vena, Pikra, and
Yarpivo. Since 2008, the Company has been a substantial part of Carlsberg Group’s Eastern Europe re-
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gion that also includes Azerbaijan, Belarus, Kazakhstan, Ukraine, and Uzbekistan.
Today, Baltika is one of Russia’s largest FMCG producers. The Company’s ten breweries are located in
St. Petersburg, Yaroslavl, Tula, Voronezh, Rostov-onDon, Samara, Chelyabinsk, Novosibirsk, Krasnoyarsk,
and Khabarovsk. The aggregate capacity of the Company’s breweries (including the brewery in Azerbaijan
bought in 2008) has reached 52 million decalitres of
beer a month. Furthermore, to meet its demand for
malt, Baltika has built two malthouses in Tula and Yaroslavl, and has been developing agricultural projects
in various regions of Russia.
The Company’s continuous focus is quality. Baltika’s
breweries have state-of-the-art equipment and advanced quality management systems; only the best raw
materials are used in production.
Innovative approach is fundamental for Baltika’s development and determines the Company’s business prospects.
This is true for brand portfolio development — launch of
revolutionary new products and packaging on the Russian market — as well as for production technologies, logistics, and sales.
A wide brand portfolio allows the Company to satisfy the most sophisticated of tastes. Apart from the
key brand, Baltika, the portfolio features more than
30 beer brands, including Arsenalnoye, Nevskoye,
Yarpivo, Tuborg, Carlsberg, Holsten, Kronenbourg
1664, and nine non-beer brands. The Baltika brand
is the largest in Europe (according to Euromonitor
data). Different Baltika sorts are produced under licence in the CIS and in non-CIS countries. The Com-
pany’s brands have won more than 600 Russian and
international professional and consumer awards.
Baltika has a wide distribution chain; its products are
available in 98% of Russian retail outlets and in more
than 75 countries, including in Western Europe, North
America, and the Asia-Pacific region.
Baltika is one of Russia’s largest taxpayers, providing
a considerable share of the tax revenue in the cities
where it operates. The Company’s total 2012 tax payments to budgets at various levels and to extra-budgetary funds amounted to RUB 60.2 billion.
The Company is engaged with society by taking part in
important public events and CSR projects at the regional and national level; it traditionally supports healthcare
facilities, educational and social institutions; as well as
amateur and professional sports.
Baltika also promotes responsible beer sales and
consumption. Beer is a beverage for socially responsible adults. The Company respects the law prohibiting selling beer to minors and actively supports it
through Beer Patrols, an initiative bringing together
volunteers promoting the prohibition of beer sales to
underage consumers.
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HIGHLIGHTS OF 2012
JANUARY
The Beer Sommelier course, run by the Company in
various Russian cities, launched in Yekaterinburg.
FEBRUARY
The Company launches new Eve mango&orange.
Baltika 4 Original wins bronze medal at the Zlatá
Pivni Pečet international tasting contests in Tabor,
Czech Republic.
MARCH
Baltika 7 Export appear on the beer menu in all 846
pubs of the legendary J D Wetherspoon chain in
Great Britain.
Baltika participates in the annual international
Earth Hour initiative of the World Wildlife Fund
for the fourth time.
APRIL
The third Extraordinary Employee Conference held
at Baltika-St. Petersburg brewery with more than
100 participants.
Environmental programme of Baltika-Chelyabinsk
brewery wins the 9th Regional Society Engagement
Contest “Changing the World” in the Support of Environmental and Ecological Programmes category.
Flash Up energy drink launched in a convenient
and stylish slim 330ml can.
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MAY
Baltika 8 Wheat beer awarded silver medal at the
World Beer Cup 2012, prestigious international
beer competition.
Baltika Breweries receives an offer regarding the
voluntary purchase of registered ordinary shares
from Baltic Beverages Holding Aktiebolag, a
Carlsberg subsidiary.
JUNE
Unique Baltika 7 Export gift batch brewed at
Baltika-St. Petersburg brewery. Dmitry Chernyshenko, President of the Sochi 2014 Organizing
Committee, and Olympic champions Lyubov
Yegorova, Aleksei Gusarov, Artur Dmitriev, and
Oksana Kazakova all take part.
Seven Baltika beers recognized for their high
quality with awards at the International Beer
Challenge, prestigious international tasting
competition.
On Brewer’s Day, the Company joins the
national “Open Breweries” initiative, opening
its breweries to everyone, who attained the
age of majority. With the Company’s support,
the second annual international tasting award
Brewer’s Day 2012 is held in St. Petersburg.
Museum of Brewing History opened at BaltikaRostov brewery.
A new refreshing soft drink for active people,
Flash Up SPORT, is launched.
JULY
The Company expands the Baltika Razlivnoe
line by introducing the new Baltika Draught
Fresh beer.
The new Dragon brand, brewed with rice according to a traditional Asian recipe, launched
in the Far East.
The Company supports Tuborg Greenfest international music featuring Red Hot Chili Peppers in
St. Petersburg for the first time.
AUGUST
Baltika Breweries and the Khabarovsk Territorial
Administration sign an agreement on social and
economic cooperation.
Energy-saving boiler commissioned at BaltikaNovosibirsk brewery.
SEPTEMBER
Carlsberg Group initiates the compulsory buyback of outstanding shares in Baltika Breweries
from minority shareholders.
OCTOBER
Carlsberg Group and Baltika Breweries
sign a memorandum of understanding with
the United Nations Industrial Development
Organization (UNIDO) on the implementation of
major environmental projects relating to water
conservation, agriculture, and climate change.
The document envisages investment of RUB 1
billion over a period of five years.
Her Royal Highness Crown Princess Mary of
Denmark visits Baltika-St. Petersburg Brewery and takes part in brewing of an exclusive
Baltika 7 batch.
Carlsberg Group and Baltika, along with other
global beer, wine, and spirits producers sign the
Global Commitments to Reduce the Harmful Use
of Alcohol in Washington, D.C.
NOVEMBER
The audit commission once more certifies
Baltika’s environmental management systems
as compliant with the requirements of ISO 14001
international standard.
Carlsberg Group becomes the owner of 100%
Baltika shares.
Baltika initiates and helps organize the international
ISO conference in Russia. The conference
delegates, members of standards development
working groups, visit Baltika-St. Petersburg brewery
and have a look at the quality management system
implemented at all Company breweries.
DECEMBER
Baltika provides a special prize to participants of
the 4th Portrait Now! International Portrait Competition: a tour to Copenhagen, the capital of Denmark, including visits to the city’s most famous
museums and galleries.
The Company signs partnership agreement with the
Kontinental Hockey League (KHL). The DV brand
becomes partner of “Amur” ice hockey team.
Baltika supports the annual Russian Olympic Ball 2012 held in the State Kremlin Palace.
Two of Baltika’s projects named among Russia’s
best CSR projects — “Seven Rivers” project, national initiative drawing attention to environmental pollution caused by poor waste management,
and “Beer Patrol” project aimed at restricting underage access to beer.
Baltika Breweries and FC “Shinnik” sign partnership agreement for 2012-2013 season.
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COMPANY AMBITION
AND STRATEGY
THE COMPANY’S
POSITION ON THE
BEER MARKET
THE RUSSIAN BEER MARKET
For many years, the Russian beer market was steadily growing. However, the annual increase in excise
rates and stricter state regulation resulted in a consistent market decline over the last five years. In
2012, the volume of the beer market dropped by 0.4%, though this decline has slowed down.
To operate efficiently on the market and achieve the
goals set, the Company developed its Strategy for
2013-2015. It is presented in the form of a Wheel
with five elements: People, Consumers and Innovation, Customers, Society and Reputation. As Baltika
is a part of Carlsberg Group, the structure of Baltika’s
strategy mirrors the elements of the Group’s strategy,
adapted to take account of particular features of the
Company’s internal and external environment.
The central element of the Strategy Wheel is Company’s
long-term ambition ― to be No. 1 Now and Forever. This
means that Company’s products are consumers’ first
choice, that Company is the best partner for customers
and the most attractive employer for employees, that
Company generates profit for shareholders, Company
is suppliers’ favourite customer, and society deems it the
most responsible brewing company in Russia.
Based on the Strategy Wheel, the Company develops
functional strategies, formulates strategic projects for
each department, and creates individual employee development plans for the next several years.
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With a clear three-year strategy in mind, the Company
management annually identifies key activities for each
strategic element and sets specific KPIs to measure
the progress towards achieving its goals.
The Company and its employees are guided by the
Winning Behaviours in their work:
•
•
•
•
•
Our customers and consumers are at the heart of
every decision we make
Together we are stronger
We are each empowered to make a difference
We want to win
We are engaged with society
Baltika is a part of an international group of companies that takes a glocal approach to its work. This
involves finding the right balance between working
closely together at a global level while developing
local brands and initiatives. This is what sets us
apart from its competitors and is the key to collective success.
The reasons for the market decline include the ban
on alcohol sales, including beer, at night and at nonstationary points of sale (kiosks and pavilions). More-
over, the demographic factor — namely, decrease
in the population aged between 18 and 55 — also
influenced the beer consumption.
According to Baltika’s estimations, the total volume of the Russian beer market in 2012 amounted to 90.4 million hl.
RUSSIAN BEER MARKET TRENDS, 2005-2012
Year
2005
2006
2007
2008
2009
2010
2011
2012
Beer market, mln hl
86,3
94,9
109,7
109,3
98
93,9
90,8
90,4
Change vs previous year, %
6%
10 %
16 %
-0,4 %
-10 %
-4 %
-3 %
-0,4 %
Source: Company internal estimates
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Currently, all major global brewers — Carlsberg, AB InBev, Heineken, Efes, and SABMiller — have a presence
on the Russian market. In October 2011, a major deal
was concluded when the SABMiller brewing company
decided to hand its business in Russia and Ukraine over
to a Turkish company, Anadoulu Efes. As a result, Efes
became the second-largest player on the Russian beer
market after Baltika, with a market share of 15%.
consumer confidence index. Consumers continued
to spend, but did so more cautiously, carefully
choosing the best offers.
CONSUMER CONFIDENCE INDEX, 2008-2012
LEADING BEER PRODUCERS IN RUSSIA BY MARKET SHARE (%)
14,1%
12,1%
1,7%
In the second half of 2012, economic growth and
consumer spending rates slackened due to higher
inflation and tariffs, and a downward trend in the
1,9%
2,9%
2,8%
16,8%
38,3%
2011
2012
15,3%
Baltika
A B InBev
Heineken
Efes
Ochakovo
MBC
4 Q 12
3 Q 12
2 Q 12
1 Q 12
2 Q 11
1 Q 11
2 Q 10
1 Q 10
2 Q 09
14,7%
1 Q 09
13,0%
16,1%
1 H 08
12,1%
38,2%
Others
Source: AC Nielsen
SPENDING AND SAVING TRENDS, 2008-2012
Source: AC Nielsen (Urban + Rural Russia)
RUSSIAN ECONOMY AND CONSUMPTION
TRENDS IN 2012
Macroeconomic indicators in the Russian Federation in 2012 saw an upward trend compared with the previous year.
This was especially true in the first half of 2012, mostly due to pre-election situation in Russia.
SPENDINGS
2008
2009
2010
2011
2012
SAVINGS
n
tio
Source: Federal State Statistics Service (Rosstat)
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In
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Sa
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ni
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r
In
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st
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n
uc
tio
Pr
od
G
D
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ym
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MAJOR MACROECONOMIC INDICATORS, 2012
In terms of consumer behaviour with respect to beer,
trends show the demand for high-quality or special products is rising. Moreover, the production location and his-
tory of specific products becomes increasingly important.
This results in growing popularity of more expensive, local,
and draught beers, as well as so-called ‘nostalgic’ brands.
BEER MARKET COMPOSITION BY PRICE SEGMENT
Source: Federal State Statistics Service (Rosstat)
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The Russian market is witnessing growth in the super
premium segment. The share of sales of brands in
this price segment in Baltika’s overall sales is also
increasing. In addition, the Company has also seen a
rise in the share of the mainstream segment.
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BEER MARKET COMPOSITION BY PRICE SEGMENT, VOLUME, %
THE INTERNATIONAL BEER MARKET
MARKET
BALTIKA
Russia ranks fourth in the world in terms of beer market volume, and beer consumption in Russia
in 2012 amounted to 63,4 litres per capita.
7,0
7,6
17,0
15,7
28,7
35,6
36,9
29,4
28,8
24,1
23,2
17,0
17,0
16,4
16,7
2011
2012
2011
2012
8,4
8,9
17,2
16,6
28,0
Superpremium
Premium
Mainstream
Lower mainstream
Discount
Source: AC Nielsen, Urban + Rural Russia
THE COMPANY’S POSITION IN RUSSIA
Baltika is the indisputable market leader, with more
than double the share of its nearest competitors. In
2012, the Company retained its position on the Russian
market, remaining the largest player. According to AC
Nielsen data, at the end of 2012 Baltika’s share of the
market amounted to 38.2% (38.3% in 2011).
BALTIKA’S SHARE OF THE BEER MARKET, 2008-2012
LEADING BEER-CONSUMING NATIONS PER CAPITA IN 2012, L
38,4
2008
40
2009
39,2
2010
38,3
2011
38,2
2012
Moreover, in-market sales (i.e., distributors’ sales to retail
outlets) increased by 1.7%. Baltika’s in-market sales
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Russia
Finland
Belgium
Slovenia
Poland
Lithuania
Austria
Estonia
In the non-beer category, sales decreased by 6.9%.
Nevertheless, Flash Up energy drink, which holds second
place on the energy drink market with a 23.9% share, has
shown considerable growth — 28.8% in 2012. In 2012,
Khlebny Krai kvass was in fourth place on the kvass
market with a share of 8.4%.
Germany
volumes in Russia amounted to 35.9 mln hl in 2012,
including 34.6 hl of beer.
Ireland
Company primary shipments (including export shipments)
decreased by 4.2% in the last year, which was a result
of the relatively high comparative base in 2011 due to
distributors’ stocking at the end of the year. In 2012, the
decision was made to start destocking, that resulted in
lower beer shipments.
Czech Republic
Source: AC Nielsen, Urban + Rural
Source: Euromonitor, Company internal estimates. Top 10 + Russia.
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LEADING NATIONS IN TERMS OF BEER MARKET VOLUME IN 2012, MLN HECTOLITRES
BRAND PORTFOLIO
Poland
South Africa
United Kingdom
Japan
Mexico
Germany
Russia
Brazil
USA
China
BALTIKA BREWERIES HAS A BRAND PORTFOLIO WHICH IS UNIQUE ON
THE RUSSIAN MARKET, ALLOWING IT TO REMAIN A LEADER IN ALL PRICE
SEGMENTS. THE COMPANY HAS MORE THAN 30 BEER BRANDS, BOTH
INTERNATIONAL AND REGIONAL, AS WELL AS LOW-ALCOHOL AND
NON-ALCOHOLIC BEVERAGES INCLUDING KVASS, BOTTLED WATER,
AND SOFT DRINKS.
Source: Euromonitor, Company internal estimates.
SUPERPREMIUM
THE COMPANY’S GLOBAL POSITION
Baltika was one of the first Russian brewers to enter the global market. Today, its products are sold in more
than 75 countries. The key brand in its export portfolio is Baltika.
PREMIUM
MAINSTREAM
LOWER MAINSTREAM
Baltika’s 2012 export sales volumes abroad amounted to
2.9 million hl, which is 7.5% of the Company’s total sales.
This includes sales of the Company’s brands in licensed
markets. Baltika’s brands are produced under licence in
Ukraine, Kazakhstan, and Azerbaijan. Baltika 3 is the only
Russian beer produced in Germany under contract. In
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DISCOUNT
2012, Baltika started exporting to India and Serbia.
The Company regularly represents the Russian brewing
industry at professional exhibitions and festivals abroad,
and Baltika’s major international awards confirm that its
products are of the highest quality.
NON-BEER BRANDS
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NEW LAUNCHES IN 2012
In February, a new sort of non-filtered lager was launched in the Zatecky Gus
brand line: Zatecky Gus Domaci z Taverny (Zhatetsky Goose from the Tavern),
brewed with consideration of the special features of Czech beers served in small
breweries and taverns to friends. Like the two other Zatecky Gus brand beers,
the new sort is brewed with fragrant Zhatets hop grown in the Czech Republic
for more than 800 years.
In April, the Baltika Razlivnoe (Draught) line was supplemented with a new
brand: Baltika Razlivnoe Svejee (Draught Fresh). It is the first filtered wheat
beer in Russia. Light, pale, and unpasteurized, it has a refreshing taste and
a fragrant aroma. And in November 2012, production of Baltika Razlivnoe
Viderjannoe (Draught Aged), a strong non-pasteurized beer, was launched.
Rich and full taste if this beer is achieved through a long fermentation process.
The new Baltika Razlivnoe Viderjannoe is an ideal pairing for meat dishes.
The pale DV Rice brand, a new product in the regional DV line, appeared
in April 2012. This new product is brewed using an original recipe with the
addition of rice. The rice gives the beer a lighter structure, and makes it more
refreshing. Rice beer is very refreshing in hot weather and is an ideal pairing
for Asian food.
In May, Baltika portfolio was enriched by the Holsten brand. This classic pale lager
brewed according to German brewing traditions has a bright, rich taste and a pleasant
bitter aftertaste. Holsten perfectly supplements the Company’s super premium brands
portfolio, representing the German beer segment that has been rapidly gaining
popularity with consumers. As early as November, the brand line was supplemented
by Holsten Weiss pale non-filtered beer.
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In spring 2012, Baltika-Yaroslavl brewery started producing the Yarpivo Two
Hops brand. During development of the recipe, particular attention was paid
to achieving an ideal balance of taste and aroma. To this end, two varieties
of hops, Magnum and Saaz, are used in the brewing process: first the bitter
Magnum hops, which uncovers the fullness and brightness of the taste, is
added, and just ten minutes before the end of brewing, the Czech Saaz is
added. Yarpivo Two Hops is an unpasteurized beer with a fresh taste, distinct
hoppy bitterness, and a particular, delicate aroma with flowery notes.
In June, the Don Homemade brand made its debut in the regional Don brand
line. This is a beer with a smooth, soft taste and a distinct aroma of bread
crusts. Strict sanitary requirements and the state-of-art equipment installed
at the brewery (including the complex multi-stage beer filtering system)
ensure its quality, as well as a relatively long shelf life (two months) for an
unpasteurized beer.
In July, the Dragon brand was launched in the Far East region. The beer
is brewed according to a traditional Asian recipe, with the addition of rice
from the Chinese Jilin province. This produces a highly drinkable beverage,
which is great for quenching thirst, and is ideal as an accompaniment to
Asian cuisine.
In December, licensed production of the Finnish KOFF beer was launched. This
is a Scandinavian lager (a type of European lager, in which neither malt nor hops
dominates, there is a balance between the two) with a classic, rich taste. The brand
is the leading seller in Finland, and in 2011, it was recognized as the best lager in this
Scandinavian country.
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regular risk assessment and management of factors
which have an impact on the safety of food products.
QUALITY
Consumers evaluate the quality of a product according to their requirements, expectations, outlook, and,
in recent years, even their social values. As competition develops, companies face the need to meet the
demands and expectations not only of consumers, but of all stakeholders.
The Company’s quality experts used the Managing Food Safety in the European Brewing Industry
through the Application of HACCP Principles manual even before the certification. Baltika’s laboratories, equipped with state-of-the-art hardware,
monitor the beer quality according to over hundred
criteria, which considerably exceeds GOST requirements. Inspections to ensure that products comply
with SanPiN 2.3.2.1078-01 are carried out not only
in the Company laboratories, but also in certified
third party centres. Moreover, Baltika implements a
lot tracking system that enables the production process to be tracked from the raw materials purchase
to the finished product and back again.
BALTIKA ON-LINE. Baltika’s current system for
gathering feedback from consumers and other
stakeholders is organized so that no question to the
Company remains unanswered. Anyone can call the
hotline number, 8 800 333 33 03, to ask a question.
In these circumstances, a company that sets serious
strategic development goals cannot focus only on the
quality of its product, it needs to change as organization.
QUALITY AT BALTIKA. As the market leader, Baltika
complies with all quality standards. The Company’s management system is based on the leading international
standards: ISO 9001 Quality Management, ISO 14000
Environmental Management, OHSAS 18000 Occupational Health and Safety, and ISO 22000 Food Safety
Management.
In addition, the Company pays particular attention to
meeting the needs of its customers. In order to be able
to react quickly to changes in consumer requirements,
Baltika is switching from a functional management
approach to a process approach, eliminating the barriers between its functions, and allowing the Company
to concentrate its combined efforts on addressing key
issues. This approach demands that all departments
responsible for quality be united in a single Quality Management function. This function ensures quality control
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On receipt of a query, the processing mechanism
is launched: the question is addressed to Company
specialists, research is conducted where necessary,
and the consumer then receives a full, comprehensive answer. Thus, feedback is an essential part of
the quality control process, as it allows Baltika to follow changes in consumer tastes and requirements,
and to respond rapidly.
An ISO 14001 compliance certificate was issued to Baltika
following an audit carried out in October–November 2011.
The auditors made particular note of the Company’s
transparency, the high qualification level of its staff, and its
active participation in environmental initiatives.
The Company has initiated a variety of projects
aimed at ensuring compliance with the OHSAS and
ISO 10002 standards.
Due to the Company’s high standards and professional approach to business, Baltika’s products regularly win prestigious international awards, and are
supplied to more than 75 countries.
for all processes, eliminates overlapping of functions,
and speeds up the decision-making process.
In 1999, Baltika was one of the first companies in the
country to receive ISO 9001 certificate. The high quality and safety of finished goods is ensured by monitoring production and distribution processes at each
stage from raw materials supply to quality control at
points of sale, and consumer feedback. The finished
goods quality, transportation and storage of beer,
temperature control, terms and conditions of shipping, etc. are monitored according to quality standards adopted by Baltika and stipulated by law.
Baltika received a certificate of beer brewing processes compliance with the HACCP food safety
management system (Hazard analysis and critical
control points) — one of the leading food safety and
quality management systems in the world.
At the heart of the НАССР concept is a regard for product quality and consumer health. Its principles require
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COLLABORATIVE BREWING
The Collaborative Brewing Initiative is a common practice in the global brewing industry. During the
course of these events, recipes are created and beers are brewed by several brewers or breweries.
Since 2010, Baltika has been organizing the brewing of unique beers, expanding the concept of
traditional lagers and ales.
GREEN VELVET FOR ST. PATRICK’S DAY
MARCH. Once a year on 17 March, virtually all the bars on the planet are covered in swathes
of green decorations in honour of that jolliest of beer-filled celebrations: St. Patrick’s
Day. The Baltika Brew restaurant in St. Petersburg also participated in this international
tradition. For the occasion, Baltika’s brewers created Green Velvet: a half-wheat
and half-barley ale. This duality of malts is useful in meeting a number of technical
needs, as it lends excellent colour and the very mild flavour of a true ale. The beer
is fermented using top yeasts at relatively high temperatures, and is hopped using
bitter-aromatic Cascade hops, which contribute to an alpha- and beta-acid balance
that is ideal for this beer (giving the beer its bite in flavour and aroma respectively). The
unusual emerald colour of the beer is due to the Spirulina algae used during its filtration.
THE ANCIENT BEVERAGE OF PERM MERCHANTS
For Baltika Breweries, the initiation and execution of these projects is particularly informative, for they give
brewers an opportunity to share knowledge. In turn, Baltika attracts participants from all over the world, as
its technological base allows them to brew any recipe for high-quality beer. In addition, Baltika’s brewers are
themselves world-renowned experts, and have acted on many occasions as jury members at prestigious
international beer competitions.
TONGUE OF FIRE BREWING
JANUARY. On 27 January, Maxim Pokrovsky, the vocalist for the popular Russian
band Nogu Svelo! (Leg Cramp!) collaborated with Baltika brewers to create a
unique beer: a dark red spiced rye ale with subtle, but detectable, notes of black
bread. Not many brewers choose rye for their beers, but it is this grain which
gave the beer its bright, tantalizing taste. Unafraid to experiment, the musicians
and brewers dreamt up a unique brew. This unusual drink, which combines the
outlook of Russia’s most positive-minded rock group with Baltika’s many years
of brewing experience, was named Tongue of Fire in honour of one of the band’s
songs. This rich wintertime beer was brewed at the Baltika Brew restaurant in
St. Petersburg. On 2 March, a ceremonial tasting attended by journalists and beer
aficionados generated a great deal of positive feedback.
HOOCHIE COOCHIE ALE
FEBRUARY. In honour of band Chizh & Co’s concert at the Baltika Brew restaurant and
brewery in St. Petersburg, Baltika’s brewers created an outstanding beer called Hoochie
Coochie Ale. Its ingredients alone make it a unique creation. It is an oatmeal pale ale.
Oats are very difficult to brew. They give the beer a creamy, sponge-cake texture, but
complicate the mash filtration. Baltika Brew’s equipment and Baltika brewers’ many
years of expertise were instrumental in overcoming the difficulties of filtration during the
infusion mashing process. The ale also includes both light pale ale malt and caramel
malt, and two hops varieties from New Zealand that have never before been used in
Russia. Hoochie Coochie Ale is a brewing innovation, unquestionably a contribution to
the broad spectrum of beers. The first cask of Hoochie Coochie Ale was opened on
24 February by Baltika brewers and the musicians on the day of their concert.
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APRIL. A ‘historic brewing’ of a unique beer, reproduced according to an old recipe from a Perm merchant family,
took place in Chelyabinsk. Professional brewers from Baltika Breweries and Spiridonov Private Brewery and amateurs
(journalists from media outlets in the Urals) took part in the creation of this exclusive beverage. The ‘historic’ beer was
brewed using 100% wheat and barley malt, two varieties of hops (Cascade and Simcoe), and the special ‘Baltic’ yeast
strain. As a unique ingredient, birch sap was also used. The brewing of a beer with birch sap in April is symbolic, as the
sap is only harvested in the spring. Birch sap contains beneficial microelements and vitamins, and a unique organic acid
complex, influencing every stage of the brewing process and giving the beverage interesting notes of flavour.
OLYMPIC CHAMPIONS BREW BEER
JUNE. A unique brewing of a gift batch of Baltika 7 took place at the St. Petersburg Baltika
brewery. Among the honoured participants were Olympic champions Lyubov Yegorova,
Aleksei Gusarov, Artur Dmitriev, and Oksana Kazakova; President of the Sochi 2014
Organizing Committee Dmitry Chernyshenko; and Baltika’s CEO, Senior Vice President
of the Carlsberg Group in Eastern Europe Isaac Sheps. The exclusive batch of beer
became a promotional gift for the partners of the Olympic movement and sports fans. The
first bottle of this batch received a place of honour at the exhibition of the History of Brewing
Museum at the St. Petersburg Baltika brewery.
NEW THISTLE BEER
JULY. In 1994, Sergey Galanin’s first, then-solo album Sobachii Vals (Dog Waltz) featured a song entitled
Thistle. To celebrate the fact that the song is now ‘of drinking age’, the leader of the band SerGa decided
to brew an unusual beer in collaboration with Baltika’s brewers at the Baltika Brew brewery and restaurant
on 26 July. As a base, they used the ESB (Extra Special Bitter) British beer style, characterized by bright
hoppy bitterness. Usually, a British hop is used when brewing in this style, but the musician and the brewers
decided not to stick strictly to British beer traditions. In this version of a bitter, along with the German Tradition
hops, three American hops were used: Simcoe, Cascade, and a hop with the surprising name of Tomahawk.
However, it was the thistle that starred in this beer! It is this plant that lends the beer its aroma and bitterness.
In the brewing, thistle roots and seeds were used. Thistle is absolutely harmless, and thus is widely used in
folk, traditional, and homeopathic medicine.
21
POTATO BEER FOR RUSSIAN REPORTER
JULY. Potato Porter was brewed in the experimental mini-brewery at the St. Petersburg
Baltika site to celebrate the fifth anniversary of one of the best magazines in the country,
Russian Reporter. The idea to organize the collaborative brewing at Baltika was not
born by chance. Russian Reporter has the reputation of being an independent and
reliable magazine. Baltika brewers create new brews, develop technologies, and
take an interest in new ideas. The recipe for this stunning brew was reconstructed
according to nineteenth-century chronicles, when potato beer was very popular.
To add spice to the experiment, fresh dill was used. The magazine’s Deputy Editorin-Chief Vladimir Shpak, Belarus Guild of Beer Brewers Executive Director Vladislav
Skrebtsov, and authors of the recipe and Baltika employees Yuri Katunin and Anatoly
Ivanov participated in this historical reconstruction brewing.
batch brewed specially for this occasion. The name was chosen for a reason, as 2012 was the 25th anniversary
of the ISO 9000 series of standards. The ‘ISO’ in the name stands for ‘Imperial Stout Organic’. During the brewing,
the malt was placed in the vats by Vladimir Okrepilov, member of the Russian Academy of Sciences and General
Director of Test-St. Petersburg; Isaac Sheps, CEO of Baltika Breweries and member of ISO/TC 176; and Dmitry
Vizir, Quality Management Director of Baltika Breweries. This gift is a symbol of the practical application of brewing
standards in the creation of quality goods.
AWARDS
As in previous years, in 2012 the Company took part in Russian and international exhibitions and events.
These provide Baltika with a unique opportunity to demonstrate the high quality of its products, not only
to ordinary customers, but to professionals as well.
SPECIAL BEER FOR RUSSIAN SAUNAS
SEPTEMBER. At the BogerHof brewery in Anapa, a collaborative brewing of a beer for drinking at Russian saunas,
Bathing Special, was carried out with the participation of International Beer Breweries Ltd. Brewer Rafael Agaev;
Yuri Katunin, a famous traveller, blogger, and the head of the Baltika Museum of the History of Brewing; and Anton
Boger, the chief brewer and founder of the BogerHof brewery, all took part in this brewing. In the brewing, apart
from the traditional pale malt, a select caramel malt was used, along with Sapphire and Zhatec (Saaz) hops,
giving the beer an exquisite hoppy aroma and a delicate bitterness. Bathing Special is made for those who love
the Russian sauna, providing a new option for beer consumption as the main component of a ‘beer bath’. Bathing
Special was presented at Kinoshok, the 21st annual open film festival for the CIS, Latvia, and Estonia held in Anapa.
MARY, CROWN PRINCESS OF DENMARK, PARTICIPATES IN
BEER BREWING
OCTOBER. Her Royal Highness Crown Princess Mary of Denmark visited the Baltika
brewery as part of a state visit to St. Petersburg. Also present at this ceremonial event
were Ambassador Extraordinary and Plenipotentiary of Denmark to the Russian
Federation Tom Risdahl Jensen, and the President of Baltika Breweries, Isaac
Sheps. The high-ranking guests were given a tour around the brewery. Her Royal
Highness Crown Princess Mary of Denmark was kind enough to agree to take
part in brewing a gift batch of Baltika 7. At the mini-brewery for the brewing of
experimental and limited non-commercial batches of beer, she poured the milled
barley malt into the mash tub with Baltika’s Chief Brewer, Irina Tlehurai. The gift
beer’s recipe is the same as that of the Baltika 7 sold in shops. A total of 1,000 bottles
of the beer that the Crown Princess of Denmark helped to brew were bottled.
BALTIKA’S BREWERS CREATE EXCLUSIVE BATCH OF
BALTIKA ISO 9000:25 BEER
NOVEMBER. The meeting of the International Organization for Standardization
Technical Committee (ISO/TC) 176, Quality Management and Quality Assurance,
was held for the first time in Russia in St. Petersburg with support from Baltika,
which implements Russian and international quality standards in practice.
Each of the participants received a bottle of Baltika ISO 9000:25 beer from a limited
22
Since its breweries began producing beer, Baltika has received more than 600 awards. Baltika brand has
received more awards than any other beer brand in Russia; its various sorts have won approximately 300
prizes in Russia and abroad.
FEBRUARY. Baltika 4 Original won a bronze medal at
the Zlatá Pivni Pečet international tasting competition
in Tabor, Czech Republic. The outstanding taste characteristics of Baltika 4 Original have won this beer the
highest awards in international tasting competitions numerous times. In September 2007, Baltika 4 joined the
ranks of the best 50 beer brands in the world at the International Beer Challenge annual international awards.
In 2009 and 2011, it received gold and silver medals
respectively in the Vienna Lager category of the same
contest. For three consecutive years (2008, 2009, and
2010), Baltika 4 received a gold medal at the European
Beer Star Awards in the Red and Amber Beer category.
MAY. Baltika 8 Wheat beer received a silver medal
at the world’s largest professional beer awards, the
World Beer Cup 2012. This was Baltika 8’s second
award in the South German-Style Hefeweizen/Hefeweissbier category, and confirmed its quality at this
prestigious competition (it also received a silver medal
in the same category at the World Beer Cup in 2010).
Last year, 85 contestants from different countries, including Germany, the country of origin of the style,
submitted entries in the category.
23
45
,
billion RUB
JUNE. Seven Baltika beers were recognized for their
high quality with awards at the International Beer Challenge, a prestigious international tasting competition. Old
Bobby Ale won second place in the classic English Pale
Ales and Bitters category. A silver medal was awarded
to Baltika Double IPA, a special beer created as part of a
non-commercial collaborative brewing involving Baltika
specialists and Martin Dickie, a brewer for Scotland’s
BrewDog. Baltika 6 Porter, Baltika 8 Wheat, Baltika 4
Original, and Zatecky Gus Cerny were awarded bronze
medals, along with the Baltika Imperial Russian Stout
brand, which was created as part of a non-commercial
collaborative brewing project with the Great Baltic Adventure expedition team in summer 2011.
NOVEMBER. Two of Baltika Breweries’ beers received
THE TOTAL VOLUME
OF THE COMPANY’S
INVESTMENTS IN 2012
a major Russian FMCG award: Commodity of the Year.
Baltika 3 Classic was recognized as the best in the Lager category, and Baltika 0 was the winner in the NonAlcoholic Beer category.
During the year, Company brands such as
Arsenalnoye, Yarpivo, Khlebny Krai, Don, Samara,
Sibirskiy Bochonok, Dragon, and DV received awards
at regional competitions and exhibitions.
Each award was the result of Baltika’s constant efforts to improve its quality management system.
Baltika brewers’ expertise, high-tech equipment,
and scrupulous approach to all stages of production allow the Company to produce beer of the
highest quality.
THE MAJOR INVESTMENTS MADE IN THE SUPPLY CHAIN WERE
AIMED AT REDUCING COSTS, MAINTAINING CAPACITY, AND
IMPLEMENTING ENERGY CONSERVATION PROJECTS. THE MOST
IMPORTANT PROJECTS OF THE YEAR INCLUDE:
Upgrade of rail wagons
for transportation of the
finished product
Upgrade of part of the
high-tech equipment
in the production
laboratories at all
Company breweries
Quality improvement is a continuous process
at Baltika. The Company carries out ongoing
renovation of inspection equipment: as part of a
2011–2012 project, new equipment for PET leakage
monitoring was purchased and installed, along with
24
Upgrade of the PET line
at Baltika-Khabarovsk
brewery for the Baltika
Cooler and Baltika 3
brands in 1.5 L PET
bottles
Completion of the design
and construction of the
storm sewage treatment
facilities at BaltikaChelyabinsk brewery
a test inspector for finished bottles, an inspector for
returned empties, and date monitoring equipment.
Moreover, investments were made in launching and
supporting new products, and in IT upgrades.
25
AGRICULTURAL PROJECT
PROJECTS TO INCREASE EFFICIENCY
Over the last eight years, Baltika has been developing a project for the contract cultivation of brewing
barley of the necessary quality at Russian agricultural enterprises.
TPM
In 2012, the Company launched a major project: the
implementation of the TPM (Total Productive Maintenance)
system. The main goals of TPM are implementing 5S
system, creating a culture of autonomous and planned
equipment maintenance, personnel development,
building an efficient continuous improvement system,
creating quality management system, and integrating
and maintaining high safety, sanitary, and environmental
standards. The programme as a whole is intended
to improve production process efficiency, but at the
same time, it focuses on people: Company personnel.
Baltika just began to implement the programme last
year, starting with the development of an autonomous
maintenance system. The entire programme is scheduled
to span several years. Moreover, many of the projects the
Company undertook in this field before 2012 (e.g. Single
Minute Exchange of Dies [SMED], Lean Manufacturing)
now form part of the TPM programme.
PROJECT 85
Project 85 was designed to improve the efficiency
of filling line equipment. Within this project, issues
that later became a part of the TPM project were addressed. Moreover, in 2013, a range of new technical
solutions developed during the previous year will be
implemented. Investment in these solutions will improve equipment efficiency and performance.
ЕАМ
•
Effective maintenance process and resource
management, including manpower
•
Receiving more accurate information regarding
the Company’s assets
26
•
Collecting and analysing data regarding equipment condition, which improves equipment reliability and allows the Company to use it more
efficiently
The aim of the project is to procure brewing barley compliant with European and Russian standards
and brewing requirements. Having its own agricultural project allows the Company to have guarantees quantity of brewing barley and reduce the cost
of raw materials while maintaining the high quality
of its products. During the project’s implementation,
Baltika is optimizing purchase of raw materials and
increasing partners’ commitment by placing regular orders. Control system established for the whole
process — from the creation of the seed reserves to
the storage of the ripe barley — ensures high quality of this raw material. The project also supports
the development of agriculture and creates approx.
15,000 jobs throughout Russia.
The contract cultivation of brewing barley by local
agricultural producers has in recent years allowed
a fixed balance of crops in the areas where the
projects are implemented. This, along with stable
planted acreage for brewing barley and preceding
crops, as well as regular strain renovation of the
seed stock, promotes a higher yield. The combination of all these factors ensures stable barley stocks
as the major forage crop in regions where the brewing barley is cultivated. In this way the regions cover
their own demand for forage barley, thus protected
from a potential deficit.
The cultivation areas cover the Central, Central Black
Earth, Siberian, and Far Eastern regions. Agricultural
enterprises in Tula, Voronezh, Kursk, Lipetsk, Ryazan,
Tambov, Oryol, Omsk, Chelyabinsk, Novosibirsk, Tyumen, and Amur regions and Altai Territory participate
in the project. Moreover, Baltika is gradually expanding the geographical scope of its agricultural project.
27
CORPORATE SOCIAL
RESPONSIBILITY
BALTIKA IS COMMITTED TO DEVELOP RESPONSIBLY, TAKING CARE ABOUT
SAVING THE ENVIRONMENT, AND TAKES AN ACTIVE PARTICIPATION IN
AFFAIRS OF LOCAL COMMUNITIES ON THE BASIS, OF THE PRINCIPLES OF
CORPORATE SOCIAL RESPONSIBILITY (CSR).
GOST R ISO 14001:2004 standards. Following the inspection, the auditing company particularly noted Baltika’s active work within global environmental projects
(such as signing the Memorandum of Understanding
with the UNIDO or the socioeconomic partnership
agreement with the Khabarovsk Territorial Administration), as well as the high level of environmental competence of the employees involved in most of the Com-
pany’s environmental and energy-saving initiatives.
The certificate of compliance with international environmental management system standards is a confirmation of
the Company’s excellent environmental performance, strict
adherence to legal requirements, sustainable approach to
the consumption of resources and raw materials, efficient
waste management, and the absence of hazardous risks.
EFFICIENT USE OF RESOURCES
ENVIRONMENT
In carrying out its activities, Baltika complies with the requirements of Russian environmental protection legislation
and national environmental protection standards, as well as with the regulations set out in the Company’s own
environmental policy, which was developed in accordance with the principles of Corporate Social Responsibility.
In line with its environmental policy, the Company strives to ‘optimize its use of natural resources and use
environmentally friendly products, materials, and technologies’.
Efficient use of resources is an important part of the Company’s environmental policy, which is based on Russian
legislation, international standards, and the experience of other companies. Baltika focuses on conserving natural
resources, and tries to optimize their use.
BALTIKA’S PRIMARY AREAS OF ACTIVITY WITH REGARD TO ENVIRONMENTAL
PROTECTION ARE AS FOLLOWS:
REDUCING THE
IMPACT ON THE
ENVIRONMENT
OPTIMIZING WASTE
MANAGEMENT
SUSTAINABLE USE OF
RESOURCES
ENVIRONMENTAL MANAGEMENT
Baltika pays close attention to the environmental situation in the areas where its breweries are located,
and imposes the strictest environmental safety regulations in its operations. The Company’s environmental
activities comprise a range of areas of focus. Every
year, the Company engages in efforts to protect the
environment and manage waste from the brewing
process. Baltika projects promote efficient use of resources, particularly energy and water.
The Company stands out due to its comprehensive
approach to environmental protection, which is implemented at all stages of the product life cycle,
from supply of environmentally friendly natural materials to optimization of energy consumption, waste
recycling, collection and use of returnables, support
and execution of environmental initiatives, and educational programmes.
28
In October 2012, the Carlsberg Group and Baltika
signed a Memorandum of Understanding with the
United Nations Industrial Development Organization
(UNIDO) that envisages the implementation of major
environmental projects relating to water resources,
agriculture, and climate change in Russia, amounting
to RUB 1 billion over five years. This private-public
partnership is the first of its kind in Russia, and it represents a new approach to ensuring environmentally
responsible business development. It is expected
that this partnership will benefit the environment by
decreasing consumption of natural resources and
reducing environmental impact and greenhouse gas
emissions, while improving the agricultural ecosystem and water resources.
In 2012, Baltika confirmed that its environmental management system had been certified as compliant with
As part of planned efforts to save energy at the
breweries in St. Petersburg and Rostov-on-Don, the
breweries operate their own thermal power plants
which partially meet their electrical and thermal
power needs. At the Baltika-Khabarovsk brewery,
solar power has been used to heat the sports and
fitness centre since 2009. In 2010, biogas power
plants which make use of the gas produced by the
breweries’ treatment facilities were launched at the
Samara and Yaroslavl breweries. The first project
of this kind was implemented in 2008 at the Company’s production site in Khabarovsk — a project
that was unique in Russia. These facilities reduced
the breweries’ environmental impact and conserved
natural gas and fuel oil. Moreover, there are grain
drying lines in operation in St. Petersburg and Tula.
These provide an opportunity to reduce industrial
waste recycling costs, to prevent negative environmental impacts, and to support animal husbandry
in Russia.
To optimize power consumption at all Baltika breweries, automated control, tracking, and management systems were installed to address optimize
energy consumption, save energy resources, and
reduce costs.
In 2012, a resource-saving, environmentally friendly
natural gas boiler plant was installed at the BaltikaNovosibirsk brewery. The plant has a capacity of
48 tonnes of vapour per hour. Thanks to this plant,
Baltika-Novosibirsk conserves more than 3% of its
29
thermal power per year, aided by the boiler plant’s
more energy-efficient equipment, supplied by the
world’s leading companies, and a variety of measures intended to reduce non-production heat loss.
The boiler plant was provided with a sophisticated
water conditioning system in order to reduce water
consumption.
Last year, the Company launched a major project to
switch from traditional to LED-based lighting. At the
Voronezh, Tula, and Yaroslavl breweries, luminescent, gas-discharge, and sodium lamps in production and office areas were exchanged for Enerkom’s
modern, environmentally friendly lighting systems,
which operate around the clock. These measures further reduce power consumption at Baltika’s production facilities. For example, at the Baltika-Voronezh
brewery, the premises, when lit for 24 hours a day,
now consume 65% less power; Baltika-Tula now uses
72% less; and Baltika-Yaroslavl consumes 66% less.
Since 2011, Baltika has been a member of the selfregulating energy survey organization (ES SRO) RI
AS A RESULT
OF THE 2011 AND 2012
implementation of projects to save energy
and reduce environmental impact,
Baltika achieved the following goals:
SoyuzEnergoAudit, and has had permission to independently conduct the energy audit of its sites
in Russia. Using the experience of the other SRO
members, the Company is able to identify additional
reserves and potential areas where energy can be
saved. Baltika continues to monitor its power consumption and exchange energy conservation experience with the European Carlsberg Group breweries. The Company is also improving its energy
conservation programme, as well as its control and
tracking system, and is effectively planning the implementation of the relevant technologies.
points of collection for different types of packaging
have been set up for employees.
The microbiology of the returnables used by the
Company is identical to that of a sterile new bottle,
since at all stages of their reuse, the returnables receive additional attention: meticulous quality control
and a full cleaning cycle in the bottle washers.
EARTH HOUR
In 2012, the Energy Leaders project came to an end
after two years of work aimed at reducing power
consumption at both major and auxiliary, or noncore, sites. Through this project, the Company
managed to save a total of approximately RUB 211
million. The Company is now pursuing a long-term
approach and introducing the Energy Lean philosophy, which includes every employee in the process
of optimizing the business and ensuring maximum
focus on the consumer.
Specific heat consumption for 1 hl of
finished product reduced by 12.3%
Electric power consumption
reduced by 12.8%
Specific water consumption
reduced by 12.8%
CO2 emissions
reduced by 19%
Every year, Baltika Breweries actively participates
in Earth Hour, a WWF international initiative. The
Company’s participation in this event, which
has become a symbol of its careful approach to
nature and care for the planet’s limited natural
resources, is an opportunity for Baltika to once
again demonstrate its responsible attitude towards
energy conservation. To this end, on 31 March 2012
from 20:30 to 21:30, all Baltika breweries turned off
power at their office and production premises, with
the sole exception of the most essential machines
to ensure the safety and continuity of the production
process. Employees also joined the initiative: many
of them turned off electrical appliances in their
apartments during that period to contribute to the
conservation of natural resources. Earth Hour has
traditionally been supported by many companies in
the Carlsberg Group.
ENVIRONMENTAL INITIATIVES
In 2012, Baltika supported and organized multiple environmental initiatives all over Russia. Collected rubbish
was sorted: glassware was sent for reuse; glass, plastic, and aluminium cans were sent for recycling. Other
rubbish was recycled in accordance with legislation.
RETURNABLE BOTTLES
Environmental specialists around the world are convinced that the use of returnables considerably reduces
environmental impact.
The Company strives to optimize the use and recycling of packaging materials. Baltika is leading
30
brewing company in terms of using returnable bottles in production. At the Company’s nine breweries,
MAY. In Kinelskiy District, Samara Region, with the
Company’s support, a clean-up operation was carried out at Utyatnik Lake, which is situated not far
from the village of Georgievka. One hundred peo-
ple participated in this huge clean-up effort, village
inhabitants and RIF youth organization volunteers
among them. Through their combined efforts, they
cleared the bank of underbrush and rubbish, cre-
31
ated a place for recreation, and cleared the lake
waters with a self-propelled floating platform.
city’s Sovietskiy District administration also participated in this event.
JUNE–SEPTEMBER. Over the course of four
months, government and business representatives,
along with volunteers, participated in ridding the important waterways of Tula Region of rubbish. More
than 500 inhabitants of the region took part in this
unparalleled environmental initiative, Bodies of Water: Clean Banks and Quays, which was promoted
by Baltika at all stages.
SEPTEMBER. Baltika and its glassware collection partners joined the Bloggers Against Rubbish
national volunteer clean-up in a number of regions on 8 September. This time, unlike at previous events, people gathered everyday waste in
parks, on beaches, and in streets separately. The
glassware collection operators, in their turn, took
waste glass and defective glassware to glass
factories for remelting, and returned
glass bottles for careful processing and reuse at manufacturers’ sites, including those of
Baltika Breweries. Moreover, in some regions where
the clean-ups were held,
the operator companies
also took plastic bottles
and aluminium cans to
recycling facilities. These
actions help to prevent atmospheric CO2 emissions,
40% of which are produced
during the manufacture of original packaging.
JUNE. On 1 June, Company employees and holiday-makers
gathered rubbish on the
banks of Suzdal Lake, one
of the favourite recreational areas of the citizens
of St. Petersburg. During
the initiative, 35 bags of
rubbish were collected,
including glass bottles.
The bottles gathered were
handed over to glassware
collection points, and will
later be remelted or returned to
production lines, including those
belonging to Baltika Breweries, which
has worked with returnables for many years.
SEPTEMBER. On 30 September, Baltika-Rostov
brewery employees cleared the forest near the
city’s two schools of 30 bags of rubbish, as well as
plastic and glass bottles. Representatives of the
OCTOBER. Baltika-Samara employees living
in Pyotr Dubov village, Volzhsky District, Samara
Region, initiated the planting of an alleyway of linden trees along the central street of the settlement.
Village residents and the local administration also
took part in this activity.
SEVEN RIVERS
for recycling. Glass returnables, which the Company
takes great care to reuse, were returned to production after meticulous cleaning.
At the end of 2012, at the Best Social Projects of
Russia awards ceremony in Moscow, a list of the
best projects as evaluated by a group of experts
was announced. The Seven Rivers project was
named as one of the best social initiatives of 2012.
The Best Social Projects of Russia national programme was initiated to support the Russian Government’s path towards strengthening social policy
based on state, social, and private partnerships. It
is carried out with the support of the Ministry of Labour and Social Security, the Ministry of Natural Resources and Environment, the World Wildlife Fund
(WWF), the Forest Stewardship Council (FSC), and
a number of other organizations.
Over the course of several months, independent
auditors and social marketing experts from various
countries studied the social projects that were nominated. Russian companies that carry out socially responsible activities or various measures to support
and develop health care, social security, culture,
education, and the national economy presented
their projects. The list of projects by state, noncommercial, and business organizations created by
the experts was included in a Best Social Projects of
Russia catalogue to help spread best practice and
introduce similar projects in other companies and
organizations. The experts assessed Baltika’s projects as relevant, efficient and realistic.
In December 2011, Baltika was awarded the status of official beer supplier of the 2014 Olympics. This
partnership became possible, among other things, due to the similarities between Sochi 2014’s environmental
strategy and Baltika’s. Throughout its history, the Company has not only manufactured a quality product,
but has also complied with environmental law and carried out its own environmental policy.
Understanding the importance of environmental protection and supporting the Sochi 2014 environmental
strategy, Baltika, in cooperation with the Organizing
Committee, established the Russian national Seven
Rivers environmental initiative aimed at developing a
reuse and recycle culture in order to reduce greenhouse gas emissions. From June until autumn 2012,
Baltika’s employees and partners cleaned the banks
of the Yenisey, Volga, Amur, Neva, Kuban, Miass,
32
Don, and Ob (above the plan) Rivers. In addition to
the Company’s employees, the Sochi 2014 Organizing Committee, and volunteers, representatives of
environmental movements, journalists, and Olympic
champions also took part. Oksana Kazakova participated in the clean-up in Schlisselburg, and Sofia
Konukh pitched in to help in Chelyabinsk. Most of the
waste collected was reusable and recyclable. PET
bottles, aluminium cans, and waste glass were sent
33
THE COMMERCIAL COMMUNICATIONS CODE
FOR RUSSIAN BREWERS
THE COMPANY’S BREWERIES HAVE ALSO BEEN
COMMENDED FOR ORGANIZING AND PARTICIPATING
IN THE FOLLOWING ENVIRONMENTAL INITIATIVES:
The Baltika-Tula brewery received a certificate entitled ‘With
Recognition and Respect for
Participation in Environmental
Activities’ from the Minister of
Natural Resources and Environment of Tula Region for its
The Baltika-Samara brewery
was commended by the Russian Civic Chamber for its implementation of social environmental initiatives and by the
Chamber of Commerce and
Industry of Samara Region for
The Baltika-Chelyabinsk brewery
won the 9th Changing the World
regional social awards in the Support of Environmental and Ecological Programmes category,
for organizing and participating in
the Clean Banks of the Miass and
participation in the Bodies of
Water: Clean Banks and Quays
for Bodies of Water regional environmental project.
participation in the Ecoleader
exhibition.
Clean Forest initiatives, and for
participating in the city’s traditional
April Saturday clean-ups.
The adoption of the Commercial Communications
Code, initiated by Baltika Breweries, among others,
at the 2010 annual general meeting of the Union of
Russian Brewers, has been one of the most important
milestones for the entire industry. Not only does the
document stress strict compliance by brewers with the
rules and regulations of current advertising legislation,
it also proposes additional voluntary restrictions on the
promotion of beer products. The Supervisory Council, which was specially created for this purpose and
which is composed of independent experts, monitors
compliance with the Code’s regulations. The Council
is headed by Natalia Fonareva, Chair of the Russian
Chamber of Commerce and Industry’s Committee on
Regulation of Entrepreneurial Activities and one of the
authors of the Russian law ‘On Advertising’.
Another important document, the agreement ‘On Joint
Action to Promote Responsible Beer Consumption
and Additional Measures to Monitor Compliance with
Legislation Prohibiting the Sale of Beer to Minors’, was
signed in 2011. These responsibilities have been taken
on by waiters and bartenders from the League of Bartenders of Russia, as well as industry representatives:
the Union of Russian Brewers and Baltika Breweries.
The parties undertook to control the implementation
of the ban on sale of beer to minors in catering establishments, to prevent excessive consumption of beer
by adult customers, and to inform consumers about
the dangers of excessive beer consumption and promote responsible and moderate drinking. Baltika has
signed similar agreements with bartenders’ associations in a number of Russian cities.
GLOBAL COMMITMENTS TO REDUCE THE HARMFUL USE
OF ALCOHOL
In autumn 2012, along with other world brewers and producers of wine and spirits, Carlsberg Group and
Baltika signed the global commitments to reduce the harmful use of alcohol.
MARKETING COMMUNICATIONS
The Company holds various events aimed at promoting responsible consumption and takes responsibility
for self-regulation on a voluntary basis.
When consumed moderately, beer is a refreshing, lowalcohol beverage favoured by a majority of the world’s
adult population. However, Carlsberg Group and Baltika
34
recognize that excessive consumption of alcohol is
harmful to the body and to human health, and creates an
additional risk of contracting noncontagious diseases.
35
THE BEER PATROL PROJECT
Based on its long-term experience of these types of measures, the Company will continue to work with regional,
national, and international parties involved in trying to reduce the misuse of alcohol, making efforts to:
Baltika considers it necessary to tighten public monitoring of retailers’ compliance with the law against
selling beer to minors, and organizes Beer patrols to this end. The activities comprise placing special ‘Are
you 18? Prove it!’ stickers at points of sale all over the country and informing sales assistants of what they
should do to verify the buyer’s age.
RESTRICT MINORS’ ACCESS
TO ALCOHOL
STRENGTHEN AND EXPAND THE INFLUENCE OF PROFESSIONAL
CODES OF ETHICS IN MARKETING COMMUNICATIONS
PROVIDE NECESSARY INFORMATION TO CONSUMERS
AND UPDATE PRODUCTS RESPONSIBLY
REDUCE THE NUMBER OF CASES
OF DRINK DRIVING
ENGAGE RETAIL SALES OUTLETS IN THE FIGHT AGAINST THE
MISUSE OF ALCOHOL
The global efforts to combat the misuse of alcohol will be implemented over a five-year period beginning in 2013.
RESPONSIBLE DRIVING PROJECT
Responsible Driving Project is one of the opportunities to implement the Global Commitments to Reduce the
Harmful Use of Alcohol signed by Carlsberg Group and Baltika Breweries alongside other global producers of
alcoholic beverages in 2012.
The initiative is carried out throughout Russia in
cooperation with city and district administrations,
the State Inspectorate for Road Traffic
Safety, and car owners and motorists’
communities. In 2012, Responsible
Driving events were held in Tula,
Voronezh, Samara, Yekaterinburg, and Khabarovsk. In Tula,
residents of the city and the
region witnessed a large-scale
Tula–Schekino motor rally, in
which participated about 200
car and motorcycle enthusiasts.
In Voronezh, on New Year’s Eve
2012, ribbons bearing the project’s
logo were distributed at car parks and major shopping centres. In Samara, a large-scale sur-
36
vey was conducted in driving schools and large
shopping centre car parks, in the course of which
drivers could demonstrate their knowledge
of traffic regulations and suggest their
solutions to the problem. In Yekaterinburg a ‘Real Beer — Virtual
Wheel’ tournament was held
using simulators in a driving
school. Professional drivers and
journalists who are also amateur
drivers took part at the event. In
Khabarovsk, event participants
tried to pass simple tests for precision, reaction time, and coordination
while wearing special glasses simulating alcoholic intoxication of 0.1 per mille
(equal to approximately two glasses of beer).
Baltika started to implement a project to monitor
compliance with beer sales regulations in 2008.
Patrols were present at all public events organized
by the Company in twelve Russian cities, including
Moscow and St. Petersburg. The ‘watchmen’ were
supported by representatives of monitoring bodies,
the city administration, the Department of Internal
Affairs, non-governmental organizations, and Russian celebrities.
In 2009, to reduce unethical conduct by salespeople, inspections were carried out at points of sale.
Volunteers from 24 Russian cities (Astrakhan, Volgograd, Voronezh, Yekaterinburg, Ivanovo, Krasnodar,
Krasnoyarsk, Lipetsk, Moscow, Novomoskovsk, Novosibirsk, Omsk, Penza, Rostov-on-Don, Samara,
St. Petersburg, Sochi, Stavropol, Tambov, Tula, Ufa,
Khabarovsk, Chelyabinsk, and Yaroslavl) and one
city in Kazakhstan (Almaty) took part in the raids.
The authorities, non-governmental organizations,
and ordinary citizens have joined the ‘watchmen’
and supported the idea of ‘Not 18? — No Beer!’
In 2010, Belarus and three Russian cities — Kaluga,
Kursk, and Oryol — joined the project.
Since 2011, retail chains have been making a noticeable contribution to the project, with manage-
ment taking on additional obligations to remind
salespeople of the penalties for violation of the law
against selling beer to persons under 18. In 2011,
there were more than 50 Beer Patrol raids in Russia
and abroad.
In 2012, Public Inspection and Beer patrols took
place in Belgorod, Veliky Novgorod, Yekaterinburg, Krasnodar, Moscow, Nizhny Novgorod, Novosibirsk, Rostov-on-Don, Samara, St. Petersburg,
Sochi, Tula, Khabarovsk, Chelyabinsk, and Yaroslavl. In cooperation with the authorities, the media,
non-governmental organizations, and citizens, more
than 150 points of sale were inspected.
At the end of 2012, the Beer Patrol project, aimed
at restricting minors’ access to beer, was listed as
one of the most successful social initiatives implemented in Russia as part of the ‘Best Russia’s Social
Projects’ national programme.
Over the last five years, more than 180 Beer patrols
were conducted throughout Russia. Altogether,
more than 2,000 points of sale were inspected.
Baltika Breweries believes that beer is a drink for socially responsible adults, and that is why it continues
its efforts to restrict minors’ access to alcohol.
37
BEER SOMMELIER
Among the projects to promote responsible beer consumption, the Beer Sommelier project is especially
noteworthy. Beer is a beverage with a rich history and long traditions of consumption. Reviving beer
consumption culture is one of the Company’s goals.
The second series of Beer Sommelier lectures and
tastings in 2012 was held in twelve cities, and involved Russian and European experts. They shared
their knowledge of beer, the huge range of varieties, infinite pairing options with different foods, and
various preparation and serving traditions. The Beer
Sommelier lecturers included experts such as Sigrid
Stretkvern, founder of the Ringnes Beer Centre in
Norway, author of the book Beer with a Knife and a
Fork, and beer and food pairing specialist; famous
British writer and blogger Pete Brown; and historian
and Southern Federal University (Rostov-on-Don)
professor Sergei Derkach. In their lectures, the students learnt about production methods, and had the
opportunity to take on the role of a brewer.
All in all over the last year, more than 500 people throughout Russia completed the Beer Sommelier course. For
those who could not attend, audio and video recordings
of the lectures were posted on the Internet.
COMMUNITY ENGAGEMENT
The Beer Sommelier course was created as an edutainment event, combining education and entertainment. The course’s goal is to increase levels of beer
literacy. Adult connoisseurs of beer and beer gastronomes can learn about the technologies used in
beer production, its serving traditions, and the finer
points of tasting. The lectures comprise practical
and theoretical studies: unexpected facts about
beer, the history of the beverage, and interesting
details about the production process precede training on the basics of tasting, which takes place at the
end of the class.
The first of the Beer Sommelier lectures took place
in 2011, in St. Petersburg, followed with many other
cities of Russia. Baltika’s specialists are not only
experts in contemporary brewing, but also are at
home with the rich history of the beer. They are able
to tell their audience the whole truth about beer,
including the beer brewed at Baltika. The lecturers
include Company employees, professors from relevant specialist universities, and European and other
international experts famous for their vast knowledge of brewing, experimental brews, and creative
approach to beer production.
CHARITY
For many years, Baltika has provided targeted charitable support and sponsorship in the regions where it
operates. In 2012, the Company donated RUB 13.5 million to this end. Moreover, Baltika employees participate
in charity initiatives. Total voluntary donations collected last year amounted to RUB 1.3 million.
38
One of the Company’s areas of charity work is
providing assistance to socially disadvantaged groups.
In 2012, Baltika lent its traditional support to the “Debt”
programme under the patronage of the Governor of St.
Petersburg, helping World War II veterans and survivors
of the siege of Leningrad by giving RUB 0.7 million to
buy blood pressure monitors.
“Volunteer”, allocating funds for the administration
of the educational centre, and with the “Compassion
Without Borders” charitable foundation. For the last
three years, the Novosibirsk Red Torch State Academic
Theatre (Redlich Charitable Foundation) has been
a long-standing partner of the Baltika-Novosibirsk
brewery as part of the charitable programme.
The Company supports the regional offices of the
Russian Association for the Blind and the Russian
Society of the Disabled in the cities where its breweries
are located. In Chelyabinsk, Baltika is continuing to work
with the local non-governmental voluntary organization
The Company assisted in recovery efforts following the
natural disaster in Krasnodar Territory, sending 5,000
decalitres of drinking water to the stricken area. Baltika
employees also answered the call for help by gathering
necessities for the citizens of Krymsk.
39
SUPPORTING SPORT
Cooperation between sports teams, leagues, and
associations and brewing companies is an old tradition
in world sport. Baltika’s long connection with sport and
sports fans — one of our key target audiences — is a good
opportunity to promote and develop a responsible
attitude towards beer in society. Baltika considers a
glass of beer raised to celebrate the victory of a favourite team in a cosy sports bar with friends to be a
clear example of the civilized consumption of beer.
The more popular the Company’s products are in
Russia, the more important Baltika’s work to promote
responsible consumption amongst sports enthusiasts and responsible fans becomes.Baltika would
like spectators to be able to relax in comfort when
watching sporting events. To achieve this, it strives
to promote a drinking culture that is compatible with
healthy living and that is not harmful to health. This is
why the Company considers that it is possible to consume beer moderately in dedicated establishments,
including sports facilities.
Support and development of sport has always been
OFFICIAL SUPPLIER OF THE 2014 SOCHI OLYMPICS
one of the Company’s priority social projects: for
many years, Baltika has been helping various sports,
sports teams, and leagues. For the Company, partnership with sports teams and leagues is primarily a
matter of image and social responsibility, and not of
commercial profit.
The most notable recent projects include support
for one of the stages of the European Ice Hockey
Tour for seven years (the Baltika Cup), tennis and
football tournaments, and figure skating competitions. At the end of 2011, Baltika was awarded the
status of official beer supplier of the Sochi 2014
Olympics.
In 2012, apart from support to projects as part of its
partnership with the Sochi 2014 Organizing Committee, Baltika Breweries and its brands became federal partners of the Kontinental Hockey League and
supported regional sport as a partner (the Amur ice
hockey team in Khabarovsk and the Shinnik football
club in Yaroslavl).
Receiving the status of official supplier for the 22nd Winter Olympic Games in 2014 gives the Company
the right not only to promote its products, but also to contribute to the preparations for this major sporting
event. Such a prestigious title could only have been given to a company that produces high-quality goods
in compliance with international standards.
In July, Baltika representatives held a Partner’s Day
for the Sochi 2014 Organizing Committee. Organizing
Committee staff had an opportunity to become acquainted with the Company, and learn some interesting facts about beer and its history. Yuri Katunin, Head
of the Museum of Brewing History, delivered a lecture on collaborative brewing and myths about beer.
A professional tasting of both popular and exclusive
beer brands was organized for the guests as part of
the Beer Sommelier course.
During the year, Baltika took part in major, highprofile events where the Company’s products were
showcased, including the programme of the 16th St.
Petersburg International Economic Forum and the
World Press Briefing held in Sochi by the Organizing
Committee.
Baltika and the Sochi 2014 Organizing Committee
have held a range of joint events, including an environmental initiative, collaborative brewings, participation in the Russian Olympic Ball, and the selection of
volunteers for the Sochi Olympics.
GENERAL APPROACH TO THE ENVIRONMENT.
Our partnership with the Olympic Organizing Committee became possible, among other things, due to the
similarities between Sochi 2014’s environmental strategy and Baltika’s. Throughout its history, the Company
has not only manufactured a quality product, but has
40
also complied with environmental law and carried out
its own environmental policy, which emphasizes environmental friendliness, reducing atmospheric emissions of pollutants, safe waste disposal, and efficient
use of natural resources.
In 2012, Baltika initiated and organized the Seven
Rivers national environmental initiative, supported by
the Organizing Committee. As a result, 1,240 bags
of rubbish left over from the summer were removed
from riverbanks. The rubbish was not only collected,
but also sorted. All in all, more than 600 people were
involved in the clean-up of the banks of Russia’s
largest rivers. Among them were Baltika employees;
Sochi 2014 Organizing Committee volunteers; Sofia
Konukh, world and Olympic water polo champion;
Olympic champion Oksana Kazakova; journalists;
representatives of non-governmental and environmental movements; employees of environmental organizations; representatives of the city and district
administrations; and local residents. More than half
of the rubbish was recycled.
EXCLUSIVE BREWINGS. Over the course of the
year, a series of exclusive brewings of Baltika 7 gift
batches were carried out. Bottles from these beers will
serve as souvenirs for partners of the Olympic movement and fans. This is the brand which Baltika has
focused on promoting as part of its partnership with
the Sochi 2014 Organizing Committee. It is notewor-
41
THE RUSSIAN OLYMPIC BALL. In December 2012,
Baltika sponsored the traditional Russian Olympic
Ball held in the State Kremlin Palace. This dramatic
event organized by the Russian Olympic Committee
celebrated the successful performance of the Russian
team at the Summer Olympics in London, and served
as a symbolic relay baton for the upcoming Winter
Olympics in Sochi in 2014.
Moreover, 2012 was the sixtieth anniversary of the
USSR team’s performance at the 1952 Olympics in
Helsinki, the first Games in which the Soviet team had
participated after a long hiatus. Baltika CEO Isaac
Sheps presented Nina Romashkova-Ponomaryova,
the first Olympic champion of the Soviet Union and
a participant in those Games, with a special award
for ‘her priceless contribution to the development of
Russian sport’.
Regardless of the limited opportunities for brewing
companies to participate in the development of sport,
the 2014 partnership between Baltika and the Sochi
2014 Organizing Committee was a logical extension
of the Company’s social policy, and an essential step
in the creation of a beer consumption culture. In any
case, the Company’s participation in events such as
the 2014 Sochi Olympic Games will fully comply with
current advertising legislation.
SUPPORTING FOLK TRADITIONS
thy that the launch of Baltika 7 in 1994 was timed to
coincide with the Goodwill Games in St. Petersburg.
Since then, Baltika 7 has dominated the market and
remained one of the Company’s key brands. The
brand is popular not only in Russia, but also in the 52
other countries to which it is exported.
The first of the exclusive Baltika 7 brewings (the recipe
and production methods of which are identical to those
used for the brand sold on the market) was conducted in
St. Petersburg. Among the honoured participants were
Olympic champions Lyubov Yegorova, Aleksei Gusarov, Artur Dmitriev, and Oksana Kazakova; President of
the Sochi 2014 Organizing Committee Dmitry Chernyshenko; and Baltika’s President, Senior Vice President of
Carlsberg Group in Eastern Europe Isaac Sheps.
The first bottle of each batch was placed on display at the
Museum of Brewing History at Baltika brewery in St. Petersburg. More of these brewing events are planned for 2013.
SELECTING THE OLYMPIC VOLUNTEERS. Last
year, the Company organized an internal incentive programme to select volunteers for the Sochi
Olympics from among its employees. All the applicants passed an internal company competition.
The first stage was the submission of applications.
The participants had to answer questions about the
Olympic Games correctly, and also state why they
wanted to volunteer. The jury rated the number of
correct answers and the applicants’ motivation,
taking into account their level of proficiency in the
foreign language stated in their applications. The
employees who passed the first stage were invited
to take a general aptitude and English language
test. After that, the jury approved the final list of
volunteers. As a result, 25 applicants were chosen
to serve as volunteers at the upcoming Olympics,
after passing the Sochi 2014 Organizing Committee selection process and completing a course at
the volunteer centres.
For several years, with the support of Khlebny Krai
kvass, Kvass Get-Together entertainment and educational events for children and parents have been held in
different regions of the country. The main goal of these
events is to acquaint the younger generation with the
history of traditional daily life and the basic national customs and traditions.
During the summer, children from seven Russian cities took part in this programme, including children from
orphanages, boarding schools, and large and singleparent families. In 2012, the Get-Togethers included
workshops on traditional crafts, such as bead weaving,
felting, patchwork, woodcarving, charm-making, and
painting in traditional styles. Children and their relatives
also had an opportunity to participate in creative competitions and dance in a round to traditional music. These
initiatives are designed to help create a healthy society,
preserve a spiritual legacy, and promote interest in Russian history and love of country among young citizens.
TAXES
Baltika is one of Russia’s largest taxpayers, providing a considerable proportion of the tax revenue in
the cities where its Head Office and breweries are located. Timely and full payment of taxes to budgets at
all levels is standard practice for a responsible com-
42
pany that is guided in its activities by the principle
of rigorous compliance with Russian legislation. In
2012, the Company’s total tax payments to budgets
at all levels, and to extra-budgetary funds, amounted
to more than RUB 60.2 billion.
43
PEOPLE AND HUMAN RIGHTS
We value our employees highly, as they are instrumental to our success. Carlsberg Group seeks to
create conditions in which employees are able to develop to the best of their abilities in an open and
creative working environment.
In April 2012, the second Baltika Breweries Employee
Conference confirmed the Council’s right to represent
employees in their dialogue with the management. The
delegates to the conference received reports on the
Council’s work for the past two and a half years, and elected a new chair and members for the next three years. At
the invitation of the employees, Baltika’s senior management and CEO also took part in the conference. The participants’ discussions with management covered Company strategy, business development plans, changes in
management approaches, and options for preserving
and developing the employee benefits package.
COMPENSATION AND BENEFITS
Free meals in the
Company canteens
or a meal allowance for
employees whose job
involves working in
different locations
Financial assistance
when getting married
or having children, and
on anniversaries and
retirement
Voluntary health
insurance
SOCIAL PARTNERSHIP
The Company’s employment relations are based on
respecting and observing employee rights, and are
drawn up in accordance with the principles of social
partnership. Employees’ interests in the social part-
nership are represented by the Employee Council,
which the Employee Conference elected as the representative body for employees in 2007.
Life and accident
Salary levels at Baltika
are among the highest in the
industry, with a balanced compensation package that allows
the Company to attract highly
qualified staff and provide employees with the remuneration they deserve.
insurance
Company provides additional sick pay, financial
assistance, voluntary health insurance, and free
meals, to which end RUB 280 million were allocated
in 2012. The average salary increase exceeded the
inflation rate last year.
Baltika’s breweries have nine sports and fitness
centres for employees with modern exercise facilities, saunas, and swimming pools.
In 2012, over 1,800 Baltika employees and their
family members participated in city volleyball, bas-
Additional sick pay,
expenses for business
trips, and other
payments
ketball, mini-football, and hockey competitions, as
well as other sporting events such as School Sports
Day, May Day Meeting, Health Day, Spartakiad, and
Physical Education Day.
The Company has its own recreation centre in the Leningrad region, which is open all year round and has a
multi-purpose sports, fitness, and entertainment complex. The centre has a well-equipped food production
facility catering for 200 people, a 24-metre swimming
pool with a modern water purification system, four
saunas with mini-pools, a fitness facility, and a gym.
BALTIKA CORPORATE UNIVERSITY
As a result of an Employee Council initiative, a new
collective employment agreement was signed in
2011 (the first was effective from 2008-2011). The
new collective employment agreement for 20112014 has confirmed the continuity of social and
44
employment relationships and preserved extended
social guarantees and employee benefits in excess
of those stipulated by the Employment Code, as
established by the previous version of the collective employment agreement.
While contributing to the Company’s development,
employees are also able to develop themselves,
participating in cross-functional projects within both
Baltika Breweries and Carlsberg Group.
To achieve high results and hold leadership positions, employees must follow the continuous learning principle. In Company, they havve an opportunity to grow both as professionals and as leaders. In
45
HEALTH AND SAFETY
Baltika has traditionally placed significant emphasis
on ensuring health and safety of its staff and contractor organizations’ employees, undertaking to ensure
high standards of occupational safety. In 2012, the
Company started implementing the OHSAS 18000
occupational health and safety management system.
The new measures were designed to achieve a sustainable decrease in the injury rate and ensure better
compliance with the legal requirements concerning
occupational health and safety, industrial and fire
safety, and civil defence. Baltika has also developed
a special procedure regarding its interaction with
contractor organizations that outlines safety requirements at all stages of work execution.
Last year, efforts to identify and eliminate hazardous situations were fully systematized, allowing the
Company to take a proactive approach and prevent
accidents. This approach suggests organizing occupational safety days and regular inspections to
monitor employee compliance with health and safety regulations. The work of high-tech equipment is
also regularly checked. Equipping work places with
modern office appliances and monitoring environmental conditions in offices (such as lighting, dust
and noise levels, ventilation, etc.) are important
elements of this effort. Workers are duly provided
with protective footwear and clothes, individual protective gear, washing and disinfecting agents, and
drinking water.
Several Company employees in Yaroslavl, Samara,
Voronezh, and Chelyabinsk have been distinguished
with various health and safety, fire safety, and civil
defence awards for outstanding achievements in
these areas.
BUSINESS ETHICS
2012, more than 4,500 employees completed training in different fields: 67 management and business
skills training programmes were run, as well as more
than 200 professional courses.
The Company’s staff development system is itself
constantly being improved in order to meet business needs and support employees in achieving
high results. Therefore, new programmes and tools
are constantly introduced.
The Company pays particular attention to identifying and developing leadership potential in its employees. In 2012, Baltika actively implemented the
People Board, a peer-based staff performance and
potential review, in which employees’ individual
achievements and working methods are discussed
by a group of managers from a single level to ensure
objectivity. The information obtained in the course
of this review is then used for annual performance
reviews and individual development plans.
To develop leadership potential, the relevant programme is also being updated. In 2012, the programme was supplemented by new modules:
Project Management, Motivating Leadership, and
Cross-Cultural Communication. The Company also
conducts an annual С15 survey to provide managers with feedback from their subordinates and then
46
jointly plan steps to improve operations.
Thanks to career continuity and development planning programmes, in 2012 more than 65% of Baltika’s
vacancies (for senior specialist level and higher positions) were filled through internal promotions. Employees secured positions not only within the Company in Russia, but at Carlsberg Group level, moving
to new positions in Western and Eastern Europe.
To attract young and talented graduates, the Company makes use of internship programmes. The
Stars of Baltika programme awards internships at
Baltika headquarters, and provides interns with the
opportunity to continue to work there once their internship is completed. The new Manage Your Future
programme creates great opportunities for promising graduates of technical institutes. The participants in this programme study industrial processes,
and work on their own projects under the supervision of experienced mentors. In 2012, after the
presentation of their projects, 24 of the participants
in this programme were recruited by Baltika.
The annual My Voice survey gives every employee a
chance to express their opinion and helps the Company to understand whether its employees are satisfied with their jobs and whether they are developing
their skills effectively.
The Company follows generally accepted standards and best practice of business ethics in its business
operations. Business ethics policy embeds the principles by which the Company conducts business as a
responsible partner, and which are instrumental in protecting its reputation. The policy includes a number
of key provisions, in particular:
A PROVISION ON CONFLICT OF INTEREST, STATING THAT WHEN SELECTING
NEW PARTNERS AND CONCLUDING AGREEMENTS, THE COMPANY IS GUIDED
SOLELY BY BUSINESS INTERESTS AND SEEKS TO AVOID CONFLICTS OF
INTEREST WITH EXISTING BUSINESS PARTNERS OR WITH THE PERSONAL
INTERESTS OF EMPLOYEES
A PROVISION ON RESPECTING COMPETITION LAW, ACCORDING TO WHICH
THE COMPANY TAKES MEASURES TO PREVENT UNFAIR COMPETITION IN BOTH
ITS OWN AND ITS PARTNERS’ BUSINESS PRACTICES
A PROVISION ON COUNTERACTING FRAUD
A PROVISION STATING THAT BRIBERY IS UNACCEPTABLE
47
REGISTRATION FOR BREWERY TOURS
Baltika holds regular, free, one-day guided tours for organized groups at all of its breweries. During
the tour, visitors will learn about main events in the Company’s history and its major activities, get
acquainted with brewing technologies, and taste the Company’s products.
CONTACT
INFORMATION
A TOUR CAN BE BOOKED ONLINE AT WWW.BALTIKA.RU OR BY PHONE:
ЗАВОДЫ КОМПАНИИ
Baltika-St. Petersburg brewery
+7 (812) 325 9 325
3, 6th Verkhniy Per. St. Petersburg 194292
Baltika-Voronezh brewery
+7 (473)261 98 00
109 Ul. 9 Yanvarya Voronezh 394027
Baltika-Novosibirsk brewery
+7 (383) 230 14 02
34 Ul. 2nd Stantsionnaya Novosibirsk 630041
Baltika-Pikra brewery
+7 (391) 259 12 00
90 Ul. 60 let Oktyabrya Krasnoyarsk 660079
Baltika-Rostov brewery
+7 (863) 250 51 02
146-А Ul. Dovatora Rostov-on-Don 344090
Baltika-Samara brewery
+7 (846) 276 43 66
1 Baltiyskiy Proezd Kinelskiy District, Kinelskiy Village
Samara Region 446110
Baltika-Tula brewery
+7 (4872) 32-99-09
85 Odoevskoe Shosse Tula 300036
Baltika-Khabarovsk brewery
+7 (4212) 41 15 51
142 Voronezhskoye Shosse Khabarovsk 680042
Baltika-Chelyabinsk brewery
+7 (351) 239 16 00
16 Ul. Ryleeva Chelyabinsk 454087
Baltika-Yaroslavl brewery
+7 (4852) 58 32 03
63 Ul. Pozharskogo Yaroslavl 150066
Company hot line
8 (800) 333 33 03
SUBSIDIARIES ABROAD
OOO Baltika-Bel
+375 (17) 286-27-48
Office 102 B, 19 Pr. Masherova
Minsk 220002, Belarus
OsOO Baltika Kyrgyzstan
+996 (312) 90 08 77
Offices 407, 408, 16 Ul. Cholpon-Atinskaya Bishkek,
Kyrgyz Republic
Baltika Deutschland GmbH
+49 (40) 728 13 928
Glockengiesserwall 26, Hamburg 20095, Germany
OOO Baltika-Baku
+994 (12) 342 12 80
(Director)
Per. 2, 2 Shamakhinskoe Shosse, Khyrdalan Apsheron
District AZ0100, Republic of Azerbaijan
+7 (473) 261 98 29
Krasnoyarsk
+7 (391) 259 13 41
Novosibirsk
+7 (383) 230 14 11
Rostov
+7 (863) 250 51 46
Samara
+7 (846) 276 43 33
St. Petersburg
+7 (812) 329 91 39
Tula
+7 (4872) 32 99 10
Khabarovsk
+7 (4212) 41 20 66
Chelyabinsk
+7 (351) 239 78 78
Yaroslavl
+7 (4852) 58 32 29
Persons over 18 years are allowed to participate in the tours.
BALTIKA INVITES GUESTS TO VISIT ITS MUSEUMS
The Siberian Brewing History Museum in Krasnoyarsk is located at Baltika-Pikra brewery. It was
founded in 2005 to commemorate the 130th anniversary of the Krasnoyarsk Brewery and the 15th
anniversary of the Pikra company.
and in 2012, a museum opened at Baltika-Rostov
brewery.
In 2010, to commemorate Baltika’s 20th anniversary, a second Brewing History Museum was opened
at the Company’s headquarters in St. Petersburg,
In 2012, more than 60,000 people visited the Company’s breweries. Between 1999 and 2012, the total
number of visitors exceeded 580,000.
Baltika is a member of the following organizations:
Union of Russian Producers of Non-Alcoholic Beer
•
Office 15-B (CITIC Building, Tower A) 19 Jianguomenwai
Dajie Beijing 100004, People’s Republic of China
•
•
Council for Organizing an Efficient System of Trading
on the Wholesale and Retail Electricity and Capacity
Russian Union of Industrialists and Entrepreneurs
(Russian national employers’ association)
48
•
Products (non-commercial organization)
REPRESENTATIVE OFFICES ABROAD
+86 (10) 651 29 728
non-commercial partnership for trade, customs, and
technical regulation support
•
Baltika Breweries
Beijing Representative Office
The museums have unique exhibits on brewing,
which one can see as part of a brewery tour.
PARTICIPATION IN ASSOCIATIONS
+994 (12) 342 20 10
(Purchasing)
+994 (12)342 09 00
(Sales)
Voronezh
Market (Market Council) (non-commercial partnership)
•
The Association of Wholesale and Retail Electrical
The Association of Branded Goods Manufacturers in
Power (Energy) Market Customers (non-commercial
Russia (RusBrand) (non-commercial partnership)
partnership)
The Customs Union Advisory and Expert Council
•
SoyuzEnergoAudit (non-commercial partnership)
49
WWW.BALTIKA.RU