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EBRD finance helps satisfy demand for high-quality beer in eastern Europe
To satisfy increasing demand for high-quality beer in central and eastern Europe, the European Bank for Reconstruction and Development (EBRD) is providing ECU 52 million in loans to two breweries in Croatia and Romania, enabling them to expand their production of internationally known brands.
"These two projects will have a visible impact in both countries as they will be among the first substantial greenfield investments in the beer industry", said Hans Christian Jacobsen, Director of the EBRD's agribusiness team. "With the EBRD's financial support, the breweries will be able to expand production of premium local brands as well as the well-known Tuborg brand under licence."
In Croatia, the EBRD is extending a DM 33 million (ECU 18 million) loan to Panonska Pivovara d.o.o, which produces the Tuborg, Kaj and Podravka brands. With the proceeds, Panonska is constructing a new brewery in Koprivnica, northern Croatia, which will increase significantly the company's annual production and packaging capacity.
Panonska was originally a division of Podravka Prehrambena Industrija d.d., a leading Croatian food products company, and is now jointly owned by Podravka, Carlsberg A/S and the Investment Fund for Central and Eastern Europe of Denmark.
In Romania, the EBRD is lending US$ 43 million (ECU 33.9 million) to United Romanian Breweries Bereprod S.R.L., which will produce the Tuborg brand in a new brewery near Bucharest. In addition, the company will establish a modern distribution system which will benefit beer retailers and consumers. US$ 24 million has been syndicated to Rabobank, the Dutch bank specialising in agribusiness.
United Romanian Breweries Bereprod S.R.L., which was established at the end of 1994, is owned by Israeli, Danish and Romanian partners, including the Investment Fund for Central and Eastern Europe of Denmark.
The breweries are to be built to comply with international good industry practice for environment, health and safety. Both investments are also expected to have a substantial impact on economic transition in their respective regions through strong connections with local suppliers, distributors and retailers.
The EBRD previously took an ECU 8 million equity stake in AO Vena, a Russian brewery in St Petersburg.
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