So far the financial crisis has had a mostly disruptive effect in the food and beverage industries forcing some leading companies, such as the Baltica brewery and the Kampomos Russian-Spanish JV, to cut back on their production. The decline in many crops and livestock breeding means that Russia cannot rely solely on import substitution and that the country s food processing industry will gain momentum only slowly, despite its large competitive advantage. Goskomstat, RMG estimates Most companies in the sector grapple with low margins and high outlays for capital investment. The Baltica brewery in St. Petersburg is a case in point. Information sources are deemed reliable by RMG Securities, however RMG Securities abstains from any liabilities determined from the information herewith.
Analysis is based on dated market information and is subject to change.