Beer overflows in Lithuania in 2002

The Lithuanian beer market grew by 17.6 percent in 2002 compared with the previous year, driven higher by hot weather in the summer, different promotion events and sharp cuts in beer prices.

According to the data provided by the Lithuanian Brewers' Association, the country's 12 breweries - members of the association - sold a total of 258.7 million liters of beer last year, including 18.76 million liters in December.

It is estimated that beer consumption per capita, including the data about small breweries' sales and imports, amounted to 75 - 77 liters of beer, which compares with the European average of about 80 liters.

"Last year, beer market growth was fueled by competition, price cutting and promotion by giving out beer free-of-charge," said Ovidijus Jankauskas, managing director of Kalnapilis and Vilniaus Tauras.

"This year promotional events should fall in number or stop altogether, so the market will not see steep growth," he added.

Audrius Vidzys, president of the association, said that the beer market was not likely to grow in 2003, and that even if it did the growth rate would be as little as 2 percent to 3 percent.

Svyturys-Utenos Alus, Lithuania's number one brewery controlled by the Scandinavian concern Baltic Beverages Holding, sold 128 million liters of beer in 2002, up by 26 percent compared with 2001.

Kalnapilis and Vilniaus Tauras, both controlled by Denmark's Brewery Group, posted combined beer sales of 66.6 million liters for last year, almost unchanged from the figure a year earlier.

Gubernija raised its sales by 21 percent to 23.6 million liters and came in third among the member of the association in terms of sales.

Ragutis, majority owned by Estonia's A.Le Coq, reported annual sales of 40.7 million liters, up by 24 percent year-on-year.

Svyturys-Utenos Alus had a 49.5 percent share of the domestic beer market in 2002, followed by Kalnapilis and Vilniaus Tauras with a combined market share of 25.7 percent, Gubernija with 9.1 percent, and Ragutis with 8 percent.