Sibirsky Bereg, Russian firm, continues to expand its business across the CIS. In June this year, the company launched a factory in Uzbekistan, to produce a popular salted baked bread snack, Kirieshki, Vedomosti reported.

Sibrisky Bereg is the manufacturer of the popular brands of baked bread snacks, potato chips, seafood snacks, nut mixes and sunflower seeds. The company’s turnover in 2006 totaled some US$191.3 million. Sibrisky Bereg now has production bases in Russia, Ukraine, Kazakhstan, Australia, and China.

In June this year, the Tashkent factory produced and released to the market the first batches of baked bread snacks.

"Sibirsky Bereg has been selling baked bread snacks to Uzbekistan for two years, and always thought of this market to have good prospects," said the PR-manager of the company Konstantin Lykin. "Investments in the project totaled about US$1 million, and the production capacity makes up about 2,000 tonnes yearly. The company is thinking to start with the production of Kirieshki baked bread snacks with the traditional flavours, but in the future we plan to introduce some "national" ones, possibly fried lamb flavour, which is so popular in the neighbouring Kazakhstan."

The Tashkent factory’s production capacity will be increased depending on the sales dynamics, according to Lykin. The company’s PR Manager refused to disclose the company’s market share expectations, but confirmed that the company strategy for the following next years prioritizes "the strengthening of the leading position in the markets of CIS".

Sibirsky Bereg’s products are currently marketed in Kazakhstan, Uzbekistan, Ukraine, Belarus, Kyrgyzstan, Georgia, and Armenia. In Dnepropetrovsk (Ukraine), the company owns a potato chips factory with the production capacity of some 250 tonnes monthly. In Pavlodar (Kazakhstan) it produces baked bread snacks (120 tonnes monthly and potato chips (25 tonnes yearly).

The memo distributed by the company says that Kazakhstan is one of the company’s largest markets (the snack markets capacity – 12,000 tonnes yearly), second only to Russia. They are followed by Ukraine (56,000 toones) and Belarus (10,000 tonnes). Sibirsky Bereg’s sales outside Russia exceeded US$60 million in 2006.

The company’s message says it currently leads the Kazakh market with a 40% share. In Ukraine, its strongest rivals are SnackExport, Kraft Foods and Bridgetown Foods.

Omsk based Putinki Club Company (owner of "Putinki" baked bread snacks brand) estimates the capacity of Uzbekistan’s snacks market at about 15,000 tonnes yearly, and finds Sibbereg’s decision to be justified. "Russian baked bread snacks market is shrinking, whilst in Central Asia it is saturated and continues to grow," he said. "The launch of production in Uzbekistan will reduce the company’s costs by at least 20%" he said.