local brands, the company has developed into a very satisfactory business. 

BBH achieved substantial growth in sales in Russia and the Ukraine in 2001 whereas sales in the Baltic States remained stable compared to last year. BBH has gained market share in all countries with BBH operations. BBHGLYPH<213>s sales in- crease totalled more than 30% this year, and the companyGLYPH<213>s progress in results thus proved very satisfactory with an increase of 25%. The compa- ny invests in capacity expansion at its breweries on an ongoing basis to keep up with demand. 

BBH employs a staff of more than 12,000 people and is market leader in Russia and the Baltic States. In 2001, BBH entered into an agreement regarding sale and marketing of Carlsberg in the Baltic States and of Tuborg in the Ukraine. 

During the year, BBH sold Kalnapilis, one of its two Lithuanian breweries. The divestment was a direct consequence of the establishment of Carlsberg Breweries, as the Lithuanian competi- tion authorities in that connection required that the parties sell one of their three breweries in the country. Carlsberg Breweries also owned the Lithuanian brewery Svyturys, which was merged with the BBH company Utenos when Kalnapilis had been sold. In addition, BBH took over 49.9% 

of Carlsberg BreweriesGLYPH<213> brewery Vena in St. Pe- tersburg in November and has an option to acquire the remaining shares in Vena. The sale ensures that both ownership and management responsibility of Carlsberg BreweriesGLYPH<213> activities in Russia, the Baltic States and the Ukraine are handled by BBH. 

In November 2001, BBHGLYPH<213>s subsidiary Baltika Brewery acquired the controlling interest in the brewery Krinitsa in Belarus. 

## Other European markets 

United Romanian Breweries, which is partly ow- ned by Carlsberg Breweries, registered continued marked improvement in the sales of Tuborg, which is produced under licence. In 2001, the brewery launched locally produced Carlsberg in the international premium segment with great suc- cess. 

In Croatia, Panonska Pivovara, which is partly owned by Carlsberg Breweries, maintained its market share in a market characterised by intensi- fying, tough competition as regards quality prod- ucts. Panonska has produced Tuborg under li- cence since 1971, and in 2001 the brewery expanded its portfolio with the succesful launch of Tuborg Classic. 

