Obolon CJSC

Obolon JSC

Type	Private
Industry	beverages
Founded	Kiev, Ukraine (1980)
Headquarters	Kiev, Ukraine
Key people	Oleksandr Slobodian, honorary president
Products	beer, sodas, cocktails, mineral water
Revenue	UAH 4,5 billion (2010)
Operating income	not disclosed
Net income	UAH 90 million (2010)
Employees	6,500 (2010)
Website	www.obolon.com

Obolon Joint Stock Company (Ukrainian: ПАТ "Оболонь") is a major Ukrainian producer of beverages: beer, low alcohol drinks (cocktails), soda drinks and locally extracted natural mineral water, as well as a major malt producer. Based in Kiev, Obolon JSC has sites across Ukraine and employs several thousand people.

Obolon's main plant in Kiev is the largest brewing facility in Europe by installed capacity. As of 2008, that facility was Europe's largest single beer manufacturer in terms of physical volume.^[1] Obolon's plant in Khmelnytskyi Oblast is the largest malting facility in Europe by installed capacity.^[2]

History

The company's main brewery was built in 1980 according to designs made by Czech engineers, near an artesian well in Kiev's Obolon district. Initially called Kiev brewery #3, it acquired the name "Obolon" in 1986. In 1992, Obolon became the first privatized company in independent Ukraine and registered its corporate brand Obolon (Ukrainian: Оболонь). The shares of company stock were distributed among its employees. In 1993, Obolon changed its legal status to a closed joint-stock company (currently it's a private joint stock company under present legislation). In 1997, Obolon obtained a $40 million loan from the European Bank for Reconstruction and Development, which the company used to significantly expand its production capacities.

In 2009 Obolon obtained a further $50 million loan from the European Bank for Reconstruction and Development towards financial stability and increased energy efficiency.^[3]

Oleksandr Slobodian, the CEO and veteran of the company was also a national politician till the 2012 Ukrainian parliamentary election; he was a member of the Verkhovna Rada and has represented the conservative People's Movement of Ukraine for three consecutive sessions.^[4]

The main Obolon plant on Bohatyrska Str. in Kiev

Structure

Obolon has its main site in Kiev and 8 facilities in Ukraine:

• Bershad (Vinnytsia Oblast),
• Fastiv (Kiev Oblast),
• Krasyliv and Chemerivtsi (Khmelnytskyi Oblast),
• Kolomyia (Ivano-Frankivsk Oblast)
• Oleksandria (Kirovohrad Oblast),
• Okhtyrka (Sumy Oblast)
• Rokytne (Rivne Oblast)
• Sevastopol.

Obolon beer mix advertisement (Kiev Metro, summer 2008).

Products and market share

Obolon sells beer under six brands: Obolon, Obolon BeerMix, Magnat, hike premium beer, Zibert and Desant. Brands for its non-alcoholic products are Zhyvchyk, Prozora and Obolonska mineral waters, and the Jett line of energy drinks. The enterprise also produces low-alcohol beverages, such as kvass. Obolon bottles Bitburger beer under license.

Obolon is the largest Ukrainian exporter of beer, accounting for 80% of Ukrainian beer exports.^[5] The company exported to 33 different countries (as of 2010),^[6] with most of its exports being supplied to Russia. Since November 2011 it is also exporting beer to China.^[7]

Quality standards

The Obolon Corporation has its own malting plant able to produce 120,000 tonnes of malt per year. The malting plant uses equipment from the German company Schmidt-Seeger. Obolon uses the malt in its own products and exports it.

Obolon is quality certified to international standards: ISO 9001:2001 (Quality Management Systems), ISO 22 000:2007 (Food Safety Management Systems), ISO 14 001:2006 (Environmental Management Systems), and OHSAS 18 001:2006 (Occupational Health and Safety Systems).

Social investments

The company invests in projects aimed at reducing adverse environmental impact. Obolon is also actively involved in educational projects, charitable and cultural initiatives. It has contributed to restoration of churches and monasteries and to publishing of Ukrainian books.

Sports patronage

Obolon has sponsored FC Obolon Kyiv since 1999. The company's CEO was an amateur footballer in his youth. On 21 February 2013 FC Obolon Kyiv withdrew voluntary from the Ukrainian First League after Obolon CEO Slobodyan had refused to finance the club after goalkeeper Kostyantyn Makhnovskyi was sold by the club without his consent.^[8][9] In December 2012 Slobodian announced he would create a new team under the moniker "Obolon Brovar" (Obolon Brewery).^[10] This club started its residence in competitive football in the 2013–14 Ukrainian Second League season.^[11]

See also

• Beer
• Economy of Ukraine

References

External links

• (Ukrainian)/(Russian)/(English) Official site of the company
• (Ukrainian) Sustainability Report (2010)