Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Russia's Ochakovo ups soft drink bottling capacity as Western rivals leave

Stock Markets Aug 18, 2022 09:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A view shows a shelf with bottles of soft drinks at a shop in Moscow, Russia August 17, 2022. REUTERS/Staff/File Photo
 
KO
-0.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PEP
+0.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

MOSCOW (Reuters) - Russian drinks producer Ochakovo on Thursday said it had increased the annual bottling capacity of its CoolCola, Fancy and Street soft drinks by 2.5 times to try and plug the gap in the market left by exiting Western brands.

A mass exodus of Western firms due to sanctions and restrictions over Russia's actions in Ukraine has created an unexpected opportunity for Russian businesses and entrepreneurs.

Although fizzy drinks made by Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) are still available in Russia, they are set to disappear over time as stocks are run down, leaving local manufacturers to step in.

Ochakovo, which produces beer, juices and carbonated soft drinks similar to Coke, Fanta and Sprite, said it had increased bottling capacity to 125 million decalitres a year from 50 million.

"We have adapted production lines, increased their number, widened production geography and continue to hire staff," CEO Yuri Antonov said in a statement.

"We are capable of replacing the volumes of brands that have left the market."

Rival Chernogolovka is aiming for a 50% share of Russia's nearly $9 billion soft drinks market now that Coca-Cola is reducing operations, its CEO told Reuters this month. The company started making Cola Chernogolovka in May.

Newly launched cola brands, including Ochakovo and Chernogolovka, jumped to a 5% share of sales in the category in the first half of 2022, NielsenIQ Russia said.

Coca-Cola HBC AG, one of Coca-Cola's many bottlers worldwide, last week said it took a one-time hit of 190 million euros ($193 million) in the first half from costs related to its Russian business after it stopped selling Coke and other products in Russia.

Western companies with iconic brands like Coca-Cola that exit Russia face years of battling knockoffs and unauthorised imports clamouring to fill the void they leave behind, as well as courts with little sympathy for firms that depart.

($1 = 0.9841 euros)

Russia's Ochakovo ups soft drink bottling capacity as Western rivals leave
 

Related Articles

Emerson to sell Russia business to local management
Emerson to sell Russia business to local management By Reuters - Sep 27, 2022

(Reuters) - Emerson (NYSE:EMR) Electric Co said on Tuesday it would sell its Russian business to the local management team for an undisclosed amount, marking the U.S. industrial...

U.S. to appeal court loss against sugar merger
U.S. to appeal court loss against sugar merger By Reuters - Sep 27, 2022 1

WASHINGTON (Reuters) -The U.S. Justice Department said on Monday it would appeal a judge's ruling that U.S. Sugar Corp's plans to buy rival Imperial Sugar Co was legal under...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email