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Coca-Cola Hellenic Expands in Russia as Western Ventures Falter

Published: May 16, 2014 (Issue # 1810)



  • Coca-Cola Hellenic is looking at expansion in Russia, despite widespread concerns over the state of the market.
    Photo: Coca-Cola Hellenic

Correction appended.

Coca-Cola Hellenic — one of the largest franchised bottlers of Coca-Cola products in the world — has opened a new, high-tech production line at its plant outside Moscow as part of an ongoing commitment to expanding its presence in the Russian market at a time when most European companies are downgrading their outlooks.

"We are upgrading our capacity by 30 percent with our new line, with the latest technology ... that provides almost 45 percent energy savings over the previous analog lines," said Coca-Cola Hellenic Russia's CEO Stefanos Vafeidis, while speaking to reporters touring the new production line.

These efforts have boosted the factory's output significantly, Vafeidis said.

"All in all, it gives this plant the ability to produce more than 3 million liters of finished product a day, which is more than enough to satisfy current and near future demand, and provides good opportunity for investments," he said.

Vafeidis said that the new production line at the Solntsevo plant, which cost the company 10 million euros ($13.6 million), is part of the company's ongoing drive to improve its facilities and the quality and capacity of existing operations

The Coca-Cola Company, which supplies Coca-Cola Hellenic with the ingredients for Coca-Cola products, recently closed two of its four Russian juice plants run by Nidan, which it bought in 2010. This was done in order to optimize its production capacities in the shrinking Russian juice market.

Coca-Cola Hellenic is looking at expansion in Russia, despite widespread concerns over the state of the market amid the ongoing crisis in Ukraine and a declining ruble that has forced many European companies to revise their forecasts.

Vafeidis said that "this line and all of the investments we do is complete proof of our belief in the growth of the Russian market, and this positive outlook is translated in to our investments to increase our capacities … in terms of quality and ensuring that we have the highest standards for our Russian consumers."

Alexei Komissarov, the head of the Moscow Administration Science, Industrial Politics and Business Department praised is for its modernization and energy efficiency drives at its Moscow plant — located in Moscow region's southwest Solntsevo district. Coca-Cola Hellenic enjoys good relations with the Moscow city government, despite political tensions over the crisis in Ukraine and escalating Western sanctions against Russia.

Coca-Cola Hellenic is one of the largest franchised bottlers of Coca Cola in the world, and the largest in Europe — where it operates in 28 countries. In Russia, these activities are carried out by 14 facilities, situated in Moscow, St. Petersburg, Orel, Nizhny Novgorod, Samara, Volga, Yekaterinburg, Rostov, Novosibirsk, Krasnoyarsk and Vladivostok.


Correction: An earlier version of this report incorrectly named the two juice factories closed by Coca-Cola as Nidan and Multon. In fact, Nidan and Multon are subsidiaries of Coca-Cola in Russia, and the two closed plants were run by Nidan. Also, the article incorrectly said the capacity of the two closed plants was 790 million liters per year. This is in fact the combined capacity of two juice plants run by Multon.





 


ALL ABOUT TOWN

Thursday, July 24


Liliana Modiliani, a well-known Russian stylist, will talk about choosing clothes that fit during her lecture at 7 p.m. at the Pryamoy Efir art club, 13 Viborgskoe Shosse.



Friday, July 25


Discuss Russia’s economic and political prospects for 2014 during a Business Breakfast organized by SPIBA at 9.30 a.m. in the Bank Saint-Petersburg office at 64


Malookhtinsky Prospekt.


Start your weekend with adorable miniature pigs at the Squealing Pig festival at 7 p.m. this evening in the Karl & Friedrich restaurant, 15 Iozhnaya doroga, on Krestovsky Island.



Saturday, July 26


Hundreds of brand-new and retro cars, drag and drift shows, test drives and karting are planned for the Avtobum-2014 festival, which will take place in front of the RIO shopping center at 2 Fuchika Ulitsa.


Participants in today’s SaniDay Summer competition will impress visitors with their hand-made, unusual and hilarious boats, which will race at the Igora Resort near the 54th kilometer on Priozerskoe Shosse.


Metro Family Day will include both serious lectures for adults and master-classes for children, making the event interesting for the whole family. To participate, come to Kirov Park on Yelagin Island.


Photography will be the focus of today’s Photosubbota, which features lectures by famous photographers, meetings with photo schools and studio representatives, and participation in a photography competition. The event starts at noon at Petrokongress, 5 Lodeynopolskaya Ulitsa.


If you like cycling, make sure to visit the Za Velogorod Festival with its retro bike exhibition, market and live music. The second round of the Leningrad Criterium race will also take place during the event at Petrovsky Arsenal in Sestroretsk.



Sunday, July 27


Navy Day will be celebrated with a weapon and military transportation exhibition, self-defense master classes and concerts. The event starts at 1 p.m. in the 300th Anniversary Park of St. Petersburg.



Monday, July 28


Don’t miss a chance to see the latest achievements in robotics during the RoboDom interactive show, exhibiting more than 150 robots. The show will be at BUM center, 22/2 Gzhatskaya Ulitsa, until Aug. 3. The entrance ticket costs 350 rubles ($10).



Tuesday, July 29


A video of a Queen concert from 1986 will be shown today at 8 p.m. in Yaschik, 50/13 Ligovsky Prospekt.



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