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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

Friday, Aug. 22


Get ready to pledge allegiance to the flag during National Flag Day, paying tribute to when, 23 years ago today, the iconic hammer-and-sickle was replaced with the tricolor that now flutters in the wind. Petersburgers will be treated to a free concert on Palace Square, a military parade and a culminating air show featuring Russias Russian Knights stunt pilots.



Saturday, Aug. 23


Uppsala Park plays host to Fairy Noon today, a performance of five separate fairy tales ranging from folk classics to more haunting selections. There will be three different renditions of the tales throughout the day and tickets start at 500 rubles ($13.80) for adults and 300 rubles ($8.30) for children.


Classic Finnish cartoon characters the Moomins expect to receive a warm welcome from Russian fans during todays Moomin Festival at the Pearl Plaza Shopping Center at 51 Petergofskoye Shosse. Become a kid again or introduce a new generation to the beloved creation of Finnish writer Tove Jansson.



Sunday, Aug. 24


The tortured genius of Dutch master Vincent van Gogh gets his day in the centers Konnushnaya Ploschad during Make Art Like Van Gogh, a daylong celebration of the artist that will allow amateur artists to try and replicate the work that made the famed painter world-renowned.


Experience a variety of dances highlighting the diversity of the world around as at the final day of the Ethno-Dance International Dance Festival that has been at the St. Petersburg Humanitarian University of Trade Unions this past week. Tonights performance will feature Egyptian dancers accompanied by local orchestras.



Monday, Aug. 25


Today kicks off the Elena Obraztsovoy International Competition for Young Vocalists in the large hall of the Shostakovich Philharmonic. Talented youngsters will showcase their range over the next six days before a winner is chosen on Aug. 30.



Tuesday, Aug. 26


Love movies but hate all those words? Then check out Rodina Cinema Centers Factor of Consensus film forum this evening. Silent movie classics from the beginning of the 20th century will be screened and accompanied by a pianist, who will provide the soundtrack for the ongoing action. The screenings begin at 7 p.m. Check Rodinas website for more details.



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