Exclusive/Russia: Soda maker Chernogolovka aims for 50% of the market after the departure of Coca-cola and Pepsi


MOSCOW (Reuters) – Russian soda maker Chernogolovka is aiming for a 50% share of the nearly $9 billion local market, its chief executive told Reuters as the world’s biggest makers leave the country due to the coronavirus pandemic. invasion of Ukraine.

The mass exodus of Western companies from Russia has created an unexpected opportunity for Russian businesses and entrepreneurs.

Chernogolovka, which makes snacks, bottled water, herbal lemonades, energy drinks and, since May, Chernogolovka Cola, has more than doubled its business this year, its chief executive Natalia Sakhnina said in an interview. and expects to reach a 30% market share within two years, up from around 8.5% at the end of 2021.

“We were, are and will be Russia’s leading beverage producer,” said Natalia Sakhnina. “We hope and work to achieve absolute leadership in the Russian market,” she added.

The turnover of the Russian soft drink market totals $8.8 billion, according to Statista.

Soft drinks from Coca-Cola and Pepsi are still available in Russia, but they are set to phase out as existing stocks run out, leaving local manufacturers to take over.

Pepsi and Coca-Cola suspended operations in Russia in March after Russia invaded Ukraine.

RISE OF COLA BRANDS

Recently launched cola brands, including Chernogolovka’s and Ochakovo’s competitor CoolCola, surged to a 5% share of sales in the segment in the first half, according to NielsenIQ Russia.

“This year we entered this segment and it coincided with the departure of international players from this flavor. So if we assess our prospects and our ambitions, they are almost limitless,” said Natalia Sakhnina.

Chernogolovka began supplying sodas to Russia’s Burger King and KFC outlets in April and is in talks to do the same for Vkusno & tochka, the new brand of former McDonald’s restaurants in Russia, which opened after the group American sold its license to one of its local licensees, added Natalia Sakhnina.

Vkusno & tochka is looking for a new drinks supplier as Coca-Cola runs out of stock in Russia, chief executive Oleg Paroev told Reuters in June.

“We are currently studying the options, choosing a supplier which, according to taste, will best suit our customers,” a Vkusno & tochka spokesperson said on Wednesday.

Authorities in the Moscow region lobbied for Chernogolovka to be placed on a list of enterprises producing essential goods, which allowed it to receive loans on preferential terms in April and May.

“This market, if the competitive situation remains the same, will be completely different in a year, unrecognizable, said the group’s general manager.

(Reuters reporting, writing by Matt Scuffham and Alexander Smith; French version Diana Mandiá, editing by Kate Entringer)

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