Beverages

  • Beverages
    Mar 04, 2024
    Carlsberg Appeals Russian Court Ruling Over Baltika International Sales

    On March 4, 2024, Carlsberg’s Kazakhstan operations appealed to a Russian court to challenge a January ruling that revoked the company’s rights to sell Baltika brands in several countries, including Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Turkmenistan, and Mongolia. This move follows the Kremlin’s “temporary management” seizure of Carlsberg’s Russian assets and the company’s subsequent termination of its brewing contract with Baltika Breweries, highlighting ongoing legal disputes and Carlsberg’s efforts to protect its business interests in the face of Russia’s asset seizure policies.

  • Beverages
    Feb 23, 2024
    EU Russia sanctions spark uncertainty at JDE Peet’s

    JDE Peet’s, a prominent player in the tea-and-coffee industry, faces uncertainty due to the impending new set of EU sanctions against Russia, which could potentially impact its control over its local business operations in the country. Despite previously announcing plans to halt sales of its international brands in Russia and transition to a local portfolio of brands, JDE Peet’s still maintains operations in the country. The company’s Russian arm has operated as a stand-alone business to the greatest extent possible, particularly following the onset of the war in Ukraine.

     

    In a statement accompanying the release of its 2023 results, JDE Peet’s acknowledged on February 23, 2024 the possibility that the new EU sanctions, slated to take effect in June 2024, might affect its assessment of control over its Russian operations as per IFRS 10 rules. This uncertainty prompted the company to carefully consider the implications for its financial year 2024 onwards.

     

  • Beverages
    Dec 28, 2020
    Nestle expands baby formula production in Russia

    Nestlé will spend 3.5 billion rubles (45.8 million U.S. dollars) to expand its infant formula production in Russia, the company said on September 21, 2020.

     

    The company will set up a full-cycle factory for the production of dry infant formula in Vologda, 500 kilometers north of Moscow, which will allow the company to fully localize production.

     

    The new operation complements an existing infant formula plant at the site, which was completed in 2019. This facility will cost around two billion rubles.

     

    After construction, the new factory will manufacture Nestogen baby food.

     

  • Beverages
    Nov 23, 2019
    Hot drinks in Russia

    The Russian hot drinks market registered strong growth from 2013 to 2017. The growth of the market is expected to decelerate over the forecast period from 2017 to 2022.

     

    Russia faced several socio-economic challenges, including high inflation during the review period. Manufacturers in this market experienced rising production costs, which resulted in rising per-unit price of the end product. Therefore, customers have created demand for some high-value products. However, tea is considered the traditional hot drink in Russia. Therefore, demand for mid-priced tea remained strong.

     

    The Russian hot drinks market had total revenues of USD8,233.2 million (mln) in 2017, representing a compound annual growth rate (CAGR) of 9.4 percent between 2013 and 2017. In comparison, the Czech and the Polish markets grew with CAGRs of 2.9 percent and 3.7 percent respectively, over the same period, to reach respective values of USD457.9 mln and USD2,758.4 mln in 2017.

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