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June 14 Interfax - U. The trademarks belong to the 32nd and 33rd classes of the International Classification of Goods and Services for soft drinks, alcoholic beverages, and carbonated water, among others. The Coca-Cola Company announced in March that it was suspending operations in Russia amid the situation in Ukraine. The company then announced the halt to production and sales of carbonated beverages under the international brands Coca-Cola, Sprite, and Fanta in Russia, and focused on the release of local brands. Despite this, the new soft drink has managed to occupy Coca-Cola's niche, he clarifies. The Dobry Cola brand increased its market share from 2. Absolute values were not provided. The company posted net profit of 6. News and other data on this site are provided for information purposes only, and are not intended for republication or redistribution. Republication or redistribution of Interfax content, including by framing or similar means, is expressly prohibited without the prior written consent of Interfax. All rights reserved. International Information Group.
Despite earlier pledges to halt operations, Coca-Cola has continued production in Russia and reported a staggering increase in profits in
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This week, in our main story we explain how Coca-Cola remained the second most popular soda brand in Russia even after The Coca Cola Company has ceased operations in the country. We also look at the nationalization of the largest Western-owned consumer companies and witness the signs of inflation in Russia gaining momentum. Coca-Cola announced it was leaving the Russian market back in March as part of the global response to the invasion of Ukraine. Yet the U. Two weeks after the invasion of Ukraine, the U. Coca-Cola Company announced that it was ceasing operations in Russia, abandoning its investments and halting its promotional activities. That meant that officially, Coca-Cola, Sprite, Fanta and other brands would no longer be on sale. However, the American parent company has never been directly responsible for its production and sales in the Russian market. However, second place in the market went to the original U. And now, its sales in Russia make money not for Greek businessmen, but Russian billionaires. All Coca-Cola sold in Russia is imported as of last fall. There are dozens of companies bringing the drinks into the country, including the UAE, Iran, Turkey, Azerbaijan and many other countries. Journalists have even found bottles of Coke imported from Taliban-held Afghanistan. This figure is based on records from Rosakkreditatsiya, the state agency that issues the declarations of conformity which are required for importing goods into Russia. A serial declaration enables Foodmall to import any volume from its designated supplier, which is in this case the Azerbaijan-based Coca-Cola Bottlers LTD. The same bottler is also delivering cola to the Rostov region in southern Russia via Korzinka, a company specially created for this purpose. It was founded by the year-old wife of the head of a large meat processing plant in Rostov. In Vladivostok, a major port close to the Chinese border, a Chinese bottler supplies local distributor Digoods. Another Vladivostok-based company, Trade Group, filed a declaration to import barrels of cola, apparently for the hospitality industry. The Coca-Cola Company was able to improve its image in the eyes of clients and investors, albeit at the cost of lost profits. Meanwhile, Russian businessmen have gained more opportunities to earn from importing soda under the Coca-Cola brand name. In effect, the state has appropriated the assets of foreign investors who have poured billions of dollars into the Russian eonomy over the years. Danone Rossiya and Baltika are important players on the Russian consumer market. Danone first started producing its branded products in Russian factories in , and opened its own plant in the country in By , the French company owned 13 businesses in the country, employing , staff. From to , Baltika was consistently the leading beer brand in Russia. In February , media reports said Danone planned to transfer control over its assets to new investors. However, there were never any reports that new investors had been found. This week Fortum announced that it was filing a multi-billion-euro compensation claim to international arbitration. In reality, nationalization happened some time ago, and it fell upon everyone at once. If you cannot sell your business when you choose, it is no longer your business. At the start of the summer, Putin boasted of how inflation in Russia was approaching record lows and was even less than in many Western countries at 2. However, with the rapid fall in the ruble and high levels of consumer demand, the Central Bank is warning of price rises to come. Since the start of this year alone, they are up 3. Taking into account current monetary policies, the rate will be 4. The weakening ruble's knock-on effects are currently less noticeable than usual, the Bank warned. There are exceptions for specific goods and services where demand remains high cars, foreign tourism. Inflation was also boosted by labor shortages, wage increases outstripping productivity and consumers choosing to spend rather than save, which encourages manufactures to hike prices. The Central Bank published fresh data on inflation a week before its next meeting to discuss the base interest rate, which has held steady at 7. Now, Russian analysts predict a 50bp increase. However, factors such as ruble depreciation, increased demand, depleted stocks of imported goods indicate that inflation is set to increase. This week we look at Russia ramping up spending to lure soldiers for its war on Ukraine. We also highlight calls for a tax on couples who choose not to have children. Russia boosts army sign-up bonuses amid escalating frontline losses After the unpleasant experience with forcibly calling up. We also look at a round of tech layoffs that has spooked Russians working abroad and a Russian opposition figure killed while fighting for Ukraine. An inside look at the Russian economy and politics. Exclusively in your inbox every week. The Bell. You might also like. The Bell's Newsletter An inside look at the Russian economy and politics. Featured Posts. Twitter RSS.
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In lieu of Coca-Cola, Fanta and Sprite, Russians will be able to choose from CoolCola, Fancy and Street, Russian drink producer Ochakovo announced Monday.
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