Coca-Cola HBC Russia Multon Partners formerly Coca-Cola HBC Eurasia

Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is a beverage production and distribution company of The Coca-Cola Company in Europe and part of the Coca-Cola System.

Coca-Cola in Russia

Main article: Coca-Cola in Russia

Assets in Russia

2017

The company owns 10 factories for the production of soft drinks and juices in Moscow and the Moscow region, St. Petersburg, Samara, Yekaterinburg, Rostov region, Novosibirsk, Krasnoyarsk and Vladivostok. Coca-Cola HBC Russia provides 9,600 people with jobs. The company purchases 90% of raw materials and materials, excluding concentrate, for the production of drinks from local suppliers. In Russia, the company is registered in Nizhny Novgorod, the legal name is Coca-Cola HBC Eurasia LLC (data as of December 2017).

2011

The interests of the company in Russia for 2011 were represented by the Russian representative office of The Coca-Cola Export Corporation (Coca-Cola Export Corporation LLC), whose office is located in Moscow.

The Coca-Cola Company, a 100% subsidiary of the Greek Sosa-Cola Hellenic Bottling Company S.A., was engaged in the production of products with the permission and control of The Coca-Cola Company.

For 2011, in Russia, Coca-Cola HBS Eurasia LLC owns 16 plants (in Moscow and the Moscow Region, St. Petersburg, Orel, Nizhny Novgorod, Samara, Stavropol Territory, Volzhsky, Yekaterinburg, Novosibirsk, Krasnoyarsk, Vladivostok and Rostov Region). The company owned more than 80 distribution centers. The largest factories were located in Nizhny Novgorod and Orel. The Oryol branch of Coca-Cola HBC Eurasia provided products for the entire southern part of the Central Federal District relative to Moscow.

2010

In 2010, Irish European Refreshments (a subsidiary of The Coca-Cola Company) gained 100% control over the Russian juice producer "Nidan Soki" (trademarks "Yes!" and "My Family").

Also, the Greek Sosa-Cola HBC in Russia owns a 50% stake in the juice producer Multon and since 2007 - a 100% stake in the soft drink manufacturer Aqua Vision.

History in Russia

2024: TD "Grass" bought Coca-Cola warehouses in Volzhsky

In mid-March 2024, it became known that the Grass Trading House, which produces automotive and household chemicals, acquired the warehouses of Multon Partners LLC, a Russian division of Coca-Cola HBC Holdings B.V. We are talking about facilities located in the city of Volzhsky, Volgograd Region.

In 2023, Coca-Cola renamed its division in Russia to Multon Partners (Multon Partners LLC). The corporation's Volzhsky plant was commissioned in 2002. In 2014, the company decided to optimize costs and moved the production of soft drinks to the Rostov region. On the territory of the Volga branch continued to work as a trading and distribution and logistics center.

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According to Interfax, warehouses with a total area of ​ ​ approximately 16 thousand square meters have been transferred to Grass. There is no information on the amount of the transaction at the time of its execution. The area was needed by Grass to expand production capacities amid a 1.6-fold increase in turnover in 2023 compared to the previous year.

Grass is growing fast. The company's turnover in 2021 amounted to 13 billion rubles, in 2022 - 17.2 billion rubles, in 2023 - 27.5 billion rubles, - said the general director of the company Mikhail Grachev.

A new packing line has been launched on the purchased areas. "Grass Trading House" produces about 800 products. The main activities of the enterprise are the production of professional auto chemistry and cleaning products, household chemicals and cosmetics. It is also planned to deploy a printing house for printing labels on marketable products at the former Coca-Cola warehouses in Volzhsky: this complex is being created together with Chinese partners.

In general, the company will allocate more than 7 billion rubles to expand production and plans to increase production from 120 thousand tons to 210 thousand tons. Revenue is expected to reach 30 billion rubles a year.^[1]

2023: Appointment of a new CEO

In July 2023, it became known about the appointment of Vladimir Kosier as CEO of Multon Partners (formerly Coca-Cola HBC Russia). In this position, he replaced Alexander Ruzhevich, who led the Russian "daughter" of the producer of carbonated drinks since 2018. Read more here.

2022

Coca-Cola lost 190 million euros due to the cessation of sales in Russia

Coca-Cola HBC losses from stopping sales of products in Russia in the first half of 2022 amounted to 190 million euros. The soda producer announced this as part of its financial statements published on August 11, 2022.

In addition, in the second half of the year, the company expects new financial losses in the amount of 82 million euros. This is due to the fact that the remaining stocks of goods in Russia are "almost exhausted," and the production and sale of Coca-Cola drinks in the country is not planned.

Coca-Cola lost 190 million euros due to a halt in sales in Russia

On August 11, 2022, Coca-Cola HBC announced that the company had depleted its stock in Russia and stopped producing and selling Coca-Cola products in the country, which was not so long ago its largest market. Now the company will have a smaller presence in the Russian market.

At the same time, the company's local brands, such as Rich, Dobry and My Family juices, remain profitable and self-sufficient, Zoran Bogdanovich, CEO of Coca-Cola HBC, said in a conversation with the agency. He stressed that Russian brands do not interact in any way with the American The Coca-Cola Company.

Coca-Cola HBC also reported a decrease in sales in the Russian Federation by 17-19% due to depletion of stocks. According to Zoran Bogdanovich, as part of the reduction of its business in Russia, Coca-Cola HBC had to lay off Russian employees. How many employees of the company fell under dismissal, by August 11, 2022 is not reported.

In August 2022, Chernogolovka said it planned to occupy half of the market after Coca-Cola and Pepsi left. The soft drinks market in Russia is estimated at almost $9 billion. At the end of 2021, the share of Chernogolovka was 8.5%, in 2022 the figure doubled. By 2024, the company plans to reach a share of 30%.^[2]

Change of name to LLC "Multon Partners"

According to the Unified State Register of Legal Entities, on July 29, 2022, the name of the organization Coca-Cola HBS Eurasia LLC was changed to Multon Partners LLC. At the same time, the legal address has been changed from 603032, Nizhny Novgorod Region, Nizhny Novgorod, ul. Bauman, 66 to 119633, Moscow, st. Novoorlovskaya, 7.

Aleksandar Ruzhevich, who headed Coca-Cola HBC Russia since 2018, is the CEO of Multon Partners.^[3]

At the same time, a branch of Multon Partners LLC was created in Nizhny Novgorod, which is located at 603032, Nizhny Novgorod Region, Nizhny Novgorod, ul. Bauman, d. 66.^[4]

Cessation of production and sale of beverages in Russia

On June 16, 2022, Coca-Cola announced that it would no longer produce or sell drinks in Russia. The decision was made against the background of the conflict in Ukraine and the sanctions imposed against Russia by the United States and their satellite countries.

2021: Coca-Cola drinks production in Russia increased by 24%, to 2.86 billion liters

The production of Coca-Cola drinks in Russia in 2021 increased by 24% compared to 2020 and reached 2.86 billion liters. The company announced this on February 22, 2022.

According to TASS, citing a statement by Coca-Cola HBC, the company's product portfolio in 2021 was expanded primarily due to calorie-free carbonated drinks and low-calorie drinks, their share was about one third of the total. Coca-Cola HBC plants in Russia have increased the content of recycled plastic in manufactured bottles to 20%.

Coca-Cola beverage production in Russia in 2021 increased by 24%

The net profit of Coca-Cola HBC (sells brand goods in Russia, Nigeria, Italy and Central and Eastern Europe) in 2021 increased by 31.9%, to 547.2 million euros. In Russia, sales growth was more than the average for the rest of the countries of Coca-Cola HBC presence. The company's revenue in 2021 reached 7.17 billion euros, which is 16.9% more than a year earlier.

The Coca-Cola HBC Russia plant in Istra in 2021 produced 172.1 million liters of drinks. This is 21% more than a year earlier. The company's St. Petersburg plant in 2021 produced 192.3 million liters of drinks, which is 18.9% higher than the result of a year ago.

By the end of 2021, Coca-Cola HBC operated in 28 countries. In Russia, the company owned 10 plants for the production of soft drinks and juices in Moscow and the Moscow region (two plants), St. Petersburg, Samara, Yekaterinburg, Rostov region, Novosibirsk, Krasnoyarsk and Vladivostok.

The Coca-Cola HBC Russia plant has been operating in Moscow since 1994 and is one of the enterprises showing consistently high production efficiency indicators. The plant has seven modern lines for bottling soft drinks in a plastic bottle and an aluminum can, as well as syrups (for wholesale customers) - in bags with a volume of 10 liters and 20 liters, the company said.^[5]

2020: Launch of cereal and ground coffee sales

In September 2020, it became known that Coca-Cola is starting a new business in Russia - the sale of grain and ground coffee. Consumption of these products is growing, and the retail market has hardly suffered during the COVID-19 pandemic. But, experts and market participants believe, competing with existing Coca-Cola players will be difficult, primarily due to expensive imports.

A representative of the company told Kommersant that Coca-Cola is launching the sale of grain and ground coffee under the Costa Coffee brand in Russia. The recommended regular shelf price with VAT for packaging in 200 g is 399 rubles. In the future, the company is considering the possibility of distributing coffee in capsules and for professional use.

According to its own forecasts, in the markets of Coca-Cola's presence, the coffee category will grow by 4% per year.

According to Aleksandar Ruzhevich, CEO of Coca-Cola HBC in Russia, the company carefully analyzed the market in Russia (see Tea and coffee (Russian market)):

"Most cups of coffee are consumed at home, this is the largest segment, so we started with hot drinks, as well as the self-service segment on the HoReCa channel. We are also considering opportunities in other coffee segments, "he

Kommersant's interlocutor in a large food manufacturer notes that Coca-Cola may seek to enter a profitable segment - profitability in coffee sales is higher than in soft drinks. In addition, coffee consumption in the Russian Federation is increasing, although the country was previously considered^[6] "tea room," he argues^[7].

CEO and co-owner of Famous Amazing Brands (Vanilla Flight and Anarchy brands) Anton Stelmakov adds that retail coffee sells well, subject to roasting and product promotion: "Coca-Cola can do both." According to Mr. Ruzhevich, the launch of sales of grain and ground coffee is one of the first key stages in the implementation of the company's strategy for the development of the coffee and coffee drinks segment.

According to a Kommersant source among food producers, the closure of the HoReCa segment, cinemas, etc. affected the consumption of Coca-Cola's main product - carbonated drinks. Otherwise, according to him, the category does not experience difficulties.

The general director of the Rosschaikofe association, Ramaz Chanturia, says that the COVID-19 pandemic has led to a drop in demand for coffee in the Russian Federation by about 30% due to the fall in HoReCa, and retail consumption has not changed.

But he emphasizes that 80% of coffee in the Russian Federation is a product of local roasting and it will be difficult to compete with Coca-Cola. The appreciation of the ruble is one of the main risks, a Kommersant source among product manufacturers notes. Rusbrand executive director Alexei Popovich agrees that "a new shelf for Coca-Cola may not be easy."

2017

As of December 2017, Coca-Cola HBC operated in 28 countries and served a population of 595 million. Coca-Cola HBC in Russia was one of the largest investors among manufacturers of consumer goods.

The company produces and offers in 2017 in Russia an assortment of soft drinks under trademarks: Coca-Cola, Coca-Cola Zero, Sprite, Fanta, BonAqua drinking water, Powerade sports drink, Burn and Black Monster energy drinks, Schweppes tonic, Fructime drink, juice products under the Good brands, Rich, My Family and Pulpy.

2014: Revocation of advertising from 4 TV channels after the return of Crimea to Russia

In August 2014, it became known that Coca-Cola withdrew advertising from four Russian TV channels at once. According to a representative of the agency that buys for advertising on TV, such a step was adopted for economic reasons. At the same time, the sources of the publication do not exclude the possibility that this decision is related to the sanctions of the United States and the European Union. The newspaper Kommersant writes about this.

Since August 2014, advertising for Coca-Cola products will disappear from the REN TV, Channel Five, Domashny and Zvezda channels, a source told Kommersant on the media market. It is noted that the first three are associated with the bank "Russia," which fell under American sanctions, and the fourth belongs to the Ministry of Defense of Russia.

"These four channels are the least suitable for the target audience for Coca-Cola brands, so the advertiser decided to redistribute budgets," explained Yuri Borisovsky, a representative of MediaVest, which buys television advertising for the American company.

Anna Kozlovskaya, director of external relations at the Russian office of Coca-Cola, confirmed this information. According to her, the company decided to concentrate on key federal and most effective channels for the target audience of the company.

At the end of July 2014, it became known that Coca-Cola's operating profit in the first half of 2014 fell by two percent to 5.5 billion. dollars The restructuring of the juice business in the Russian Federation, as a result of which a loss of $25 million was recorded, had a negative impact on this indicator.

2013

In 2013, the company produces and sells in Russia non-alcoholic soft drinks, both carbonated and non-carbonated:

• Coca-Cola,
• Coca-Cola Light,
• Sprite,
• Fanta,
• BonAqua drinking water,
• cold tea Nestea,
• Powerade sports drink,
• energy drink burn,
• Schweppes tonic,
• kvass "Mug and Barrel," as well as
• drink "Fructime."

As of July 2013, a high level of production localization was achieved.

2012: Exclusive sales of alcoholic beverages company Brown-Forman

In Russia, the company is a distributor of premium alcoholic beverages of Brown-Forman Corporation.

In 2012, the production of a new juice-containing drink Pulpy began.

More than 90% of raw materials and materials were purchased from Russian counterparties in 2012.

2010: Launch of Costa Coffee brand

Since 2020, the sale of grain and ground coffee under the Costa Coffee brand has begun.

2007: Workers strike in St. Petersburg

Until July 2008, the company's activities in Russia belonged to the Eurasia operational segment (which included the CIS countries, the Middle East, India). The revenue of the entire Eurasia segment in 2007 amounted to $1.084 billion.

It was stated that in Russia the company sells about 17% of its own products in the world. According to Nestle, Coca-Cola sales in Russia in 2007 amounted to about $1.3 billion.

In 2007, employees of the company's plant in St. Petersburg went on strike. The reason for the strike, according to its organizers, was the insufficient growth rate of wages of employees of the enterprise owned by Sosa-Cola Hellenic Botling Company.

Since July 2008, the Eurasia group was reorganized, and later Russia began to belong to the Eurasia and Africa group.

Coca-Cola's total investments in the Russian economy (including the purchase and construction of factories, distribution development, etc.) from 1990 to 2011 amounted to $3 billion. In 2011, the company announced its intention to invest another $3 billion in the country's economy for the period from 2012 to 2016.

2005: Acquisition of Multon with Rich and Good brands

In April 2005, after the acquisition of Multon, the range of products was replenished with Rich juices, nectars and mashed potatoes, juices, nectars and Good fruit drinks.

1998

Yekaterinburg 1998.

1970

Coke as a protest symbol, 1970.

Notes