Coca-Cola eyes up Kvass

March 18, 2008

July 23, 2007, 10:43

Coca-Cola is reported to have plans to enter the Russian kvass

market. Production of the traditional local beverage, Kvass has

become one of the fastest-growing soft drinks sectors in the country.

Coca-Cola is reported to have plans to start producing kvass - a

traditional Russian drink.

The company has turned to domestic producers to explore options on

how best to do this.

One of the most popular drinks in Russia, kvass is a treat enjoyed

by all generations.

And now Coca-Cola is looking to enter the lucrative Russian kvass

market.

Greek-based Coca-Cola HBC has already invested US$ 1.5 BLN in

Russia, with 14 production plants and 60 distribution centers,

handling soft drinks, juices and water.

Moving into kvass would be a new step and talks are reported to be

underway with a number of established kvass producers, to make the

venture a success.

" The Russian soft drinks market - it's big and it's growing. Kvass

is really the fastest growing sub-segment within soft drinks

category. Last year, according to our data estimates, it grew more

than 40%. And we expect further growth of up to 50% this year, "

commented Andrey Sterlin, Managing Director, Business Analytica,

Moscow.

Coca-Cola says the company will not be entering the kvass market

this year, but it has reportedly registered three new brands with

the Russian patent office.

" Coca-Cola has over 300 brands registered in Russia, including kvass-

flavoured Fruk-time. Kvass is a national Russian drink, and as far

as I can recall, a foreign company has never attempted to enter the

market with its own version of kvass. Time will tell how successful

Coca-Cola can be, " added Nikolay Bogdanov, Partner, Gorodissky &

Partners, Moscow.

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