Factories producing Coca-Cola in Russia reduced production by 1.5 times

The decision of the American Coca-Cola to stop production of its flagship drink in Russia led to a drop in production at the Russian plants of the company associated with Coca-Cola - it fell by 46% in the second quarter

Switzerland-based Coca-Cola Hellenic Bottling Co., in which the American Coca-Cola Co. owns 21% and which is engaged in the production of various drinks in Europe and Africa, reported a drop in production in Russia in April-June 2022 by 46%. Absolute values ​​are not given. Bottleler predicts a decline in production in the second half of the year, the company warns of this in its published financial statements for the first half of 2022.

Due to a military special operation in Ukraine, the American Coca-Cola Co. back in the spring, it announced that it was suspending operations in Russia: since March 8, it has not been supplying concentrate for its flagship drink. In addition, other global brands of the American Coca-Cola Co. will leave the Russian market. Her bottler, which has ten plants in Russia, has been producing only local brands since March, such as Dobry, Rich, Ya juices.

Coca-Cola will leave the Russian market Business

In March-April, Coca-Cola Hellenic Bottling Co. stopped operations in Ukraine, where it has one plant, but already in May, production and distribution were resumed. In the second quarter, production in Ukraine fell by 45%.

American Coca-Cola Co. effective August 10, it unilaterally renounced part of its management rights in the Russian company Multon, the Dobry juice producer, transferring its 50% stake to the Swiss Coca-Cola Hellenic Bottling Co., which thus became the sole owner of the juice producer. It was acquired by Coca-Cola Co. and her bottler back in 2005. The American company has reserved a limited range of operational issues, including the appointment of the board and the approval of the Moulton budget, bottler said.

Since the American Coca-Cola Co. waived the rights to Multon unilaterally, her bottler does not have an asset valuation. However, the previously determined fair value of the producer's share was approximately €240m. After the asset is consolidated, the net revaluation loss on the producer's share is expected to be approximately €82m in the third quarter of 2022.

Aeroflot replaced Coca-Cola with Pepsi on flights, and champagne with Prosecco

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Since July 29, the Russian legal entity Coca-Cola Hellenic Bottling Co. changed its name: Coca-Cola ABC Eurasia LLC was replaced by Multon Partners LLC, as follows from the Unified State Register of Legal Entities.

RBC turned to Multon and the head office of Coca-Cola for comment.