The Coca-Cola Co., Atlanta, and its bottling partner, Coca-Cola Hellenic, Athens, Greece, will invest $3 billion in Russia during the next five years, beginning next year. The announcement came with the official opening of a new Coca-Cola plant in the Rostov region of Russia.
“The Coca-Cola Company is proud to be serving this great nation's 140 million-plus consumers,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., in a statement. “Our system is part of the fabric of Russia's economic development and we continue to invest in Russia to create jobs and stimulate growth across our supply chain. [This] announcement underscores the Coca-Cola system’s long-term strategy of investing in Russia.”
The investment into the Coca-Cola Hellenic Rostov facility, which has a production capacity of 450 million liters of beverages a year and is located in a 26.5 hectare area, has already amounted to more than USD $120 million. The facility’s environmental practices, quality controls and modern technologies in manufacturing non-alcohol drinks were showcased during the opening ceremonies.
“At present, the Rostov region is among three Russian regions with the most comfortable business climate,” said Vasily Golubev, governor of the Rostov region, in a statement. “Coca-Cola Hellenic’s investment exemplifies this trend. In addition to offering employment opportunities for the community, the company provides a concrete example: it is profitable to open and do business here. As such, the company benefits further economic growth of the [Rostov] region and the country on the whole.”
“I am sure that the launch of this plant in the Southern Federal District will promote the development of the region and the formation of an innovative, eco-oriented economy,” said George David, chairman of Coca-Cola Hellenic Bottling Co., in a statement. “We are fully committed to and believe strongly in the potential of Russia, and that of the region.”
The opening of the Coca-Cola Hellenic plant in Rostov region also was commemorated by the launch of a limited-edition Coca-Cola can bearing the Sochi 2014 Olympics logo.
“The launch of the new Coca-Cola plant demonstrates the fact that the Olympic Games in Sochi have become a catalyst of the economic growth of the Russian South,” said Dmitry Chernyshenko, president and chief executive officer of the Sochi 2014 Organizing Committee, in a statement. “Coca-Cola shares two major ideals of the Sochi 2014 Organizing Committee: innovation and sustainability. The plant is equipped with the most advanced technologies, and I believe that in 2014 we are going to be thirsty, but only for Olympic victory.”
Worldwide, The Coca-Cola Co. and its bottling partners are investing nearly $30 billion during the next five years to support anticipated growth across its system. These investments range from new manufacturing facilities to new distribution systems to new marketing investments in emerging economies.
Coca-Cola opens new Russian plant
Source: Beverage Industry