by Eugene Vorotnikov FoodBizDaily.com Moscow
November 09 2009 - Sales of Coca-Cola Hellenic Bottling Company in Russia in July-September 2009 fell by more than 10% in terms of volume, according to the official press-release of the company. One of the reasons of this is a reduction in the demand for soft drinks and the declining purchasing power of the Russian consumers.
However, according to the press-release, Coca-Cola HBC still sees a positive outlook for its business development in Russia, and believes that the current strategy will help to increase its sales in the future.
In order to maintain its profitability Coca-Cola has already revised its costs in Russia and reduced them by approximately 0.7 million euros during the last 9 months.
The sales of Coca-Cola HBC in the developing countries (including Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Moldova, Montenegro, Nigeria, Russia, Romania, Serbia and Ukraine) in the third quarter fell by 13% in volume terms and 21% in value - to 709.7 million euros compared to 902.7 million euros in 2008.
The company's revenues in the region for the 9 months of 2009 decreased by 13%, to 1.95 billion euros compared to 2.25 billion euros last year. The operating profit in the III quarter fell by 30% to 97.5 million euros, while for the last 9 months - 14%, to 222.2 million euros.
Currently Coca-Cola owns 14 factories and more than 60 distribution centers in Russia. In 2005 Coca-Cola Company and Coca-Cola HBC acquired Russia's juice company "Multon" for more than $500 million, and in summer 2007, Coca-Cola HBC acquired another local soft-drinks manufacturer Aqua Vizhion "for 191.5 million euros.
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Coca-Cola Hellenic Bottling Company S.A.
Address: 9, Frangoklissias Street Marousi Athens, 151 25 Greece
Telephone: +30-210-6183100
Fax: +30-210-6195514
About Coca-Cola Hellenic Bottling Company S.A.
Coca-Cola Hellenic Bottling Company S.A. (CCHBC) is primarily engaged in producing, selling and distributing non-alcoholic beverages consisting primarily of the products of The Coca-Cola Company. The Company operates in 28 countries. Its products include carbonated soft drinks (CSDs) and non-CSDs, including juices, waters, sports and energy drinks and other ready-to-drink beverages, such as teas and coffees. On December 11, 2008, the Company acquired a 100% stake in Socib S.p.A.
Coca-Cola Hellenic was formed in 2000 as a result of the merger of the Athens-based Hellenic Bottling Company and the London-based Coca-Cola Beverages. Since then, our territory has expanded and currently extends from as far west as Galway, Ireland, to Petropavlovsk, the easternmost point of Russia. This breadth provides attractive growth opportunities and reduces our dependence on any particular market. In conducting operations across 28 countries, Coca-Cola Hellenic provides guidance, support and supervision to each operation while placing day-to-day management and operation in the hands of local employees with a deep familiarity of their own country, its business practices and community aspirations. Coca-Cola Hellenic is headquartered in Athens and currently listed on the Athens, New York, London and Sydney stock exchanges. Our two major shareholders are the Kar-Tess Group, a private holding company, and The Coca-Cola Company.