Dive Brief:
- Russia will see closures of one plant from PepsiCo Inc. and Coca-Cola Hellenic Bottling Co. AG each. The shutdowns come amid troubles in the Russian economy, including what looks like a coming recession and significant drop in the value of the Russian ruble.
- While last year PepsiCo had a 40% share of the Russian juice market by volume according to Euromonitor, the company will shutter its Ramenskoe juice facility in June.
- Part-owned by Coca-Cola Co., Coca-Cola Hellenic will close its own Nizhny Novgorod plant, though the plant itself will still be used as a logistics and distribution center.
Dive Insight:
Both PepsiCo and Coca-Cola reported losses in Russia last year. Coca-Cola saw a $36 million loss in its Russian juice business, and PepsiCo said its Russian revenue dropped by 10%. Interestingly, while Coca-Cola also sees a waning market in Brazil, Coca-Cola FEMSA is investing $200 million to expand operations there.