13.02.09

Coca-Cola plans to invest about $1.2 billion in the development of its production facilities in Russia over the next three to five years, Zoran Vucinic, the company's president for Russia, Ukraine and Belarus, said at a conference in Moscow on Wednesday.

Coca-Cola has already invested $1.8 billion in Russia since it began working in the country. These investments do not include marketing budgets and investment in brand promotion. Vucinic said the company could afford to carry out an aggressive promotion policy in Russia since it has a solid financial base in the U.S.

The Russian nonalcoholic beverage market is growing despite the crisis, and Coca-Cola's business has also been on the rise, he said. This is why the company plans to continue investing in expansion on the Russian market and intends to get through this difficult period, he said.

The company's wide assortment of products, which also includes kvas (a lightly fermented traditional beverage) and energy drinks in addition to traditional carbonated drinks, as well as a broad sales network ranging from street kiosks to hypermarkets will aid in making it through the crisis, Vucinic said.

"Coca-Cola sells brands, not goods. In times of crisis, consumers make choices in favor of familiar goods," he said.

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Source: Interfax