18 February 2008 - German chocolate manufacturer Alfred Ritter plans to move its Russian production activities back to Stuttgart, in Germany. Currently, the company produces Ritter Sport bars at the Odintsovo Confectionery Plant, near Moscow.
Ritter made the decision due to high prices for quality ingredients.
"A sharp increase in the price of raw ingredients would inevitably lead to higher production costs," Alexei Yarovoi, the company's local general director, told the Russian press.
"Unfortunately, it was impossible to find raw materials that meet the high standards of the company in the Russian market," it said. "As a result, we have had to resort to importing all ingredients needed for production."
Ritter will continue to supply the Russian market and improve its distribution.
Last year, Wm. Wrigley Jr. Company acquired an 80% stake in chocolate maker A. Korkunov for USD 300 million. As a result, the US candy maker also owns 80% of the Odintsovo plant where Ritter manufactures its bars. Wrigley said it would buy the remaining 20% over time.
The takeover of the Odintsovo plant has made it difficult for Ritter to continue production there, said another company spokesperson.
Earlier this month, Germany's Federal Cartel Office and prosecutors raided the offices of 7 confectionery groups including Ritter on suspicion of chocolate price fixing, according to a report on FLEXNEWS.