10 June 2008 - Russia's OJSC Bolshevik, a biscuits and pastry manufacturer, recently acquired by Kraft Foods, is planning to shift production from its plant located in central Moscow to a new state-of-the-art facility in Sobinka, in the Vladimir region (180km east of the capital).
Further to the transfer, the Moscow facility will close in mid-2009, the company said in a statement sent to FLEXNEWS.
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The Bolshevik Moscow plant produces key Russian brands, such as Jubilee, Prichuda, and Chocobarocco. |
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Last year, Kraft Foods became a majority shareholder in OJSC Bolshevik following the acquisition of Groupe Danone’s, global biscuit division.
The acquisition also marked Kraft Foods’ entry in the Russian and Eastern European biscuit category, where Danone was the share leader. Danone held 76.42% in Bolshevik before the deal, while the European Bank for Reconstruction and Development (EBRD) owned 16.11%.
According to press reports at the time, the combined annual sales of Bolshevik and Kraft Foods' 2 other plants in Russia were expected to amount to 20 billion roubles (about 558 million euro) in 2007.
According to Kraft Foods Russia, aapproximately 1 billion rubles (about 27 million euro) will be invested in the construction of the new Sobinka facility.
The plant is described as a “key component of Kraft Russia’s long-term growth strategy”.
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“The iconic Bolshevik brands will continue to be the foundation as Kraft expands the business through the development of premium, innovative and differentiated products to satisfy rapidly evolving consumer demands and preferences”, the firm said in the statement.
“The decision to transfer production has been a very difficult one” said David Steer, Chairman of Board of Directors of OJSC Bolshevik and General Director LLC Kraft Foods Russia.
“But it is the right decision for the business overall and was made following a thorough analysis of all options. We are especially mindful of the impact this decision will have on our employees, as we greatly value the dedication and support they have given to OJSC Bolshevik. We are working closely with Trade Union representatives to ensure that all affected Bolshevik employees are adequately and appropriately supported during this difficult period. They are guaranteed to be paid their appropriate entitlements, including a redundancy package, and also will have access to comprehensive career-transition support services,” he added.
In February 2008, Kraft Foods opened a 2.5 billion Rubles freeze dried coffee plant in St Petersburg to produce Jacobs, Carte Noire and Maxwell House brands. The company also has a confectionery plant in Pokrov, Vladimir Region, producing the Milka, Alpen Gold and Vozdushny brands.