Nestlé Strengthens Russian Chocolate Market Position

26/11/07 Nestlé Rossiya, the leading food and beverage company in Russia, has announced the acquisition of Ruzskaya Confectionery Factory (RKF). This company offers consumers a wide range of chocolate products under the Сomilfo and Ruzanna brands. The acquisition price was not disclosed. Completion of the transaction is subject to the usual regulatory approvals by the Russian Federation authorities.

With sales of about USD 51 million in 2006 and an estimated 40% organic growth rate for 2007, RKF is a leading premium chocolate producer in Russia. Once the acquisition is completed, about 1,000 RKF employees, with their specific know-how, will join Nestlé Rossiya. Nestlé plans to extend the production capacity of RKF, which is located in the Ruza district near Moscow. With its strong supply and distribution network, Nestlé will bolster the presence of the acquired brands in Russian regions outside Moscow and Saint Petersburg.

The high-quality image of the Сomilfo and Ruzanna brands ideally complements Nestlé's chocolate brand portfolio in Russia, and will boost Nestlé's presence in the fastest growing segment of the Russian chocolate market, the premium category. Indeed, the move is a further testimony to Nestlé's commitment to the premium chocolate market across the world.

Over the past 13 years, Nestlé has built up a strong presence in Russia with over 10,000 employees and 13 factories. With double-digit growth rates and sales of more than CHF 1.6 billion in 2006, Nestlé is market leader in Russia in coffee, chocolate, culinary products and infant nutrition, and is making good progress in pet food and ice cream.