Orkla to Merge its Russian Chocolate and Confectionery Companies

The establishment of Orkla Brands Russia is an important step in our long-term commitment in the Russian chocolate and confectionery business.

2/25/2011 --- Krupskaya and SladCo will be consolidated under one management team and one organisation. The integration process has already started, and the new organisation will be effective from 25 February 2011. Orkla Brands Russia will have about 3,350 employees and a turnover of approx. RUB 6,800 million. The headquarters will be in St. Petersburg.

Vadim Ter-Israelyan has been appointed CEO of Orkla Brands Russia. He will start in his new position from 24 February. The chairman of the board will be Paul Jordahl, CEO of Orkla Brands International.

"Combining the best of both organisations, we will improve our competitive position in a demanding Russian market. The establishment of Orkla Brands Russia is an important step in our long-term commitment in the Russian chocolate and confectionery business. We will keep and develop the local brands, thereby maintaining the Russian tradition and proud history," says Paul Jordahl.

SladCo has been owned by Orkla since 2005. In 2010, the company had net sales of RUB 3,800 million and 2,100 employees. SladCo is the market leader in Urals and South Volga, with production in Ekaterinburg and Ulyanovsk.

Krupskaya was acquired by Orkla in 2006. The company is located in St. Petersburg, and is the market leader in Northwest Russia. The company had net sales of RUB 3,000 million in 2010, and 1,250 employees. Over the past years, Krupskaya has fortified its position in Northwest Russia by acquiring several companies and trademarks.

Vadim Ter-Israelyan, 44, has been CEO of SladCo since 2007. He has a degree as Diploma Engineer from Yerevan Engineering University and an MBA in Finance from the AUAC, California. He has wide experience in leadership and sales from Unilever, Wimm-Bill-Dann, and Kraft Russia.

Philip Wegh, 52, has been CEO of Krupskaya since 2007. He has been promoted to a position as Director Operations in Jotun, one of the world's leading manufacturers of paints, coatings and powder coatings, and an Orkla associate. Mr. Wegh will be responsible for building a new factory for Jotun in the greater St. Petersburg area. He will start in his new position on 1 April.