Nestle reports 12% increase in 2013 sales to 78.2B rubles in Russia and Eurasia regions

MOSCOW , April 16, 2014 () – Nestle corporation boosted its sales in the Russia and Eurasia region by 12% in 2013 to 78.2 billion rubles, Nestle's regional chief, Maurizio Patarnello, said at a press conference on Wednesday.

He said last year was a success for Nestle in this region and was significant because of the launch of strategically important production facilities. As a result, the Nestle brand significantly strengthened its position on the market.

Nestle invested over 5.7 billion rubles in the Russian market in 2013. The overall size of direct investments in the Russian economy over the last 17 years exceeds $1.5 billion. Despite forecasts that Russian economic development will slow, the company is certain in the long-term prospects for its business in Russia, Patarnello said.

Nestle is continuing to expand production in Russia, he said. A new plant that produces Maggi culinary products was launched in the city of Vyazniki (Vladimir Region) in October 2013 with overall investments of 2.6 billion rubles. The company invested another 1.4 billion rubles in building a new production floor for moist pet food at the Nestle Purina PetCare plant in Vorsino (Kaluga Region).

Along with expanding production, Nestle Purina PetCare also increased the Vorsino plant's distribution capacity. Investment in building and equipping the new distribution center exceeded 1 billion rubles.

The company is also planning to build another distribution center in Vologda, Patarnello said. The size of investment has not been disclosed.

Patarnello said the company was also planning to increase sales in the Russia-Eurasia region by 10% this year.

Kh of

(Our editorial staff can be reached at eng.editors@interfax.ru)

(c) 2014 Interfax Information Services

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.