Cereal Flakes, Porridge to Be Made in Russia
Finnish Raisio Group and Zolotoy Kolos Agrarian Holding of Tatarstan sealed a contract Wednesday to set up a venture for constructing facilities of cereal flakes production. After the launch, the better part of Raisio’s Nordic will be made there. According to market players, Raisio transfers porridge production to Russia due to the surge in European prices for raw and impossibility to hike prices for the product in Russia.
Finnish Raisio will get 75 percent in the venture, and Zolotoy Kolos will have the remaining 25 percent, said CEO of Russia’s Raisio Nutrition. The funding of ˆ15-million project will be effected by each party pro rata the stake. The launch of the enterprise is slated for 2008; annual production capacity is estimated at 25,000 tons.
In Russia, Raisio is represented by three brands – Voimix, Dolina Skandi and Nordic. All Nordic is imported from Finland and past year’s sales of the Nordic porridge in Russia reached 6,000 tons. Overall, the country’s market of porridge is estimated at 300,000 tons, or $300 million tons in terms of money.
www.kommersant.com
All the Article in Russian as of June 08, 2006
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