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Coca-Cola launches downsized “Express’ cans

Posted by John Bonar on Monday, 01 June 2009 22:42 | Published in Retail & Consumer Goods

Coca-Cola bottler, Coca-Cola ABC Eurasia has launched 237ml cans of Coca-Cola, Sprite and Fanta in a bid to stem loss of sales as a reaction to the crisis effect on consumers’ purchasing power. The cans labeled “Express” and a slogan Refreshes! Quickly! Every Day! have a recommended retail price of 10 Rubles prominently displayed on the can but this does not deter Moscow’s retailers hiking the price to 15 rubles in Metro underpass kiosks.


Russian Standard Vodka aims for 50% increase in 2009, founder Roustam Tariko said on the edge of the Davos Economic Forum in February the company was expanding into Canada this year and was considering buying two Russian brands. Russian Standard plans to invest $100 million this year in distribution and marketing and began sales of Aurora vodka, its fifth brand, in the first quarter. The company already sells vodka in 60 countries.

Russian cosmetic manufacturers including Concern Kalina, with their brands Black Pearl and Clean Line could see a 9% increase in sales this year according to Renaissance Capital analyst Natasha Zagvozdina. This will be less than the 15% growth in 2008 but cosmetics and personal-care items remain an affordable luxury and a way to gain a sense of well-being, Renaissance noted.

Russia’s Baltika Breweries began exporting nonalcoholic beer to Libya in December. The first shipment was over 28,000 liters of Baltika No. 0 nonalcoholic beer to the North African republic, where sales of alcohol are illegal. The beer will be sold in Tripoli, Benghazi, Misratah and Tobruk - and be positioned in the premium segment. The retail price for a 0.5-litre bottle will be $1-$1.2.

Procter & Gamble is concentrating on emerging markets including Russia in its expansion programme for the next four years. Despite seieing signs of retailers and customers cutting down on their inventorys of its products in markets ranging from China and Russia to Pakistan, CEO AG Lafley, “We just have a huge opportunity to service urban consumer households in developing markets who have plenty of income, even with an economic downturn. In the most ambitious expansion programme in its history, P&G will open 20 new manufacturing facilities before the end of 2012, almost all of them located outside established markets. Chief Operating Officer Bob McDonald has said, “P&G’s centre of gravity will shift toward developing markets.”

Rusteacoffee industry association expects Russia could raise tea imports by 5% to 187,000 tons this year.

 

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