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PepsiCo, Coca-Cola Hellenic to close two beverage plants in Russia

DBR Staff Writer Published 03 March 2015

PepsiCo and Coca-Cola Hellenic Bottling are planning to shutdown one plant each in Russia, as demand has decreased due to challenging economic conditions in the country.

coca-cola bottles

The juice plant owned by PepsiCo in Ramenskoye has over 10 production lines and employs 400 people, Reuters reported.

The production activities of three lines will be moved from Ramenskoye to Lebedyansky and a plant in Vladivostok while the rest of the production lines will remain closed until the market condition improves, the news agency reported.

PepsiCo stated: "From June 2015, juice production will be centred at Lebedyansky plant (the Lipetsk region) - one of the largest juice-producing plants in Europe."

Coca-Cola Hellenic Bottling, partly owned by Coca-Cola, will move production operations from its plant in Nizhny Novgorod, east of Moscow, to other modern plants in Samara, Oryol, Moscow and Istra, according to The Wall Street Journal.

The Nizhny Novgorod plant produces soft drinks and iced tea. It will continue to operate as a distribution and logistics center.

Earlier in 2014, Coca-Cola closed two of its fruit juice plants in Russia.

Coca-Cola also plans to slash 100 production jobs out of 13,000 in Russia.

Image: Coca-Cola Hellenic Bottling's plant in Nizhny Novgorod produces soft drinks and iced tea. Photo: courtesy of THE COCA-COLA COMPANY.