Kraft Foods: plans new biscuit plant near Moscow

Northfield / IL. (kf) Kraft Foods Inc. intends to open a manufacturing facility for its recently-acquired biscuit and pastry business OJSC Bolshevik in Russia. OJSC Bolshevik is planning to shift production from its plant located in central Moscow to a new state-of-the-art facility in Sobinka (Vladimir region; 180 kilometres east of Moscow). Further to the transfer, the Moscow facility will close in mid-2009, the company said in a statement.

2007 Kraft Foods became a majority shareholder in OJSC Bolshevik following the acquisition of Group Danone´s, global biscuit division. The acquisition also marked Kraft Foods´ entry in the Russian and Eastern European biscuit category, where Danone was the share leader. Danone held about 76 percent in Bolshevik before the deal, while the European Bank for Reconstruction and Development (EBRD) owned approximately 16 percent.

According to international media at the time, the combined annual sales of Bolshevik and Kraft Foods´ two other plants in Russia were expected to amount to 20 billion RUB (about 558 million EUR) in 2007. According to Kraft Foods Russia, approximately one billion RUB (about 27 million EUR) will be invested in the construction of the new Sobinka facility. David Steer, Chairman of Board of Directors of OJSC Bolshevik and General Director LLC Kraft Foods Russia says the new plant is a «key component of Kraft Russia´s long-term growth strategy».