Finnish Coffee Producer Sold Business in Russia

The ‘Paulig’ Finnish coffee producer with headquarters in Helsinki sold the business in Russia. The buyer of the shares in LLC “Paulig Rus” was a private investor, Vikas Soi. The Russian business of Paulig will be transferred to a new owner. Trademarks and recipe are not included in the transaction.  

Picture: RenTV

The Paulig brand will leave the Russian market within the next months. Deliveries of green coffee to the new owner of the Russian factory will continue during the transition period, which will take no more than three months, as stated in the Paulig official message.

The new owner of the company in Russia, Vikas Soi, is an Indian citizen. It is said that he has been living in Russia for more than 30 years. Previously, he worked at the Megapolis distributor, and then became the managing director of the Milagro Beverage Company coffee producer.

Paulig is a family-owned company that produces beverages and food. Paulig has been roasting coffee since 1904. The company’s portfolio includes the brands Paulig, Santa Maria, Risenta, Poco Loco, and Liven. Revenue for 2021 amounted to 966 million euros.

The company entered the Russian market in 1992. In 2011, it built a coffee roasting plant in the Tver region, which produced about 7 million kilogrammes of products per year and employed 200 employees.

In November 2021, Paulig decided to stop importing spices, condiments, and sauces of the Santa Maria brand to Russia in order to “focus on the development of the growing coffee category in Russia.” Then the company was going to become a leader in the coffee market of Russia.

On March 7, Paulig announced that it was leaving the Russian market due to the start of a special operation and “changes in the geopolitical situation.” According to Rolf Ladau, CEO of Paulig, in connection with the special military operation of the Russian Federation in Ukraine and changes in the geopolitical situation, “we concluded that continuing business in Russia was no longer responsible nor viable and initiated a withdrawal process.”

The company noted that the Russian business accounted for less than 5% of revenue last year, and leaving the Russian Federation will not have a significant impact on the rest of the business.

It is specified that LLC “Paulig Rus” was renamed LLC “Milfoods”, the corresponding change, as well as information about the change of owner, was registered on May 4, 2022.

Ru-Main, 05.05.2022
Source: Interfax  

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