Coca-Cola continues to remain top seller in Russia despite withdrawal: Report

After Russia launched its military operation against Ukraine, more than 1,000 foreign companies curtailed their operations in Russia. But a report has emerged that claims Coca-Cola has remained one of the top sellers among cola-flavored beverages in Russia.

The report further said that the soft drink was the second-most popular cola beverage in the months of January and February in Russia, accounting for over 14% of sales per unit.

Coca-Cola continues to remain top seller in Russia despite withdrawal: Report

The report further said that the top-selling Dobry Cola brand, which is produced in Russian factories, continued to be a top seller among cola drinks and belonged to Coca-Cola HBC Russia, accounting for just over one-third of the market. Imported Coca-Cola remained the top seller as it topped all sweet carbonated beverages, accounting for 32% of sales, per the data from another fiscal data operator, Evator.

It was found that the unit price of the original Coca-Cola increased by an average of 68% year-on-year in the first two months of this year. The original Coca-Cola was brought to Russia by Russian retailers and fast-food chains via parallel imports, a practice by which a non-counterfeit product is imported without the permission of the real owner via alternative supply channels. The import of banned products was legalized by the Russian government in order to ease the trouble faced by the Russian people after foreign companies suspended their operations, reported Rt.com, citing business daily RBK.

Also, the report stated that the iconic drink reached Russia from Eurasian Customs Union countries such as Kazakhstan, where it is manufactured by Coca-Cola HBC, RBK explained. The company operated ten factories in Russia, producing soft drinks including Fanta, Sprite, and Schweppes, along with local brands.

After Moscow invaded Ukraine, just like other companies, Coca-Cola also announced its plans to suspend business in Russia joining a long list of Western brands amid Ukraine-related sanctions. According to the list of companies, as of the beginning of May, over 1,000 international firms completely closed their business in one way or another; 144 of these companies announced that they were abandoning the planned investments, while another 125 firms declared the plan to reduce or temporarily suspend their activities, and some of them completely closed operations in Russia.

Image: AP