Potential Nationalization of PepsiCo's Dairy Plants in Russia Sparks Debate
Source: The DairyNews
In late February 2024, regional Russian media reported that the "Soyuzmoloko-Sibir" alliance is considering the nationalization of PepsiCo's dairy plant in Novosibirsk, Russia. According to The Dairynews Global, this proposal may extend to other milk processing facilities owned by PepsiCo in Russia.
"The region is indeed facing a critical situation with a shortage of processing capacities," says Artem Belov, the CEO of Soyuzmoloko. "We would like investors to pay attention to this region as it has both the potential for domestic consumption growth and export potential." Soyuzmoloko itself denies the claim that the organization is suggesting the nationalization of the facilities.
However, sources from Dairynews Global assert that the situation in the Novosibirsk region is such that "since PepsiCo purchased the Novosibirsk plant, the raw milk processing capacity at the facility has decreased fivefold – from 500 to 100 tons per day. The plant responds to all farmer inquiries, stating that it does not need raw materials. Producers are forced to transport milk to the Kemerovo region and Altai Krai."
Meanwhile, in the Novosibirsk region, only 40% of the produced volume of milk is currently being processed, with 60% being exported beyond its borders.
At the end of 2023, it was also reported that one of PepsiCo's plants in the Krasnodar Krai could be sold to structures affiliated with the Tkachev Agrocomplex.
PepsiCo, an American company, is one of the major producers of dairy products in Russia. Their brand portfolio includes "Domik v Derevne," "Chudo," and "Vesely Molochnik." According to the report from OJSC "Wimm-Bill-Dann" (WBD), which manages the company's dairy assets, there were 14 production sites in Russia by the end of 2022.
However, sources from Dairynews Global assert that the situation in the Novosibirsk region is such that "since PepsiCo purchased the Novosibirsk plant, the raw milk processing capacity at the facility has decreased fivefold – from 500 to 100 tons per day. The plant responds to all farmer inquiries, stating that it does not need raw materials. Producers are forced to transport milk to the Kemerovo region and Altai Krai."
Meanwhile, in the Novosibirsk region, only 40% of the produced volume of milk is currently being processed, with 60% being exported beyond its borders.
At the end of 2023, it was also reported that one of PepsiCo's plants in the Krasnodar Krai could be sold to structures affiliated with the Tkachev Agrocomplex.
PepsiCo, an American company, is one of the major producers of dairy products in Russia. Their brand portfolio includes "Domik v Derevne," "Chudo," and "Vesely Molochnik." According to the report from OJSC "Wimm-Bill-Dann" (WBD), which manages the company's dairy assets, there were 14 production sites in Russia by the end of 2022.
