Wimm-Bill-Dann to invest US$59.5m in Russian dairy industry - Company News - Wimm-Bill-Dann Foods - Brief Article

Eurofood, Nov 7, 2002

Speaking at a dairy press conference in Moscow, Sergei Plastinin, chairman of Russian dairy and juice giant Wimm-Bill-Dann Foods, said his company plans to invest US$59.5m (60.4m [euro]) in Russia's dairy industry by 2005.

In accordance with Russia's dairy market, Wimm-Bill-Dann will by 2005 have to produce about 3 000 tonnes of milk a day, he said. Wimm-Bill-Dann's Moscow companies are currently able to produce just over 2 000t of milk a day (1 500t at the Lianozovsky Dairy Combine and 550t at the Tsaritsynsky Dairy Combine).

Wimm-Bill-Dann will have to bring in about 900t of sterilised milk from Moscow's closest regions. The company also plans to organise deliveries of powdered milk from these regions, he said.

"To ensure these combines have quality milk we plan to expand the Molochnye Reki Rossii program," he said. Spending on this project will total US$29.5m.

To ensure milk for the Moscow group of combines, another US$30m should be invested in the Moscow, Vologda, Kostroma, Ryazan and other nearby regions, he said. Thus, total investment by 2005 will total US$59.5m.

Implementing the program will strengthen the production and economic relations of dairy combines and agriculture producers, better finances and improve the production and quality of milk, he said.

Wimm-Bill-Dann Foods was founded in 1992. It has 19 manufacturers in 15 major cities in Russia and the CIS. The company exports sells its products in Canada, Germany, Israel, the Netherlands, the UK and the US, both through its own distributor network and through independent distributors. In 2001 the company sold 850 000t of dairy products, up 36.4% from 623 000t in 2000. Net profit totalled US$31.8m, up 49% from US$21.4m. Earnings rose 45% from US$465.4m to US$674.6m.