Mars has opened a new $53 million plant at its factory in Stupino, Russia which will increase capacity at the facility by 30%.
Mars is Russia’s leading confectionary company with nine factories in the country, three of which produce chocolate. In 2014, the company invested US$90 million to expand and upgrade is factories in the country, and stated that despite the Western sanctions and ongoing economic crisis in Russia, it will continue to invest in active development in the country.
“Our strategy in Russia is to focus on investments in local manufacturing and developing and retaining local talent,” said Jean-Christophe Flatin, Mars Global Chocolate president, “The launch of the new plant will strengthen our market position.”
As Russian consumer’s purchasing power weakens in the wake of sanctions, other confectioners such as Jelly Belly remain wary of the country’s economic instability. But in light of the fact that the Russian chocolate market is expected by Euromonitor International to see compounded annual growth of 6% through 2020, other groups such as Mondelez International have moved ahead with their investment strategies.
In April 2014 Mondelez announced a $110 million factory in Siberia to produce its chocolate brands, Milka, Picnic and Alpen Gold and biscuit brands Jubilee, Barni, and TUC, and in its last annual report, Ferrero announced that its Russian subsidiary was its fourth largest with a turnover of US$396 million.
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