Lion Capital aims to squeeze Russian juice potential

By Neil Merrett

- Last updated on GMT

Related tags Eastern europe Coca-cola

Private investment firm Lion Capital yesterday became the
latest foreign firm to enter the burgeoning Russian fruit juice
market through the acquisition of local manufacturer Nidan.

Lion Capital said the purchase, which it expects to complete in September, would grant it a ready-made consumer base within the country to tap potential for non-carbonated beverage brands.

The acquisition of another of the country's leading juice producers will further ramp up pressure on processors in the country to meet consumer demand for healthier alternatives to existing products on the market.

Nidan is Russia's third largest fruit juice producer, as well as the market leader in Serbia.

The firm posted sales during its latest full financial year of $270m through its brands.

Lion Capital's Javier Ferrán said the investment would allow Nidan's brands to better compete potential against its rivals within the burgeoning Russian juice market.

"Nidan has an attractive portfolio of branded juice offerings with strong positions in one of the largest and fastest growing juice markets in the world," he stated.

"We believe there is a compelling opportunity to continue Nidan's strong financial performance through product innovation, expanded paths to market and investment behind the brands."

Lion Capital's strategy comes on the back of similar moves by other leading multinationals in stepping up beverage production to target the huge potential for products linked to healthier lifestyles in Eastern Europe.

Coca-Cola Hellenic, the beverage giant's European bottler, last month announced the €195m purchase of fellow Russian soft-drinks group Aquavision.

Along with its construction plant, the sale also gave Coca-Cola control of Aquavision's local beverage brands like the recently launched Botaniq juice.

This followed on from PepsiCo's announcement in June that it would increase its presence in Eastern European soft drinks production by acquiring an 80 per cent stake in one of Ukraine's leading juice names.

Through the $542m (€406m) purchase of the Sandora company, Pepsi claims it now holds a dominant role within the country's burgeoning market for fruit juice production.

The purchase included Sandora's two productions plants situated in Nikolaev, along with its sales and distribution capabilities.

Lion Capital owns a number of food and beverage brands including snack group Kettle foods and cereal label Weetabix.

Related topics Manufacturers Juice drinks

Related news

Show more