While the largest soft drink companies around the world such as pepsi and Coca Colasevered their ties with RussiaRussian Chernogolovka, which operates in the same industry, is rushing to take advantage of the exit of these companies and seeks to acquire 50% of the $9 billion market.

The Chernogolovka company produces snacks, bottled water, energy drinks, and since May last year, it has also launched Chernogolovka cola. According to a Reuters report, the massive withdrawal of Western companies from Russia and the imposition of sanctions after its invasion of Ukraine represents an unexpected opportunity for domestic business. In an interview with Reuters, Russian company CEO Natalya Sakhnina noted that the company will double its size this year, estimating that within two years its market share will reach 30% from 8.5% by the end of 2021. “We were, we are and will be the main Russian producer of soft drinks,” she stressed. “We strive to become the absolute dominant in the Russian market and are working on it.” According to Statista, cited by Reuters, the revenue of the soft drinks industry in Russia reaches $8.8 billion.

Soft drink company Chernogolovka estimates that its market share will reach 30% within two years, up from 8.5% at the end of 2021.

Although carbonated soft drinks gases produced by Coca-Cola and PepsiCo are still available in Russia, but they are expected to disappear soon due to destocking. Thus, this gap will be quickly filled by local producers such as Chernogolovka. The company in question has already doubled its sales in the southern Russian city of Krasnodar, and in Novosibirsk, according to Ms. Sakhnina, has increased its production capacity by up to 50%. New cola-type soft drinks from companies such as Chernogolovka and its rival Ochakovo saw a 5% increase in sales in this category in the first half of 2022, according to Nielsen data in Russia.

“Our company is not represented in the cola category,” she says, referring to a category that currently makes up about 50% of the entire market. “We entered this market this year, and this decision coincided with the departure of the international players working there. Therefore, if we evaluate our prospects and goals, they are practically limitless. To meet the demand for non-alcoholic beverages, Chernogolovka continues to build a 40,000 sq. in the region – investments reaching $50 million. The first stage of its implementation is expected to be completed in March 2023. At the same time, the company began supplying Russian Burger King and KFC stores with its products since April. At the same time, negotiations are underway on deliveries to Vkusno i Tochka stores, an analogue of McDonald’s, which opened under this brand after McDonald’s sold the license to a local player.