Exclusive rights to produce and sell PepsiCo products behind seven-fold rise in sales
pr. 17 (Ukrainian News) – The Zaporizhia-based beer and nonalcoholic beverage plant Slavutych has made strong gains on the nonalcoholic beverages market thanks to the company’s right to exclusively produce and sell PepsiCo products in Ukraine.
Prior to signing an agreement last year to become the exclusive producer of PepsiCo products in Ukraine, Slavutych was for 10 years only one of several Ukrainian enterprises producing PepsiCo beverages.
Ihor Tovkach, an assistant to the director-general of Slatvutych, said that as a result of the agreement signed last year, Slavutych increased its beverage sales seven-fold to 6.8 million liters during the January-March period of this year, compared with the same period last year.
He added that Slavutych’s sales rose also thanks to its improved water-purification abilities and the start in December 2000 of a new PET bottling line with a capacity of 18,000 liters per hour.
“Everything yielded results. Sales volumes rose sharply,” Tovkach said.
According to Tovkach, Slavutych plans to compete against other companies such as Coca-Cola, which owns a factory in the Kyiv region, Obolon and Rogan.
Obolon produces four types of nonalcoholic beverages for PepsiCo – Pepsi Cola, Mirinda Lemon, Mirinda Orange, and Seven Up.
According to State Statistics Committee data, Slavutych produced 24.9 million liters of nonalcoholic beverages or 4.4 percent of the total quantity produced in Ukraine in 2000. This represented a 396 percent increase in Slavutych’s beverage production, compared with 1999.
Slavutych, which is owned by the Scandinavian BBH, is also one of the five largest producers of beer in Ukraine. It has about 15 percent share of the Ukrainian beer market.
Slavutych is capable of annually producing over 20 million decaliters of beer and beverages.
Specialists estimate the volume of the Ukrainian beer and nonalcoholic beverage market at about 135 million decaliters per year.
