Nestlé Rossiya acquires RKF

Nestlé Rossiyahas has acquired Ruzskaya Confectionery Factory, a maker of chocolate products under the Nomilfo and Ruzanna brands in Russia. The company has not disclosed the price of the acquisition.

Nestlé believes that the high-quality image of the Nomilfo and Ruzanna brands complements its chocolate brand portfolio in Russia, and will boost its presence in the fastest growing segment of the Russian chocolate market, the premium category. The acquisition will complement Nestle's solid Russian chocolate portfolio, cementing its position as the leading chocolate company in the country, with over 13 years of experience in Russia.

Completion of the transaction is subject to the usual regulatory approvals by the Russian Federation authorities. Once the acquisition is completed, about 1,000 Ruzskaya Confectionery Factory (RKF) employees, with their specific know-how, will join Nestlé Rossiya.

Nestle's strong supply network in Russia will be used to enhance the distribution of Ruzskaya products, which currently have a Moscow and St Petersburg bias. With prior knowledge of both the Russian chocolate market and premium chocolate in general, Nestlé has an advantage over Wrigley in the market and is expected to develop Ruzskaya into a strong local brand.

(Source: Food Business Review)