Unilever announces further investment in Russia

Unilever to build a state-of-the-art production facility in Tula over the next five years.

Following its acquisition of Russia’s leading ice-cream company, Inmarko, earlier this year, Unilever has announced that it has now committed a further €100 million to the construction of a state-of-the-art production facility in Tula, over the next five years.

The facility itself will produce ice-cream for the Russian market (estimated at €1 billion in size), along with dressings for the Becel and Calvé brands and ingredients for the other foods brands like Knorr, as well as providing packaging facilities for the Brooke Bond, Beseda, and Lipton tea brands.

Russiahas some of the biggest mayonnaise and tea markets in the world (estimated at €1 billion and €1.3 billion respectively) in both of which Unilever has strong positions.

Sanjiv Kakkar, Chairman Unilever Russia, Ukraine and Belarus, said, “With over 140 million consumers, Russia is one of our fastest growing markets and is a priority country for Unilever. We have already invested close to €600 million in our business here and we continue to invest disproportionately. This latest commitment is another important step to strengthen our sales and manufacturing position.”

The new site will compliment the existing Unilever network of sites in St Petersburg, Moscow, Omsk, Novosibirsk and Tula itself, to provide products primarily for the Russian market, but also for export to the rest of Central and Eastern Europe.

The €100 million investment, one of the biggest Unilever has made in Central and Eastern Europe, will generate some 400 new jobs and follows recent investment of nearly €50 million in its St Petersburg facility, to improve tea production facilities and to transfer roll-on deodorant production from the UK.

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Unilever background information

Unilever has operated in Russia since 1992, has 7 manufacturing and production sites: Moscow (spreads and crème bonjour), St. Petersburg (home care, personal care and tea), Tula (dressings, savory, food ingredients) and ice cream production plants in Tula, Novosibirsk and Omsk and more than 160 representative offices across the country.

The company’s brand portfolio in Russia includes: Beseda, Becel, Brooke Bond, Calvé, Knorr, and Lipton, together with Axe, Cif, Clear, Domestos, Dove, Rexona, Sunsilk and Timotei. With the acquisition of InMarko, the leading Russian ice cream producer, in 2008 company’s portfolio also now includes the Ekzo, Magnat, San-Cremo, Torzestvo ice cream brands, amongst others.

Unilever has invested more than RUR 21.5 billion (close to €600 million) in its business and now employs more than 6 500 people.

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