Coca-Cola HBC AG (OTCMKTS: CCHBF) has commenced production of Dobry Cola, local cola, in Russia after halting sales and production of Coca-Cola Co products after the massive exit of Western firms at the start of the year. Because of the restrictions and sanctions related to Russia’s conduct in Ukraine, a large migration of Western companies has given Russian enterprises and businessmen an unexpected chance.
Coca-Cola HBC bringing Dobry juice brand to Russia
Dobry has long been a popular juice label in Russia. However, Coca-Cola HBC recently split from Coca-Cola Co and said it was considering expanding current regional brands via its Multon Partners division.
According to a statement from Coca-Cola HBC, Dobry Cola is unrelated to the Coca-Cola Company. The Coca-Cola Co holds around 23% of Coca-Cola HBC.
The owner of Russian fast-food business Teremok, which offers traditional dishes like blinis and borscht, was quoted by the Interfax media outlet as stating that the business had informed him about “Dobry Cola” and was attempting to offer it in the restaurants.
Since Coca-Cola left Russia when Moscow put tens of hundreds of soldiers into Ukraine, local rivals have saturated the marketplace. In contrast, Western companies have been engaged in protracted legal battles against imitations.
After it made the last concentrate order in March, Coca-Cola HBC has seen its Coca-Cola products inventory reduce significantly.
Exit from Russia may open up legal disputes
The company’s complete withdrawal from Russia may be crucial for legal disputes. Coca-Cola, which has its headquarters in Atlanta, is fighting in Russia to defend its reputation and prevent others from bringing in its drinks from other nations and stocking Moscow grocery shelves with them.
Despite the firm’s earlier claim that it had ceased operations, Coca-Cola’s lawyer, Diana Shaklina of Patents law firm, argued in May that the court should halt deliveries from distributor Pivoindustria LLC since Coke was still doing trade there.
According to the importer’s lawyer, Maxim Sosov, Pivoindustria has so far distributed the beverages, and Coca-Cola is seeking a court order against the importer.