Coke’s volumes to fall in Russia

Coca-Cola HBC, the world’s number two bottler of Coke products, on 7 August 2014 issued the warning that volumes would fall for the rest of the year, citing a “sudden deterioration” in Russia, its biggest market.

The bottler, which operates in 28 countries in Europe and Nigeria, posted a 6 percent rise in second-quarter profit to EUR 135 million (USD 181 million) from EUR 127 million in the same period a year earlier.

But the company warned that difficult economic and trading conditions had forced it to review its outlook for volumes, and it expected the trend of declining volumes to continue for the rest of the year. Volumes fell 3 percent in the first half.

In Russia, volumes declined 5 percent during the second quarter, leading to a spill of red ink. Coca-Cola HBC said the escalation of the crisis in Russia and Ukraine had affected consumer spending in the region.

Already in May, two fruit juice plants had to be shut down because of declining demand. The plants, located in Moscow and Novosibirsk, belong to The Coca-Cola Company’s Russian subsidiary Nidan, which had been acquired by Coke in 2010.