In line with its strategy of regional expansion and increased presence in the CIS countries, Wimm-Bill-Dann has acquired the controlling stake of Kharkovsky Dairy Plant OJSC, one of Ukraine’s largest specialized dairy processing facilities.
Built in 1973, the plant’s planned milk processing capacity is 500 tons per day (currently 200 tons are processed daily). Raw milk is delivered to the plant from environmentally sound areas in the surrounding Kharkov Region.
Maxim Byrdin, Head of WBD Dairy Business Unit, said in a statement: “We have big hopes for our new acquisition. The Kharkovsky Dairy Plant is a strong player on the Ukrainian market, with a stable supply of raw materials, significant market share and well-known brands. We are especially enthusiastic about the level of expertise and commitment shown by the staff, professional dairymen, who, amongst other things, produce one of Ukraine’s best-known cottage cheeses “Domashny”. It is really them who, we believe, will become our main asset going forward and a guarantee of our future success. Given our good track record of integrating such entities into our network and adding their products to our portfolio, I am convinced that we can strengthen our presence on this strategic market.”
Kharkovsky Dairy Plant OJSC presently manufactures over 60 types of dairy products, including long shelf-life milk (UHT-milk), butter, chocolate butter, pasteurized milk, kefir, bio-kefirs, yogurts, bio-yogurts, sour cream, ryazhenka, melted milk, cottage cheese, quarks, “Tanyusha” quark desserts with fruit, “Mashenka” quark cream and casein.
All products of Kharkovsky Dairy Plant OJSC have been manufactured under the ROMOL brand since 2001. The plant manufactures around 2,500 tons of dairy products per month, 1,800 tons of which are whole-milk products.
The plant’s share of the Ukrainian dairy market is about 8.7% according to Amer Nielsen data covering 4 of Ukraine’s largest cities (Kiev, Kharkov, Odessa and Dnepropetrovsk) from February to May 2002. Seventy per cent of all products manufactured by the dairy plant are sold in Kharkov, where the plant has a 24% market share (based on Amer Nielsen data for February-May 2002).
It has been envisaged that the new equipment will be implemented at the Kharkovsky Dairy Plant OJSC in the first half of 2003. Brands popular among Ukrainian consumers, such as Slovyanochka, Domik v Derevne, Frugurt, Doctor Bifi, Biomax, and Chudo, will also be launched shortly.
Wimm-Bill-Dann Foods OJSC16 Yauzsky Boulevard, Moscow, RussiaPhone: +7 095 733-97-26/9727Fax: +7 095 733-97-25web: http://www.wbd.comE-mail: kagan@wbd.ru
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Wimm-Bill-Dann, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to conform them to actual results. We refer you to the documents Wimm-Bill-Dann files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form F-1, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, acquisition strategy, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.All news