Mars to increase presence in Russia?

By Charlotte Eyre

- Last updated on GMT

US chocolate manufacturer Mars is set to open a new factory in
Russia, according to local paper the Kommersant Daily.

If plans for a new factory, built in Lenin's home town Ulyanovsk, go ahead, Mars will have greater leverage to expand its range of chocolate and confectionery in Eastern Europe's burgeoning market.

The plant will make sweets as well as animal feed, according to the newspaper, expanding on the Snickers, Milky Way and Twix brands, as well as cat and dog food brands such as Whiskas and Pedigree, which Mars already manufactures in Russia.

A local official told the Kommersant that Mars and the local administration had already signed a preliminary agreement for building the new factory.

However, when contacted by ConfectioneryNews.com, Mars refused to comment in response to these newspaper reports.

The food company, a subsidiary of Masterfoods, could be looking to boost profits by increasing its presence in Eastern Europe.

Several companies have moved operations to this area recently, as higher production costs and fears over high-fat foods has led to lower profits in Western Europe and the US.

The French chocolate firm Cemoi recently acquired Polish chocolate producer Gryf, while food giant Cadbury has bought factories in Poland and Romania as part of its restructuring of operations.

According to the International Cocoa Organisation (ICCO), consumption of cocoa in Eastern Europe has also gone up, thanks to growing demand for products containing cocoa powder such as ready-baked cookies and chocolate cakes.

The biggest increases in cocoa consumption occurred in Russia, where it grew 8.4 per cent, and Poland, 4.5 per cent, according to ICCO data.

Related topics Manufacturers Mars Ingredients

Related news

Show more

Related products

show more

Sweeten Your Treats with Sustainable Syrups

Sweeten Your Treats with Sustainable Syrups

Content provided by Green Plains Inc. | 09-Sep-2024 | Insight Guide

Elevate your products with Green Plains’ premium, low carbon-intensity corn syrups. Drop-in replacements with an up to 40% lower carbon footprint than...

Tap into the potential of better-for-you candy

Tap into the potential of better-for-you candy

Content provided by Valio | 08-May-2024 | White Paper

The confectionery industry is responding to the trend toward indulgent yet healthier sweets. Explore our Valio Bettersweet™ white paper to learn more about...

Satisfy Your Sweet Tooth with Sustainable Syrups

Satisfy Your Sweet Tooth with Sustainable Syrups

Content provided by Green Plains Inc. | 05-Apr-2024 | Infographic

Elevate your products with Green Plains’ premium, low carbon-intensity corn syrups. Drop-in replacements with an up to 40% lower carbon footprint than...

Related suppliers

Follow us

Products

View more

Webinars