Wimm-Bill-Dann warms to Siberian dairy

By Neil Merrett

- Last updated on GMT

Related tags Dairy production Milk

Russian dairy producer Wimm-Bill-Dann is to continue expanding its
operations in its homeland as it looks to exploit growing markets
in Siberia and the wider Commonwealth of Independent States (CIS)

The company hopes that the acquisition of Siberian company Manros will help to increase it's focus on dairy production in the region, by strengthening its presence in and around the East of the country.

Reacting to the announcement Tony Maher, chief executive officer of Wimm-Bill-Dann said that "the Manros acquisition further strengthens Wimm-Bill-Dann's market position in the fast-growing Siberian region, where continued economic growth is translating into ever growing demand across our proposition of healthy products aimed at the entire family."

According to a company press release, sales in Siberia currently account for around 9 per cent of Wimm-Bill-Dann's entire sales.

Should the deal go ahead however, data by consumer analyst AC Nielsen, supplied by Wimm-Bill-Dann, estimates that the firm would claim a 22 per cent market share for dairy production in Siberia and the surrounding regions.

Manros is one of the largest independent dairies in Siberia, owning four plants capable of producing a variety of dairy products including cottage cheese, sour cream, yoghurts, and milk

The move represents the latest in a number of acquisitions in Siberia, with the company announcing just last month that it had also obtained a production facility in Surgut to cater for demand of their products in the Ural's district.

Furthermore, this continued growth in the company's operations, follows its strong performance in the second quarter of 2006, and is an indication of its intentions for its booming dairy unit, with total sales having risen 20 per cent over the same period in 2005.

Keen to exploit increasing demand in the sector, Maher adds that Manros may not be the last addition made to the companies operations.

"We continue to study opportunities across the entire CIS for carefully selected acquisitions to strengthen our core businesses for the long-term,"​ he said.

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