Leading Kazakhstani nonalcoholic beverage producer RG Brands reported a net loss of 1.97 billion tenge (about $3.9 million) in the first quarter of 2026, up 70% from the same period a year earlier.
Revenue for the quarter declined 39% to 24 billion tenge ($48 million). The company said the downturn was primarily driven by weaker performance in its franchise business, while sales of its own brands remained stable. Results were also affected by broader economic conditions, weakening demand and cautious consumer spending across key markets.
Impact of PepsiCo partnership termination
The decline in the franchise segment appears to be linked to the end of RG Brands’ 25-year partnership with PepsiCo last fall. Under the agreement, the company produced Pepsi and 7UP beverages under license.
Read also: New Pepsi plant in Kazakhstan to end reliance on Russian imports.
In October, Kairat Mazhibayev, owner of RG Brands, announced that the group had terminated its contract to manufacture Pepsi products after 25 years of cooperation.
Performance by market
Kazakhstan remained the company’s largest market, generating 19.5 billion tenge in revenue, down 40% year over year.
Revenue in Kyrgyzstan fell 43% to 2.9 billion tenge. In Russia, revenue rose 30% to 1 billion tenge, surpassing Uzbekistan, where revenue declined 34% to 655 million tenge.
Focus on proprietary brands
Among the positive developments, the company highlighted an increase in gross margin from 45% to 52%, driven by the expansion of higher-margin proprietary brands.
RG Brands also increased marketing investments to promote its own products, including the new AVA and Salam Premium Cola brands.
The company is owned by RG Brands Holding. Its ultimate controlling shareholder is businessman Mazhibayev, who ranks No. 54 on Forbes Kazakhstan’s list of the country’s richest people, with an estimated net worth of $192 million.
