Coca-Cola weighs returning to Russia, targets smuggled goods from Kazakhstan

Recent reports from the Russian Telegram channel Mash suggest that Coca-Cola may be planning a return to the Russian market. According to Mash’s sources, the company aims to combat parallel imports of its products from countries like Kazakhstan.

Currently, Coca-Cola is reportedly developing a strategy for its return to Russia. This plan includes addressing gray imports (also known as parallel imports) of its beverages and collaborating with local producers.

The proposed strategy suggests resuming production of original Coca-Cola products at the same facilities that were in use before operations were suspended in Russia. Before halting its activities, the company operated approximately 10 plants across the country.

Additionally, the company intends to actively counteract the illegal production of similar drinks within Russia, as well as the importation of products from Kazakhstan, Kyrgyzstan, China and other nations. The popular Russian cola brand Dobry Cola will remain on shelves temporarily but is expected to be replaced by the original Coca-Cola eventually.

In March 2022, shortly after Russia launched its full-scale invasion of Ukraine, Prime Minister Mikhail Mishustin legalized parallel imports, allowing goods to be brought into Russia without the permission of the rights holder. Following this decision, Kazakhstan’s exports to Russia increased by 25% that year.

Until 2022, Coca-Cola HBC, a subsidiary of Coca-Cola, served as the company’s distributor and bottler in Russia. The company also operated in Italy, Nigeria, Egypt and several countries in Central and Eastern Europe.

After the war began, The Coca-Cola Company suspended its operations in Russia, noting that it had no plans to return in any capacity. In the summer of 2022, Coca-Cola HBC was rebranded as Multon Partners and shifted its focus to local brands. Today, it produces juices under the Dobry, Rich and Moya Semya brands.

The Coca-Cola Company is the world’s largest producer and supplier of soft drinks, concentrates and syrups. Headquartered in Atlanta, Georgia, it has a portfolio of more than 200 brands. Its products are consumed 2.2 billion times daily across 200 countries. Coca-Cola and its partner bottlers collectively employ more than 700,000 people worldwide.

Kazakhstan is home to JV Coca-Cola Almaty Bottlers, a subsidiary of the Turkish multinational Coca-Cola İçecek. Founded in 1994, the company was initially owned directly by its parent division. However, in 2008, Coca-Cola İçecek acquired full ownership. Today, Coca-Cola Almaty Bottlers operates three plants in Almaty, the Almaty region and Astana.

In 2023, Coca-Cola relocated its regional office for Central Asia and the Caucasus from Turkey to Kazakhstan. The company described the move as part of a long-term strategy to establish a regional hub for operations in these countries.