New York/Moscow: The Coca-Cola Company, the American soft drink giant, withdrew its popular soda brands from Russia in 2022 amid geopolitical tensions. This withdrawal meant Russian consumers could no longer enjoy their favorite Coca-Cola, Fanta, or Sprite products.
Recently, there have been indications of a potential comeback as Coca-Cola has taken steps to re-register these trademarks in the country. In April, the company filed three trademark applications with the Federal Service for Intellectual Property (Rospatent), according to reports from Vedomosti.
Recent History and Latest Developments
In March 2022, Coca-Cola halted its operations in Russia following the onset of the conflict in Ukraine. This decision led to the cessation of production and sales of its international brands in the country, with a shift towards promoting local brands instead.
By July 2022, Coca-Cola HBC Eurasia LLC, the company’s Russian division, rebranded to Multon Partners LLC and introduced “Good Cola”, a locally produced alternative to Coca-Cola with a distinct flavor profile.
Despite the transition, Good Cola quickly gained market traction, increasing its market share significantly from 2.8% to 25% between 2022 and 2023, making it a leader in its category, as reported by Ntech.
During the same period, Coca-Cola’s market share in Russia saw a decline, dropping from 20% to 4.8%. Similarly, Fanta’s market share fell from 3.1% to 0.2%, and Sprite’s from 1.7% to 0%.
Economic Performance
In terms of financial performance, Multon Partners reported a 4% revenue growth in 2023 compared to the previous year, reaching approximately $1 billion. Net profit also saw a significant increase, rising to $130 million from $52 million in 2022.
For comparison, Coca-Cola HBC Eurasia LLC generated around $1.2 billion in revenue with a net profit of approximately $87 million in 2021.
Strategic Implications
Coca-Cola’s decision to re-register its trademarks in Russia suggests a strategic move to potentially reclaim its position in the Russian market despite previous setbacks. The company’s Russian division, now Multon Partners LLC, has not yet commented on these developments.
