Kazakh food and drinks holding company RG Brands is to move out of solid foods to focus on its drinks lines, selling its snacks producer Almaty Snack Food, to a major Ukrainian company.
Almaty Snack Food produces a potato chips brand called Grizzly, which has been a popular line on the Kazakhstan and Kyrgyzstan markets for 12 years. Flavours include chilli, cheese and ready salted.
Founded in 1994, RG Brands has four manufacturing locations in the north and south of Kazakhstan, generally focusing on liquid products, with a total capacity of 750 million litres output per year.
The company produces juices, pasteurised milk, tea, bottled water, soft drinks, energy drinks, as well as snacks. Its brands lineup includes both original and well-known international names, such as the juices Gracio, DaDa, DaDaDay, and Nektar Solnechny; A’SU water, Piala Ice Tea, Mirinda, Moye milk, Piala tea and Yeti energy drinks; plus some lines under licence – Lipton Ice Tea, Pepsi and 7UP. These products are sold in Kazakhstan, Kyrgyzstan and Russia.
According to the statement, RG Brands decided to leave the snack business under its broader strategy of focusing on the hot and cold beverage segments, which were deemed as having “high potential”.
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There were no details released about the buyer except identifying it as “the biggest association of commercial and industrial enterprises operating in Ukraine, and abroad”.
The statement added: “This transaction is a testament to the Kazakh market’s stable business climate and the high investment attractiveness of the assets that RG Brands is working on. The financial parameters of the contract between the parties confirm this.”
The holding company’s products were also presented at the Belt & Road Brand Expo Shanghai 2019 in June, where they attracted the attention of Chinese businesses, said Kazakh media reports.