Nestlé has begun work on a US$120m factory in the southern Russian town of Timashevsk, in the region of Krasnodar, that will process green coffee into instant.
The Nestlé Kuban factory will produce Nescafé Classic brand with a capacity of around 18,000 tons per year, according to a Nestlé spokesman in Moscow. Construction is expected to take up to 18 months.
The opening of the facility will mean that almost 99% of coffee sold in Russia will come from domestic production. Nestlé owns 11 enterprises in Russia and has invested $250m there since 1995.