Campbell Soup Co. has indicated that the distribution deal struck with Coke bottler Coca-Cola Hellenic will boost its presence in the Russian market.
The deal, announced yesterday (26 May), will see Coca-Cola Hellenic distribute Campbell’s Domashnaya Klassika (Home Classics) soups and broths throughout Russia.
Currently, Coca-Cola Hellenic distributes Campbell’s soups in the Moscow region. In August distribution will be extended to over 100 cities, with nationwide distribution to follow.
“Through this agreement, we have partnered with a strong distributor with an established distribution network. [The deal with Coca-Cola Hellenic] will expand our reach and allow us to further tap into the opportunity afforded by Russia’s market for soups and broths,” a spokesperson for the company told just-food.
Under the terms of the agreement, Campbell will be responsible for consumer and market research, brand management, marketing, product development and production. Coca-Cola Hellenic will be responsible for distribution, sales, in-store marketing and trade receivables.
Financial terms were not disclosed.
Announcing the agreement, Campbell CEO Douglas Conant emphasised the importance of the emerging Russian and Chinese markets to Campbell’s long-term growth strategy.
“The emerging markets of Russia and China both represent a significant growth opportunity in the business that Campbell knows more fully than any other company in the world. These markets will play an increasingly important role in Campbell’s future as we gain momentum in our key areas of focus,” he said.
Larry McWilliams, president of Campbell’s international operations, also hinted that further distribution agreements with Coca-Cola Hellenic in other markets could be on the cards.
“Coca-Cola Hellenic has a world-class distribution network in Russia and its other markets, unmatched by any other distributor. Working with Coca-Cola Hellenic, we will be able to accelerate distribution throughout Russia, expanding more quickly into additional markets,” he revealed.
Coca-Cola Hellenic operates in 28 markets, primarily in Europe, including the Ukraine, Poland and Romania.