Russian cola-maker targets the market gap left by Pepsi, Coke

As the world’s largest soft drinks producers cut their ties to Russia, local producer Chernogolovka aims for a 50% share of the country’s near $9 billion market.

A mass exodus of Western firms due to restrictions and sanctions over Russia’s actions in Ukraine has created an unexpected opportunity for Russian businesses and entrepreneurs.

Chernogolovka, named after the town outside Moscow where the firm was founded in 1998, makes snacks, bottled water, herby lemonades, energy drinks, and since May 2022, Cola Chernogolovka.

The privately-owned enterprise is doubling its business this year, said CEO Natalina Sakhnina, and expects to reach a 30% market share within two years, up from around 8.5% at the end of 2021.

CEO Sakhnina said Chernogolovka was and will be the leading Russian producer of soft drinks. She added they were hoping and were working on gaining absolute leadership in the Russian soft drink market.

According to data provider Statista, revenue in Russia’s non-alcoholic drinks market totals $8.8 billion.

Although carbonated drinks made by PepsiCo and Coca-Cola are still available in Russia, they will disappear over time as existing stocks are run down, leaving the doors open for local manufacturers to step in.

PepsiCo and Coca-Cola suspended Russian soda production and sales in March 2022.