Russian Cookie Market

Russian Market

Introduction

The CC Company that has already been established in a well developed country in this case U.S. It’s now expanding the sector worldwide starting with one of the fastest growing country in Asia.

• Russia is a large potential market with 143MM consumers, and a concentrated market with 70% urban population;

• Russia’s GDP in 2004 was $1.408 trillion US, and growing at 6.7% annually in real terms;

• The increase of Russian incomes has driven consumer demand for better quality and a wider range of products, and this demand continues to grow;

Market Overview

Until the current global economic crisis, Russia had a nine-year run of continuous rapid economic expansion (approximately 7% annually). With over 140 million consumers, a growing middle class and almost unlimited infrastructure needs.

By the end of 2007, according to the latest available U.S. data, U.S. foreign direct investment in Russia was estimated at approximately $13 billion; according to Russian data, the U.S. is Russia’s seventh largest foreign investor.

As a consequence of the global economic downturn and falling commodity prices, early 2009 forecasts were for little or no GDP growth. The Russian government anticipates a budget deficit of at least 5% of GDP for 2009, reversing a trend of surpluses. Inflation was 13.3% in 2008 and is expected to rise in 2009 as a result of the depreciation of the ruble, which lost one-third of its value in late 2008 and early 2009.

According to Russian statistics, leading exporter countries to Russia include, in descending order: China, Germany, Japan, Ukraine, U.S., Italy, Belarus, South Korea and France.

Market Challenges

• Russia is a geographically vast market, stretching over 11 time zones and encompassing over 17 million square miles.

• Seriously undeveloped infrastructure causes logistical challenges.

• Incomplete transition from central planning has led to an insufficiently integrated economy...