The decision of yoghurt producer Campina to leave the Russian market will strengthen the position of German dairy producer Ehrmann, but at the same time it will cut costs and increase efficiency while expanding in the domestic market, Artem Belov, director general of Soyuzmoloko, told the Made in Russia project.

On Monday it became known that the company Campina, known for the production of yogurts Fruttis and "Nezhny", after almost 30 years of work in Russia, decided to leave the market. The Russian division of FrieslandCampina will now be taken over by Ehrmann.

"Both companies are in the modern dairy category segment. These are high margin products such as yoghurts, desserts etc. The adopted decision will, on the one hand, strengthen the position of Ehrmann in the domestic market, and on the other hand, reduce costs and increase their efficiency while increasing their market share," said Belov.

According to him, at the moment it is difficult to predict what effect the deal will have on the dairy market as a whole.

"However, the process of mergers and acquisitions and market consolidation is natural and organic," he concluded.

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Author: Ksenia Gustova