12:28 09.03.2022

Finland's Valio, Paulig leaving Russian market

2 min read

Finnish dairy company Valio and coffee and food producer Paulig have announced that they are leaving the Russian market.

"In the current unprecedentedly difficult economic and geopolitical situation, Finnish company Valio has decided to leave the Russian market. The company has worked in Russia for more than 100 years, but in the current circumstances it believes it is impossible to continue operations," the company said on its Russian website.

A detailed plan to wind down operations is in the works and Valio's division in Russia will "make every effort to fulfil obligations to employees and partners," the company said.

Valio has one processed cheese factory near Moscow with capacity to produce up to 15,000 tonnes of product annual, contract manufacturing partners and sales offices in St. Petersburg and in Moscow. Valio employs about 400 people in Russia.

Paulig has also announced that it will begin the process of exiting the Russian market immediately.

"The process will be done with due consideration to Paulig employees, customers, and local legislation. The process will start immediately and a detailed schedule is being evaluated," the company said.

Russia and the surrounding countries account for about 5% of Paulig's revenue, the company said. Paulig has a coffee roastery in Tver, about 170 km from Moscow, the products of which are sold mainly in Russia. Paulig has approximately 200 employees in Russia.

Paulig is a family-owned food and beverage company. The company has been roasting coffee since 1904, and is a leader on the European market in the Tex-Mex category.