OREANDA-NEWS. October 12, 2009. OJSC Krupskaya Confectionery Factory has received approval from Federal Antimonopoly Service on purchasing of production assets and renting part of production premises from Pekar.

During the second half of October, Krupskaya will begin renting part of production premises at Pekar, and assume full responsibility for purchasing raw materials and production of wafer cakes and other well known Pekar branded products. The majority of Pekar employees will be invited to become Krupskaya employees. The parties have agreed not to reveal the financial details of the transaction.

“Uniting Pekar production operations under Krupskaya management will allow us to best utilize both production facilities, which are actually located quite close to each other in the center of St. Petersburg,” says Krupskaya General Director Philip Wegh. “All of the well known Pekar branded products will continue to be produced as before, however now you can expect that we will invest more in advertising and developing the Pekar brand further.”

“Even in a difficult economic environment, we will continue to invest in developing brands which are well known and loved for generations in Russia” says Paul Jordahl, Managing Director of Orkla Brands International. “Uniting the Pekar brand and production under Krupskaya ownership, will ensure the long term future of the Pekar branded products in Northwest Russia.” Krupskaya is 100% owned by the Norwegian company Orkla ASA, a company which is more than 350 years old..

Krupskaya will rent part of the production facilities from OAO Pekar under a long term lease agreement. Bread production by “Limited Liability Company Pervoye Khlebopekarnoye Obyedinenie” will continue at Pekar’s premises as before.

Confectionary factory named after N.K.Krupskaya, that was found in 1938, today is one of the leading confectionary enterprise in Russia specialized in chocolate products production. Krupskaya has over 280 SKUs which are represented by natural chocolate tablets, chocolate bars, loose chocolate sweets, chocolates in boxes and chocolate semi products for food industry. The company is overall chocolate market share leader in the North-West region of Russia. In 2006 Krupskaya was acquired by the Norwegian company Orkla, which is one of the largest listed companies in Norway. Orkla Brands is a leading supplier of branded consumer goods to the Nordic market, and with strong local positions in Russia, India and parts of Central and Eastern Europe. Krupskaya employs – 900 persons. Krupskaya Factory posted 2008 operating revenues of 2,433 million rubles (USD 96,4 million). Krupskaya sales in 2008 showed +30% growth over 2007.

Pekar today takes leading positions in production of waffle and sponge cakes, rolls, pastries and snacks, producing annually about 6 500 tones of the goods. 2008 sales were greater than RUB 600 Million, and Pekar today employs 385 people.