?
The Case Centre
In Russia, since 2013, there has been a dramatic drop in sales and production of juices and juice-containing beverages. The market volume decreased 2.5 times over the 2013-2018 period. There were two main reasons for this fall. On the one hand, as the real incomes of the population were reduced, buyers began to save and purchase cheaper substitute drinks instead of expensive juices. On the other hand, as the national currency weakened, the manufacturers' expenses for the import of machine tools, equipment, raw materials from abroad were rising, leading to an exponential increase in prices for consumers. In the 2011-2018 period, the Russian juice market could be characterized as the oligopoly: two of the top five players belonged to Coca-Cola company, two players were PepsiCo, and there was only one independent domestic player ('Sady Pridoniya' Company). The drop in demand strongly and negatively affected the domestic player due to its small volumes of financial and production assets. The head of the company faced a question: how to continue further development? Especially since the material, organizational, and financial resources were limited, and there were no prospects for growth on the market.