Business
Ukrproduct Becomes the Exclusive Distributor of...
Ukrproduct Becomes the Exclusive Distributor of....
About this update from Ukrproduct Group Ltd
[{"type":"text","content":"\n \n \n Ukrproduct Becomes the Exclusive Distributor of 'Arsenievsky' Kvass \n in Ukraine\n \n \n \n \n\n \n Ukrproduct Group\n \n \n\n \n \n \n UKRPRODUCT BECOMES THE EXCLUSIVE DISTRIBUTOR OF ‘ARSENIEVSKY’ KVASS \n IN UKRAINE\n \n \n Kyiv, Ukraine – September 6, 2010 – Ukrproduct \n Group Limited (“Ukrproduct†or the “Groupâ€) (AIM: UKR), one of the \n leading producers and distributors of branded dairy products in Ukraine, \n announces that it has entered into an agreement with LLC Zhyvyi Kvas \n (“Zhyvyi Kvasâ€) to become the exclusive distributor of ‘Arsenievsky’ \n branded kvass, a traditional fermented \n beverage made from rye, black bread or barley, in Ukraine. The agreement \n is effective until the end of 2011 and can be extended further.\n \n \n Ukrproduct’s strategy includes leveraging its distribution network \n through the delivery of complementary third party products to utilise \n surplus capacity. In line with this strategy, Ukrproduct has added kvass \n to its portfolio of third party products which are distributed through \n its network. Ukrproduct expects to benefit from the growing market for \n kvass in Ukraine and to expand its market share in this attractive \n product niche, based on the superior quality of the ‘Arsenievsky’ brand \n and the strength of Ukrproduct’s distribution system and broad network \n of retail clients.\n \n \n ‘Arsenievsky’ kvass, a popular Russian brand, is produced by Zhyvyi Kvas \n in Zhytomyr near Ukrproduct’s butter and cheese plant. The production \n facility operates with an annual capacity of 12 million litres. The \n close proximity of these two sites allows the Group to leverage its wide \n distribution network and supply the beverage to the majority of leading \n retail chains throughout Ukraine. Presently, Ukrproduct delivers kvass \n to 27 retail chains, including Auchan, Billa and Megamarket.\n \n \n Alexander Slipchuk and Sergey Evlanchik, directors of Ukrproduct, are \n each beneficial owners of 35% of the issued share capital of Zhyvyi \n Kvas. The remaining 30% of the share capital is owned by the \n shareholders of the Arseniev Kvass Plant. The directors of Ukrproduct \n who are not involved in the transaction as related parties consider, \n having consulted with WH Ireland Limited, Ukrproduct’s nominated \n adviser, that th...