Second Biggest Dairy OJSC Unimilk Announces Expansions

Expanding Russian dairy processor OJSC Unimilk is to invest in a new US$33mn manufacturing facility in the region of Kuban in 2010. The country's second largest dairy firm by market share behind Wimm-Bill-Dann (WBD) (see chart), Unimilk has also announced the launch a new brand, Smeshariki, in 2010 to target the rapidly growing baby food segment. Taking into account that the consolidated dairy market remains fairly fragmented, with more than 35% of industry volumes believed to still be accounted for by smaller rivals, Unimilk's capacity to continue spending capital on expansions is particularly timely as further industry consolidation is likely

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