"Sandora" notes delays of calculations of distribution networks

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Financial crisis started being reflected in the Ukrainian producers of juice by delays of calculations with them distribution networks, reported vice-the president of "Union of Producers of Juice Production of Ukraine" association Vladimir Onopriyenko.

"Financial crisis starts affecting juice branch. Delays of calculations of distribution networks with producers of juice production became its first manifestations. Crisis also forced many producers to pass from the conclusion of long-term contracts to short-term", - he told agency Interfax Ukraine on November 3.

According to the president of association, producers already are now compelled to reduce rates of production, and many small enterprises will be compelled from - for financial crisis to displace investment projects. V. Onopriyenko also considers that financial crisis became one of the reasons of delay of growth of capacity of domestic market of juice in the current year.

According to data of the juice union of Ukraine, the capacity of the Ukrainian market of juice and juice drinks in 2008 will make about 800 million l that is only 4% more, than in 2007. Thus experts counted that in the current year growth of the market will make 11-12%.

Among the other factors which have influenced growth of the juice market, V. Onopriyenko called, in particular, inflationary processes and raw materials rise in price (about problems of raw materials is more detailed - here).

The director general of the largest juice company in Ukraine Neil Starrok also confirmed JSC Sandora (The Nikolaev Region) to agency that some clients of the company detain calculations with it.

"The only thing in what we feel crisis consequences, is in delays of payments from some clients. But, as we are interested in long-term partnership, we sit down at a negotiating table, we analyze each situation, we grant a delay not to lose partners", - he told.

The head of JSC Sandora emphasized that the company didn't revise the plan of investments. "Our company has the plan, as in these conditions to continue increase in production. We will expand a line of our production, to leave in new segments of the market of soft drinks", - N. Starrok told.

Earlier it was reported that "Sandora" passes to the direct relations with trade, reducing the volume of production realized through distributors. So, in October of this year the company opened own representation in Zaporozhye, having refused cooperation with TD "Megalopolis".

Reference: The Sandora company (TM "Sandora", "Sandorik", "Gift", "Sadochok", Sanday, Lipton Ice Tea, "Gold Olviya", "Svyatkov a collection") makes production at four enterprises in the Nikolaev and Kherson areas. 54% are sold through nine branches of direct sales, by the rest - through 16 distributors. According to MEMRB, its share in the juice market since April 2007 till May, 2008 made 45-46%.

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