Chistaya Liniya launches production of ice cream under the PepsiCo brand

The American PepsiCo, one of the key producers of dairy products in the Russian Federation, having just launched ice cream under the Domik v derevne brand, agreed on its production with Chistaya Liniya near Moscow. There are few examples of federal dairy brands entering the category, but the demand for ice cream this year may be higher than last year.

A major ice cream manufacturer, Chistaya Liniya, has reached an agreement with Wimm-Bill-Dann, a member of PepsiCo, to launch products under the House in the Village brand, according to Rospatent. The exclusive license for the right to use the brand in this class in Russia was granted to Chistaya Liniya until March 31, 2026.

House in the Village is one of the key local brands of the American PepsiCo in the category of dairy products, and has not previously been presented in the category of ice cream. In 2022, according to NielsenIQ, House in the Village ranked 17th in terms of money sales in the FMCG market, and was second among dairy products after Prostokvashino (Danone).

Sundae “House in the Village” with different flavors in a waffle cup is already on sale, in particular, in the online hypermarket “Vprok.Ru Perekrestok” for 94.9 rubles. excluding 26% discount. The product is presented in the same price category as Chistaya Liniya ice cream (99.9 rubles without a discount) and is more expensive than the competitor brands Korovka iz Korenovka (Renna Group) and Golden Standard (Unilever). PepsiCo and Chistaya Liniya did not provide any comments.

In 2022, Chistaya Liniya, Moscow region, produced 22 thousand tons of ice cream, ranking seventh among the main producers, according to the rating of Milknews, Streda Consulting, Soyuzmoloko and the Union of Ice Cream Makers. The total production of ice cream in Russia in 2022 decreased by 11.1%, to 468 thousand tons year-on-year.

The owner of the Kaufman brand agency, Stanislav Kaufman, notes that the partnership will allow PepsiCo to expand the brand’s presence through a new category, and Chistaya Liniya to supplement the portfolio with an already popular brand. According to him, most likely, the right to use the brand is paid for by a fixed royalty, since for PepsiCo the main thing should be the effect of the launch of a new product on sales of the entire House in the Village range.

Alexei Gruzdev, CEO of Streda Consulting, warns that ice cream is a product that is characterized by impulsive demand and high seasonality and, accordingly, specific distribution and promotion. For dairy producers, this category has always been difficult, because the ice cream market is dominated by specialized players, the expert says. He names “Green Village” and “Svitlogorye” as examples of the successful entry of federal stamps into the category, adding that others have also made attempts.

As NielsenIQ reported earlier this summer, sales in nearly every major seasonal category were stronger than they were in 2022. Ice cream sales in physical terms in the first three weeks of June grew by 15.2% year-on-year and in absolute terms exceeded the level of 2021, when a series of temperature records and strong demand were noted.

Last year, due to the rise in the cost of imported ingredients and materials due to the devaluation of the ruble, the cost of ice cream increased by 30–40%, and manufacturers began to raise selling prices in April, said Natalya Utkina, deputy director general of the Union of Ice Cream Makers. Today, she does not see significant risks for market participants. According to Ms. Utkina, prices for raw milk in Russia are declining, and the season of high demand for ice cream is close to completion.

Anatoly Kostyrev