FAS received an application for the purchase of Russian assets of tea producer Lipton

The Federal Antimonopoly Service (FAS) of Russia has received a petition from the United Tea Company to buy the Russian assets of the Dutch company Ekaterra, which produces tea. About it reported on the FAS website. The petition was received on February 28, but Kommersant noticed only today.

The United Tea Company produces teas under the brands Eastford, Berryford, Kama Sutra, Green Standard, and also produces tea under a contract, including under the networks’ own trademarks. According to the Unified State Register of Legal Entities, 50% of the company belongs to the director of the Petr Konchalovsky Foundation Alexander Konov, another 25% each belongs to the general director of the Luzhniki sports complex and the former vice president of AvtoVAZ Alexander Pronin and his wife Larisa.

Ekaterra is one of the world’s largest tea producers. The company’s portfolio includes 34 brands, including Lipton, PG tips, Pukka, T2 and TAZO. In early 2022, Unliver, which owned Ekaterra, completed selling its tea business to CVC Capital Partners VIII for €4.5 billion.

In Russia, the production of Ekaterra was located in St. Petersburg. According to Kommersant, as of 2019, the factory’s capacity was up to 16,000 tons of products per year. According to the estimates of the Roschaikofe association, the volume of the Russian tea market is approximately 140,000 tons per year, which will allow the United Tea Company to occupy more than 10% of the market in the event of the purchase of Ekaterra’s Russian assets.

Ekaterra informed about leaving the Russian market on August 1. The company explained that “the current situation does not allow stable business development.” Ekaterra produces Lipton, Brooke Bond and Saito teas. It was expected that the production of brands in Russia would stop by the end of 2022, after which the sale and distribution in the Russian market would be completely stopped.