Finnish dairy company Valio has agreed to sell its operations in Russia to Velkom Group, amid the country’s invasion of Ukraine.
Valio previously said that it was ending its operations in Russia. Just announced, the sale deal includes a processed cheese factory in Ershovo as well as other operations.
Velkom Group will have the option to continue producing and selling the Viola processed cheese brand in Russia. However, brand rights to the Viola fresh cheeses sold and produced in Finland are not part of the transaction and remain under Valio’s ownership.
Valio’s CEO, Annikka Hurme, said: “Russia’s attack on Ukraine made it impossible to continue our operations in Russia, both ethically and from a business perspective”.
She continued: “Exiting from Russia has proved difficult in this situation because of the constantly changing legislation and the reciprocal sanctions. We have sought out solutions and a suitable buyer throughout spring. With the transaction, we will complete this process, and our operations in Russia will end.”
The Valio brand will still be seen in Russian stores until the packaging materials have been depleted and product expiry dates have been reached.
The terms of the sale, which is taking place immediately, were not disclosed.
© FoodBev Media Ltd 2022
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