Russian chocolate maker aims to be No.1

CONFECTIONERY is one of the largest segments in Russia’s food industry, forecast by Datamonitor to reach US$14.6 billion by 2017.  Continued favourable projections attract investors to this market. Recently, VIY Management (VIYM), an independent private equity advisor to private and institutional investors, said it has completed the acquisition on their behalf of a stake in French Kiss, a producer and distributor of premium chocolates in Russia.

“We are extremely pleased to be involved with French Kiss, an exciting and exclusive premium chocolate company. The top-end chocolate and confectionery market in Russia continues to grow, making this an ideal time to invest. With company growth projected at 40% year on year, we will be actively supporting French Kiss throughout the investment programme and working to achieve the company’s aim of becoming Russia's number one player, said Andrey Yakunin, a VIYM partner and co-founder.

French Kiss, which has 16 boutique stores in Moscow and franchises and warehouse facilities around the country, expects to be number 1 in the hand-made chocolate and confectionery segment.  To achieve this, it would have to increase its capacity and number of stores. Therefore funds raised from the VIYM acquisition will be used to finance the company’s investment programme through 2017.

CEO and majority shareholder of French Kiss, Hussein Yamaniylmaz said, “We are grateful to VIYM for its interest and belief in our business, and view our cooperation as an important milestone for our company.  I am confident that they will add considerable value to our business, and that together we should be able to ensure our continued profitable growth.”