Orion Surpasses 1 Trillion Won in Cumulative Sales in Russia

Orion products are displayed in a local store in Russia. (Photo by Orion)

[Asia Economy Reporter Seungjin Lee] Orion announced on the 29th that its cumulative sales in its Russian subsidiary have surpassed 1 trillion KRW. In the first half of this year alone, it achieved sales of 50.6 billion KRW on a simple monthly cumulative basis, establishing a milestone of exceeding 1 trillion KRW in cumulative sales in Russia, following China and Vietnam.

Orion established its Russian subsidiary in 2003 and began full-scale entry into the 22 trillion KRW Russian confectionery market by building a factory in Tver in 2006 and establishing a local production system. In the first year of factory operation in 2006, it recorded sales of 16.9 billion KRW, and in 2008, it built a second factory in Novo, significantly expanding Choco Pie production capacity and achieving annual sales of 65 billion KRW. Last year, thanks to the effect of various new products, it recorded its highest-ever annual sales of 89 billion KRW, continuing double-digit high growth every year since 2019.

The background of this high growth includes efforts to pioneer new markets such as developing new products tailored to local tastes and expanding the biscuit lineup. Choco Pie harmonized with the Russian food culture of enjoying tea and cake together, becoming a national pie that gained explosive popularity from its initial launch.

In 2019, moving away from the original flavor focus, Orion launched new Choco Pie products using ‘jam’ flavors familiar to Russian consumers such as ‘Cherry,’ ‘Raspberry,’ and ‘Blackcurrant,’ marking a second heyday. Currently, Orion produces and sells the largest variety of 10 types of Choco Pie among its subsidiaries in Russia. Expanding the product range by diversifying biscuit lineups such as ‘Gosomi,’ ‘Moist Choco Chip,’ and ‘Crack It’ also contributed significantly.

Last year, Orion began selling ‘Jeju Yongamsu,’ entering the Russian beverage market and nurturing it as another growth engine. Sales started mainly in major cities with high income levels such as Moscow and Saint Petersburg, as well as in the Far East regions like Vladivostok and Sakhalin, where there is a high understanding of Korean culture and active consumption of Korean food. Orion has also expanded consumer touchpoints by entering Russia’s leading e-commerce channels such as ‘Wildberries’ and ‘Ozon.’ Due to Russia’s geographical characteristics, water contains lime, so the majority of the population purchases water for consumption. Recently, with improved living standards, demand for healthy food has increased, raising interest in premium water.

Meanwhile, Orion is constructing a new factory in Kriptsova, Tver, Russia, aiming for completion in 2022. Sales in Russia have been rising sharply to the point that production at the two currently operating factories is reaching saturation, so significant sales growth is expected through the new factory construction. Once operational, the new factory plans to expand Choco Pie supply to over 1 billion units annually and introduce various product lines including new pies and biscuits to target the Russian and Central Asian markets.

An Orion official said, “The Russian subsidiary has entered a high-growth trajectory through thorough localization and continuous product enhancement. Once the new factory is fully operational, another significant sales growth is expected, making it a key pillar of the group’s future growth engines.”

This content was produced with the assistance of AI translation services.