Nestlé has begun work on a US$120m factory in the southern Russian town of Timashevsk, in the region of Krasnodar, that will process green coffee into instant.
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The Nestlé Kuban factory will produce Nescafé Classic brand with a capacity of around 18,000 tons per year, according to a Nestlé spokesman in Moscow. Construction is expected to take up to 18 months.
The opening of the facility will mean that almost 99% of coffee sold in Russia will come from domestic production. Nestlé owns 11 enterprises in Russia and has invested $250m there since 1995.
