Orion exceeds W1 tril. in cumulative sales in Russia

A production line of Choco Pie snacks at an Orion confectionery factory in Novosibirsk is seen in this 2018 file photo. Korea Times file

By Kim Jae-heun

Confectioner Orion saw cumulative sales in Russia surpass 1 trillion won ($869 million), thanks to the continued popularity of “Choco Pie” chocolate-covered marshmallow snacks there.

Orion said Thursday that sales in Russia during the first half of this year totaled 50.6 billion won, which adds up to over 1 trillion won in total revenue since the confectioner started selling products there in 2003. Russia's market for snacks is scaled at 22 trillion won ($19.13 billion).

This time is not the first that Orion's revenues surpassed 1 trillion won in an overseas market. It previously accomplished that feat in China and Vietnam as well.

Choco Pie is spearheading Orion's growth in Russia. The airy sandwich cookie has become a sensation since it was introduced there, by becoming popular as a kind of biscuit Russians have with tea.

Orion enjoyed its second heyday in 2019 by launching a new series of Choco Pie cookies using cherry and blackcurrant jams, which are favorites with Russian customers.

“There have been efforts to explore new markets, such as the development of new products that suit local tastes and the expansion of our biscuit lineup, and those efforts ended up paying off,” an Orion representative said.

Orion is currently building a new production facility in Tver, around 170 kilometers northwest of Moscow, which is scheduled to be completed by 2022. There are already two Orion factories operating in Russia, but they are not enough to meet the increasing demand for Choco Pie in the country.

When the new factory opens, the confectioner will be able to produce over 1 billion Choco Pies annually. Orion said that it will then expand its business to all of Russia as well as Central Asia, with other products.

Meanwhile, the confectioner also entered the mineral water market in Russia by selling “Jeju Volcanic Water” in 2020.