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The Market
Economic factors in Russia now appear to be stabalising. Recent reports by the Russian government, along with documents from the World Bank, state the possibility of a 1% positive gross domestic product (GDP) for 1999. For example, the industrial output is now growing at a rate of 10%. The food sector is leading the Russian economic recovery.
The stabilising market is being reported by an increasing number of food and beverage companies in Russia, who are experiencing an improvement in sales with each passing month. Many food and beverage companies are using this economic period to gain market share.
The fact remains that Russia does not produce enough food to feed its people and depends heavily on imported food. In the major metropolitan cities over 50% of all the food consumed is imported. Companies, whose food and beverage products are competitive and represent a good value, will continue to do well in the current Russian market.