Even as the Russia-Ukraine conflict continues for over a year, leading to logistical challenges, soaring raw material prices, and high interest rates affecting many businesses, Orion saw record-breaking sales driven by the rising popularity of its Choco Pie product. Increased food demand during these turbulent times also played a part.
Due to the favorable sales of Choco Pies, Orion’s sales in Russia surged. According to industry sources, the provisional sales of Orion’s Russian subsidiary for the first quarter of this year amounted to 482 billion won, a 59% increase compared to the same period last year (303 billion won). Last year’s sales grew by 79.4% from the previous year, recording 2,098 billion won, while operating profits increased by 106.9%, reaching 348 billion won. After entering Russia in 2003, they surpassed an annual turnover of 2,000 billion won for the first time. Considering first quarter sales, good performance is expected this year as well.
Orion sells 12 types of Choco Pie in Russia. Products tailored to local tastes, like versions with raspberry cream instead of marshmallow, reportedly sell well. They are also expanding their product line by launching new biscuit products infused with chocolate.
The factory in Tver, the third one, that started operations in June of the previous year is now fully operational, with the operation rate exceeding 100%. Sales have also expanded due to the diversification of Choco Pie products and the introduction of new categories such as biscuits. This year, the company plans to invest 300 billion won to set up a jelly production line and challenge the Russian jelly market.