The Eurasian Business Report for August 26 notes that Russky Kholod, one of Russia's biggest ice cream-makers. (Last Licks).

The Eurasian Business Report for August 26 notes that Russky Kholod, one of Russia's biggest ice cream-makers, will open an ice cream factory in the Moscow before the year is out. The privately-held company, founded in 1998, has a plant, outfitted with modern equipment from global leaders such as Tetra Pak, in Altai-Kholod in the western Siberian city of Barnaul, with a production capacity of 24,000 tons. The company also employs regional producers in order to meet demand for its brand which doubled to 25,000 tons in 2001. Industry observers note that when it opens its new factory, Russky Kholod will become a serious competitor to the leading Moscow ice cream producers. It is already well-represented on the Moscow ice cream market, with its own sales network and plans to double its current count of 150 outlets in the next year. Observers note that the regional marketers have a significant advantage over the Moscow-based companies as their costs are lower and they are therefore able to offer their products a t lower prices. In fact, production by the Moscow ice cream companies was down 23% in the first half of 2002 as a result of this competition, even though consumption in Moscow remained steady. Across the country as a whole, ice cream production was up 3.5% in the first half of this year at 186,000 tons, and market experts are expecting further growth. Nevertheless, the industry as a whole is feeling pressure from other food and beverage categories competing for their share of limited consumer budgets.