Eastern European Markets

May, the 27th 2009

Paulig's coffee roastery project in Russia takes a step forwards

Roast and ground coffee company Paulig has lately decided to build the coffee roastery it has scheduled in Tver, Russia, the implementation of which was postponed late last autumn due to uncertain economic conditions.

The plans for the implementation of the project are complete and the transaction for the plot of land has been effected. The project can be started up when the construction permits have been received. It is estimated that the roastery will be operational in the first half of 2011.

"We have good reasons to get construction started. I believe that availability of constructors and materials has improved and prices have become to more realistic level. When the economic upswing gets under way we will have a good basis to go ahead at full speed. A local roastery will substantially improve our competitiveness in Russia and the CIS, which we see as very potential future markets," says Gustav Paulig's Managing Director Pekka Pirinen.

Gustav Paulig Ltd's new roastery in Finland will be completed in
autumn 2009.

Company information

Gustav Paulig Ltd engages in high quality coffee production as well as sales of coffee and hot chocolate products. Gustav Paulig Ltd is part of the Paulig Group, an international enterprise in the food industry. Group's key business sectors are coffee, spices and ethnic food products from world's kitchen. Paulig Group's products are enjoyed by millions of consumers in more than 40 countries through retailers, the food industry and caterers. The company is especially strongly placed in the Nordic countries, the Baltic's and Russia, and its brands are leaders in many European countries. Paulig has a long heritage since 1876.

Gustav Paulig is particularly noted for its high-quality roast and ground coffee brands. The company is market leader in Finland and has strong position in the Russian and Baltic roast and ground coffee markets. The wide coffee range offers flavor sensations from light and dark roastfilter coffees to coffee beans or espressos to please various consumer expectations. Paulig also supplies horeca professionals with a number of product and service concepts as well as up-to-the-minute training programs at the Paulig Institutes. In Finland the company's main brands are Juhla Mokka and Presidentti. In Russia and Baltic's Paulig Classic, Paulig President and Paulig espressos are the most popular.

OOO Paulig Coffee was established in January 2008 to exclusively import and distribute Paulig brands on the territory of Russia. The company is 100% owned by Gustav Paulig Ltd.

For further infomation
Managing Director Denis Smirnov, OOO Paulig Coffee (Russia),
tel.+7 495 662 3960

Managing Director Pekka Pirinen, Gustav Paulig Ltd, tel + 358 93198 247

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