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IDS Borjomi Beverages

With the acquisition of GG&MW and its brand Borjomi (the most iconic mineral water brand in the former CIS and revenue market share leader in Russia at that time) Salford acquired a platform from which to consolidate the CIS mineral water market. Shortly after the acquisition of GG&MW, Salford implemented a pan CIS management drive to aggressively pursue a sales and marketing strategy through organic growth and mergers and acquisitions. In 2004 Salford significantly expanded its footprint in the CIS mineral water market through the acquisition of Mirgordskaya (the leading carbonated mineral water business in the Ukraine). Shortly thereafter Morshinskaya (the leading still mineral water business in the Ukraine) was acquired and Salford created the IDS Group: a fully integrated CIS packaged water business with a commanding number one market position in the Ukrainian packaged water market (surpassing the combined market share of Coke and Pepsi) sector.

Despite a ban, in 2006, on the import of Borjomi into Russia (which resulted in a decrease in Borjomi revenues by over 60%), IDS has been able to expand sales of Borjomi into other CIS countries and surpass the pre-ban volume sales and revenue levels. Through further M&A activities, including the acquisition of St. Springs (a leading national Russian brand) and leveraging existing management and distribution, IDS is now the third largest packaged water businesses in Russia.

In addition to achieving top line revenue and market share growth, Salford has significantly improved the operations of IDS through measures that include streamlining distribution (through a mix of direct and indirect distribution), elimination of non core products/businesses, (beer and soft drinks), aggressive cost cutting and enhanced production capacity.