The Russian news agencies have reported that Costa Coffee has opened its first shop in Moscow. The company plans to open around 200 shops in Russia in the next five years, although the local press point out that their culture is not used to the coffee shop concept. Which is a very recent habit for a small number of Russians.
However, the market is growing at 20 per cent per year, and Starbucks is already active there.
Costa Coffee is entering the Russian market through a joint venture with Rosinter, the country's ‘casual dining' restaurant chain Rosinter.
It is reported that coffee-shop coffee is expensive by Moscow standards - a cappuccino can cost the equivalent of $5-$10 (£2.50 - £5) Kofe Hause and Shokoladnica are reported to be the leading coffee chains in Russia, with the bulk of the market share, and it is said in the local press that new entrants to the market are likely to have to offer something new to find their own niche consumers.
by Ian Boughton