Smolensk's Lalibela Coffee launched a plant with 25,000 tons annual capacity and 2.5 billion rubles of investment.
The Russian coffee market has received a new source of major industrial capacity. On April 7, a new coffee production plant of Lalibela Coffee began operating in the village of Stabna, Smolensk municipal district. Total investment in the project amounted to 2.5 billion rubles.
Previously, the company's production facilities were located on Krasninskoye Highway in Smolensk. An agreement on modernizing the enterprise and consolidating capacity was signed at the St. Petersburg International Economic Forum in 2025. Production is now concentrated outside the regional center.
The site purchased from a departing Polish company required a year of work: reassembly, insulation, and installation of equipment meeting the latest trends in coffee processing. Imported components were replaced with modern lines where 90% of equipment is brand new.
A key differentiator of the production is the seven-stage green bean cleaning system, including aspiration, magnetic traps, pneumatic table, photo-separation, and final X-ray inspection. This approach, typical of global manufacturers, is unique for the Russian market.
"We have completely reconsidered our approach to production, installing Italian industrial roasting and grinding lines from Brambati with extensive automation," said CEO Dmitry Gushchin. "Today our facility can compete with the top coffee producers in the country."
The new plant's capacities are impressive:
- total capacity — 25,000 tons of coffee per year (3.5 times more than before);
- 18,000 tons — natural coffee;
- 7,000 tons — instant coffee;
- product line includes over 20 items: single origins, blends, whole bean and ground coffee, capsules, drip bags and "3-in-1" format.
The company's business dynamics are remarkable. Revenue grew from 119 million rubles in 2022 to 4 billion rubles in 2025. Last year the company provided about 5% of all coffee production in Russia.
"The plant launch is a strategic step amid steady market growth approaching 90,000 tons of natural and 100,000 tons of instant coffee consumption per year," Gushchin noted. "Once at full capacity, we can capture up to 15% of the natural coffee market and about 7% of the instant coffee market and enter the top-5 domestic producers."
The project was implemented with regional government support. The company also received an investment credit and a concessional loan of 150 million rubles from the Regional Industrial Development Fund for purchasing modern equipment.
"In the era of import substitution, it is especially valuable when local companies not only hold their positions but scale up. The launch of the Lalibela Coffee plant is a vivid example of how quality traditions combine with modern technology," said Smolensk Region Governor Vasily Anokhin.
The new enterprise will strengthen its own brand and become a key industrial partner for retail chains and the HoReCa segment, offering contract production to international standards. The company sources raw materials directly from Ethiopia, Uganda and Vietnam, minimizing price volatility and logistics risks.
Source: RIA Novosti
