Author Archives: CrispConsulting

Fruit and Vegetable Business in Russia in 2012: will the Predictions Bear Fruit?

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ITE company, organizer of World Food Moscow 2012 exhibition, and Fruit-Inform, company which provides information and analysis of CIS fruit and vegetable market, announce that the Fifth International Conference, which is called “Fruit and Vegetable Business in Russia in 2012”, will be held on September 18, 2012.

This conference has already become the traditional meeting place for professionals from different countries, who deal with fruit and vegetable growing, storage, processing and wholesale and retail trade of these products.

The fact that this conference will take place during World Food Moscow 2012, one of the largest food exhibitions in Russia and CIS, allows all participants to derive the maximum benefit from it. During the exhibition, the negotiations with suppliers and customers will be held; and during the conference, all the participants will receive the exclusive market information from the leading experts in this field; and also they will have the opportunity to meet them and discuss all the questions face to face.

This year the conference is especially relevant and important because of two major events: the expected entry of Russia into the WTO and the bankruptcy of JFC company, the largest importer of fruits and vegetables in Russia.

The consequences of Russia’s entry into the WTO may change the geography of fresh vegetables and fruits supply, while bankruptcy of JFC Group may give a unique opportunity to different market operators – both importers and supermarket chains – to increase their market share. Besides, this year the price forecast of Fruit-Inform will be of great interest, as the last year the forecast of collapse of vegetables and potatoes prices and price decrease of apples worked by 100%! Of course, other important topics of Russian fruit and vegetable industry will be covered.

To participate in the conference “Fruit and Vegetable Business in Russia in 2012” it is necessary to fill out an application.

The information about the conference is on the site www.world-food.ru.

Source: www.world-food.ru

Russia main destination for Spanish fruit and vegetables

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In 2012, Russia continues to be the main destination outside the EU for the Spanish exports of fruit and vegetables, in February, shipments grew 50% regarding the same months of 2011, adding up to 47,362 tons, according to the last data from the Border Control and Special Taxes Department by the Tributary Agency and processed by FEPEX.

Exports of Spanish vegetables to Russia until February 2012 added up to 12,386 tons, some 64% more than in the same months of 2011. Cucumber and tomato are the main exported vegetables. Cucumber exports were 4,904 tons (+80%) and tomato were 4,200 tons (+85%). The third place is taken by lettuce with 1,622 tons (+64%).

As for fruit, exports in the first months of the year to Russia were around 34,976 tons, reflecting a rise of 45% regarding 2011.

In the fruit sector, the highlight goes to mandarin with 20,568 tons (+69%), followed at by the lemon with 5,665 tons (+107%).

Source: http://www.freshplaza.com/news_detail.asp?id=96157#SlideFrame_1

US retailers missing out on huge market potential

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Walmart is very cautious about entry to Russia, but is potentially missing out on vast profits in a country that is home to a population of 140 million.

Walmart has possibly missed on 30% worth of growth that is currently being enjoyed by Russian retailers.

Consumers in Russian cities have basically embraced the western model or retail nowadays, but this is not yet the case in more remote areas.

This is not likely to change quickly as infrastructure is not in place for such an expansion. This is leading to intensified competition in the urban areas, which means that the longer companies like WalMart leave it to make their entry, the harder it will be to make an impact.

“Now there is more risk, but more return,” said Alexei Krivoshapko, director at Prosperity Capital Management, one of the biggest investors in Russian stocks with $4 billion under management. “Later there will be lower returns, more cash for entry, but less risk because it will be about buying a mature business.”

WalMart could also see competition from other foreign retailers if it tries to buy a local player in Russia, with accession to the World Trade Organization in 2012 making Russia’s import-heavy retail sector even more appealing for international players by simplifying the import process.

Source: Freshplaza

Moscow 3rd Most Attractive for Retailers in Europe

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The Russian capital ranked third in top 10 most attractive cross-border retail destinations in Europe, the Jones Lang LaSalle consulting company said on Wednesday.

The company’s experts analyzed the presence of 150 leading international retailers within 55 European markets and created an index. It reveals that Moscow attracts the third greatest number of international retailers after London and Paris.

“The sustainable growth of the disposable incomes of Moscow’s 15 million inhabitants has steadily boosted retail sales for the past three years. Moscow, still under development, now accounts for the third largest retail market in Europe and is the gate to a market of 140 million consumers,” Maxim Karbasnikoff, head of retail with Jones Lang LaSalle in Russia & the CIS, was quoted in a statement as saying.

Source: en.rian.ru

Rewe Group on expansion course in Russia

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With approval from the Russian competition authority, the Rewe Group is acquiring 12  “Citystores” of ENKA Group based in Istanbul. In so doing, the Rewe Group is driving forward its expansion strategy in foreign markets. “The acquisition in Russia underscores the strategic significance of foreign business for Rewe. In the meantime we are generating around one third of our turnover outside Germany’s borders. Eastern Europe is developing into a big attraction when it comes to foreign growth”, Alain Caparros, CEO of the Rewe Group, said.

The acquired locations in the greater metropolitan area of Moscow will be converted to the BILLA supermarket format in the coming months and be integrated into the existing distribution network. The company also plans to open around ten new BILLA stores by the end of the year, while continued investment will be made in the quality and modernization offensive.

“The Russian market is one of the growth markets for us, where we see great potential. Particularly as the greater metropolitan area of Moscow has high purchasing power”, explained Frank Hensel, CEO of Rewe International AG.

Source: www.freshplaza.com

Second tier retail chains are leaving the Russian market.

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Second tier retail chains are leaving the Russian market, Sergey Galitsky, Magnit CEO, said during the telephone conference. Meanwhile the competition among top three retail chains – X5 Retail Group, Magnit and Dixi – will keep escalating. Sergey Galitski confirmed their plans to raise gross revenues in 2012 at 25-30%, and EBITDA – at 7.5-8%. Magnit is one of Russia’s largest retail chains in terms of sales volume. As of 31 December 2011, the company operates 5,309 stores, including 93 hypermarkets and 210 drogery shops.

Source: www.retail.ru

Magnit eyes small competitors

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Fast-growing Russian food retailer Magnit is interested in acquiring smaller rivals as growing competition is set to leave less room for organic expansion, its CEO said on Friday.

“Competition is growing every day but we still have opportunities for more or less comfortable growth. What we see is the trend of replacement of second-tier chains and probably we all – (rivals) X5, Dixy and ourselves – are showing interest,” Sergei Galitskiy said.

Magnit has grown into Russia’s top food retailer by store count via organic expansion and also ranks second to X5 Retail Group in revenue terms.

Last year, it paid $32 million for a chain of some 14 stores in the Tambov region in central Russia, and plans to buy the remaining interest for $3.6 million this year, it said in audited full-year financial report on Friday.

Magnit and X5 control between them under 10% of the Russian food retail market which is widely expected to consolidate mainly at the expense of small regional chains and unorganized retail.

Source: www.freshplaza.com