Author Archives: CrispConsulting

High Court freezes Russian fruit multi-national Joint Fruit Company’s worldwide assets

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The English High Court has today issued a worldwide freezing order against Russia’s largest fruit multi-national, JFC Group Co. Ltd (“JFC”) of St Petersburg (owned by Mr Vladimir Kekhman). In August 2011 the High Court in London awarded reefer ship owner STAR Reefers USD16.5m, plus legal costs and interest, against charterparty guarantor JFC, following the unlawful early redelivery of three ships and wrongful termination of the charters by JFC’s chartering arm Kalistad Ltd of Cyprus. JFC have not appealed the judgement and it is now final. JFC have failed to pay the judgement sum. On 6 September 2011, the judgment debt against JFC was registered with the UK Government’s Registry Trust, which is publically searchable by banks, rating agencies, lenders and creditors.

As a result of JFC’s failure to pay the judgement debt and breach of other court orders, on 10 November 2011 the High Court ordered JFC to disclose details of all of their worldwide assets with a value exceeding USD 25,000 and any transactions between JFC and its associated companies. Because of JFC’s continuing failure to comply with court orders and due to evidence that assets may have be transferred between offshore companies to frustrate creditors, on 16 December 2011 His Honour Judge Mackie QC issued a worldwide freezing order in the sum of USD 21m against JFC’s assets.

JFC’s banks including Royal Bank of Scotland, Citibank, Nordea, VTB (Deutschland), Gazprombank, Raiffeisen, Sberbank, UniCredit, Amsterdam Trade Bank, Banque Societe Generale, Commerzbank, and Bank of Moscow have been notified of the Court Order.

Source: www.freshplaza.com

X5 Retail Group may start direct import of fruit and vegetables

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As per RBK daily, Russian largest retail operator is considering a possibility of direct fruit and vegetables import, excluding distributors from the supply chain. The appropriate decision may be made within the next few months. X5’s main rivals – Magnit and Dixi – have been importing fruit and vegetables independantly for more than a year. The share of fruit and vegetables in the total revenue of a retail chain may reach 12%.

X5 may start direct import of fruit and vegetables in a few months after the company has finished the calculations. Traditional suppliers are Turkey, Africa, South America and Europe.

Source: www.retail.ru

Russian retail market expected to exceed $800bn in 2013

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In 2010, the Russian retail market recovered after the economic slowdown observed during the previous year and increased by 12.9% to RUB 16.5tr ($543.5bn). However, PMR predicts that in the next few years the market is unlikely to re-establish the pace achieved before the crisis.

PMR expects that there will be double-figure growth in the industry from 2011 onwards. However, in the short term the market is unlikely to witness the rate achieved before the crisis. Despite the improving economic conditions and relatively positive forecasts for the next few years, the situation on the Russian retail market still falls short of expectations.

The X5 Retail Group, which operates the Pyaterochka, Perekryostok and Karusel grocery stores, remains the leading retailer in terms of revenues in Russia. In addition to the double-figure year-on-year increase in total sales, there was a 7% increase in the company’s like-for-like sales in 2010.The Tander Group, a grocery retailer, occupies second place among the largest retailers, and is followed by the Auchan Group.

In 2010 the top 20 retailers accounted for about 11% of the country’s total retail sales value. The three largest players (the X5 Retail Group, Tander and the Auchan Group) controlled almost 5% of the market.

Source: www.freshplaza.com

Imported fruits and vegetables still preferred by Russian retailers

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Notwithstanding solid overproduction of vegetables in Russia, retailers still prefer to purchase imported produce. This information is regularly reported to Fruit-Inform by Russian producers, who try to come to an agreement with supermarkets about supply of their produce.

The quality of local fruits and vegetables leaves much to be desired. Even taking into account its lower prices, domestic produce often cannot compete with graded, washed and packed imported fruits and vegetables.

Source: www.freshplaza.com

South African grapes struggle to reach Russian market

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Export Company Pomona Fruit SA has been offering grapes into the Russian market from the first week of November. However it is clear that the Russian market is extremely nervous with regards to the high levels offered by the South Africa and Namibian exporters in general, and penetrating this market segment is also a frustrating procedure.

The Russian market is still well supplied by Peruvian, Brazilian & Californian products, and for an importer to make the mental leap from the lower selling prices in a sluggish market to having to commit to the high levels from South Africa and Namibia is tedious and in most cases very risky.

After a tumultuous citrus season where many Russian importers and exporters were both hit hard by the adverse market conditions, all parties seem to have taken a back seat in confirming orders. At the moment the Russian market is not buying considerable volumes from South Africa, and most likely this trend is set to stay for some time.

Source: www.freshplaza.com

Russia: Strong growth expected in local retail market

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The Russian retail market is expected to be worth $800bn by 2013, a sharp rise from the estimated $545bn it generated last year. According to a new study from PMR, the local market has shrugged off the impact of the recession, and will grow by double-digit figures for the next two years.

The research firm however cautioned that, in the short term, the market is unlikely to grow at the same rate as before the crisis, adding that despite improving economic conditions the Russian retail market still falls short of expectations.

The study also looked at the growth of individual chains, and noted that the country’s top 20 retailers had a 11% market share in 2010. Of this, the three largest firms – X5 Retail Group, Tander, and Auchan – combined to take a 5% stake.

Source: www.freshplaza.com

Azbuka Vkusa: Expansion plans

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Azbuka Vkusa – a premium-class retail chain, operating 44 supermarkets in Moscow and Moscow Region, is planning to open a supermarket in St. Petersburg. The company is also considering other directions: Kiev and Yekaterinburg. However, the final decision will be made in March 2012.

The chain is looking for retail premises from 800 to 1,500 sq m for premium-class food store, which are quite hard to find in the city center, as the competition among food retailers is growing and St. Petersburg can’t boast the same number of premium segment customers as Moscow, as per experts.

Source: www.retail.ru

The big port of St. Petersburg spent over 10 mln roubles on winter preparations

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One nuclear and six diesel icebreakers will be working in the Finnish Gulf area this winter. The work of the Port will be coordinated by one situational room. Only electronic requests for ice channeling will be accepted.

To avoid the last year’s difficulties the Port of St. Petersburg has already freighted a nuclear icebreaker.

This winter all Russian ports in the Finnish Gulf (the big Port St. Petersburg, Primorsk, Ust-Luga, Vysotsk, Viborg) will be able to accept nuclear icebreakers. Last  year it was only the port of St. Petersburg which could accept these vessels.

Also this year all the requests for ice channeling will be accepted in electronic form.

Source: www.tks.ru

Spar to Launch New Format in Russia

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International retailer Spar, operating in Russia since 2000 in the “Soft franchising” mode, is launching new format.

The first 5,000 sq m hypermarket under Spar brand will be opened in Chelyabinsk on 3 December 2011.

At the moment Spar stores all over the world have 4 main formats: convenience store Spar, supermarket Eurospar, hypermarket Interspar and Spar-Express shops, which can be found in airports, railway stations and gas stations. The Spar retail chain in Russia is totaling 265 stores, mainly supermarkets. Spar-Express, Spar-drugstore and Spar-Pizza are also present on the Russian market.

There are 8 independent licensees in Russia, who are entitled to open Spar stores and develop a chain of sub-licensees within their region.

Source: www.retail.ru

Organized retail market will emerge in Russia by 2015

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Formation of organized retail market in Russia might be finished by 2015, so the Head of the Russian Union of independent retail chains. At the moment the market is dominated by hypermarkets, whose share is increasing.

In 2012 the share of hypermarkets will reach 15%. The share of hard discounters will remain at the level of 2011 and 2010. The neighborhood supermarkets will lose 5% of their share and occupy 34% of the market. Convenience stores will retain their 5%, which they have been occupying since 2010.

Experts also expect that international retail operators will build up their presence in Russia and add 1% to 9% that they have in 2011. Russian federal chains might also raise their share to 28%. Regional independent chains will keep their 34%.

Source: www.retail.ru