Author Archives: CrispConsulting

PRODEXPO 2014

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PRODEXPO 2014

February 10-14, 2014

Moscow, Russia

PRODEXPO is the largest annual specialized exhibition in Russia and Eastern Europe. For 20 years, it has determined the development of the domestic food industry.

Over the years of its existence, the PRODEXPO exhibition has played an important role in stimulating the Russian food industry. Promoting high-quality foodstuffs to the domestic market, the PRODEXPO trade show contributes to implementing high-priority federal projects aimed at improving the quality of life of the Russian citizens.

For 20 years, the amount of exhibition space rented and the number of exhibiting companies have increased by five times.

For 20 years, Prodexpo has illustrated:

  • the highest quality foodstuffs manufactured by global market leaders;
  • innovative food products:
    • organic, dietary and functional foods;
    • high-tech foods: convenient food, premium fast foods, dehydrated foods, frozen foods, and vacuum packaged foods;
  • high-tech equipment for trade and public catering;
  • innovative materials, equipment and projects for food packing.

For more information see: www.prod-expo.ru

Magnit reported slower sales growth

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OAO Magnit (MGNT), Russia’s largest retailer, reported slower sales growth in December as consumer-spending weakened, sending the shares down the most in about 18 months.

Revenue rose almost 23 percent from a year earlier to 63.6 billion rubles ($1.9 billion), less than November’s 29 percent growth, Krasnodar, Russia-based Magnit said in a statement today. Convenience stores led the slowdown as consumers switched to hypermarkets and open markets for New Year shopping.

Magnit fell as much as 6 percent in London trading, the steepest drop since July 6, 2012. The stock was down 4.9 percent to $60.35 at 8:30 a.m. in the U.K. capital.

Magnit’s slowdown may cause investors to revise growth prospects for the entire Russian retail sector, said Natalia Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow.

Russian gross domestic product grew 1.2 percent in the third quarter, missing estimates. Economic growth has slowed every quarter since President Vladimir Putin won a third Kremlin term in March 2012. Russian retail sales grew 4.5 percent in November, according to Federal Statistics Service.

www.bloomberg.com

Poland reduces apple exports to Russia

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Poland has significantly reduced apple exports to the Russian Federation, according to the official statistics.

In particular, Russian importers purchased just 37,000 tons of Polish apples in November 2013, a decrease of 38% compared with the same month of the previous year.

Russia’s cumulative imports of apples from Poland in the first 5 months of the current season totaled 91,000 tons, a decrease of 29% compared with the same period of the season 2012/13.

Poland is a stable leader in apple exports to the Russian Federation with the share of 55% in Russia’s total imports in the previous season.

www.fruit-inform.com

Moldova increases apple exports to Russia

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Despite a decrease in Russia’s total apple imports in the current season, Moldova managed to improve its position in the Russian market.

Moldova’s apple exports to Russia in November 2013 amounted to 35,000 tons, an increase of 13% month-on-month and year-on-year.

Russia’s cumulative imports of Moldovan apples in the first 5 months of the current season reached 113,000 tons, an increase of 13% compared with July-November 2012.

Moldova is ranked second in apple exports to Russia in the previous season and was behind only Poland.

www.fruit-inform.com

Russia’s apple imports down

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Russia has reduced apple imports in the current season, according to the official statistics.

Imports in November amounted just to 117,000 tons, a decrease of 8% compared with the same month of the previous season.

Russia’s cumulative imports of apples in July-November 2013 totaled 350,000 tons, a decrease of 12% year-on-year.

In the season 2012/13 the Russian Federation imported 1.34 mln tons of apples with Poland, Moldova, China, Azerbaijan and Serbia being the largest exporters.

www.fruit-inform.com

Russian growers want to grow pineapples in new greenhouse

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In Russia’s Far East region “Dalnevostochnoye” a new 18 ha greenhouse has been built with the support of the local government. The greenhouse is not completely new, it is an existing structure that has been reconstructed for 5.54 million Euro. Half of the cost of the revamp was government support, the other half was paid with money from the bank.

The new greenhouse will cultivate vegetables that are popular with locals: leafy greens, cucumbers, tomatoes, several varieties of lettuce, including exotic (Swiss) chard and salad rocket, parsley, basil, dill and others.

The director of the complex also announced that they will try to grow something unusual for the region, such as pineapples. “The technologies we use will allow us to grow anything because we have all the tools to create any climate we desire.”

www.freshplaza.com

US apple sellers hope Chinese ban will end

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Chinese agricultural officials are close to allowing Washington state’s Red and Golden Delicious apples back into China next month after a two-year ban. It is unclear if that will also open up the US import of apples from China, which produces half the world’s apples.

The ban was imposed on Washington, which supplies 80 percent of America’s apples, after a shipment to China in early 2012 was declared to be carrying “postharvest diseases.”

US agricultural officials fought the ban last year, claiming that any diseases in the 2012 shipment only affected crab apples for pollination.

According to the Northwest Horticultural Council, agricultural representatives from both countries met in Xiamen, China, earlier in November, and agreed to new inspections by Chinese officials of Golden Delicious and Red Delicious apples in Washington.

With a surplus forecast of 15 million bushels of apples in Washington over the next few years because of increased plantings, Washington growers hope to cash in on the growing Chinese market even as the potential opening of the US market will possibly have them competing with Chinese brands at home.

www.freshplaza.com

New Lenta store in Perm

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Saint Petersburg retailer Lenta has opened its new store in Perm on December 25, has said Yana Mogileva, a press agent of the retailer.

Initially the opening of the store was postponed several times due to technical problems.

As far as future plans are concerned, the retailer doesn’t plan to open new stores in Perm prior to 2015.

Today Lenta is present in 44 cities of Russia. The official website of the company states that Lenta stores are opened seven days a week. Also, the retailer offers to its customers products at a price not less than 5% below the average market price. It’s specified that Lenta reduces its costs of warehouse storage by placing some of its commodity stocks in salesrooms.

www.retailer.ru

Magnit sets up transport arm in Hungary

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Russia’s biggest food retailer, Magnit, will set up a transport company in eastern Hungary creating around 1,500 jobs, Hungarian foreign affairs state secretary Peter Szijjarto was quoted as saying on Friday.

National news agency MTI reported Szijjarto as saying that Magnit’s road haulage arm will have a fleet of 1,000 trucks, which will transport foodstuff from European Union member states including Hungary to the retailer’s shops in Russia.

Magnit, earlier this year, overtook rival X5 as Russia’s No.1 grocery chain by revenue.

www.freshplaza.com

Russian retail slips into stagnation

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Russian retail is slipping into a state close to stagnation. Sharp slowdown in business confidence index (BCI) bears evidence of it. BCI has dropped to +3% for the first time in 4.5 years of surveys. Some experts believe that we are witnessing major changes in the driving forces of the Russian economy. Its “artificial engines”, such as retail and financial sector, can’t stimulate the growth anymore.

In concerns of consumers’ demand, it stoped its growth in the last quarter of 2013 and that’s why there can be seen the shift of households from the spending model to the saving one. The situation has worsened by potential consumers’ high debt burden: arrear of Russian credit users by the end of 2013 is about 25% of their aggregate income. As consuming power decreased, retailers’ basic financial rates continued to drop. Experts are also predicting further economic downturn in the beginning of 2014.

Against the background of this economic downturn employment rate remained almost the same.
By statistics trading companies’ revenues in the end of 2013 have shown one of the worst results in past 4 years. In first quarter of 2014 about 20% of entrepreneurs are expecting a revenues decline.
Georgy Ostapkovich, the expert of the Center of conjuncture research, says this negative tendency of market condition cannot be overcome in short run.

www.retailer.ru