Swedish “Lantmannen” acquires Petersburg manufacturer “Orient products”

Finn Crisp
Finn Crisp

Swedish Lantmannen which produces crispbread under the brand Finn Crisp buys Petersburg based manufacturer “Orient products”. The deal will allow Lantmannen to take second place in the market of crispbread in Russia and localize production to offset negative impact of the devaluation of the ruble on its sales .

Federal Antimonopoly Service has published a petition on the Swedish Lantmannen to acquire 100% of OOO “Orient products”. It produces yeast crispbread “Croisette” and “Schedrye” on the site near St. Petersburg.

Since 2011, OOO “Orient products” is controlled by the Cypriot “Flabier ltd”. Before that 35.5% of the “Orient products” owned by ex-CEO of Ruric Management Leonid Polonsky (manages commercial real estate, and is part of the Swedish Ruric AB), another 30% belonged to the “Blago” group’s beneficiary Arcadiy Fosman. Robert and Nonna Polonsky had 9.5% and 15% respectively, and the rest of the share were with Valentina Labutina.

On the website Lantmannen it says that the buyer of “Orient products” will be the Lantmannen unit called Cerealia (produces flour, cereals and crackers under the brands of Regal, Sopps, Finn Crisp). The deal should be closed by early September, its amount is not disclosed.

“The Russian market of crispbread — one of the world’s largest and fastest growing in Europe, the popularity of the product in the country is a growing trend on healthy eating,” says the CEO of Lantmannen Cerealia Christer Zachary.

According to Euromonitor International, in 2016, sales of savoury biscuits (including crackers and crispbread) in Russia increased by 3.6% to 40.1 bln RUB. Brand “Finn Crisp” took 2.6% of the market in monetary terms. The largest share is with private labels (own brands) of grocerie chains — 13%, and 10.1% of sales accounted for brand TUC (manufacturer Mondelez), 9,3% — “Yashkino” (KDV).

Lantmannen is an agricultural cooperative owned by 25 thousand Swedish farmers. Engaged in agriculture, energy, manufacturing products, etc. Revenue in 2016 at 37.2 billion Swedish crowns (~267,8 billion RUB). Total revenue of Lantmannen in Russia in 2016 rose 10%, to 329 million Swedish kronas (~2.36 billion rubles).

Another unit of the Lantmannen cooperative is Unibake (manufacturer of fresh and frozen bakery products) already owns a factory in the Moscow region. “Orient products” will be the first manufacturing for Lantmannen’s Cerealia in Russia, says Mr. Zachary.

In 2015, the revenue of “Orient products” grew by 44.1% to 129,9 million roubles, net profit — by 29% to 1.7 million roubles.”Orient products” is a major player on the domestic crispbread market.
According to one of the participants of the food market, the approximate value of “Orient products” is three to five times the amount of annual revenue ( 390-650 million rubles). The acquisition will allow Lantmannen Cerealia to reduce the cost of production and move into second place in the sales of crispbread in Russia after OJSC “Khlebprom” (brand Dr.Korner), added the market source.

Last year the retail price of Finn Crisp crispbreads on the Russian market had risen by 20%, while sales of Lantmannen Cerealia decreased by 30% in volume and 19% in monetary terms. At the same time sales of “Orient products” increased over the same period by 38% in volume and 50% in monetary terms. Over the past six months sales of the brand “Schedrye” at Metro Cash & Carry grew by 30%. In Auchan “Finn Crisp” takes 10% of the entire range of crispbreads, “Schedrye” — about 1%. In comparison, in grocerie stores of Dixy Group “Dixy”, “Victoria” and “Megamart”) “Orient products” have three times more shelf space than “Finn Crisp”.

Be the first to comment

Leave a Reply

Your email address will not be published.


*