Packaged Food in Russia

PACKAGED FOOD IN RUSSIA
Euromonitor International
May 2014
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Manufacturers Appeal To Nostalgia and Tradition .................................................................... 1
Demand for Convenience Pushes Sales of Packaged Foods .................................................. 1
Private Label Becomes Increasingly Popular ........................................................................... 1
Products Aimed at Children See Increasing Demand ............................................................... 1
Development of Modern Retailing Positively Influences Packaged Food ................................. 2
Key Trends and Developments .................................................................................................... 2
Demographic Trends Influence Demand for Specific Products ................................................ 2
Traditional Recipes and Retro Packaging Designs Find Favour ............................................... 3
Private Label Significantly Expands Its Presence in Packaged Food ....................................... 4
Modern Retailing Sees Rapid Development in Russia ............................................................. 5
City Key Trends and Developments ............................................................................................. 6
Moscow .................................................................................................................................... 6
St Petersburg ............................................................................................................................ 8
Foodservice Key Trends and Developments ........................................................................... 10
Headlines................................................................................................................................ 10
Trends Sales To Foodservice .............................................................................................. 10
Trends foodservice ............................................................................................................... 11
Prospects ................................................................................................................................ 11
Category Data ........................................................................................................................ 12
Table 1
Table 2
Table 3
Table 4
Foodservice Sales of Packaged Food by Category: Volume 20082013 ........................................................................................................... 12

Foodservice Sales of Packaged Food by Category: % Volume Growth
2008-2013 .................................................................................................. 12
Forecast Foodservice Sales of Packaged Food by Category: Volume
2013-2018 .................................................................................................. 13
Forecast Foodservice Sales of Packaged Food by Category: %
Volume Growth 2013-2018 ........................................................................ 14
Impulse and Ingulgence Products Key Trends and Developments ......................................... 14

Headlines................................................................................................................................ 14
Trends .................................................................................................................................... 15
Competitive Landscape .......................................................................................................... 16
Prospects ................................................................................................................................ 17
Category Data ........................................................................................................................ 17
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Sales of Impulse and Indulgence Products by Category: Volume

2008-2013 .................................................................................................. 17
Sales of Impulse and Indulgence Products by Category: Value 20082013 ........................................................................................................... 18
Sales of Impulse and Indulgence Products by Category: % Volume
Growth 2008-2013 ..................................................................................... 18
Sales of Impulse and Indulgence Products by Category: % Value
Growth 2008-2013 ..................................................................................... 18
NBO Company Shares of Impulse and Indulgence Products: % Value
2009-2013 .................................................................................................. 19
LBN Brand Shares of Impulse and Indulgence Products: % Value
2010-2013 .................................................................................................. 20
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Table 11
Table 12
Table 13
Table 14
Forecast Sales of Impulse and Indulgence Products by Category:

Volume 2013-2018 ..................................................................................... 20
Forecast Sales of Impulse and Indulgence Products by Category:
Value 2013-2018 ........................................................................................ 21
Forecast Sales of Impulse and Indulgence Products by Category: %
Volume Growth 2013-2018 ........................................................................ 21
Forecast Sales of Impulse and Indulgence Products by Category: %
Value Growth 2013-2018 ........................................................................... 21
Meal Solutions Key Trends and Developments ....................................................................... 22

Headlines................................................................................................................................ 22
Trends .................................................................................................................................... 22
Prospects ................................................................................................................................ 24
Category Data ........................................................................................................................ 25
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Sales of Meal Solutions by Category: Volume 2008-2013 ......................... 25

Sales of Meal Solutions by Category: Value 2008-2013 ............................ 25
Sales of Meal Solutions by Category: % Volume Growth 2008-2013 ......... 25
Sales of Meal Solutions by Category: % Value Growth 2008-2013 ............ 26
NBO Company Shares of Meal Solutions: % Value 2009-2013 ................. 26
LBN Brand Shares of Meal Solutions: % Value 2010-2013........................ 27
Forecast Sales of Meal Solutions by Category: Volume 2013-2018 .......... 27
Forecast Sales of Meal Solutions by Category: Value 2013-2018 ............. 28
Forecast Sales of Meal Solutions by Category: % Volume Growth
2013-2018 .................................................................................................. 28
Forecast Sales of Meal Solutions by Category: % Value Growth 20132018 ........................................................................................................... 28
Nutrition/staples Key Trends and Developments ..................................................................... 29

Headlines................................................................................................................................ 29
Trends .................................................................................................................................... 29
Prospects ................................................................................................................................ 31
Category Data ........................................................................................................................ 32
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
Sales of Nutrition/Staples by Category: Volume 2008-2013....................... 32

Sales of Nutrition/Staples by Category: Value 2008-2013.......................... 32
Sales of Nutrition/Staples by Category: % Volume Growth 2008-2013 ...... 33
Sales of Nutrition/Staples by Category: % Value Growth 2008-2013 ......... 33
NBO Company Shares of Nutrition/Staples: % Value 2009-2013 .............. 33
LBN Brand Shares of Nutrition/Staples: % Value 2010-2013 ..................... 34
Forecast Sales of Nutrition/Staples by Category: Volume 2013-2018 ........ 35
Forecast Sales of Nutrition/Staples by Category: Value 2013-2018 ........... 35
Forecast Sales of Nutrition/Staples by Category: % Volume Growth
2013-2018 .................................................................................................. 36
Forecast Sales of Nutrition/Staples by Category: % Value Growth
2013-2018 .................................................................................................. 36
Market Data ................................................................................................................................ 36

Table 35
Table 36
Table 37
Table 38
Sales of Packaged Food by Category: Volume 2008-2013 ........................ 36

Sales of Packaged Food by Category: Value 2008-2013 ........................... 37
Sales of Packaged Food by Category: % Volume Growth 2008-2013 ....... 37
Sales of Packaged Food by Category: % Value Growth 2008-2013 .......... 38
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II
Table 39
Table 40
Table 41
Table 42
Table 43
Table 44
Table 45
Table 46
Table 47
Table 48
Table 49
Table 50
Sales of Packaged Food by City: Value 2008-2013 ................................... 39

Sales of Packaged Food by City: % Value Growth 2008-2013 .................. 39
GBO Company Shares of Packaged Food: % Value 2009-2013 ............... 39
NBO Company Shares of Packaged Food: % Value 2009-2013 ............... 40
LBN Brand Shares of Packaged Food: % Value 2010-2013 ...................... 41
Penetration of Private Label by Category: % Value 2008-2013 ................. 41
Distribution of Packaged Food by Format: % Value 2008-2013 ................. 42
Distribution of Packaged Food by Format and Category: % Value
2013 ........................................................................................................... 43
Forecast Sales of Packaged Food by Category: Volume 2013-2018 ......... 45
Forecast Sales of Packaged Food by Category: Value 2013-2018 ............ 45
Forecast Sales of Packaged Food by Category: % Volume Growth
2013-2018 .................................................................................................. 46
Forecast Sales of Packaged Food by Category: % Value Growth
2013-2018 .................................................................................................. 46
Sources ...................................................................................................................................... 47
Summary 1
Research Sources ...................................................................................... 47
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III

EXECUTIVE SUMMARY
Manufacturers Appeal To Nostalgia and Tradition
Strong competition in packaged food pushed manufacturers to search for unique features for
their products. Thus design and positioning become more important, especially for traditional
products. The review period saw ongoing attempts by manufacturers to appeal to consumers
nostalgic feelings and their search for packaged food products offering similar quality to food
prepared at home. The hectic lifestyles of modern society drove the switchover to industrially
produced products, which led to increasing awareness amongst consumers of the advantages
offered by the type of meals they chose to eat. This saw consumers attracted to products with
home-made claims, which most frequently appeared on ready to consume products. Packaging
design facilitated manufacturers in appealing to consumers' sense of nostalgia. More companies
tried to evoke the design, form and quality of product packaging from the Soviet era. The use of
such packaging led to increased consumer trust in the quality of the products involved. The
usage of traditional recipes was highlighted on the packaging of food products, in order to
enhance the perception of products as natural and healthy
Demand for Convenience Pushes Sales of Packaged Foods

The constantly increasing pace of life in Russia resulted in strengthening demand for products
suited to on-the-go consumption. Consumer desire for convenience resulted in higher demand
for packaged food. Convenient storage and longer shelf-life made packaged food products more
appealing to modern consumers. Ready to consume solutions, such as sliced bread, sliced
cheese and ready meals, were only possible with the use of proper packaging. Well defined
single portions found favour amongst consumers more aware of their diets and calorie intake.
All of these factors positively impacted demand for packaged food in 2013.
Private Label Becomes Increasingly Popular

The main driver of demand for private label was the economic crisis. Post-crisis consumer
behaviour was significantly changed from the pre-crisis period, with consumers becoming more
price-sensitive and rational. This led to the development of private label in packaged food in
Russia. In addition, the expansion and development of retail chains saw them become more
interested in launching and promoting private label lines. It is expected that private label will see
rapid growth over the forecast period. However, private label is likely to face some issues in
achieving wider adoption. For example, it is commonly believed in Russia that private label is of
inferior quality to branded products, while private label products also tend to enjoy low levels of
consumer loyalty. While private label will see varying dynamics across categories, overall,
private label is expected to see double-digit retail value sales growth in packaged food over the
forecast period.
Products Aimed at Children See Increasing Demand

Favourable demographic conditions contributed to ongoing growth in the Russia's population
of children over the review period, resulting in increased demand for products targeting children.
The consumer tendency to be less price-sensitive in purchasing products for their children,
allied to rising income levels, resulted in higher interest in products specifically positioned
towards children. Manufacturers understood the potential offered by this niche. Children were
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targeted due to their current position as consumers with pocket money, their influence on the
purchasing decisions of their families, and as future consumers that can be educated. The rapid
development of licensing contributed to the stronger performance seen by packaged food
products aimed at children, with the usage of well-known characters making product promotion
significantly easier.
Development of Modern Retailing Positively Influences Packaged Food

Modern retailing developing rapidly in Russia over the review period, which positively
impacted packaged food. The influence of modern grocery retailers was mainly felt through the
increasing variety of packaged food products available, declining unit prices, active marketing
and promotion at the point-of-sale, and the convenience offered to consumers by modern
formats. Moreover, retailers set high standards in terms of preservation of product freshness,
quality of packaging materials, long expiration dates, product related information on the
packaging and brand awareness. Modern retailers forced packaged food producers to provide
consumers with the best solutions in terms of price and quality. Russian consumers will continue
to benefit from the ongoing development of modern retailing over the forecast period.
KEY TRENDS AND DEVELOPMENTS

Demographic Trends Influence Demand for Specific Products
The growing population of children in Russia formed favourable conditions for the
development of children specific packaged food products over the review period. The strong
development of baby food and the emergence of packaged food products specifically targeting
children were noticed, in line with this demographic trend. Rising income levels, allied to the
ongoing tendency of Russian parents to be less price-sensitive when purchasing products for
their children, also contributed to higher interest in products aimed at children. Manufacturers
were well aware of the importance of this demographic segment, as both current and future
consumers. They were also aware of the strong influence that children have on the purchasing
decisions of their parents.
The high number of babies born in Russia over the review period drove the strong
performance of baby food. Furthermore, strengthening demand was seen for products aimed at
babies with specific needs, such as gluten free baby food. Categories traditionally aimed at
family consumption increasingly saw the introduction of products specifically targeting children,
the positioning of which was achieved through packaging design, flavours and promotional
efforts. Despite the fact that packaged foods aimed at children remained relatively niche over
the review period, the segment retains significant potential for further development.
Those companies in packaged food that targeted children saw impressive results. One of the
main factors behind the dynamic performance seen by Ferrero Russia ZAO was the wide
assortment of products for children that it offered.
The development of licensed products, which made the promotion of products targeting
children easier, contributed to the enhanced assortment of products available.
Outlook
Demand for child specific products is expected to continue to see strong positive development
over the forecast period. The will be driven by the ongoing growth of the population of children
aged under 14 years old. Despite the expected slowdown in the Russian economy, it is not
expected that consumers will reduce expenditure on their children and products for them.
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Smaller market players, however, are likely to remain restrained in their activity within this niche,
concentrating more on products positioned for consumption by the entire family.
More manufacturers will pay attention to packaging as the main tool to attracting the attention
of children. The most powerful players are likely to license well-known characters, while others
will focus on the features and benefits provided by their products, in appealing to children and
their parents. Increasingly the promotion of products targeting children will go beyond television
advertising to embrace such entertainment mediums as theatre shows, music performances,
and video games, as well as outdoor advertising in areas frequented by children, such as
playgrounds. Manufacturers will appeal to both parents and children, as the perception of the
main decision maker in relation to purchases for children will gradually change.
Packaged food categories that traditionally appeal to children, such as ice-cream, sugar and
chocolate confectionery, gum and breakfast cereal, amongst others, are expected to see
healthier growth than categories with a low presence of products targeting children. Products
that have been specifically developed for a younger audience, such as Barni, Kinder Pingui, and
Kinder Surprise, are likely to strengthen their positions.
Targeting of children of specific ages is likely to be pursued only by companies with significant
experience and strong positions within this niche. Nonetheless, it is anticipated that more
packaged food products targeting teenagers will be introduced over the forecast period, in line
with changing demographics
Traditional Recipes and Retro Packaging Designs Find Favour

The positioning of products became more crucial over the review period, in line with
intensifying competition and the increasing variety of packaged food products available in
Russia. In light of this, manufacturers became more aware of the need to differentiate their
products from the competition. Manufacturers increasingly looked to target consumers seeking
naturalness, quality and good taste. As a result, a growing number of products made claims
about the heritage of their recipes and home-like approach to their manufacture. Furthermore,
attempts to influence consumer perception of products extended to their forms, packaging
designs and promotion. Manufacturers looked to appeal to nostalgia through the adoption of
well-known Soviet era packaging designs and labelling for their products.
As they were targeted by a growing variety of sophisticated products, consumers increasingly
turned to traditional well-known products. The desire for quality packaged food products resulted
in stronger consumer susceptibility to claims about the use of traditional recipes and extensive
experience in manufacturing. Nostalgia for the Soviet era was seen, with the growing adoption
of packaging similar to that used in that period by manufacturers. For a significant number of
consumers, packaging of this type served as an assurance of higher product quality.
While hectic lifestyles pushed Russians to consume packaged food solutions, they continued
to be perceived as less healthy than homemade meals. This drove manufacturers to
increasingly utilise a claim of "homemade for their packaged food products, as they attempted
to challenge and overcome the prejudices of consumers. This trend was particularly prevalent in
ready meals, frozen food and bakery products.
Outlook
The increasingly hectic pace of life, especially in larger cities, will increase demand for
packaged food in Russia further over the forecast period. However, a significant proportion of
the population will remain very concerned about the unhealthy characteristics of ready-toconsume, industrially-produced food solutions. Demand for these products will define the
success of the home-made claims made on product packaging. This in combination with
packaging designs appealing to consumers will remain crucial to the success of players over the
forecast period.
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Product naturalness is likely to become more important over the forecast period, in line with
increasing consumer health-consciousness. Along with interest in the products offered by
farmers, Russians will more often chose brands that claim to utilise traditional recipes and more
natural ingredients. Furthermore, increased demand is likely to be seen for products free of
preservatives and other artificial ingredients, as well as for products with lower content of such
additives. Claims such as these are expected to be particularly noticeable amongst products
that were traditionally produced on farms and are now mostly sold in retail, such as sour cream,
kefir, bread and butter, amongst others.
It is likely that the attempts of manufacturers to appeal to consumer nostalgia for the Soviet
era will gradually fade. This will be underpinned by the increasing number of people who were
born following the fall of communism and, as such, have no memories of the Soviet era.
Appealing to post Soviet times and atmosphere is likely to become more significant as a result.
It is expected that manufacturers will offer new packaging designs and decrease their reliance
on designs intended to invoke nostalgia.
Private Label Significantly Expands Its Presence in Packaged Food

Private label packaged food products saw increasing popularity in Russia over the review
period, predominantly driven by the economic crisis. Over the review period, retail value sales of
private label packaged food in Russia increased by 285% or a CAGR of 31%. Post-crisis
consumer behaviour was significantly different from that in the pre-crisis era. Consumers
became more price-sensitive and rational in their purchasing decisions. This led to the strong
development of private label in the country. In addition, the ongoing expansion and development
of retail chains lent momentum to the introduction and promotion of private label lines. In 2013,
private label packaged food saw sales growth of 19% to reach RUB74 billion.
Outlook
Due to the rapid development and growing availability of private label packaged food in
Russia, there is reduced space for branded products on retail shelves. This will result in
difficulties for smaller players, mainly those in the low-and-mid-price segments, in terms of
establishing a presence for their products in retail chains. Moreover, even for those branded
products that maintain a presence in chained retailers, competition will become significantly
more intense, due to the privileged position enjoyed by private label in terms of marketing and
shelf positioning.
These trends are particularly important in those categories, usually essentials, where brand
loyalty is lower, such as milk, canned food, and grains, amongst others. At the end of the review
period, private label accounted for retail value sales share of 8% to 15% in many categories in
packaged food and is likely to see further retail value sales share gains over the forecast period.
It is expected that private label will see rapid growth over the forecast period. This is
expected, despite the impediments to its further adoption that private label faces, such as the
widespread perception that private label products are of inferior quality to branded products, low
consumer loyalty, and positioning as low-cost products. While private label will see varying
dynamics across the various packaged food categories, it is expected to see double-digit retail
value sales growth annually in packaged food as a whole.
In addition to growing consumer interest in, and acceptance of, private label, the active
promotion of both new and existing private label products is likely to have a positive impact on
demand. Moreover, it is anticipated that retail chains will develop mid-priced and even premium
private label lines. Retailers are expected to expend significant effort in the future development
of private label, as the area remained underdeveloped in packaged food in Russia at the end of
the review period. The image of private label products and consumer perception of their quality
is likely to improve further over the forecast period. Based on that, consumers across all
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incomes levels are likely to pay increased attention to private label. In future, private label will be
perceived not only as cheap, lower quality products, but as products offering good value-formoney across the various price segments.
Modern Retailing Sees Rapid Development in Russia

Modern retailing saw rapid development in Russia over the review period. Over the review
period, it increased by 146% in value terms and by 75% by number of outlets. The performance
and development seen by modern grocery retailing also had an influence on packaged food.
This was mainly seen in the growing variety of packaged food products available, more active
marketing and promotion at the point-of-sale, cheaper prices and increasing consumer
preference for the convenience offered by modern grocery retailers.
Retailing in Russia underwent significant change over the review period. Previously in Russia,
traditional grocery retailers dominated. However, the channel saw a significant loss of retail
value sales share from 58% in 2008 to 44% in 2013. In 2012, both modern and traditional
grocery retailers accounted for a retail value sales share of 47% in packaged food. In 2013,
modern grocery retailers saw a further increase in retail value sales share to 49%, while the
share accounted for by traditional grocery retailers declined to 44%.
Outlook
The convenience trend will continue to influence packaged food in Russia over the forecast
period, as service quality in the country tends to leave much to be desired. As a result, most
Russians look to reduce to a minimum, or completely avoid, communication with service staff at
the point-of-sale. Based on this, packaged food will account for a growing share of sales every
year. Moreover, packaged food products always feature longer expiration dates, which allows
consumers to purchase products more infrequently and in larger amounts. In line with the
increasingly hectic pace of life, consumers will look to reduce the time they spend shopping.
Moreover, modern retailers, provide consumers with a wide variety of products, both grocery
and non-grocery, in one location. This one-stop shopping experience is both convenient and
time saving, which is among the most important advantages offered by modern grocery
retailers. Supermarkets and hypermarkets frequently organise various promotional offerings,
which consumers find very appealing. In the wake of the economic crisis, consumers are more
price-sensitive and more inclined to purchase products available at special offers.
Modern retailers not only promote packaged food, but they also tend to enforce exacting
standards that manufacturers are forced to abide by. For example, retailers set high standards
in terms of preserving product freshness, quality of packaging, lengthy expiration dates,
providing product related information on packaging and brand awareness. All of the information
on product packaging must be presented in a way that meets the requirements of these
retailers. This fact helps in increasing consumer confidence in the quality of the products sold
through modern grocery retailers.
The unit price of products sold through modern retailers will continue to decline, as these
retailers increase their penetration and competition increases. Moreover, modern retailers will
continue to force manufacturers to provide consumers with the best solutions in terms of price
and quality, while competition between modern grocery retailers will be more intense than that
seen between traditional grocery retailers.
Over the forecast period, modern grocery retailers is set to see a further significant increase in
retail value sales share from 49% in 2013 to 58% in 2018. Consumers will benefit from the
ongoing development of modern grocery retailers in the country, in terms of promotional
activities, increasing competition, wider choice, lower prices and increased convenience.
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CITY KEY TRENDS AND DEVELOPMENTS

Moscow
Trends
In terms of product variety, Moscow was the most saturated market for packaged food in
Russia in 2013, with a much wider assortment of products available in Moscow in comparison
to other cities. Moscow was also the leading region in Russia, in terms of the development of
major retail chains. Moscow accounted for a 15% share of the retail value sales of packaged
food in Russia in 2013. Due to their higher disposable income levels, Muscovites were the
main drivers of the premiumisation trend across packaged food categories in Russia. The
majority of international companies in entering packaged food in Russia tend to use the
capital Moscow as their starting point. As a result of this, Moscow had a strong presence of
imported packaged food products compared to other regions of the country. Moreover,
Moscow was the main driver behind the development of ready meals in Russia, as the pace
of life there was the highest of any city in Russia, which resulted in consumers having less
time for food preparation.
Packaged food in Moscow saw retail value sales growth of 11% in 2013, which was slightly
more dynamic the corresponding growth of 10% seen by packaged food in Russia. This was
explained by the fact that Moscow is the business centre of Russia and consumers there
enjoy the highest disposable incomes of any city in Russia. Therefore, the effects of the
country's return to economic stability were seen in Moscow before other cities and regions of
the country.
Snack bars saw the most dynamic retail value sales growth of any packaged food category in
Moscow of 19% in 2013, followed by dried baby food with corresponding growth of 16%.
Snack bars was able to achieve this notable growth, due to developing from a relatively
limited base. Moreover, the presence of snack bars remained limited to only the large cities in
Russia at the end of the review period. As a result, Moscow was a main driver of the
performance seen by the category. Consumers increasingly looked for healthy snack
alternatives and snack bars were seen as the perfect choice. Despite the strong retail value
sales growth seen in Moscow in 2013, snack bars continued to account for a negligible retail
value sales share in packaged food in both Moscow and Russia as a whole. This category will
need further work in terms of product positioning and promotion, in order to see significant
development. Knowledge and awareness of snack bars remained limited in Russia at the end
of the review period, given that these products remain relatively new to the country. At the end
of the review period, snack bars remained underdeveloped in Moscow, which is the preferred
launching point for new product developments in the country. Snack bars is likely to see
continuing development in Moscow over the coming years and future expansion to other
regions.
The health and wellness trend, which primarily saw development in the country's major cities,
exerted an influence on packaged food in Moscow over the review period. This was reflected
in the growing popularity of products positioned as natural, as well as products fortified with
vitamins and minerals. The health and wellness trend was driven by the packaged food
industry, with active marketing and promotional campaigns, the popularisation of healthy
lifestyles and the growing range of products with healthy positioning available. These products
saw greater popularity in Moscow compared to the regions, due to the fact that urban
consumers proved more concerned about health and wellness in general, and the naturalness
of products in particular. Consumers in Moscow lived far from nature, while only a minority
lived in their own houses with the possibility of growing their own food. Moreover, consumers
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in large cities were better able to afford healthier packaged food products, due to enjoying
higher disposable income levels. As a result, these consumers became more demanding in
terms of product quality.
Competitive landscape
Modern retailing saw active development in Russia over the review period, with a focus on
major cities. This had a significant impact on the expanding Moscow packaged food market.
Moreover, it had an influence in terms of growing competition. An increase in competition was
seen not only among packaged food manufacturers, but also amongst chained retailers. Due
to the growing number of modern retailing chains with a presence in Moscow, it became
increasingly necessary to compete for consumers. Based on this, retail chains increasingly
focused on offering various loyalty programmes, cards and special offers.
Russian manufacturers successfully competed with multinational companies in packaged food
in Moscow in 2013, with the majority of categories led by local manufacturers. Among those
categories led by domestic players were baby food, oils and fats, ice cream, canned food,
pasta and noodles. However, in these categories, multinational companies tended to occupy
the positions behind the leading local companies. There were some categories wherein
multinational companies dominated, including sweet and savoury snacks, sauces, dressing
and condiments, canned food, and spreads. Packaged food in Moscow remained much more
active than other regions in terms of competition. Moscow citizens enjoyed higher spending
power in comparison to other regions and, as a result, companies placed significant emphasis
on competing there. This saw Moscow as the focus for marketing campaigns, promotional
offers, active distribution and other promotional activities.
Packaged food in Moscow become more quality-oriented, with growing consumer interest in
the content and ingredients used in packaged food products. Due to the growing variety of
products available, it became increasingly difficult for consumers to choose between brands.
As a result, product quality became an increasingly important criterion in the consumer
purchasing decision. Moreover, higher disposable income levels in the Russian capital
positively contributed to increasing interest in product quality, as consumers in Moscow could
afford to pay a premium for products of higher quality. As a result, companies looked to
position their products as homemade, fresh, and containing natural ingredients. This trend
was most visible in frozen food. While Muscovites enjoyed higher incomes, they had less time
to dedicate to food preparation, due to the hectic pace of life in the capital. This saw
companies offering natural products of higher quality and with health benefits.
Prospects
Packaged food in Moscow is set to see positive performance over the forecast period. Value
sales at constant 2013 prices are expected to see a CAGR of 2% over the forecast period, to
reach RUB565 billion in 2018. This growth will be mainly driven by population growth, new
product development, active marketing, the ongoing development of modern retailing and
stable consumer income levels. In addition to the expectation that new product developments
will be seen, new subcategories are also expected to become active, such as in sweet and
savoury snacks, and sauces, dressings and condiments. A growing variety of packaged food
products will be presented on an annual basis in Russia over the forecast period, particularly
in Moscow.
Snacks bars is expected to see the most dynamic retail value sales growth over the forecast
period, with a CAGR of 8% predicted. As was the case in 2013, this will be mainly due to the
category developing from a very limited base. Sweet and savoury snacks is also expected to
see dynamic retail value sales growth over the forecast period, at a CAGR of 8%. This will be
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mainly driven by the new product development efforts of manufacturers. Sweet and savoury
snacks saw the introduction of new innovative products on an annual basis over the review
period, a trend that is expected to continue over the forecast period. Furthermore, not all
subcategories were active at the end of the review period and it is expected that players will
look to launch products in these areas over the forecast period.
Foreign cuisine will impact the development of packaged food in Moscow over the forecast
period. There is growing interest in international cuisine amongst consumers in Russia's
capital. Those consumers that cook at home are showing increasing interest in experimenting
with new even exotic meals. This trend will be much more visible in Moscow compared to
other regions of the country, due to the wider range of ingredients available in the capital. For
example, Italian meals are becoming popular and, due to this, pasta, pizza and various Italian
sauces will see increased demand. Asian cuisine is also seeing growing popularity, which will
result in plain noodles displaying very positive dynamics.
Ready meals will see positive dynamics in Moscow over the forecast period, with value sales
in constant 2013 prices expected to see a CAGR of 3%. This is significantly more dynamic
than the retail value sales growth of 8% expected of ready meals in Russia as a whole. More
dynamic growth in Moscow will be driven by the higher pace of life in Russia's capital, wider
availability of products, higher consumer income levels and the more active promotion of
these products compared to in other regions of the country.
St Petersburg
Trends
Packaged food in St Petersburg developed in line with packaged food in Russia overall in
2013, in posting retail value sales growth of 10%.This growth is more moderate in comparison
to the one demonstrated in Moscow. The market will see same to previous year performance
and insignificantly lower indicator will be defined with the increasing influence of modern retail
and thus more restrained unit prices.
St Petersburg followed the overall retail sales trends seen by food and non-food products in
Russia. Non-food products benefitted from the decline in retail value sales share seen by food
in St Petersburg. This was mainly due to the increasing maturity of food in St Petersburg and
growing consumer income levels. It is worth mentioning that packaged food sales overtook
those of bulk products, in line with the increasing pace of life and demand for convenient
consumption.
Consumption patterns in St Petersburg continued to be impacted by Western trends, due to
the historic citys orientation to European standards. The city's geographical closeness with
Finland resulted in the strong presence of Scandinavian companies and brands. A significant
number of consumers from St Petersburg showed an ongoing tendency to visit Finland to
purchase products that remained unavailable in Russia. St Petersburg remained more
influenced by European health, eco, and simplicity tendencies than other Russian regions.
Milk formula saw the most dynamic retail value sales growth of 16% in 2013. Favourable
demographic conditions drove the development of baby food and milk formula in particular.
The number of children aged under 4 increased in 2013, which supported demand for these
products. The other categories that demonstrated the strongest development were snack
bars, and sweet and savoury snacks. Sweet and savoury snacks saw dynamic performance
mainly as a result of developing from a very limited base. Sweet and savoury snacks saw
retail value sales growth of 15% in 2013, driven by strong support from manufacturers.
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Competitive landscape
Consumers in St Petersburg remained loyal to locally manufactured products in 2013. Despite
the fact that the most powerful local manufacturing facilities, such as Khlebny Dom OAO,
Krupskaya KF OAO, Sladko OAO and Pekar OAO, amongst others, were acquired by
international giants, the brands developed by these remained amongst the most popular in
packaged food in St Petersburg.
St Peterburg's geographical position has always dictated that consumption in the city bears
high similarities with that in western countries. As a result, international brands continued to
have a strong presence in the city over the review period, with several international players
having manufacturing facilities there. Despite the variety of products from Finland and the
Baltic States available in St Petersburg, the majority of packaged food products available in
2013 were produced inside the country. Cheese, and herbs and spices were amongst the
packaged food categories with the highest presence of international brands.
The development of modern retailing continued to impact the landscape of distribution in
larger Russian cities and particularly St Petersburg. Consumers looked for high quality
products at reasonable prices and proved susceptible to various promotions and loyalty
programmes, mostly offered by large retail chains, which could afford to offer discounts more
often.
According to St Petersburg's Committee of Information and Liaison, the volume of foreign
direct investment in non-financial sectors of the city decreased, while overall investment
showed positive dynamics. Most manufacturing facilities were situated outside of the city in
the Leningrad region. The cheese producer Module has plans to establish manufacturing
facilities in St Petersburg in 2014.
Due to the relatively high incomes of citizens in St Petersburg in comparison to Russia as a
whole, consumers were able to afford higher priced products. This had an impact on
packaged food, in terms of the variety of products available and the presence of leading
players within retail outlets in the city. Foreign brands, such as Valio, Arla and Oltermanni,
were perceived to offer higher quality products, while local brands were favoured due to their
traditions and product positioning, as well as for reasons of nostalgia. Demand for locally
manufactured products, such as the confectionery of Krupskaya KF, was supported by the
high number of tourists who purchased these products, both to consume themselves and for
souvenirs.
Prospects
The expansion of chained retailers will negatively impact independent small grocers, a
channel that continued to have a high presence in the city at the end of the review period. The
number of chained retail outlets will increase further over the forecast period, in line with the
development of new districts of the city. Consumers will show a growing preference for
chained modern grocery retailers, due to the wide product assortment, competitive prices and
loyalty programmes offered by these outlets. Furthermore, the hectic pace of life will see
consumers increasingly choose to shop in hypermarkets once or twice per week rather than
frequent independent small grocers on a daily basis.
Their underdeveloped state at the end of the review period and growing consumer healthconsciousness will contribute to the strong performance of meal replacement slimming and
snack bars. These categories are expected to see strong retail value sales growth over the
forecast period, with respective CAGRs of 6% and 7% predicted, in terms of constant 2013
prices. The expected increase in the population of young children over the forecast period,
allied to continuing financial support from the government, will support the development of
baby food. Both milk formula and dried baby food are expected to record a CAGR of 5% over
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the forecast period, in terms of value sales at constant 2013 prices. Hectic lifestyles will result
in an increase in on-the-go consumption, a trend that will benefit sweet and savoury snacks,
constant value sales of which are expected to see a CAGR of 6% over the forecast period.
St Petersburg authorities will continue to promote tourism, both international and local, over
the forecast period. The number of visitors is expected to see a dynamic increase, which will
support sales of indulgence products that are suitable for on-the-go consumption. Ice cream,
sweet and savoury snacks, and confectionery are expected to benefit the most from this
trend. The popularity of chocolate confectionery as a souvenir will support the sales of locally
produced sweets.
Over the forecast period, disposable income levels in St Petersburg are expected to see
higher growth in comparison to those of Russia and even Moscow. This will contribute to the
development of premiumisation and drive demand for packaged food products with healthy
positioning. On the other hand, consumers are expected to increase their expenditure on nonfood products and services. The further development of the foodservice culture in the city will
pose a challenge for particular packaged food categories, such as ready meals.
FOODSERVICE KEY TRENDS AND DEVELOPMENTS

Headlines
All foodservice categories showed positive performance in 2013, driven by the active
development of foodservice as a whole in Russia
The strongest growth showed other FF drinking yoghurt
The lowest growth was noted by sugar confectionary
The number of foodservice outlets increased by 1% to reach 87,116 in 2013
Foodservice will see ongoing positive development in Russia over the forecast period, with
the number of outlets expected to grow at a CARG of 1%
Trends Sales To Foodservice

Foodservice became increasingly popular in Russia over the review period. In 2013,
foodservice saw value sales growth of 14% to RUB675 billion. Increasing variety and
availability, economic stability, growing interest in various world cuisines and the hectic pace
of life all contributed to the growing popularity of foodservice. As a result, packaged food sales
to foodservice also showed very positive performance, with volume sales across the various
categories varying from a limited increase, as in the case of bakery, to double-digit growth, as
seen by noodles. On the one hand, the growing popularity of foodservice in Russia influenced
sales of packaged food to foodservice positively. On the other, increasing interest in cooking
at home was also seen. Consumers, after experiencing various cuisines through foodservice,
attempted to replicate these meals at home. Various television programmes dedicated to
home cooking became very popular in Russia, which contributed to the growing interest in
preparing homemade meals. In 2013, preparing homemade meals was not related to an
inability to afford dining out; instead it was reflective of the increasing popularity of cooking at
home. Consumers read cook books and organised cooking parties, while cooking classes
also saw an increase in popularity. The increasing interest in foodservice and growing interest
in home cooking positively impacted packaged food as a whole in Russia.
Fortified/functional drinking yoghurt saw the most dynamic value sales growth of 33% in 2013.
This was mainly due to the category developing from a very small base, as these products
remained very new to foodservice in Russia. Spreadable processed cheese also saw dynamic
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10
performance in 2013, with foodservice volume sales growth of 12%. This was mainly driven
by growing consumer interest in Japanese food, particularly sushi, with spreadable processed
cheese an essential ingredient in many different types of sushi. Additionally, it become
popular to substitute butter for spreadable processed cheese in sandwiches. This was a
common trend in foodservice outlets in 2013. Finally, spreadable processed cheese was
developing from a very low base, which enabled it to achieve relatively dynamic growth.
Sugar confectionary saw amongst the least dynamic performance of any packaged food
category in 2013, as foodservice volume sales stagnated. Previously, sugar confectionary
was commonly given out for free in foodservice outlets after dinner. However, this practice
became less popular in Russia over the review period. Moreover, negligible category
monosodium glutamate showed decline of 1% due to growing popularity toward health and
wellness.
Multinationals held a dominant position in foodservice in 2013, due to offering a wider product
assortment and widely recognised, reputable brands. Foodservice outlets showed an ongoing
tendency to deal with well-known companies. Suppliers needed to fit a certain image profile
and have the ability to provide products of high quality. Foodservice operators tended to be
cautious in choosing their suppliers, as low quality products had the ability to negatively
impact their reputation for providing good quality food. As a result, foodservice operators
tended to deal with world-known, proven companies, such as Mondelez International Inc,
Bonduelle Groupe, PepsiCo Inc, Nestl, Karl Fazer Oy Ab, and Heinz Co, amongst other
multinational manufacturers.
Trends foodservice
Foodservice saw active development in Russia in 2013, with a 1% increase in outlet numbers
and retail value sales growth of 14%. Positive economic development, in line with constantly
growing disposable incomes, resulted in higher consumer spending in foodservice outlets
throughout the year. Moreover, legislative changes favoured sales of alcohol through
foodservice, as the focus of manufacturers shifted away from street stalls/kiosks. Moreover,
companies were very active in terms of marketing and promotion. For instance, some
foodservice players promoted their brands through various discount coupons, as well as
participated in coupon services, such as Groupon or Biglion.
Foodservice in Russia saw less dynamic value sales growth in 2013 compared to the CAGR
recorded over the review period. As a result of the impact of the economic recession,
foodservice showed a significant decline. Recovery from the economic crisis, together with
growing economic stability, resulted in foodservice seeing significant retail value sales growth
at a CAGR of 28% in current value terms over the review period. Nonetheless, the
foodservice value sales growth of 14% recorded in 2013 was very healthy
Pizza through home delivery/take away saw very positive performance in 2013, with value
sales growth of 13% and a 5% increase in outlet numbers. This upward trend was also
reflected in the retail value sales growth of 4% seen by frozen pizza in 2013, which
represented an improvement from the performance seen in 2012.
Prospects
Over the forecast period, foodservice is expected to see ongoing positive performance in
Russia. It is predicted the foodservice will grow at a CARG of 5% in terms of value sales at
constant 2013 prices, while the number of foodservice outlets will increase by 2%. These
developments will positively influence foodservice volume sales.
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11
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Foodservice sales are expected to see slightly less dynamic performance over the forecast
period compared to the review period. Foodservice is nearing saturation point in Russia and,
as a result, a slowdown in growth is expected. This will impact sales of packaged food to
foodservice.
According to the Ministry of Finance, the Russian economy is expected to see a slowdown in
growth over the forecast period. This has the potential to negatively impact consumer
spending in Russia. After the economic crisis in 2009, consumers became more conservative
in their spending. Moreover, there is growing interest in home cooking, a trend which also has
the potential to negatively impact foodservice in the country. On the other hand, foodservice
chains are actively promoting their services and have announced plans for further expansion
over the forecast period.
Companies will continue to focus on supplying foodservice, as increased demand is expected
over the forecast period. It is expected that increased competition will be seen between
packaged food companies supplying foodservice outlets. Quality will be the key focus for
companies, as foodservice outlets tend to have high product quality standards.
Category Data
Table 1
Foodservice Sales of Packaged Food by Category: Volume 2008-2013
'000 tonnes
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and
Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Impulse and Indulgence
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Table 2
2008
2009
2010
2011
2012
2013
891.9
45.2
200.0
21.3
1,041.4
87.1
231.6
10.6
0.1
216.4
51.9
24.8
162.4
900.0
44.8
204.9
20.9
1,044.8
89.5
244.2
11.7
0.1
224.2
54.4
24.7
164.1
906.9
45.3
210.1
21.0
1,054.4
92.2
269.8
12.7
0.1
229.6
56.7
24.9
167.5
921.1
46.1
216.2
21.6
1,090.4
94.6
298.6
13.3
0.1
233.3
58.9
25.2
172.2
932.9
47.2
223.9
22.0
1,143.8
96.7
323.8
14.2
0.1
252.6
60.8
25.7
177.7
943.4
48.4
232.6
22.3
1,186.6
99.1
347.2
15.0
0.2
268.6
62.8
26.5
183.8
2.8
5.7
55.2
124.9
2.7
5.9
55.5
126.5
2.8
6.1
57.8
132.1
2.8
6.3
60.1
137.3
2.8
6.7
62.5
143.8
2.9
6.9
65.1
150.1
2,201.9
666.7
2,968.7
2,223.3
685.6
3,010.7
2,245.9
720.5
3,073.7
2,300.6
761.2
3,173.8
2,384.8
801.2
3,304.0
2,454.1
841.3
3,418.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Foodservice Sales of Packaged Food by Category: % Volume Growth 20082013
12
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% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Impulse and Indulgence Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
2012/13
2008-13 CAGR
2008/13 Total
1.1
2.6
3.9
1.7
3.7
2.4
7.2
5.6
10.5
6.3
3.3
3.0
3.4
1.8
4.3
4.0
4.4
2.9
5.0
3.5
1.1
1.4
3.1
0.9
2.6
2.6
8.4
7.3
9.2
4.4
3.9
1.4
2.5
0.6
4.1
3.3
3.7
2.2
4.8
2.9
5.8
7.1
16.3
4.7
13.9
13.8
49.9
41.9
55.5
24.1
21.0
7.0
13.2
2.9
22.0
17.8
20.1
11.5
26.2
15.2
Table 3
Forecast Foodservice Sales of Packaged Food by Category: Volume 20132018
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
2013
2014
2015
2016
2017
2018
943.4
48.4
232.6
22.3
1,186.6
99.1
347.2
15.0
0.2
268.6
62.8
26.5
183.8
953.0
49.9
243.0
22.7
1,224.5
101.9
369.3
15.8
0.2
280.4
65.0
27.5
189.4
961.9
51.7
254.2
23.2
1,260.6
104.7
391.3
16.6
0.2
288.5
67.1
28.8
194.2
969.0
53.5
265.1
23.6
1,295.4
108.3
410.7
17.5
0.2
294.7
69.3
30.0
198.7
974.4
55.6
276.9
24.0
1,328.4
112.1
429.4
18.3
0.2
300.6
71.6
31.2
201.7
980.1
57.7
289.5
24.4
1,362.6
116.3
447.7
19.2
0.3
306.6
73.8
32.5
204.2
2.9
6.9
65.1
150.1
2.9
7.2
68.0
156.8
3.0
7.5
70.7
163.6
3.1
7.8
73.4
170.1
3.1
8.1
76.1
176.9
3.2
8.4
78.8
183.8
2,454.1
841.3
2,513.8
882.1
2,567.2
923.2
2,616.3
961.0
2,662.1
998.0
2,709.3
1,034.8
13
Packaged Food
Source:
Passport
3,418.9
3,525.2
3,625.3
3,717.4
3,805.7
3,895.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 4
Forecast Foodservice Sales of Packaged Food by Category: % Volume

Growth 2013-2018
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
2017/18
2013-18 CAGR
2013/18 Total
0.6
3.8
4.5
1.7
2.6
3.7
4.3
4.7
13.0
2.0
3.0
4.1
1.2
1.5
3.1
3.5
3.9
1.8
3.7
2.4
0.8
3.6
4.5
1.8
2.8
3.3
5.2
5.0
11.8
2.7
3.3
4.2
2.1
1.8
3.8
3.9
4.1
2.0
4.2
2.6
3.9
19.2
24.5
9.1
14.8
17.3
29.0
27.7
74.3
14.1
17.4
22.6
11.1
9.5
20.4
21.1
22.5
10.4
23.0
13.9
trade sources
IMPULSE AND INGULGENCE PRODUCTS KEY TRENDS AND

DEVELOPMENTS
Headlines
Impulse and indulgence products sees current value sales growth of 11% in 2013
Packaged branded products see increasing popularity
Gum demonstrates the highest growth in the review period and records 27% in current value
terms
The average unit price of most impulse and indulgence products grew in line with inflation in
2013
Obiedinenye Konditery UK OOO leads impulse and indulgence products in 2013, in
accounting for a retail value sales share of 9%
Impulse and indulgence products is expected to see a CAGR of 2% in terms of value sales at
constant 2013 prices
14
Trends
Hectic lifestyles stimulated desire amongst consumers for convenient meals solutions. Onthe-go consumption became more popular among consumers in larger cities. This resulted in
packaged products being seeing as more convenient than artisanal. Branded production was
more demanded, due to increasing consumer expectations and strong competition.
Furthermore, in-store experiences and merchandising became more influential factors
impacting the purchasing decisions of consumers.
Impulse and indulgence saw current value sales growth of 11% in 2013. This was the same
as the CAGR seen over the review period. The increasing variety of impulse and indulgence
products available contributed to the strong performance seen. The development of more
mature categories, such as industrial cakes and chocolate confectionery, was driven by
premiumisation. The downward pressure exerted on prices by modern grocery retailers and
competition did not result in lower retail value sales growth, due to the strong retail volume
sales growth seen by gum, snack bars and ice cream. What is more, very strong inflationary
price increases rates lead to higher value sales performance. Increasing incomes allowed
Russians to avoid saving on impulse and indulgence products, which they considered one of
the most affordable ways to indulge themselves.
Gum recorded the most dynamic retail value sales growth of any impulse and indulgence
category of 27% in 2013. Such performance was possible due to strengthening local
production and the continuing interest of Russian consumers in novel products, which were
frequently introduced to the category. Snack bars demonstrated retail value sales growth of
20% in 2013, mainly due to developing from a limited base. Growing awareness of snack bars
and their benefits resulted in increasing demanded from health-conscious consumers.
Furthermore, the consumption convenience offered by these products and the expansion of
distribution contributed to snack bars seeing dynamic performance in 2013.
Sugar confectionery saw the least dynamic retail value sales growth of 6% in 2013. The
perception of sugar confectionery as cheap and unhealthy product resulted in it seeing a retail
volume sales decline of 1% in 2013. The premiumisation of confectionery and the appearance
of other snacking alternatives within bakery and sweet and savoury snacks had a negative
impact on demand for sugar confectionery. The retail value sales growth seen was driven by
an increase in average unit price.
The nature of impulse and indulgence products meant that independent small grocers
remained a significant distribution channel for this category in 2013. Independent small
grocers accounted for a 32% share of the retail value sales of ice cream and confectionery,
while the channel accounted for a 40% share of biscuit retail value sales. However, the
channel saw significant losses of retail value sales share across all impulse and indulgence
product categories over the review period, in line with the ongoing expansion of modern
grocery retailers in the country. Supermarkets, hypermarkets and convenience stores all saw
significant increases in their retail value sales shares over the review period, as they
strengthened their position in the distribution of impulse and indulgence products.
The packaging of most impulse and indulgence products showed a movement towards
convenience. Manufacturers looked for ways to improve product preservation and to make
consumption more convenient. Even more attention was paid to packaging design, which
increasingly formed part of a vast marketing campaign for products. Ice cream saw the most
activity in terms of packaging forms, designs and pack sizes, in line with a significant number
of manufacturers engaging in new product development and re-branding exercises.
For most impulse and indulgence product categories, the increase in average unit price seen
in 2013, which mainly varied between 6% and 8%, was driven almost entirely by inflation.
While the price of impulse and indulgence products remained dependant on commodity
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15
product prices, over the review period, this dependency became less notable and the impact
of modern grocery retailers became more significant.
Competitive Landscape
Obiedinenye Konditery UK OOO was the leading player within impulse and indulgence
products in Russia in 2013, in accounting for a retail value sales share of 9%. The strong
position of the company was helped by its strong presence in modern grocery retailers. Its
established distribution and partnerships with modern retail chains resulted in high
accessibility for the companys brands across Russian territory. Mondelez Rus OOO followed,
on a retail value sales share of 5% in 2013.
Among the top five impulse and indulgence players, the most dynamic retail value sales
growth of 25% was demonstrated by Wrigley OOO. This was driven by the overall good
performance of gum, wide product availability and promotional campaigns. Along with the
expansion of private label in Russia, Aptechnaya set' 36,6 OAO's private label 36,6 saw retail
value sales growth of 30% in medicated confectionery in 2013. The demand for these
products grew in line with the expansion of the chain itself. In snack bars, Tekmar Slovensko
Sro saw good performance, in recording retail value sales growth of 26% in 2013, in line with
the development of snack bars in Russia.
High competition in impulse and indulgence products pushed manufacturers to adopt various
strategies in attracting consumers. In 2013, players developed powerful marketing campaigns
appealing to such consumer desires as convenience, quality and tradition. Due to the fact that
a significant proportion of various impulse and indulgence products, such as ice-cream, gum,
confectionery, were targeted at children, a variety of campaigns were organised to attract the
attention of this demographic. Eye-catching designs became more important in the face of
strong competition and the wide variety of brands available.
Income levels in Russia showed positive, but slowing, dynamics in 2013. This resulted in
consumers becoming more rational in their purchasing decisions. Due to the fact that impulse
and indulgence products continued to be perceived as non-essential, manufacturers were
forced to become active in terms of promotions and merchandising. Having a presence within
convenience stores became crucial, due to nature of impulse and indulgence products.
Most of the new launches seen in 2013 involved new flavour and filling variants of existing
products. Mondelez Rus introduced a new variant under its Yubileinoe Utrennee brand with
yoghurt filling. Energetic gum was launched by Energon Rus, with the product targeting
younger consumers and long distance drivers. At the beginning of 2013, Chipita Sank
Petersburg introduced packaged mini strudels. Ice-cream saw the most activity in terms of
new product launches in 2013.
In 2013, Ice Berry released an innovative new ice-cream format, namely ice-cream boxed
confectionery. The product was released under the Zhemchuzhina Rossii brand at a higher
than usual price and is expected to attract consumers interested in traditional chocolate
confectionery.
Premium brands showed better performance in 2013, in line with the ongoing premiumisation
trend. More promotional offers were seen on high priced products, which were successful in
attracting consumer attention.
The growth of private label is strongly dependent on the development of modern chained
retailing. The vast expansion of chained retailers to remote regions of Russia drove the
increase in sales seen by private label over the review period. However, branding remained
very important for impulse and indulgence products, which resulted in private label accounting
for a relatively insignificant retail value sales share in 2013.
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International companies continued to lead impulse and indulgence products in Russia in

2013. However, most of the leading brands from multinationals were manufactured inside the
country. While this ensured that local manufacturing facilities were operating near full
capacity, its created higher competitive obstacles for smaller domestic players.
Prospects
The hectic pace of life and the stress of everyday life will continue to drive demand for
impulse and indulgence products in Russia over the forecast period. Consumers will
increasingly choose products that can be quickly and conveniently consumed. Affordable
indulgence will support the sales of premium brands. The increasing number of children,
which form the main target audience for such products as ice-cream, gum and confectionery,
will be another factor contributing to increased demand for impulse and indulgence products
over the forecast period.
Impulse and indulgence products will generate a CAGR of 2% over the forecast period, in
terms of value sales at constant 2013 prices. This represents a slowdown from the review
period, when a CAGR of 3% was achieved. The gradual slowdown will be explained with
slower retail volume sales growth, with a CAGR of 2% expected over the forecast period
compared to the CAGR of 3% recorded over the review period. Moreover, impulse and
indulgence products will see lower price increases over the forecast period, due to the
increasing role played by modern grocery retailers in the distribution of these products.
Furthermore, companies are expected to face intensifying competition and thus look to keep
their prices unchanged as much as possible.
Towards the end of the review period, the Ministry of Finance made a downwards revision to
its expectations for Russia's economic performance over the forecast period. A slowdown in
income growth represents a potential threat to the performance of impulse and indulgence
products, as these products are not perceived as essential. Furthermore, increasing healthconsciousness will potentially lead some consumers to cut their consumption of confectionery,
baked goods, and sweet and savoury snacks. However, the predicted increase in the
country's population of children offers potential for impulse and indulgence products to see
positive development.
Players are expected to invest more in marketing campaigns over the forecast period. The
need to invest in the promotion of products is expected to become more pressing, in line with
strengthening competition. Furthermore, players are expected to look to attract consumer
attention with more sophisticated product forms and designs. The variety of flavours will also
be expanded, in order to retain consumer interest.
Most of the new products launched within impulse and indulgence products in 2013 were
expansions of brands with existing strong positions. In a long term period it is expected that
these currently launched products will be changed by other new launches. The energetic gum
launched in 2013 is likely to see good performance, due to being an innovative and unique
product.
Category Data
Table 5
Sales of Impulse and Indulgence Products by Category: Volume 2008-2013
'000 tonnes
Confectionery
2008
2009
2010
2011
2012
2013
1,038.5
1,030.6
1,055.3
1,085.4
1,101.5
1,118.6
17
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
Passport
121.1
213.2
622.2
333.8
306.0
0.9
2,635.6
134.0
210.7
620.5
325.8
309.6
0.9
2,632.1
142.5
218.4
668.9
361.1
316.7
1.0
2,763.9
152.0
232.9
690.7
315.4
327.9
1.1
2,805.4
159.1
230.8
748.8
340.5
338.2
1.2
2,920.1
165.6
231.9
786.4
365.2
345.0
1.4
3,014.0
Table 6
Sales of Impulse and Indulgence Products by Category: Value 2008-2013
RUB bn
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
2008
2009
2010
2011
2012
2013
260.7
14.9
29.3
66.9
48.7
87.5
0.4
508.4
293.0
18.2
32.5
72.8
55.7
91.4
0.4
564.1
329.8
20.8
37.9
85.6
69.4
99.1
0.5
643.0
373.4
24.0
43.8
93.1
68.1
110.4
0.6
713.4
407.9
27.3
47.1
105.6
79.8
120.8
0.8
789.2
448.8
30.7
50.9
117.7
92.8
131.7
0.9
873.6
Table 7
Sales of Impulse and Indulgence Products by Category: % Volume Growth

2008-2013
% volume growth
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
2012/13
2008-13 CAGR
2008/13 Total
1.6
4.1
0.5
5.0
7.3
2.0
12.0
3.2
1.5
6.5
1.7
4.8
1.8
2.4
9.6
2.7
7.7
36.7
8.7
26.4
9.4
12.8
58.2
14.4
Table 8
Sales of Impulse and Indulgence Products by Category: % Value Growth

2008-2013
% current value growth
Confectionery
Pastries
Cakes
Biscuits
2012/13
2008-13 CAGR
2008/13 Total
10.0
12.6
8.1
11.4
11.5
15.5
11.7
12.0
72.2
105.3
74.0
76.0
18
Passport
Ice Cream
Snack Bars
Source:
13.8
8.5
19.6
11.4
90.6
50.5
145.1
71.8
Table 9
NBO Company Shares of Impulse and Indulgence Products: % Value 20092013
% retail value rsp

Company
Obiedinenye Konditery
UK OOO
Mondelez Rus OOO
Mars OOO
Ferrero Russia ZAO
Wrigley OOO
KDV Group OOO
Inmarko OAO
Frito Lay Mfg OOO
Orkla Brands Russia OAO
Rossiya KO OAO
Konti-Rus ZAO
Dirol Cadbury OOO
Roshen LKF OAO
Nestl Russia OOO
Odintsovskaya KF OOO
Russky Kholod OAO
Slavyanka KO
Ruzskaya Konditerskaya
Fabrika
Talosto ZAO
AVK OOO
Frito Lay Distribution
OOO
United Bakers ZAO
Perfetti Van Melle OOO
Moskovskaya Orekhovaya
Kompania ZAO
Chupa Chups Rus OOO
Nestl Zhukovskoye
Morozhenoye OOO
Udarnitsa KF OAO
AlterWest ZAO
Storck OOO
Khlebny Dom OAO
Kraft Foods Russia OOO
SladKo OAO
Krupskaya KF OAO
Artisanal
Others
Total
Source:
16.4
9.1
20.0
10.7
2009
2010
2011
2012
2013
9.0
8.8
9.2
9.3
9.3
3.9
3.5
1.9
2.9
1.5
2.0
2.8
1.9
1.1
1.8
1.7
1.4
1.0
1.2
1.1
4.2
3.7
2.5
2.6
1.8
2.0
2.5
2.0
1.4
1.7
1.7
1.3
1.1
1.2
1.2
4.3
3.9
3.3
2.5
1.8
2.0
2.3
1.9
1.7
1.7
1.6
1.3
1.1
1.2
1.2
4.4
4.0
3.5
2.4
2.0
2.1
2.1
2.1
1.9
1.6
1.6
1.6
1.3
1.2
1.2
1.2
5.1
4.5
4.1
4.0
2.3
2.2
2.1
2.1
2.1
1.8
1.7
1.6
1.5
1.3
1.3
1.2
1.2
1.0
0.9
1.0
1.0
1.0
0.9
1.0
0.9
0.9
1.1
0.9
0.8
1.1
0.8
0.8
0.6
0.4
0.8
0.6
0.4
0.7
0.7
0.5
0.6
0.7
0.5
0.6
0.7
0.6
0.6
0.6
0.6
0.5
0.6
0.6
0.5
0.5
0.5
0.5
0.5
0.6
0.4
0.0
0.3
4.8
1.3
0.7
3.3
44.0
100.0
0.5
0.4
0.2
0.4
4.9
1.4
0.7
3.3
42.7
100.0
0.5
0.4
0.3
0.4
4.9
1.4
0.7
3.4
41.3
100.0
0.5
0.4
0.4
0.4
5.1
3.4
40.6
100.0
0.4
0.4
0.4
0.4
3.3
39.9
100.0
19
Table 10
LBN Brand Shares of Impulse and Indulgence Products: % Value 2010-2013
% retail value rsp

Brand
Company
Orbit
Lay's
Alpen Gold
Snickers
Kinder Surprise
Rot Front
Wrigley OOO
Frito Lay Mfg OOO
Mondelez Rus OOO
Mars OOO
Ferrero Russia ZAO
UK OOO
Roshen LKF OAO
Konti-Rus ZAO
Dirol Cadbury OOO
Slavyanka KO
UK OOO
Mars OOO
AVK OOO
Inmarko OAO
Ferrero Russia ZAO
Fabrika
Frito Lay Distribution OOO
UK OOO
Roshen
Konti
A Korkunov
Dirol
Slavyanka
Alenka
Mars
AVK
Zolotoy Standart
Ferrero Rocher
Ruzanna
Khrusteam
Babayevsky
Other Private Label
Lyubiatovo
Nesquik
Milka
Beerka
Vdokhnovenye
Yubileinoye
SladKo
Chupa Chups
Estrella
Komilfo
Alpen Gold
Milka
Yubileinoye
Estrella
Vozdushny
SladKo
Artisanal
Others
Total
Source:
Passport
United Bakers ZAO

Nestl Russia OOO
Mondelez Rus OOO
KDV Group OOO
UK OOO
Mondelez Rus OOO
Chupa Chups Rus OOO
Mondelez Rus OOO
Fabrika
SladKo OAO
2010
2011
2012
2013
1.8
2.0
1.4
1.3
1.3
2.4
2.0
1.4
1.3
1.4
2.6
2.1
1.5
1.4
1.4
2.9
2.1
1.6
1.5
1.5
1.5
1.5
1.5
1.2
0.7
1.0
0.9
1.5
1.5
1.2
0.9
1.0
0.9
1.4
1.5
1.2
0.9
1.0
0.9
1.4
1.4
1.2
1.1
0.9
0.9
0.9
1.0
0.5
0.7
0.8
0.9
0.9
0.6
0.7
0.7
0.9
0.9
0.8
0.7
0.7
0.9
0.8
0.8
0.8
0.7
0.8
0.8
0.7
0.7
0.7
0.7
0.7
0.7
0.4
0.6
0.7
0.7
0.5
0.5
0.6
0.7
0.6
0.6
0.6
0.7
0.7
0.6
0.6
0.7
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.6
0.5
0.5
0.5
0.5
1.7
0.6
0.5
0.5
0.5
0.6
3.3
68.9
100.0
1.6
0.6
0.5
0.5
0.4
0.6
3.4
67.6
100.0
1.6
0.6
0.5
0.5
0.4
3.4
67.1
100.0
3.3
66.9
100.0
2017
2018
Table 11
Forecast Sales of Impulse and Indulgence Products by Category: Volume

2013-2018
'000 tonnes
2013
2014
2015
2016
20
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
Passport
1,118.6
165.6
231.9
786.4
365.2
345.0
1.4
3,014.0
1,137.7
171.6
235.3
807.9
386.8
353.4
1.5
3,094.2
1,152.2
177.0
238.8
820.4
402.4
362.4
1.7
3,155.0
1,166.8
182.0
242.5
829.6
417.5
370.9
1.9
3,211.2
1,179.4
186.6
246.3
837.3
434.2
379.1
2.1
3,264.9
1,191.0
191.1
249.9
844.9
451.7
386.4
2.4
3,317.5
trade sources
Table 12
Forecast Sales of Impulse and Indulgence Products by Category: Value 20132018
RUB bn
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
2013
2014
2015
2016
2017
2018
448.8
30.7
50.9
117.7
92.8
131.7
0.9
873.6
457.0
32.0
51.9
120.8
98.0
133.7
1.0
894.3
459.8
33.3
52.9
123.5
103.0
134.7
1.1
908.5
462.8
34.4
54.1
125.7
108.1
135.8
1.3
922.1
464.1
35.5
55.2
127.7
113.0
136.9
1.4
933.8
464.4
36.4
56.4
129.2
118.0
138.0
1.6
943.9
trade sources
Table 13
Forecast Sales of Impulse and Indulgence Products by Category: % Volume

Growth 2013-2018
% volume growth
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
2017/18
2013-18 CAGR
2013/18 Total
1.0
2.4
1.5
0.9
4.0
1.9
11.4
1.6
1.3
2.9
1.5
1.4
4.3
2.3
11.7
1.9
6.5
15.4
7.8
7.4
23.7
12.0
73.9
10.1
trade sources
Table 14
Forecast Sales of Impulse and Indulgence Products by Category: % Value

Growth 2013-2018
% constant value growth
Confectionery
Pastries
2013-18 CAGR
2013/18 TOTAL
0.7
3.5
3.5
18.6
21
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
Passport
2.1
1.9
4.9
0.9
11.0
1.6
trade sources
MEAL SOLUTIONS KEY TRENDS AND DEVELOPMENTS

Headlines
Meal solutions sees retail volume and value sales growth of 3% and 11%, respectively, in
2013, to reach 5 million tonnes and RUB1.1 trillion
Growing product variety, active marketing and lifestyle changes drive demand
Soup sees the most dynamic retail volume and value sales growth of 8% and 16%,
respectively, in 2013
Meal solutions sees a 7% increase in average unit price in 2013
Meal solutions remains highly fragmented in 2013, with the leading player Kachestvennye
Produkty ZAO only accounting for a retail value sales share of 4%
Meal solutions is expected to see positive retail volume and value sales growth over the
forecast period, with respective CAGRs of 3% and 2% predicted
Trends
Meal solutions showed significant development in 2013. Economic stability in Russia
positively contributed to growing interest in meal solutions. Moreover, hectic lifestyles resulted
in increased consumer demand for these products. Additionally, manufacturers were active
both in terms of marketing and introducing innovative new products. The increasing variety of
meals solution products available also had a positive impact on the category. Promotional
activities, the wider presence of products on retail shelves and growing consumer awareness
of meal solution products all contributed to the increase in demand seen in 2013.
Meal solutions saw retail volume and current value sales growth of 3% and 11%, respectively,
in 2013, with sales reaching RUB1.1 trillion. The growth seen in 2013 was similar to that
recorded in 2012. Soup and frozen processed food saw the most dynamic retail value sales
growth of 16% and 12%, respectively, in 2013. Moreover, frozen processed food remained
the largest category in meal solutions, in accounting for a retail value sales share of 27%.
These products continued to appeal to consumers with hectic lifestyles, due to their
convenience. Due to offering a time-saving and convenient solution, frozen ready meals
remained highly popular amongst consumers, accounting for a leading 48% share of the retail
value sales of frozen processed food in 2013. Consumers most frequently purchased
traditional and well-known Russian products, such as pelmeni and vareniki.
Soup saw the most dynamic retail volume and value sales growth of 8% and 16%,
respectively, in 2013. This significant growth was achievable due to the fact that the category
was developing from a limited base. Furthermore, the active marketing of soup by players
helped in growing demand. Vilon TPK OOO, with its Sytoedov brand, was especially active in
terms of new product development, promotional campaigns and distribution. The company
was present in frozen soup, which saw very positive performance, driven by Vilon's activity.
10.8
9.8
27.1
4.8
68.2
8.0
22
Desert mixes remained underdeveloped in Russia at the end of the review period. Dessert
mixes accounted for a negligible share of retail volume and value sales in 2013. Per capita
consumption only stood at 0.01kg in Russia, while in Eastern Europe it stood at 0.1kg.
Moreover, dessert mixes saw a stagnation of retail volume sales in 2013, despite developing
from a severely limited base, while retail value sales saw growth of 7%, driven by inflation.
Over the review period, Russian consumers showed an ongoing tendency to prepare various
desserts, mainly cakes, using time-proven recipes involving the use of fresh ingredients.
Modern grocery retailers continued to lead the distribution of meal solutions in Russia in 2013.
Supermarkets and hypermarkets actively promoted meal solution products over the review
period, contributing to the development of the category as a whole. The convenience of
modern grocery retailers, wider assortment of products and ongoing expansion of the outlet
network over the review period all contributed to the strong position held by modern grocery
retailers.
Meal solutions saw a 7% increase in average unit price in 2013. Sauces, dressing and
condiments saw the largest increase in average unit of any category in meal solutions of 8%
in 2013. Premiumisation was visible in sauces, dressings and condiments in 2013, which
contributed to the increase in average unit price seen. However, the increase in average unit
price seen across all meal solution categories was mainly in line with inflation.
Meal solutions in Russia remained very fragmented in 2013, with others accounting for a retail
value sales share of 41%. The remaining retail value sales share of 59% was split between
245 companies. Kachestvennye Produkty ZAO remained the leading player, in accounting for
a retail value sales share of 4% in 2013. The company offered a wide variety of meal
solutions products under its leading meal solutions brand, Russkiy Hit. Among the meal
solutions products offered under Russkiy Hit were stuffed pancakes, vareniki, pelmeni, and
frozen processed meat products. Moreover, the company also offered the Shamahanskie and
Mama Doma brands. Kachestvennye Produkty ZAO was very active in terms of marketing
and new product development, while its products enjoyed wide geographic coverage. The
company positioned its products as an alternative to home cooked meals.
Fricopan Back GmbH, with its Fricopan brand, saw the most dynamic retail value sales
growth of 41% to RUB217 million in 2013. Under its Fricopan brand, the company provided
various frozen bakery products, including bread, croissants and baguettes, amongst others.
The company's performance was helped by the growing popularity of frozen bakery products
as a whole in Russia, active promotional campaigns and the growing popularity of fresh
products with homemade positioning.
Intensifying competition was seen in meal solutions in Russia over the review period, due to
the growing number of companies present. Kachestvennye Produkty ZAO, in defending its
leading position, focused on product quality, innovation and distribution. Kachestvennye
Produkty ZAO expended significant effort to meet consumer demands in terms of product
quality, as well as the balance between reasonable pricing and appropriate quality. Another
factor, impacting the performance of the company was its wide distribution. As Russia is a
vast country, with wide disparity in income levels between regions, the company tried to meet
the differing requirements of consumers in covering a huge geographical region.
Vilon TPK OOO launched a new product, frozen warps with various fillings, including meat,
vegetables, fish, and mushrooms, amongst others in 2013. This was the first product of its
kind in meal solutions in Russia. The fact that the product was introduced under a reliable and
well-recognised brand, its naturally healthy ingredients, convenience, and availability of a
wide range of flavours are all likely to contribute to interest in the product.
Passport
23
In marketing their products, players looked to highlight their natural attributes. Products were
positioned as homemade with natural ingredients, with a focus on quick and easy preparation.
The convenience trend also influenced marketing campaigns across the category. Consumers
increasingly looked for natural products and meal solutions that closely approximated home
cooked meals.
A premiumisation trend was noted in meal solutions in Russia in 2013. The increasing pace of
life influenced demand for products offering easy and fast preparation. Due to increasing
economic stability and rising income levels, consumers were able to afford to purchase
higher-quality and more expensive products. Meal solutions was the packaged food category
where the premiumisation trend was most visible in 2013.
Despite the fact that private label saw significant retail value sales growth of 32% in meal
solutions in 2013, it continued to account for a relatively limited retail value sales share of just
1%. Private label remained underdeveloped in meal solutions in Russia at the end of the
review period, mainly due to the ongoing consumer perception that these products were of
inferior quality to branded products.
Domestic manufacturers accounted for a significantly larger retail value sales share than
international players in 2013. Historically, Russia has a large number of local producers,
which saw improvements to their production facilities over recent years, and the category
remained highly fragmented. International companies faced a number of challenges in
operating in the category, the foremost being high logistics costs and price-based competition.
However, there were certain categories where multinational companies played a vital role. For
example, Karl Fazer Oy Ab was the leading company in frozen bakery. However, the
company has manufacturing facilities located in Russia.
Prospects
Meal solutions is set to see ongoing positive performance over the forecast period. Meal
solution retail volume sales are expected to grow at a CAGR of 3%, while value sales at
constant 2013 prices are expected to grow at a CAGR of 2%, to reach RUB1.2 trillion in 2018.
The convenience trend will have a strong influence on demand. Demand for meal solutions
will remain very much dependent on the economic situation in the country and income
stability. In the case of the economic situation in Russia deteriorating, it is likely that demand
for meal solutions will be negatively affected.
It is expected that meal solutions will see more dynamic retail volume sales growth over the
forecast period, with a CAGR of 3% predicted, compared to the CAGR of 2% seen over the
review period. Manufacturers will support the further development of the category through the
introduction of new products. Moreover, they will become even more active in terms of
marketing promotion. Companies will develop a wider range of products with natural
positioning, in a bid to meet the growing expectations of consumers regarding naturalness
and freshness.
Economic instability in Russia represents a significant potential threat to the performance of
the category. Demand for meal solutions is likely to be negatively affected in the case of
declining consumer income levels. In such a scenario, Russians consumers are likely to
switch to home-made meals, in an attempt to save money, as meal solution products are not
seen as essential.
Due to the growing variety of products available and the increasing number of players
present, it is expected that competition will intensify over the forecast period. This will
influence the behaviour of manufacturers, with price-based competition expected to become
increasingly prevalent. As a result, meal solutions is expected to see a 4% decline in average
unit price over the forecast period, in terms of constant 2013 prices.
Passport
24
Passport
New product launches are likely to prove popular over the forecast period. Generally
speaking, new innovative launches are expected to drive the development of the category.
Even in the case of traditional, well-known products, new exotic fillings can be added, in an
attempt to attract consumers. However, new product developments are not expected to result
in a significant change in consumer preferences, as Russians are quite conservative.
Category Data
Table 15
Sales of Meal Solutions by Category: Volume 2008-2013
'000 tonnes
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2008
2009
2010
2011
2012
2013
595.3
1,065.8
1,120.7
1.2
834.3
1,083.2
598.3
1,058.2
1,128.6
1.2
838.2
1,092.6
610.4
1,085.3
1,175.6
1.2
837.2
1,107.1
630.4
1,125.3
1,238.4
1.1
855.0
1,123.0
651.3
1,144.0
1,293.6
1.1
885.1
1,148.0
673.4
1,159.4
1,356.4
1.1
918.8
1,170.1
62.0
4,762.4
64.0
4,781.2
68.6
4,885.4
71.4
5,044.7
78.0
5,201.0
84.0
5,363.2
Table 16
Sales of Meal Solutions by Category: Value 2008-2013
RUB bn
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2008
2009
2010
2011
2012
2013
92.9
100.4
167.0
0.1
147.6
116.5
102.0
112.0
185.6
0.1
163.2
131.1
111.6
123.6
208.1
0.1
193.1
142.6
124.9
135.9
239.5
0.1
207.6
156.7
137.4
147.5
266.1
0.1
230.0
175.7
151.8
160.3
297.5
0.1
254.2
193.9
11.8
636.3
13.6
707.6
16.1
795.2
18.4
883.1
21.4
978.2
24.8
1,082.6
Table 17
Sales of Meal Solutions by Category: % Volume Growth 2008-2013
% volume growth
Ready Meals
Dessert Mixes
Dinner Mixes
2012/13
2008-13 CAGR
2008/13 Total
3.4
1.3
4.9
0.2
-
2.5
1.7
3.9
-0.3
-
13.1
8.8
21.0
-1.4
-
25
Passport

Soup
Meal Solutions
Source:
3.8
1.9
7.7
3.1
1.9
1.6
6.3
2.4
10.1
8.0
35.5
12.6
Table 18
Sales of Meal Solutions by Category: % Value Growth 2008-2013
Ready Meals
Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
2012/13
2008-13 CAGR
2008/13 Total
10.5
8.7
11.8
6.6
10.5
10.4
15.7
10.7
10.3
9.8
12.2
6.4
11.5
10.7
16.0
11.2
63.3
59.6
78.2
36.4
72.2
66.5
109.8
70.1
Table 19
NBO Company Shares of Meal Solutions: % Value 2009-2013
% retail value rsp

Company
Kachestvennye Produkty
ZAO
Cherkizovsky MPK OAO
Ostankinsky MPK OAO
Mikoyanovskiy Kombinat
Unilever Rus OOO
Ravioli OOO
Talosto ZAO
Darya OOO
Klinsky Myasokombinat
Velkom MPZ
Produkty ot Ilyinoi OOO
Sibirsky Delikates OOO
Bonduelle-Kuban OOO
Morozkom ZAO
IceBit ZAO
Heinz-Petrosoyuz SP
ROK-1 OAO
Efko ZAO
Tsaritsino OAO
Essen Production AG ZAO
Moskovsky Zhirovoy
Kombinat OAO
Glavproduct ZAO
MLM Food OOO
Vegda Product OOO
Parnas M
Viciunai ir Ko UAB
2009
2010
2011
2012
2013
3.5
3.4
3.5
3.6
3.6
2.3
2.2
1.6
1.7
1.5
1.4
1.6
1.3
1.4
1.3
1.1
1.1
1.0
0.9
0.8
0.9
0.8
0.8
0.8
1.2
2.4
2.1
1.7
1.7
1.5
1.5
1.5
1.3
1.3
1.2
1.0
1.0
1.0
1.0
0.9
0.9
0.8
0.9
0.8
1.0
2.6
2.2
1.8
1.7
1.5
1.4
1.5
1.3
1.3
1.2
1.1
1.0
1.0
1.0
1.0
0.9
0.8
0.9
0.9
1.0
2.7
2.4
2.0
1.7
1.5
1.4
1.5
1.3
1.3
1.2
1.1
1.1
1.0
1.0
1.0
0.9
0.9
0.9
0.9
0.9
3.1
2.6
2.0
1.7
1.5
1.4
1.4
1.3
1.3
1.2
1.1
1.1
1.0
1.0
1.0
0.9
0.9
0.9
0.9
0.9
0.8
0.8
0.8
0.5
0.8
0.8
0.8
0.8
0.5
0.7
0.8
0.8
0.8
0.5
0.7
0.8
0.8
0.8
0.8
0.7
0.9
0.8
0.8
0.8
0.7
26
Passport
Nestl Russia OOO

Nizhegorodsky
Maslozhirovoy Kombinat
OAO
Dmitrogorskoe OOO
Dalpromryba TD
Others
Total
Source:
0.7
0.7
0.6
0.6
0.6
0.6
0.7
0.6
0.7
0.7
0.8
0.7
64.1
100.0
0.7
0.7
65.1
100.0
0.7
0.7
64.2
100.0
0.7
0.7
63.3
100.0
0.7
0.7
62.5
100.0
Table 20
LBN Brand Shares of Meal Solutions: % Value 2010-2013
% retail value rsp

Brand
Company
Russkiy Hit
Cherkizovsky
Mikoyan
Ostankinsky
Raviollo
Klinsky
Velkom
Ot Iliyinoi
Sibirskoye Podvorye
Bonduelle
Other Private Label
4 Sezona
Darya
Tsaritsino
Maheev
Sloboda
Glavprodukt
Parnas
Vici
Baltimor
Ostankino
Dmitrogorsk
Kapitan vkusov
Maggi
Vegda Product
Heinz
Bering
Sam Samych
Calv
Dymov
Kachestvennye Produkty ZAO

Ostankinsky MPK OAO
Ravioli OOO
Velkom MPZ
Produkty ot Ilyinoi OOO
Sibirsky Delikates OOO
Bonduelle-Kuban OOO
IceBit ZAO
Darya OOO
Tsaritsino OAO
Essen Production AG ZAO
Efko ZAO
Glavproduct ZAO
Parnas M
Viciunai ir Ko UAB
Unilever Rus OOO
Ostankinsky MPK OAO
Dmitrogorskoe OOO
Dalpromryba TD
Nestl Russia OOO
Vegda Product OOO
Heinz-Petrosoyuz SP
Kompo Kft
Talosto ZAO
Unilever Rus OOO
Dymovskoe kolbasnoe
proizvodstvo OOO
Others
Total
Source:
2010
2011
2012
2013
2.8
2.3
1.7
1.4
1.4
1.3
1.3
1.2
1.0
1.0
0.5
1.0
1.0
0.9
0.8
0.7
0.8
0.5
0.7
0.7
0.7
0.7
0.7
0.6
0.6
0.5
0.6
0.8
0.6
0.6
2.9
2.5
1.8
1.5
1.4
1.3
1.3
1.2
1.1
1.0
0.7
1.0
1.0
0.9
0.9
0.7
0.8
0.5
0.7
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
2.9
2.6
2.0
1.7
1.4
1.3
1.3
1.2
1.1
1.1
0.9
1.0
1.0
0.9
0.9
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
3.0
2.9
2.0
1.9
1.4
1.3
1.3
1.2
1.1
1.1
1.0
1.0
1.0
0.9
0.9
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
70.7
100.0
69.9
100.0
68.8
100.0
68.1
100.0
2017
2018
Table 21
Forecast Sales of Meal Solutions by Category: Volume 2013-2018
'000 tonnes
2013
2014
2015
2016
27
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
Passport
673.4
1,159.4
1,356.4
1.1
918.8
1,170.1
691.7
1,174.8
1,419.2
1.2
953.7
1,188.5
709.9
1,192.1
1,483.4
1.2
990.3
1,203.9
730.2
1,209.6
1,549.3
1.2
1,027.6
1,218.3
750.4
1,233.1
1,615.3
1.2
1,065.0
1,231.9
771.2
1,259.3
1,683.5
1.2
1,103.1
1,244.3
84.0
5,363.2
90.6
5,519.6
97.6
5,678.5
104.8
5,841.1
112.7
6,009.5
121.6
6,184.2
trade sources
Table 22
Forecast Sales of Meal Solutions by Category: Value 2013-2018
RUB bn
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2013
2014
2015
2016
2017
2018
151.8
160.3
297.5
0.1
254.2
193.9
154.8
161.6
308.6
0.1
260.8
197.6
157.5
162.6
319.2
0.1
267.0
200.6
159.9
162.7
329.2
0.1
272.7
203.1
161.9
163.1
338.5
0.1
278.4
204.9
163.6
163.5
347.0
0.1
283.0
205.7
24.8
1,082.6
26.8
1,110.3
28.9
1,135.9
31.0
1,158.8
33.3
1,180.3
35.8
1,198.7
trade sources
Table 23
Forecast Sales of Meal Solutions by Category: % Volume Growth 2013-2018
% volume growth
Ready Meals
Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
Table 24
2017/18
2013-18 CAGR
2013/18 Total
2.8
2.1
4.2
0.7
3.6
1.0
7.9
2.9
2.8
1.7
4.4
0.7
3.7
1.2
7.7
2.9
14.5
8.6
24.1
3.5
20.1
6.3
44.7
15.3
trade sources
Forecast Sales of Meal Solutions by Category: % Value Growth 2013-2018
Ready Meals
2013-18 CAGR
2013/18 TOTAL
1.5
0.4
7.8
2.0
28

Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
Passport
3.1
-0.2
2.2
1.2
7.6
2.1
trade sources
NUTRITION/STAPLES KEY TRENDS AND DEVELOPMENTS

Headlines
Nutrition/staples sees sales growth of 10% to reach RUB1.5 trillion in 2013
Functional products drive traditional categories
Meal replacement sees the most dynamic retail value sales growth of 30% in 2013
Most categories within nutrition/staples see an increase in average unit price in 2013
Wimm-Bill-Dann Produkty Pitania OAO leads nutrition/staples in 2013
Nutrition/staples is expected to post a CAGR of 1% over the forecast period, in terms of value
sales at constant 2013 prices
Trends
New products remained the driving factor for most dairy categories in 2013. Russian
consumers showed a desire for new experiences and welcomed innovative solutions. This
included products adopting new flavours, forms and packaging. This in turn pushed retailers
to constantly update their product assortments, while manufacturers paid more attention to
merchandising. Russian consumers also showed growing interest in products with precise
targeting. That was especially seen with the emergence of products aimed at children.
Convenience of consumption resulted in healthier growth for such category as long life milk.
The review period saw increasing consumer interest in the composition of products, their
naturalness and added value health properties. This had a positive impact on such categories
as muesli and olive oil. People reacted positively to such product claims as traditional recipes
or home-made. Increasing consumer education also resulted in growing interest in such
product attributes as shelf-life and the recyclability of packaging.
Nutrition/staples saw retail value sales growth of 10% in 2013. This represented a slowdown
from the CAGR of 12% seen over the review period. This slight slow-down was partially the
result of the increasing maturity of dairy, bread and rice. Furthermore, prices were restrained
by the expansion of modern grocery retailers and increasing competitiveness. The
development of consumer foodservice in Russia, did not have a direct impact on the
development of nutrition/staple products. Growing consumer demand for convenience was
notable in the increased demand seen for ready meals and frozen food, which provided
competition to nutrition/staples.
Meal replacement slimming saw the most dynamic retail value sales growth of 30% in 2013.
This was driven by increasing interest amongst Russian consumers in healthy products and
their appearance. Concern about being overweight and obese grew in line with increasing
focus on these issues and healthy lifestyles in the media. Russians looked for simple and
effective weight loss solutions, which supported demand for meal replacement slimming. The
16.6
-1.0
11.3
6.1
44.4
10.7
29
activity of such companies as Herbalife and Leovit also had a significant impact on demand
for these products.
Rice saw the least dynamic retail value sales growth of 4% in 2013. Relatively restrained retail
value sales growth was mainly a result of the limited increase seen in unit prices, due to
increasing local rice production. Furthermore, consumer preferences saw them often chose
pasta or mashed potatoes over rice as a side dish. Furthermore, rice in Russia was relatively
mature in 2013 and thus demonstrated rather moderate retail volume sales growth of 2%.
The development of modern grocery retailers saw the channel become increasingly important
in the distribution of nutrition/staples in Russia. Changing lifestyles saw convenient and timesaving retailing formats become more popular amongst consumers. Purchases of nutrition
and staple products were usually planned in advance and, as such, outlet location was not as
important a factor as it was for impulse products. The only category with unusual distribution
patterns in nutrition/staples was meal replacement slimming, which saw direct selling account
for a 79% share of retail value sales. This was mainly due to the strength of Herbalife in the
category in Russia and the uniqueness of the product it offered.
Most categories in nutrition/staples saw an increase in average unit price above the rate of
inflation in 2013. This was mainly driven by increasing commodity prices. Growing interest in
branded packaged products, for example in bread, and higher value products, such as in olive
oil, also had an impact on overall unit price movements.
No significant packaging innovations were seen within other dairy in 2013. Most of the
packaging changes seen were related to design and the introduction of new pack sizes.
Offering more convenient consumption remained the main driver behind packaging changes.
Manufacturers increasingly introduced products in bottle-shaped other shaped liquid cartons.
Meanwhile, stand-up pouches appeared in prepared baby food (prepared purees by Heinz
Russia).
Wimm-Bill-Dann Produkty Pitania OAO led nutrition/staples in 2013, in accounting for a retail
value sales share of 9%. This was mainly supported by the company's strong brand portfolio
within dairy. Furthermore, the company continued to support its brands with advertising
efforts. Local production across Russias territory and well-established distribution helped the
company to strengthen its position in 2013.
Essen Production AG ZAO saw the most dynamic retail value sales growth in 2013. This
performance was based on the strong sales of the Maheev brand within spreads. Demand for
the brand in spreads was helped by its leadership in mayonnaise. The fact that the Maheev
brand was already well-known made consumers more willing to try the spreads launched
under the brand. Among other companies to see strong retail value sales growth in 2013 were
Basso Fedele & Figli Srl, Herbalife International RS OOO and Umalat ZAO. All three
companies recorded retail value sales growth in excess of 30%, which was underpinned by
increasing interest in olive oil, meal replacement slimming and soft cheese, respectively.
Over the review period, manufacturers developed and implemented various promotional
campaigns. Many players focused on the promotion of added value products. The targeting of
children also strengthened over the review period, in line with the increase seen in the
number of products positioned towards children. Dairy companies adopted the use of licensed
cartoon characters. Celebrities were also frequently used to endorse products. Valio St
Petersburg in presenting its new yoghurt Valio Clean Label employed the help of the Russian
ice skating champion, Tatyana Navka. The sports theme was actively used by manufacturers
in 2013, in anticipation of the Winter Olympics being held in Sochi in February 2014.
Passport
30
Players in nutrition/staples organised a range of promotional campaigns in 2013. In

September, Nestl promoted its Bystrov brand with the help of a contest, with entrants having
the chance to win RUB1 million. Lybiatovo also held several campaigns in 2013, with different
prizes available and the attraction of the self-developed mascot Chlopushka. Oleina continued
its partnership with Liza womens magazine in 2013. This served to enhance awareness of
the brand amongst its core audience, namely women interested in home cooking.
The expansion of modern chained retailers strengthened the position of private label in
nutrition/staples. In 2013, private label accounted for a retail value sales share of 4% in
nutrition/staples. Performance varied across the different categories. For example, 8% of the
retail value sales of rice were generated by private label in 2013, while private label
accounted for a 5% share of retail value sales in dairy, pasta, and oils and fats. Priceconscious consumers paid less attention to brands, particularly as regards essential products,
which positively impacted demand for private label.
Most packaging innovations involved design revisions. Several companies updated the
packaging of their leading brands in 2013. Furthermore, claims of naturalness and tradition on
packaging became very popular. Licensed characters were also widely used on the
packaging of products targeting children.
Domestic manufacturers prevailed in most nutrition/staples categories in 2013. This was
closely connected with the short shelf life of such products as dairy and bread. Furthermore, a
significant number of manufacturing facilities dedicated to the production of nutrition/staples
were present in Russia over the review period. However, some categories remained more
dependent on international players. For example, all of the olive oil products available in the
country in 2013 were imported.
Prospects
Competition in nutrition/staples is expected to intensify over the forecast period. Increasing
prices and slowing down of the Russian economy will push consumers to become more
rational and see them migrate towards economy solutions. This will be strongly supported by
the ongoing expansion of private label, especially within dairy. Therefore, manufacturers will
be forced to offer more added value products and concentrate on targeting specific
demographics and attracting consumers with promotions.
Private label will continue to see significant growth over the forecast period, in line with the
ongoing outlet expansion of chained modern grocery retailers. Slowing income growth will
result in some consumers becoming more price-conscious, which will support the migration
towards private label. Retailers will expand their private label presence within categories
where branded production continued to dominate at the end of the review period.
Nutrition/staples is expected to see a CAGR of 1% over the forecast period, in terms of value
sales at constant 2013 prices. This represents a significant slowdown from the review period,
when a corresponding CAGR of 4% was recorded. Larger categories like bread, dairy, rice
and noodles are nearing maturity and, as a result, are expected to see less dynamic retail
volume sales growth. Strong competition and consumer price-sensitivity will serve to restrain
price growth. Most nutrition/staples categories are expected to see a flat or negative CAGR, in
terms of average unit price, over the forecast period.
Changing lifestyles have the potential to negatively impact such significant categories as
bread. People are expected to become more health and diet conscious over the forecast
period, substituting bread for alternatives with lower calorie and carbohydrate content. The
dependence of some products on commodity price changes might result in unforeseen price
fluctuations. However, growing interest in international cuisine will support increased demand
for foreign production, for example cheese.
Passport
31
Passport
Companies are expected to pay more attention to claims on product packaging. Consumers
will be more welcoming of products positioned as natural and traditionally produced. In terms
of packaging, players are likely to concentrate on offering increased convenience to
consumers, both in terms of consumption and preservation. Packaging design renewal will be
crucial to maintaining competitiveness and brand awareness. It will become increasingly
important to achieve differentiation, as the variety of products available continues to grow.
The average unit price of most nutrition/staples products will see a flat or negative CAGR over
the forecast period. This will be supported by the fact that consumers will increasingly look to
purchase products during price promotions. Furthermore, the ongoing expansion and
increasing importance of modern grocery retailers will exert downwards pressure on prices,
due to chained retailers providing low prices, frequent discounts and cheap private label
products.
The most novelties are held within expansion of flavour, filling or forms.
Category Data
Table 25
Sales of Nutrition/Staples by Category: Volume 2008-2013
'000 tonnes
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
Table 26
2008
2009
2010
2011
2012
2013
4,384.0
75.6
6,840.4
0.9
1,476.0
422.6
56.6
813.7
114.6
268.2
14,452.6
4,418.2
77.7
6,892.6
0.7
1,505.4
431.5
55.3
862.5
117.4
262.4
14,623.8
4,476.4
80.2
7,112.2
0.8
1,503.8
461.3
59.2
883.2
115.8
304.4
14,997.4
4,406.5
83.3
7,257.2
1.0
1,505.5
509.9
60.5
909.7
113.7
296.8
15,144.1
4,307.2
86.1
7,723.7
1.3
1,567.0
539.2
63.9
920.3
110.4
291.5
15,610.5
4,267.3
89.6
8,134.0
1.5
1,602.3
563.6
65.8
931.9
109.1
296.4
16,061.6
Sales of Nutrition/Staples by Category: Value 2008-2013
RUB bn
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2008
2009
2010
2011
2012
2013
121.8
11.6
414.1
1.0
142.1
78.9
10.7
32.6
16.2
15.5
844.6
132.2
13.3
490.5
0.9
149.1
93.0
12.0
38.5
18.8
15.1
963.3
146.0
14.8
563.1
1.1
166.5
106.9
14.0
40.8
19.9
16.8
1,089.8
158.1
16.4
623.8
1.5
177.0
125.7
16.4
43.0
21.3
15.8
1,198.9
177.8
18.0
695.8
2.0
188.4
144.8
18.5
49.3
24.5
15.2
1,334.4
191.5
20.1
773.3
2.6
203.2
163.5
20.6
54.5
26.5
15.8
1,471.6
32
Table 27
Passport
Sales of Nutrition/Staples by Category: % Volume Growth 2008-2013
% volume growth
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2012/13
2008-13 CAGR
2008/13 Total
-0.9
4.1
5.3
20.7
2.3
4.5
3.1
1.3
-1.2
1.7
2.9
-0.5
3.5
3.5
12.4
1.7
5.9
3.1
2.8
-1.0
2.0
2.1
-2.7
18.5
18.9
79.5
8.6
33.4
16.3
14.5
-4.8
10.5
11.1
Table 28
Sales of Nutrition/Staples by Category: % Value Growth 2008-2013
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2012/13
2008-13 CAGR
2008/13 Total
7.7
11.3
11.1
30.0
7.8
12.9
11.7
10.4
8.4
3.8
10.3
9.5
11.5
13.3
21.0
7.4
15.7
14.1
10.8
10.4
0.4
11.7
57.2
72.2
86.7
159.4
43.0
107.1
93.5
66.9
63.7
1.8
74.2
Table 29
NBO Company Shares of Nutrition/Staples: % Value 2009-2013
% retail value rsp

Company
Wimm-Bill-Dann Produkty
Pitania OAO
Unimilk Kompania OAO
Yug Rusi APG
Valio St Petersburg ZAO
Danone Industriya OOO
Progress OAO
Nestl Russia OOO
Molvest ZAO
Ostankinsky Molkombinat
OAO
Makfa OAO
2009
2010
2011
2012
2013
8.4
8.9
8.9
8.9
8.9
5.7
1.6
1.7
2.1
1.0
1.3
0.9
1.1
6.2
1.7
2.0
2.1
1.3
1.2
1.0
1.1
6.1
1.7
2.1
1.9
1.5
1.3
1.1
1.1
6.1
2.2
2.1
1.8
1.6
1.3
1.2
1.1
6.2
2.2
2.1
1.8
1.6
1.3
1.2
1.1
0.9
0.9
0.9
1.0
1.1
33
Passport
Istra-Nutricia OAO
Faustovo ZAO
Khlebny Dom OAO
Sady Pridonya OAO NPG
Hochland Russland OOO
Bunge SNG OOO
Mareven Food Central OOO
Pieno Zvaigzdes AB
Karat ZAO
Volshebny Krai OOO
Gerber Russia
Efko ZAO
Magnit OAO
RostAgroExport ZAO
Doshirak Rus OOO
Laktalis Vostok OOO
Piskarevsky Molochny
Zavod ZAO
Si Group ZAO
FrieslandCampina Russia
Arla Foods Artis OOO
Valuisky kombinat
rastitelnykh masel OAO
Artisanal
Others
Total
Source:
0.7
0.8
0.8
0.6
0.6
0.5
0.7
0.4
0.7
0.5
0.4
0.4
0.3
0.5
0.3
0.3
0.7
0.7
0.8
0.6
0.7
0.6
0.6
0.5
0.5
0.5
0.4
0.4
0.3
0.5
0.5
0.4
0.3
0.8
0.7
0.8
0.7
0.7
0.6
0.6
0.5
0.5
0.5
0.5
0.4
0.4
0.5
0.5
0.4
0.4
0.8
0.7
0.8
0.7
0.7
0.7
0.7
0.6
0.5
0.5
0.5
0.5
0.4
0.5
0.5
0.4
0.4
0.8
0.7
0.7
0.7
0.7
0.7
0.7
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.3
0.2
0.7
0.4
0.4
0.3
0.7
0.4
0.4
0.3
0.6
0.4
0.4
0.3
-
0.4
0.4
0.4
-
5.6
59.5
100.0
5.2
57.5
100.0
4.9
57.3
100.0
4.6
57.2
100.0
4.4
57.0
100.0
Table 30
LBN Brand Shares of Nutrition/Staples: % Value 2010-2013
% retail value rsp

Brand
Prostokvashino
Domik v Derevne
Other Private Label
Vesely Molochnik
Fruto Niania
Chudo
Agusha
Vkusnoteevo
Oltermanni
Tioma
Makfa
Zolotaya Semechka
Babushkino Lukoshko
Letniy Den
Activia
Sady Pridonya
Svalia
Rollton
Viola
Hochland
Oleina
Company
Pitania OAO
Pitania OAO
Progress OAO
Pitania OAO
Pitania OAO
Molvest ZAO
Makfa OAO
Yug Rusi APG
Faustovo ZAO
Sady Pridonya OAO NPG
Pieno Zvaigzdes AB
Mareven Food Central OOO
Hochland Russland OOO
Bunge SNG OOO
2010
2011
2012
2013
3.6
2.9
3.6
2.8
3.6
2.8
3.7
2.9
1.9
2.3
2.2
2.2
2.4
2.1
2.5
2.1
1.3
1.0
1.5
1.1
1.6
1.1
1.6
1.2
0.9
1.0
1.0
1.0
0.8
0.9
0.8
0.7
0.8
0.7
0.8
0.7
0.5
0.5
0.5
0.5
0.5
0.4
0.9
0.9
0.8
0.7
0.7
0.7
0.7
0.7
0.6
0.5
0.5
0.6
0.5
0.4
0.9
0.9
0.8
0.8
0.8
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.9
0.9
0.9
0.8
0.8
0.7
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.5
34
Gerber
Zlato
Doshirak
Magnit
Frico
Valio
Nan
Yug Rusi
Bio Balance
Milora
Passport
Gerber Russia
Yug Rusi APG
Doshirak Rus OOO
Magnit OAO
FrieslandCampina Russia
Nestl Russia OOO
Yug Rusi APG
Valuisky kombinat
rastitelnykh masel OAO
Artisanal
Others
Total
Source:
0.4
0.4
0.4
0.3
0.4
0.3
0.3
0.4
0.4
0.5
0.5
0.4
0.4
0.3
0.4
0.3
0.3
0.4
0.4
0.4
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.4
-
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.4
-
5.2
67.8
100.0
4.9
67.4
100.0
4.6
67.5
100.0
4.4
67.2
100.0
Table 31
Forecast Sales of Nutrition/Staples by Category: Volume 2013-2018
'000 tonnes
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
Table 32
2013
2014
2015
2016
2017
2018
4,267.3
89.6
8,134.0
1.5
1,602.3
563.6
65.8
931.9
109.1
296.4
16,061.6
4,246.2
93.4
8,459.3
1.7
1,613.6
584.2
67.6
943.1
108.3
303.3
16,420.7
4,234.8
97.4
8,719.6
1.9
1,619.2
601.0
68.9
957.1
108.0
310.5
16,718.5
4,225.4
101.3
8,996.0
2.0
1,624.1
616.2
70.2
971.8
107.8
315.2
17,029.9
4,232.5
105.2
9,290.3
2.2
1,629.2
628.2
71.5
985.2
107.5
317.7
17,369.5
4,238.3
109.0
9,623.2
2.4
1,633.7
638.7
72.7
999.0
107.3
319.6
17,743.9
trade sources
Forecast Sales of Nutrition/Staples by Category: Value 2013-2018
RUB bn
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2013
2014
2015
2016
2017
2018
191.5
20.1
773.3
2.6
203.2
163.5
20.6
54.5
26.5
15.8
1,471.6
189.8
20.9
792.0
2.9
201.0
170.4
21.1
55.5
26.3
15.5
1,495.4
188.0
21.7
808.6
3.1
198.5
175.9
21.4
56.7
26.2
15.3
1,515.5
186.1
22.6
824.9
3.3
196.0
180.3
21.8
57.7
26.3
14.9
1,533.8
184.5
23.4
841.0
3.5
193.9
183.7
22.1
58.5
26.3
14.4
1,551.2
182.3
24.1
856.1
3.7
191.8
186.3
22.5
59.5
26.2
14.0
1,566.5
trade sources
35
Table 33
Passport
Forecast Sales of Nutrition/Staples by Category: % Volume Growth 20132018
% volume growth
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2017/18
2013-18 CAGR
2013/18 Total
0.1
3.7
3.6
7.6
0.3
1.7
1.7
1.4
-0.2
0.6
2.2
-0.1
4.0
3.4
9.1
0.4
2.5
2.0
1.4
-0.3
1.5
2.0
-0.7
21.6
18.3
54.5
2.0
13.3
10.4
7.2
-1.6
7.8
10.5
trade sources
Table 34
Forecast Sales of Nutrition/Staples by Category: % Value Growth 2013-2018

2013-18 CAGR
2013/18 TOTAL
-1.0
3.8
2.1
7.1
-1.1
2.7
1.7
1.8
-0.2
-2.4
1.3
-4.8
20.3
10.7
41.2
-5.6
14.0
8.9
9.2
-1.2
-11.6
6.5
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
trade sources
MARKET DATA
Table 35
Sales of Packaged Food by Category: Volume 2008-2013
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
2008
2009
2010
2011
2012
2013
422.6
5,416.2
1,065.8
834.3
1,038.5
6,840.4
1,233.2
1,120.7
333.8
431.5
5,461.1
1,058.2
838.2
1,030.6
6,892.6
1,278.1
1,128.6
325.8
461.3
5,586.4
1,085.3
837.2
1,055.3
7,112.2
1,338.5
1,175.6
361.1
509.9
5,565.3
1,125.3
855.0
1,085.4
7,257.2
1,355.0
1,238.4
315.4
539.2
5,532.0
1,144.0
885.1
1,101.5
7,723.7
1,357.5
1,293.6
340.5
563.6
5,540.7
1,159.4
918.8
1,118.6
8,134.0
1,373.1
1,356.4
365.2
36
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Table 36
Passport
0.9
114.6
1,476.0
813.7
595.3
1,083.2
0.7
117.4
1,505.4
862.5
598.3
1,092.6
0.8
115.8
1,503.8
883.2
610.4
1,107.1
1.0
113.7
1,505.5
909.7
630.4
1,123.0
1.3
110.4
1,567.0
920.3
651.3
1,148.0
1.5
109.1
1,602.3
931.9
673.4
1,170.1
0.9
62.0
56.6
306.0
2,635.6
0.9
64.0
55.3
309.6
2,632.1
1.0
68.6
59.2
316.7
2,763.9
1.1
71.4
60.5
327.9
2,805.4
1.2
78.0
63.9
338.2
2,920.1
1.4
84.0
65.8
345.0
3,014.0
14,452.6
4,762.4
21,231.7
14,623.8
4,781.2
21,411.1
14,997.4
4,885.4
22,002.7
15,144.1
5,044.7
22,326.7
15,610.5
5,201.0
23,037.0
16,061.6
5,363.2
23,716.4
Sum of sectors does not equal total packaged food because of double counting (eg canned soup is
included in soups and canned foods)
Sales of Packaged Food by Category: Value 2008-2013
RUB bn
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Table 37
2008
2009
2010
2011
2012
2013
78.9
244.5
100.4
147.6
260.7
414.1
71.1
167.0
48.7
1.0
16.2
142.1
32.6
92.9
116.5
93.0
269.0
112.0
163.2
293.0
490.5
79.6
185.6
55.7
0.9
18.8
149.1
38.5
102.0
131.1
106.9
305.0
123.6
193.1
329.8
563.1
85.3
208.1
69.4
1.1
19.9
166.5
40.8
111.6
142.6
125.7
335.4
135.9
207.6
373.4
623.8
88.5
239.5
68.1
1.5
21.3
177.0
43.0
124.9
156.7
144.8
375.8
147.5
230.0
407.9
695.8
98.2
266.1
79.8
2.0
24.5
188.4
49.3
137.4
175.7
163.5
410.9
160.3
254.2
448.8
773.3
106.6
297.5
92.8
2.6
26.5
203.2
54.5
151.8
193.9
0.4
11.8
10.7
87.5
508.4
0.4
13.6
12.0
91.4
564.1
0.5
16.1
14.0
99.1
643.0
0.6
18.4
16.4
110.4
713.4
0.8
21.4
18.5
120.8
789.2
0.9
24.8
20.6
131.7
873.6
844.6
636.3
1,891.6
963.3
707.6
2,126.8
1,089.8
795.2
2,408.3
1,198.9
883.1
2,660.6
1,334.4
978.2
2,952.1
1,471.6
1,082.6
3,261.0
Sales of Packaged Food by Category: % Volume Growth 2008-2013
37
Passport
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Table 38
2012/13
2008-13 CAGR
2008/13 Total
4.5
0.2
1.3
3.8
1.6
5.3
1.1
4.9
7.3
20.7
-1.2
2.3
1.3
3.4
1.9
12.0
7.7
3.1
2.0
3.2
2.9
3.1
2.9
5.9
0.5
1.7
1.9
1.5
3.5
2.2
3.9
1.8
12.4
-1.0
1.7
2.8
2.5
1.6
9.6
6.3
3.1
2.4
2.7
2.1
2.4
2.2
33.4
2.3
8.8
10.1
7.7
18.9
11.3
21.0
9.4
79.5
-4.8
8.6
14.5
13.1
8.0
58.2
35.5
16.3
12.8
14.4
11.1
12.6
11.7
Sales of Packaged Food by Category: % Value Growth 2008-2013
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
2012/13
2008-13 CAGR
2008/13 Total
12.9
9.3
8.7
10.5
10.0
11.1
8.6
11.8
16.4
30.0
8.4
7.8
10.4
10.5
10.4
20.0
15.7
11.7
9.1
10.7
10.3
10.7
10.5
15.7
10.9
9.8
11.5
11.5
13.3
8.5
12.2
13.8
21.0
10.4
7.4
10.8
10.3
10.7
19.6
16.0
14.1
8.5
11.4
11.7
11.2
11.5
107.1
68.0
59.6
72.2
72.2
86.7
50.1
78.2
90.6
159.4
63.7
43.0
66.9
63.3
66.5
145.1
109.8
93.5
50.5
71.8
74.2
70.1
72.4
38
Source:
Note:
Passport
Table 39
Sales of Packaged Food by City: Value 2008-2013
RUB bn
Moscow
Saint Petersburg
Russia
Source:
2008
2009
2010
2011
2012
2013
277.2
93.0
1,891.6
321.2
106.2
2,126.8
365.8
118.9
2,408.3
405.4
131.7
2,660.6
449.9
145.2
2,952.1
500.9
159.8
3,261.0
Table 40
Sales of Packaged Food by City: % Value Growth 2008-2013
Moscow
Saint Petersburg
Russia
Source:
2012/13
2008-13 CAGR
2008/13 Total
11.3
10.1
10.5
12.6
11.4
11.5
80.7
71.7
72.4
Table 41
GBO Company Shares of Packaged Food: % Value 2009-2013
% retail value rsp

Company
PepsiCo Inc
Danone, Groupe
Mars Inc
UK OOO
Nestl SA
Mondelez International
Inc
Unilever Group
Ferrero Group
Cherkizovsky APK
Yug Rusi APG
Valio Oy
ZAO
KDV Group OOO
Progress OAO
Ostankinsky MPK OAO
Orkla Group
Eksima AVK ZAO
Talosto ZAO
Molvest ZAO
Efko ZAO
Heinz Co, HJ
2009
2010
2011
2012
2013
0.8
1.3
1.9
2.4
0.8
4.1
2.1
2.4
4.9
4.0
2.4
2.5
4.9
3.9
2.5
2.5
4.9
4.0
2.6
2.5
2.5
-
2.4
-
2.4
-
2.3
1.8
2.3
1.8
1.1
1.0
0.8
0.8
0.8
0.7
1.2
1.1
0.8
0.8
0.9
0.7
1.2
1.1
0.9
0.8
0.9
0.7
1.3
1.2
0.9
1.0
1.0
0.8
1.3
1.2
1.1
1.0
1.0
0.8
0.9
0.5
0.6
0.7
0.5
0.6
0.4
0.5
0.6
0.9
0.6
0.6
0.7
0.6
0.6
0.5
0.5
0.6
0.8
0.7
0.6
0.7
0.6
0.5
0.5
0.5
0.5
0.8
0.7
0.7
0.6
0.7
0.5
0.5
0.5
0.5
0.8
0.7
0.7
0.7
0.7
0.6
0.6
0.5
0.5
39
Karl Fazer Oy Ab
Konti Group
Milkiland NV
Makfa OAO
Lactalis, Groupe
Roshen Kondyterska
Korporatsia
Velkom MPZ
Solnechnye Produkty
Holding ZAO
Royal FrieslandCampina NV
Artisanal
Private Label
Others
Total
Source:
Passport
0.5
0.5
0.5
0.4
0.3
0.5
0.5
0.5
0.5
0.4
0.3
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.5
0.5
0.5
0.5
0.4
0.4
0.5
0.5
0.5
0.5
0.5
0.4
0.5
0.5
0.4
0.5
0.4
0.5
0.4
0.4
0.4
0.4
0.4
3.4
1.4
71.8
100.0
0.4
3.2
1.7
68.4
100.0
0.4
3.1
1.9
63.6
100.0
0.4
3.0
2.1
61.1
100.0
0.4
2.9
2.3
60.5
100.0
Table 42
NBO Company Shares of Packaged Food: % Value 2009-2013
% retail value rsp

Company
Pitania OAO
UK OOO
Mondelez Rus OOO
Nestl Russia OOO
Ferrero Russia ZAO
Mars OOO
Wrigley OOO
Yug Rusi APG
ZAO
Progress OAO
Ostankinsky MPK OAO
Unilever Rus OOO
Talosto ZAO
KDV Group OOO
Inmarko OAO
Frito Lay Mfg OOO
Rossiya KO OAO
Molvest ZAO
Efko ZAO
Ostankinsky Molkombinat
OAO
Konti-Rus ZAO
Makfa OAO
Khlebny Dom OAO
Dirol Cadbury OOO
Artisanal
2009
2010
2011
2012
2013
3.8
4.0
4.0
4.0
4.0
2.6
2.4
2.8
2.4
2.8
2.5
2.8
2.5
2.8
2.5
1.2
1.0
1.1
0.5
0.8
0.7
0.8
1.0
0.7
1.2
1.1
1.1
0.7
0.8
0.8
0.9
0.9
0.7
1.2
1.1
1.1
0.9
0.9
0.8
0.9
0.9
0.7
1.2
1.2
1.2
0.9
0.9
1.0
1.0
0.8
0.8
1.4
1.2
1.2
1.2
1.1
1.0
1.0
1.0
0.8
0.8
0.5
0.6
0.7
0.5
0.6
0.8
0.4
0.5
0.8
0.4
0.5
0.5
0.6
0.6
0.7
0.6
0.6
0.7
0.5
0.5
0.7
0.5
0.5
0.5
0.7
0.6
0.7
0.6
0.6
0.7
0.5
0.5
0.6
0.5
0.5
0.5
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.5
0.6
0.6
0.5
0.5
0.5
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.4
0.5
0.3
1.3
3.4
0.5
0.4
0.5
0.4
1.3
3.2
0.5
0.4
0.5
0.5
1.3
3.1
0.5
0.5
0.5
0.4
1.4
3.0
0.5
0.5
0.5
0.5
2.9
40
Passport
Others
Total
Source:
70.3
100.0
68.8
100.0
67.7
100.0
67.3
100.0
Table 43
LBN Brand Shares of Packaged Food: % Value 2010-2013
% retail value rsp

Brand
Company
Prostokvashino
Other Private Label
Domik v Derevne
Cherkizovsky
Vesely Molochnik
Orbit
Fruto Niania
Mikoyan
Ostankinsky
Russkiy Hit
Lay's
Chudo
Agusha
Velkom
Sloboda
Vkusnoteevo
Alpen Gold
Oltermanni
Snickers
Kinder Surprise
Tioma
Rot Front
Roshen
Klinsky
Konti
Makfa
Bonduelle
Zolotaya Semechka
Babushkino Lukoshko
A Korkunov
Alpen Gold
Artisanal
Others
Total
Source:
69.4
100.0

Pitania OAO
Pitania OAO
Wrigley OOO
Progress OAO
Ostankinsky MPK OAO
Kachestvennye Produkty ZAO
Frito Lay Mfg OOO
Pitania OAO
Pitania OAO
Velkom MPZ
Efko ZAO
Molvest ZAO
Mondelez Rus OOO
Mars OOO
Ferrero Russia ZAO
UK OOO
Roshen LKF OAO
Konti-Rus ZAO
Makfa OAO
Bonduelle-Kuban OOO
Yug Rusi APG
Faustovo ZAO
2010
2011
2012
2013
1.7
1.2
1.3
1.6
1.4
1.3
1.6
1.5
1.3
1.7
1.6
1.3
0.7
1.0
0.8
1.0
0.9
1.0
1.0
1.0
0.5
0.6
0.6
0.5
0.6
0.5
0.4
0.6
0.7
0.6
0.5
0.6
0.5
0.5
0.7
0.7
0.7
0.6
0.6
0.6
0.5
0.8
0.7
0.7
0.6
0.6
0.6
0.5
0.4
0.4
0.5
0.5
0.4
0.4
0.3
0.4
0.4
0.3
0.3
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.4
3.2
80.6
100.0
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.4
3.1
80.0
100.0
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.4
3.0
79.6
100.0
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
2.9
79.1
100.0
2012
2013
Table 44
Penetration of Private Label by Category: % Value 2008-2013
% retail value rsp

2008
2009
2010
2011
41
Bakery
Dairy
Ice Cream
Products
Meal Solutions
Noodles
Nutrition/Staples
Oils and Fats
Packaged Food
Pasta
Ready Meals
Condiments
Soup
Spreads
Source:
Passport
0.5
0.0
2.4
1.6
0.0
0.3
0.4
0.7
1.0
0.0
3.3
2.1
0.2
0.5
0.6
0.7
2.0
0.2
3.6
3.0
0.4
0.6
0.7
0.8
2.4
0.4
4.3
3.5
0.5
0.7
0.8
0.8
3.1
0.5
4.6
3.7
0.5
0.7
0.9
0.9
3.7
0.5
5.0
4.0
0.6
0.7
1.0
0.1
2.0
3.6
1.0
3.1
0.0
0.3
0.3
0.2
2.6
4.3
1.4
3.5
0.0
0.3
0.5
0.4
2.9
4.7
1.7
4.0
0.0
0.4
0.7
0.7
3.3
5.0
1.9
4.5
0.1
0.5
0.9
0.8
3.5
5.2
2.1
4.6
0.2
0.7
1.1
0.9
3.7
5.3
2.3
4.9
0.2
1.0
1.5
0.9
3.1
1.1
0.2
4.7
1.7
0.4
5.4
2.0
0.7
5.5
2.5
0.9
5.6
2.8
Table 45
Distribution of Packaged Food by Format: % Value 2008-2013
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Retailers
-- Health and Beauty
Retailers
-- Mixed Retailers
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
2008
2009
2010
2011
2012
2013
99.8
92.2
34.5
99.7
92.6
37.2
99.7
92.8
40.7
99.6
93.1
44.0
99.5
93.3
46.6
99.5
93.6
49.4
8.1
0.4
5.1
21.0
57.6
9.1
0.4
5.6
22.1
55.4
10.3
0.4
6.1
23.9
52.2
11.4
0.4
6.5
25.7
49.1
12.8
0.4
6.7
26.7
46.7
14.3
0.4
6.9
27.8
44.2
0.8
0.8
0.8
0.8
0.8
0.8
41.8
39.9
37.4
35.1
33.5
31.5
15.1
14.7
13.9
13.2
12.4
11.9
7.6
1.6
7.2
1.6
6.9
1.6
6.6
1.7
6.2
1.7
5.9
1.8
6.0
5.5
5.2
4.9
4.5
4.2
0.2
0.1
0.0
0.1
0.0
100.0
0.3
0.1
0.0
0.1
0.0
100.0
0.3
0.1
0.0
0.1
0.0
100.0
0.4
0.1
0.0
0.2
0.0
100.0
0.5
0.1
0.0
0.3
0.1
100.0
0.5
0.1
0.0
0.4
0.1
100.0
42
Source:
Passport
Table 46
Distribution of Packaged Food by Format and Category: % Value 2013
% retail value rsp
Grocery Retailers
Modern Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Independent Small Grocers
Other Grocery Retailers
Non-Grocery Retailers
Health and Beauty
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
Total
Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Health and Beauty
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending
BF
CPF
CHP
99.0
59.4
39.8
10.0
0.0
0.4
7.1
22.3
19.6
99.9
99.0
56.1
21.2
0.0
0.5
6.5
28.0
42.9
99.9
99.2
44.5
21.1
0.0
0.0
4.7
18.8
54.7
99.9
99.0
48.0
23.0
0.0
0.0
5.0
20.0
51.0
99.7
95.4
38.4
10.7
0.0
1.8
5.2
20.7
57.0
99.6
88.8
56.6
14.8
0.0
0.1
8.4
33.4
32.2
0.0
0.0
0.0
0.0
5.3
0.4
18.0
1.6
39.6
33.0
36.7
6.2
0.9
0.2
29.5
25.2
0.7
0.0
37.0
14.0
0.9
0.0
31.5
20.2
4.3
0.2
28.5
3.2
10.8
0.0
0.0
6.6
0.0
0.7
0.0
0.7
0.0
0.9
0.0
4.1
0.0
10.8
1.0
0.0
0.0
1.0
0.0
100.0
0.1
0.0
0.0
0.1
0.0
100.0
0.1
0.0
0.0
0.1
0.0
100.0
0.1
0.0
0.0
0.1
0.0
100.0
0.3
0.3
0.0
0.0
0.0
100.0
0.4
0.0
0.0
0.4
0.0
100.0
DPF
FPF
IC
MR
NOO
OF
99.7
97.5
47.2
4.9
0.0
0.2
8.6
33.6
50.2
98.9
98.0
67.4
17.0
0.0
0.0
10.6
39.8
30.6
99.7
99.5
31.4
8.8
0.0
0.2
4.8
17.6
68.1
19.6
10.3
9.5
0.0
0.0
0.0
2.3
7.3
0.7
99.6
97.4
43.5
2.0
0.0
0.5
8.5
32.4
53.9
99.3
99.1
46.0
5.0
0.0
0.0
6.6
34.4
53.1
0.0
0.0
0.0
0.0
0.0
0.0
42.3
7.9
2.3
0.0
25.6
5.0
0.9
0.0
32.3
35.8
0.2
0.0
0.2
0.5
9.3
9.1
46.5
7.4
2.2
0.0
38.0
15.1
0.2
0.0
0.0
2.3
0.0
0.9
0.0
0.2
0.0
0.2
0.0
2.2
0.0
0.2
0.3
0.0
1.1
0.0
0.3
0.3
80.4
0.0
0.4
0.0
0.7
0.0
43
Homeshopping
Internet Retailing
Direct Selling
Total
Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Health and Beauty
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
Total
Passport
0.0
0.3
0.0
100.0
0.0
1.1
0.0
100.0
0.0
0.1
0.0
100.0
1.2
0.4
78.8
100.0
0.0
0.4
0.0
100.0
0.0
0.7
0.0
100.0
RM
SDC
SB
SOU
SPR
99.7
96.7
51.0
3.0
0.0
0.0
9.5
38.5
45.7
98.5
98.0
54.0
32.0
0.0
0.0
4.4
17.6
44.0
99.8
97.7
46.3
4.3
0.0
0.0
8.4
33.6
51.4
96.7
69.8
47.2
12.6
0.0
0.0
9.3
25.3
22.6
99.8
98.3
48.6
2.2
0.0
0.4
9.2
36.8
49.7
99.9
94.4
42.5
9.0
0.0
0.0
7.0
26.5
51.9
0.0
0.0
0.0
0.0
0.0
0.0
40.0
5.7
3.0
0.0
34.0
10.0
0.5
0.0
39.5
11.9
2.2
0.0
21.0
1.6
26.9
15.2
48.0
1.7
1.4
0.0
29.0
22.9
5.5
5.0
0.0
3.0
0.0
0.5
0.0
2.2
0.0
11.7
0.0
1.4
0.0
0.5
0.3
0.0
0.0
0.3
0.0
100.0
1.5
0.0
0.0
1.5
0.0
100.0
0.2
0.0
0.0
0.2
0.0
100.0
3.3
0.4
0.0
2.9
0.0
100.0
0.2
0.1
0.0
0.2
0.0
100.0
0.1
0.0
0.0
0.1
0.0
100.0
SSS
Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Health and Beauty
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Non-Store Retailing
Vending
Homeshopping
Internet Retailing
Direct Selling
98.4
93.0
45.8
2.0
0.0
1.3
8.3
34.3
47.2
0.0
12.0
35.2
5.3
0.0
0.0
5.3
1.6
1.6
0.0
0.1
0.0
44
Total
Source:
Key:
Passport
100.0
BF = baby food; B = bakery; CPF = canned/preserved food; CHP = chilled processed food; C =
confectionery; D = dairy; DPF = dried processed food; FPF = frozen processed food; IC = ice cream; MR
= meal replacement; NOO = noodles; OF = oils and fats; P = pasta; RM = ready meals; SDC = sauces,
dressings and condiments; SB = snack bars; SOU = soup; SPR = spreads; SSS = sweet and savoury
snacks
Table 47
Forecast Sales of Packaged Food by Category: Volume 2013-2018
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2013
2014
2015
2016
2017
2018
563.6
5,540.7
1,159.4
918.8
1,118.6
8,134.0
1,373.1
1,356.4
365.2
1.5
109.1
1,602.3
931.9
673.4
1,170.1
584.2
5,554.4
1,174.8
953.7
1,137.7
8,459.3
1,390.8
1,419.2
386.8
1.7
108.3
1,613.6
943.1
691.7
1,188.5
601.0
5,568.5
1,192.1
990.3
1,152.2
8,719.6
1,412.2
1,483.4
402.4
1.9
108.0
1,619.2
957.1
709.9
1,203.9
616.2
5,580.9
1,209.6
1,027.6
1,166.8
8,996.0
1,431.7
1,549.3
417.5
2.0
107.8
1,624.1
971.8
730.2
1,218.3
628.2
5,607.9
1,233.1
1,065.0
1,179.4
9,290.3
1,447.7
1,615.3
434.2
2.2
107.5
1,629.2
985.2
750.4
1,231.9
638.7
5,633.3
1,259.3
1,103.1
1,191.0
9,623.2
1,463.5
1,683.5
451.7
2.4
107.3
1,633.7
999.0
771.2
1,244.3
1.4
84.0
65.8
345.0
3,014.0
1.5
90.6
67.6
353.4
3,094.2
1.7
97.6
68.9
362.4
3,155.0
1.9
104.8
70.2
370.9
3,211.2
2.1
112.7
71.5
379.1
3,264.9
2.4
121.6
72.7
386.4
3,317.5
16,061.6
5,363.2
23,716.4
16,420.7
5,519.6
24,287.6
16,718.5
5,678.5
24,780.2
17,029.9
5,841.1
25,283.3
17,369.5
6,009.5
25,817.4
17,743.9
6,184.2
26,389.5
trade sources
Table 48
Forecast Sales of Packaged Food by Category: Value 2013-2018
RUB bn
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
2013
2014
2015
2016
2017
2018
163.5
410.9
160.3
254.2
448.8
773.3
106.6
297.5
92.8
170.4
415.4
161.6
260.8
457.0
792.0
107.3
308.6
98.0
175.9
419.5
162.6
267.0
459.8
808.6
108.3
319.2
103.0
180.3
422.9
162.7
272.7
462.8
824.9
108.9
329.2
108.1
183.7
426.3
163.1
278.4
464.1
841.0
109.3
338.5
113.0
186.3
428.4
163.5
283.0
464.4
856.1
109.7
347.0
118.0
45
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Passport
2.6
26.5
203.2
54.5
151.8
193.9
2.9
26.3
201.0
55.5
154.8
197.6
3.1
26.2
198.5
56.7
157.5
200.6
3.3
26.3
196.0
57.7
159.9
203.1
3.5
26.3
193.9
58.5
161.9
204.9
3.7
26.2
191.8
59.5
163.6
205.7
0.9
24.8
20.6
131.7
873.6
1.0
26.8
21.1
133.7
894.3
1.1
28.9
21.4
134.7
908.5
1.3
31.0
21.8
135.8
922.1
1.4
33.3
22.1
136.9
933.8
1.6
35.8
22.5
138.0
943.9
1,471.6
1,082.6
3,261.0
1,495.4
1,110.3
3,328.3
1,515.5
1,135.9
3,383.5
1,533.8
1,158.8
3,433.8
1,551.2
1,180.3
3,480.1
1,566.5
1,198.7
3,519.8
trade sources
Table 49
Forecast Sales of Packaged Food by Category: % Volume Growth 2013-2018
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Table 50
2017/18
2013-18 CAGR
2013/18 Total
1.7
0.5
2.1
3.6
1.0
3.6
1.1
4.2
4.0
7.6
-0.2
0.3
1.4
2.8
1.0
11.4
7.9
1.7
1.9
1.6
2.2
2.9
2.2
2.5
0.3
1.7
3.7
1.3
3.4
1.3
4.4
4.3
9.1
-0.3
0.4
1.4
2.8
1.2
11.7
7.7
2.0
2.3
1.9
2.0
2.9
2.2
13.3
1.7
8.6
20.1
6.5
18.3
6.6
24.1
23.7
54.5
-1.6
2.0
7.2
14.5
6.3
73.9
44.7
10.4
12.0
10.1
10.5
15.3
11.3
trade sources
Forecast Sales of Packaged Food by Category: % Value Growth 2013-2018

2013-18 CAGR
2013/18 TOTAL
46
Passport
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2.7
0.8
0.4
2.2
0.7
2.1
0.6
3.1
4.9
7.1
-0.2
-1.1
1.8
1.5
1.2
11.0
7.6
1.7
0.9
1.6
1.3
2.1
1.5
trade sources
SOURCES
Summary 1
Research Sources
Official Sources
Fish Government Agency

Ministry of Agriculture
Umalat
Trade Associations
Associacia Pekarej i Konditerov Rossii

Federalnoye Agenstvo po Rybalovstvu
FishRetail
Myasnoy Soyuz
Rossiyskiy Zernovoy Soyuz
Sfera Novostnoy Portal
Soyuz Morozhenshikov Rossii
Trade Press
Administrativno Upravlencheskiy Portal

Agroru
Analiz Rynka
Birzhevoy Lider
Biznes Pishevyh Ingredientov Online
Bonier Business Press ZAO
14.0
4.3
2.0
11.3
3.5
10.7
2.9
16.6
27.1
41.2
-1.2
-5.6
9.2
7.8
6.1
68.2
44.4
8.9
4.8
8.0
6.5
10.7
7.9
47
Passport
Dairynews
Economicheskie Izvestiya
Ekspert
Expert Magazine
Fishinliferu Portal
Food Monitor
Food Russ
Foods Newsweek
Fruit News
Gastronomia Bakalea Magazine
Gastronomiya&Bakaleuya Magazine
Helpmaster Portal
ID Retailer
ID Sfera
Imperia Choloda
Industry Portal Unipack
Infoved.RU
In-line Co
InLine Portal
Kartofelnaya Sistema Magazine
Kinovideobusiness OOO
KM RU Multiportal
KM.RU
Kommersant
Konditerskye Izdelia
Konservniy Business B&B Catalog
Linii Torgovli Magazine
MeatInfo
Media Center
Milkbranch
Milknet
Moe Delo Magazin
Molochnaya Sfera
Moyo Delo Magazin
Myasnoy Rynok Rossii
Myasnoy Vestnik
Myasnye technologii
Myaso Portal
48
Passport
Novosti Konservnogo Rynka

Ovoshi Frukty
Prod&Prod Magazine
ProReport OOO
Pryamiye Investitsii Magazine
RBC Market Research
Readymealstoday Portal
Research&Trends
Research&Trends.ru
Retailer
Rossiyskaya Gazeta
Rossiyskiy Produktoviy Portal
Russian food news magazine
Russian Food&Drinks Market Magazine
Russian Foods & Drinks Magazine
sfera.fm
Torgovye Tehnologii
TorgRus Portal
Upak777 Co
Upakovano.ru
Zamorozhennye Produkty
Znay Tovar
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Packaged Food in Russia

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Packaged Food in Russia

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PACKAGED FOOD IN RUSSIA