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Annual Report 2015

Sugar Business

The sugar business is one of the main areas of operations of Rusagro Group. According to the Russian Union of Sugar Manufacturers’ data as of January of 2015, the company is a leader in the segment of sugar cubes (46%) (Source: Retail Audit by ACNielsen performed in 16 cities, September 2015) and ranks second in the segment of beet sugar production (14% share of the Russian market in 2015).

Earlier the Rusagro sugar production was represented by six sugar plants located in the Tambov and Belgorod Regions. During the 2015-2016 season of sugar beet processing, the Group’s plants produced 612K tonnes of sugar. This season, the aggregate capacity of the plants has reached 33.7K tonnes a day. In 2016 the Rusagro Sugar Business increased. As a Razgulyai acquisition 4 companies have joined Rusagro: Kshensky Sugar Refinery, Krivets-sugar in the Kursk region, Sugar Plant Otradinsky in Orel area, as well as Hercules factory in the Voronezh region.

The high efficiency of the Rusagro plants is achieved through investments into production modernization aimed at reduction of costs and expansion of facilities for sugar beet processing. In addition to equipment upgrade, in 2014 the sugar business division launched the World Standard Production program, which standardizes and optimizes the operations of units and manufacturing facilities, as well as promotes the manufacturing culture of continuous performance improvement. The program incorporates the best world practices and standards that are adopted by major companies. By the end of 2016, all main elements of the program are implemented in the sugar business division.

According to the Group’s general strategy, the sugar business division continues vigorous promotion of its own brands and increases its presence in all segments of the pressed and packed sugar market. Today, the Holding’s portfolio includes the following brands: Russkii Sakhar, Chaikofsky, Mon Cafe, and Brauni. Rusagro strives to bring to market new products in the sugar category. In 2015, it began production of Chaikofsky single serving sugar sticks. Rusagro was the first company on the retail market to launch sugar sticks in three formats (white sugar, cane sugar, and assorted sugar).

In 2015, the Holding sold 784K tonnes of sugar, including 600K tonnes of beet sugar. B2C sales totaled 259K tonnes.

As a result, the share of Rusagro brands in the sugar category (packed and pressed sugar) in volume terms amounted to 15% in September of 2015 (Source: Retail Audit by ACNielsen performed in 16 cities across Russia). According to the research conducted by Comcon Synovate in November of 2015, the Russkii Sakhar and Chaikofsky brands have the highest ratings in terms of brand awareness, consumption and customer loyalty.

In 2015, the sugar business division launched a new product category – grains. In May of 2015, Rusagro began packing long-grain unsteamed rice into unbranded clear film. In December of 2015, it brought to market a new brand, Warm Traditions, which unites long-grain steamed rice, long-grain unsteamed rice, round-grain rice, and whole grain buckwheat. Currently, Rusagro plans to expand its production in the grains category.

Contacts:

General Director of Sugar Business:

Nikolay Zhirnov

tel.: +7 (495) 363 16 61

e-mail: rusagrogroup@rusagrogroup.ru

 

National Distribution Manager:

Konstantin Murashov

tel.: +7 495 363 1661

e-mail: b2csugar@rusagrogroup.ru

 

National Key Client Manager:

Alexandr Fikshmul

tel.: +7 495 363 1661

e-mail: afikshmul@rusagrogroup.ru

 

Head of wholesales:

Ruslan Tarasenko

tel.: +7 495 363 1661

e-mail: b2bsugar@rusagrogroup.ru

 

Head of Procurement:

Iliya Peresypkin

tel.: +7 495 363 1661

e-mail: IPeresypkin@rusagrogroup.ru

 

HR Director:

Olga Fedorova

tel.: +7 495 363 1661

e-mail: ofedorova@rusagrogroup.ru

 

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