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Annual Report 2016

Oil and Fats Business

The oil and fat business segment of “Rusagro” group of companies includes two independent production lines: sauce and fat production (fat-processing integrated works) and vegetable oil production (oil-extraction plant). This group achieves a dominant position in the market in both lines, while products released by the oil and fat unit is sought after among Russian and foreign customers.

          

According to Oil and Fat Union of Russia, “Rusagro” group is the largest fat products manufacturer in Russia. “Rusagro” ranks 1st in packaged margarine production, 5th in mayonnaise production and 8th in sunflower processing. According to the AC Nielsen* Retail Measurement Service, nationwide “Rusagro” ranks 5th in mayonnaise market share (8.9%)* and 4th in margarine market share (14.6%)**, being the Urals market share leader with mayonnaise share of 55.8%* and margarine share of 69.7%**.

The oil and fat business of “Rusagro” is represented by three enterprises: OJSC “Zhirovoy kombinat” (Ekaterinburg Fat-processing Integrated Works) in Ekaterinburg city, Oil Extraction Plant in Bezenchuk settlement of Samara region – CJSC “Samaraagroprompererabotka” and LLC “Primorskaya soya” “Rusagro” owns 75% of LLC "Primorskaya soya”).

Sauce and fat production of the Group is represented by OJSC “Zhirovoy kombinat” (Ekaterinburg Fat-processing Integrated Works), located in Ekaterinburg city. This integrated work makes the top five of the Russian largest industry-specific enterprises and dominates in the CIS market.

Sunflower oil and cake meal production of the Group is represented by the plant of CJSC “Samaraagroprompererabotka” (SAPP), located in Bezenchuk urban settlement of Samara region. The plant makes the top ten of the Russian largest sunflower oil manufacturers and exporters.

LLC “Primorskaya soya” manufactures vegetable oil, mayonnaise, margarine, toilet and laundry soap, and soybean meal, which is a valuable protein supplement for farm animal and poultry feeds generated as a result of soybean seed oil extraction.

According to Oil and Fat Union of Russia, in 2016 general increase in production was as follows: mustard +11.3%, mayonnaise sauces  +11,4%, laundry soap +0.2%, toilet soap +1.9%, decrease in mayonnaise production on 0.5%, packaged margarine on 9.9%, spread on 6.2%, in mayonnaise category the production is on same level as last year.

In “Rusagro” group of companies in 2016 mayonnaise production grew by 17.5% with Oil and Fat Union share being 12.8%. The Oil and Fat Union share of mayonnaise sauce production amounted to 3.6%, of packaged margarine – 43.2%, ketchup production – 4.6%, mustard – 9.1%, with laundry soap production increase on 6.5% and toilet soap on 3.4%.

According to the AC Nielsen Retail Measurement Service, in terms of mayonnaise in 2016 period due to active sales growth of brand name “Mechta knoziayki” (Landlady’s dream) the share of “Rusagro” grew on 1.6% and amounted to 8.9%. Brand name “Provansal EZhK” is the market share leader in the Urals (51.6%), being brand No. 1 in Ekaterinburg (share of 74.9%). Brand “SOYA CO” (Soybean CO) in Russia’s Far East occupies 2.6% of the market share.

In terms of ketchup the market in 2016 period share of “Rusagro” amounted to 2.4% in RF and 17.6% in Ekaterinburg. Ketchup is represented by a single brand of EZhK.

*data as of January-December, 2016

**data as of January-November, 2016

 

Contacts:

General Director of Oil and Fats Business:

Maxim Basov

 

Commercial Director for B2B Non-consumer's Goods:

Alexey Kuznetsov

Tel.: +7 846 207 3725 (ext. 6322)

e-mail: kuznetsovaa@rusagromaslo.com

 

Marketing Direcotr:

Ekaterina Volf

Tel.: +7 343 295 3410

e-mail: volf@rusagromaslo.com

 

HR Director:

Tatiana Medvedeva

Tel.: +7 343 295 6666

e-mail: medvedeva-t@rusagromaslo.com