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Annual Report 2017

Brands

Rusagro group of companies is one of the main players in Russian sugar industry as a whole and the undisputed leader of the B2C segment.

In 2017, the Company became the definitive leader in the consumer sugar market, having achieved the top place in the category of packaged brown sugar for the first time.

The Company's product portfolio includes four brands in different price categories: Russian Sugar, Chaikofsky, Mon Cafe and Brownie. Russian Sugar, Chaykofsky and Brownie brands hold leading positions in the market in their segments and are the most sought-after brands among Russian consumers, both according to the ACNielsen retail audit, and according to consumer preferences tracking data collected by Comcon Synovate, an independent research company. Rusagro's brands have the highest rates of brand awareness, consumption and customer loyalty. The Company's long-term development strategy involves further development and promotion of our sugar business brands.

In December 2015, Rusagro acquired a new brand called Warm Traditions. Warm Traditions products are high quality cereals in an attractive package.

 

Chaikofsky

The Chaikofsky brand has been the first branded Russian trademark in the sugar category since 2001! Chaikofsky is the second brand after Russkii Sakhar in terms of brand awareness, loyalty and intention to buy among consumers. 46% of consumers in Russia are aware of the brand Сhaikofsky, 22% buy the products under this brand, and the brand loyalty makes 11%!

Chaikofsky is EXTRA category sugar with a high refinement degree. Sugar production involves a multi-stage refinement process, which makes sugar white as snow!

According to the strategy of assortment expansion in the high-margin segment, in 2015 the Nika sugar plant launched a new product – Chaikofsky sugar sticks. Today, there are three types of sticks: white sugar, brown sugar and mix sugar sticks, which is a new product on the Russian B2C market.

        

Mon Cafe

The Mon Cafe brand dates back to 2008. Mon Cafe is exquisite dessert figured sugar.

The main competitive advantage of this sugar is its shape and high refinement degree. The Mon Cafe dessert figured sugar will let you please your family, surprise your guests and organize a small celebration of taste and beauty in your home by adding a touch of exquisite romance!

Russkii Sakhar

The Russkii Sakhar brand is the most recognizable and popular brand among customers in Russia! The level of recognizability is 93%, market share – 34% and loyalty – 66%. Not many brands can boast of such high performance!

Russkii Sakhar is the winner of all reputable awards for FMCG products in Russia - Product of the Year – 2011, 2013 and Brand #1 in Russia – 2013.

Russkii Sakhar has earned a reputation of the brand with a good “price/quality” ratio: the product is represented by a large selection of pressed and packed sugar.

Brauni

Brown sugar category, which has been actively developing in Russia over the past few years, is represented by Rusagro's Brownie brand of cane sugar. In the summer of 2016, Brownie became the undisputed leader in the market brown pressed sugar with a market share of 26% in physical terms, according to Nielsen. As of the end of 2017, Brownie has a 31% share of the Russian market.

Brownie is perfect for healthy eating aficionados, as cane sugar contains large amounts of wholesome nutrients and vitamins. Brownie natural dark and light cane sugar come in a stylish tribal package. It will give tea a special subtle fragrance, enhance coffee's aroma and will be a great addition to homemade pastries.

            

Warm Traditions

Warm Traditions trademark is distinguished by an independent expert appraisal by the Autonomous Nonprofit Organization “Russian Quality System” as a “High-Quality Product”. At the end of 2017, Warm Traditions brand entered the top 5 brands in Cereals category. In early 2018, the packaging was re-branded to demonstrate increased quality of the product. Purchased new equipment will make it possible to produce cereals of a higher refining degree at the factory of OAO Hercules.

Warm Traditions are pure and selected cereals that provide for easy, quick and pleasant cooking.

By choosing Warm Traditions cereals, the consumer gets confidence in the product quality and the result, as well as easiness and pleasure from the process of cooking.

The brand packaging is not only attractive and noticeable, but also makes it possible to appraise the product even before the purchase. Grains are clearly visible through a large transparent section of the package. In addition, each package has a printed cooking recipe which is both interesting and easy to follow.

Each type of cereal has its own color of packaging, so it is convenient for customers to choose the right product on the shelf.

As of today, the product range sold under Warm Traditions brand includes:

  • Polished long grain rice (raw), 900g
  • Long grain rice steamed, 900g
  • Round-grain rice, 900 g
  • Quick-cooking unground buckwheat (steamed), 900 g