Acquire Russia’s leading bread retailer with its strong, difficult to replicate distribution platform
Founded in 1998, the Company operates a network of more than 350 bakery ovens that are located in stores in many of the major Russian retail chains including Auchan, Metro Cash & Carry, X5, Sedmoi Kontinent, O’Key and others. The Company sells 350 tons of its fresh baked premium bread products per month under its own well-recognized brand and 80-100 tons of medium segment bread products per month directly to customers from in-store stands. The Company is present in the Northern, Southern and Eastern regions of Russia. The Company is also the largest importer of premium ready-to-bake, deep-frozen bread and bakery products to Russia. This leading premium bread retailer is a great acquisition target for global or local strategic players. It has a strong and difficult to copy distribution platform and meaningful market share in its regions of presence. It has a successful, entrepreneurial management team, and strongly recognized consumer brands.
The latest available bread market trends suggest that more and more consumers look for freshly baked bread, a trend which contributed enormously to the development of in-store baking in supermarkets as well as the fact that the main criteria for choosing the place where to buy bread and other food products is the proximity to the living or working place. The first deep-frozen bread was introduced to Russian market in 1992. However, only around 15% of bread in Russia is made from frozen bread, while in Europe frozen bread accounts for about 80% of the total bread supply. In 2011, the Russian frozen bread market was around 536,000 tons or USD 710m in 2011, up 15% from 2010 sales. The average annual growth of Russian frozen bread market before the 2008 crisis was 16% and it is expected to grow at comparable rates in the next three years. The Russian frozen bread market is very immature as compared with European markets and is far from being consolidated.
Sector: Retail
Segment: Bakery
Location: Russia
Revenue: $23m
Financing Size: $20m
Contact: Edward Kokorev
Company : Aurora Finance
Telephone: +7 985 410 2014
E-mail: [email protected]