Kerry Group is eyeing a major role in the rapidly growing foodservice market in Russia, having added to its presence in the country with the opening of its first production plant.
“We believe in the development of the Russian market — the volume of retail trade in the country, according to forecasters, will increase by 6.8% by 2020 and we believe we can play a part in this and in the growth of foodservice.
“Additionally, the Russian Federation is the main gateway to the countries of the customs union and the CIS, areas we also see providing future growth potential,” said Olivier Picard, managing director of Kerry Russia.
The new production and warehouse complex occupies a site covering more than 7,000 square metres in the Istra district of Moscow and employs over 50 people. Production begins immediately with ingredients for the meat processing and snacks market. At full capacity, the plant is designed to produce 26,000 tonnes of products per year to meet increased local demand for products that meet local consumer taste and nutrition preferences.
“Kerry has been in business in Russia for over 12 years, we opened our regional development and application centre in 2014, and the building of this state-of-the-art facility was for us the next logical step in the development of our business in the region,” said Kerry Group chief executive Edmond Scanlon.
Last month, Kerry said it could spend up to €800m on acquisitions this year, double its annual average, with management describing its potential M&A pipeline as being “as strong as we’ve ever seen it”.