Italy's Gruppo Veronesi plans to invest over €11 million in its first integrated cross-border supply chain for white meat in Russia, reports suggest.
The pilot project will enable the Italian group to enter one of the fastest-growing markets and continue its international expansion.
Presently, the group exports to more than 70 countries across the world.
The company's production site in the Belgorod district, its first outside of Italy, was established to meet the growing demand for quality poultry products in Russia.
Integrated Supply Chain
The pilot project will see the Italian company create an integrated supply chain with farms and meat processing facilities.
It will also be involved in the distribution and marketing of fresh meat. All meat produced in Russia by the company will be exclusive to the local market.
The supply chain will be established in collaboration with equity partner, Finest, and an unnamed Russian minority partner.
Finest is an Italian financial corporation that promotes cooperation with countries of Eastern Europe.
Finest will contribute as a technical and financial partner with a 22% stake of the Russian sub-holding, specifically set up for this operation.
White Meat Consumption
Luigi Fasoli, managing director of Gruppo Veronesi, pointed out white meat consumption is on the rise in Russia and the company believes that it can grow significantly in the coming years.
Gruppo Veronesi is one of the top five Italian companies in the agriculture/food sector in terms of turnover (€2.97 billion in 2018), with overseas sales accounting for 16% of its overall total.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.