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July 20, 2020

Cherkizovo acquires foodservice plant in Russia from Cargill

Cherkizovo Group, Russia's largest meat processor, plans to acquire a poultry plant in its domestic market.

By Dean Best

Cherkizovo Group, Russia’s largest meat processor, plans to acquire a poultry plant in the country’s Tula Oblast region from US-headquartered agri-food major Cargill.

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A preliminary agreement to purchase the facility in the town of Efremov, south-east of the capital Moscow, has been signed with Cargill for an undisclosed sum, and the deal is expected to be completed in a “few months”, subject to regulatory approval, Cherkizovo said in a statement.

The Efremov plant will serve the company’s foodservice customers. 

Chief executive Sergey Mikhailov said: “Being a vertically-integrated meat producer, we see significant synergies of a newly acquired plant with our existing supply chain, and have plans to increase capacity at this particular plant over time. This acquisition fits well with our strategic plans to increase our share of value-added products and broaden our presence with foodservice clientele, transforming this channel into a significant revenue stream for the company.”

A spokesperson for Cherkizovo told just-food its reference to value-added refers to ready-to-cook products such as sausages, cutlets and nuggets.

Moscow-based Cherkizovo produces meat products under its namesake brand and also those of Petelinka and Pava-Pava, amongst others. For the foodservice segment, the company supplies chilled and frozen chicken, turkey and pork products. 

Cherkizovo’s total revenue was RUB120.1bn (US$1.6bn) in 2019, up 19.6% on the year before.The spokesperson confirmed the company’s foodservice business represented revenues of RUB5.6bn last year, or 5% of the group’s total, and the meat firm plans to increase that share to 20%.

Related Companies

Free Whitepaper
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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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