O`KEY Group S.A. (LSE: OKEY, the “Group”), one of the leading Russian food retailers, held a trading session with food producers based in the Moscow Region. The meeting was held as part of O`KEY Group’s "National Chain – Local Produce" programme.
The trading session was hosted in the O`KEY hypermarket in Moscow’s Vesna mall, and welcomed representatives from the Ministry of Agriculture and the Ministry of the Consumer Market and Services of the Moscow Region. Thanks to the success of the event, the Company will increase sourcing from local suppliers of fresh and ultra-fresh products, including fresh fish, meat and cheese in particular, but also bakery and pastry manufacturers. All in all, over 30 local producers from the Moscow Region participated in the event.
Currently, O`KEY Group maintains partnerships with over 40 Moscow Region based companies, who produce dairy, meat and fish products, and also supply us with fresh fruit and vegetables. These companies include the Bogorodsky Meat Processing Factory, the Klinsky Meat-Processing Plant, the Shchelkovsky Meat Processing Plant, Ramenskiy Torgovy Dom, Ruzskoe Moloko, among others.
Partnerships with local producers enable O`KEY to expand its assortment of products in various categories, and to take advantage of reduced logistics costs to supply fresh food products to its Moscow region hypermarkets.
By participating in our trading sessions, local producers have the chance to expand their market presence and to sell their products through a nationwide retailer. Such region-based activities primarily seek to build interfaces between public authorities, retailers, and local producers.
Andrey Razin, Minister of Agriculture and Food of the Moscow Region said:
“By participating in this kind of event, manufacturers are given an additional chance to draw retailers’ attention to their products, present interesting SKUs, show off new products, and open up opportunities for production expansion. Meetings in this format allow manufacturers to negotiate with buyers in the most efficient way possible.”
Yakov Golovchenko, First Deputy Minister of Consumer Market and Services of the Moscow Region said:
“This is not the first event of its format, and neither will it be the last. Its goals remain the same: to foster dialogue between retailers and regional suppliers, and expand the range of local produce in Moscow Region stores. For local manufacturers, this is a great chance to eliminate intermediaries and gain direct access to the Moscow Region distribution chain, filling store shelves with their products.
The Road Show was attended by over 30 companies, representing 14 urban districts of the Moscow Region. We are talking about farmers and producers of cheeses, sausages, dairy, meat and fish products, bakery and confectionery.”
Daniil Tsvetayev, O`KEY Group Commercial Director for Food Products said:
“We are observing a growing customer demand for local produce. Partnerships with local suppliers allow us to offer a wider choice of high-quality products at affordable prices, especially in the staple categories – poultry, eggs, dairy products, sausages, bakery, short shelf life confectionery, and drinks. We are already sourcing and signing up new local suppliers in every region across our footprint, and we are increasing the share of local produce in our stores by organising regular meetings and workshops with local producers.”
O`KEY Group S.A. (LSE: OKEY, RAEX – ‘ruA-’) operates under two main formats: hypermarkets under the O`KEY brand and discounters under the DA! brand.
As at 31 December 2019, the Group operates 178 stores across Russia (78 hypermarkets and 100 discounters). The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O`KEY is the first among Russian food retailers to launch and actively develop e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group operates six e-commerce pick-up points in Moscow and six e-commerce pick-up points in St. Petersburg. The Group operates four distribution centres across the Russian Federation – two in Moscow and two in St. Petersburg. As at 31 December 2019 the Group employs more than 20,000 people.
For the full year 2018, revenue totaled RUB 161,303,411 thousand, EBITDA reached RUB 8,644,008 thousand, and net loss for the period amounted to RUB 599,755 thousand.
The O`KEY shareholder structure is as follows: NISEMAX Co Ltd – 44.79%, GSU Ltd – 29.52%, free float – 25.69%.
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