X5 Retail Group Will Produce Flour in Sverdlovsk Oblast

23.07.2009 — News

THE SVERDLOVSK OBLAST.

The largest Russian food chain X5 Retail Group N.V will start the production of flour and preserved vegetables in the Sverdlovsk Oblast under their own brand "Krasnaya Tsena" (best price). At first these products will be retailed in the shops of the chain in the Urals and later it is planned to release these products into the federal market. 

The company informed RusBusinessNews that out of the plants offered by the Government of the Sverdlovsk Oblast, the Ekaterinburg Flour Mill and the Bogdanovich Food Combine were selected. The first Krasnaya Tsena flour should arrive at the retailer’s warehouse in the beginning of August 2009. It is expected that the start up production volumes will amount to 100 tons of flour per month. 

The multiformat X5 Retail Group N.V chain includes 900 soft discounter Pyaterochka shops, 211 Perekrestok supermarkets and 53 Karusel hypermarkets. The share of local producers of food stuffs in Pyaterochka and Karusel reaches 50%. The results of January-June 2009 demonstrate that the turnover of the chain has grown by 33%, footfall increased by 20% and the average sum spent by a customer per visit has gone up 13%.