© Steven Depolo/Flickr
Russian meat producer Cherkizovo Group has agreed to acquire a 75% stake in Saint Petersburg-based Samson – Food Products (SFP) for approximately RUB 350 million (€4.4 million).
SFP produces and sells meat products such as sausages in Saint Petersburg and Russia’s north-west federal district (NWFD) under the Samson, Grillmania, Fileya brands, among others.
SFP will retain its management team and will continue to manage its day-to-operations, and Cherikizovo claims that the deal will allow SFP to penetrate new markets outside of St Petersburg and the NWFD, which currently account for approximately 90% of SFP’s sales.
Cherkizovo is one of Russia’s largest processed meat producers, and the deal will strengthen its position in Saint Petersburg and the NWFD, a region that the group identified as a priority in 2017.
The company estimates that its Petelinka poultry brand currently accounts for 29% of branded poultry sales in the largest retail chains across the NWFD, while its Pava-Pava brand accounts for 53% of the turkey market, and Cherkizovo’s pork sales account for 8% of the branded segment in the region.
Cherkizovo’s CEO Sergey Mikhailov said: “Samson has been a very strong brand historically, and we consider giving it a new life in the sausage segment.
“The deal is well-aligned with Cherkizovo’s development strategy. The Samson brand is associated with natural, fresh products and a focus on healthy foods, which is fully in line with our values. In addition, our partnership will serve to expand the group’s branded portfolio of higher value-added products,”
© FoodBev Media Ltd 2019