Barilla is strengthening in Russia. The company has an exclusive distributor.
Author: Rinat Sagdiev, Kirill Koryukin, «Vedomosti», No. 90 (1371)
The Italian group Barilla has concluded an exclusive distribution agreement with the Russian «Ameria» to increase sales of its macaroni in Russia by 50 times. If the partnership proves successful, the Italians plan to open their own production of macaroni in Russia.
Founded in 1877, Barilla SpA – one of the largest producers of pasta, also produces sauces, bread and crackers. The company is controlled by the brothers Paula, Luca and Guido Barilla. Revenue in 2004 was $ 5.5 billion. The subsidiary of the group – the French Harry’s own confectionery factories «Sunny Kake Baking» (Moscow region) and «Condi» (Ufa).
The group of companies «Ameria» was established in 1993, engaged in the production and distribution of food products. He owns a macaroni factory in the Kursk region. Owners are not disclosed. Turnover in 2004 amounted to 920 million rubles. The import of Italian macaroni in 2004 amounted to 15,700 tons in the amount of $ 12.65 million (at a cost after customs clearance).
«We used to be a distributor of an Italian company along with a few other companies, but now Barilla decided to significantly increase sales in Russia and chose us as an exclusive distributor, says Sergey Konstantinov, marketing director of Ameria. According to him, Barilla wants to increase sales at least 10 times, and in the long term to open its own production of macaroni in Russia. Export manager Barilla Fabio Fabris confirmed the words of Konstantinov, specifying that the group plans for several years to increase sales of pasta in Russia to 10,000 tons per year. The volume of Russian sales of Barilla in 2004 in the company did not disclose. According to Fabrice, they were small, because the Barilla pasta is designed for very well-to-do customers. Due to the good logistics of Ameria, Italians want to reduce the cost of their products on store shelves by 15%. «Now we do not plan to open production in Russia, but in the future it is not ruled out,» Fabrice told Vedomosti.
Competitors were skeptical about the possibility of a sharp increase in sales of Barilla in Russia. Alexei Konelsky, director of Agros’ joint sales service, believes that for Barilla, it would be more logical to conclude an agreement on exclusive distribution with a larger player in the market. But Konelsky endorses the idea: «For Barilla, this is a true strategic step, since the exclusive distributor is not only a presence in the market, but also an opportunity for development.» The general director of the group «Infolink» Andrei Gurov, referring to customs statistics, said that in 2004, only 180 tons of pasta Barilla was imported to Russia. For comparison: the total import of macaroni from Italy last year was 15,700 tons, of which 12,500 tons were imported by Infolink. Gurov believes that in the first year of partnership with Barilla, «Ameria» at best can increase sales five-fold – up to 900 tons. «But it must be taken into account that the segment of premium macaroni is very narrow and you can increase Barilla’s share on supermarket shelves», Them other brands. Such as Agnesi or Buitoni, which is also promoted by «Ameria», – says Gurov.
The largest Russian producer of pasta, which might interest Barilla, is Agros, which owns three pasta factories in Russia. But in Agros, Vedomosti was told that negotiations with the Italians about the possible sale of business are not conducted. «Barilla at the current stage is not included in the circle of foreign companies with which Agros is negotiating on joint activities for the development of pasta business,» Elena Yevstigneyeva, director of public relations of the group, told Vedomosti.