20 Sep 2018 --- Taste & Nutrition company, Kerry, has opened its first plant in Russia, in the Istra district of Moscow. Production will begin immediately with ingredients for the meat processing and snacks market.
The new production and warehouse complex occupies a site covering more than 7,000 square meters and employs over 50 people. At full capacity, the plant is designed to produce 26,000 tons of products per year to meet the increased local demand for products that meet local consumer taste and nutrition preferences, according to Kerry.
The new facility was officially opened by Minister for Agriculture for the Moscow Region, Andrei Razin and Edmond Scanlon, Kerry Group Chief Executive.
Minister Razin says: “Kerry has had a presence in Russia since 2006 and I am delighted to be here today to officially open its first production facility. For us, it demonstrates the company’s commitment to our great country and Kerry’s desire to continue to develop and grow its business in Russia. The opening of this modern and sustainably developed production plant will not only contribute to the development of the food industry in our region but in all of Russia.”
Scanlon, Kerry Chief Executive, also comments: “Kerry has been in business in Russia for over 12 years. We opened our regional development and application center in 2014, and the building of this state-of-the-art facility was for us the next logical step in the development of our business in the region. Over the years, our business here has gone from strength to strength and as the Russian food industry has developed and expanded, so have we and so has our customer base. This facility means we can now deliver an even better service and get closer to our customers in this part of the world, while offering locally produced goods, using locally sourced raw materials.”
Speaking to FoodIngredientsFirst, Eoin Martin, Strategic Marketing Director, Russia & CIS explains: “Russia is already the fourth largest foodservice market in Europe. With the biggest population in Europe at 144 million, effectively full employment and consumers increasingly looking for convenient, tasty and nutritious solutions for busy lives, we forecast significant growth in the foodservice market in Russia.”
“This is the second investment Kerry has made in Russia in five years, the first being the Regional Development and Application Centre which opened in 2012 and now employs 100 highly skilled personnel,” he says. “These investments are indicative of the commitment Kerry is making to Russia. With positive market dynamics as well as increased trade between Russia and the countries within the Eurasian Economic Union, we are confident that our presence in Russia will grow.”
Kerry will create 50 jobs in this manufacturing plant, according to Martin. This is in addition to the 100 staff employed in its Regional Development and Application Centre where it has localized all functions: RD&A, Commercial, Marketing and Supply Chain.
“At Kerry, we focus on the end consumer,” continues Martin. “Taste is the top priority for consumers in making decisions, and there is increasing demand for healthier products with ‘cleaner labels.’ This aligns perfectly with Kerry’s position as the Taste & Nutrition company. Our facility will focus on developing great tasting solutions, drawing on our dairy and culinary heritage and creating applications for the meat and snack categories.”
Products from this new facility will supply Kerry customers in the Russian market from Kaliningrad to Vladivostok, as well as the countries of the Customs Union and the CIS: Belarus, Kazakhstan, Uzbekistan, Tajikistan and Azerbaijan and beyond.
Olivier Picard, Managing Director, Kerry Russia, notes: “We believe in the development of the Russian market – the volume of retail trade in the country, according to forecasters, will increase by 6.8 percent by 2020 and we believe we can play a part in this and the growth of foodservice. Additionally, the Russian Federation is the main gateway to the countries of the customs union and the CIS, areas we also see providing future growth potential.”
By Elizabeth Green
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