The American manufacturer of biscuits and breakfast cereals, Kellogg’s, has decided to sell the Russian business to the Chernogolovka Group of Companies. The transaction is expected to close in early 2023. This was reported to Kommersant by sources among the confectionery suppliers. Chernogolovka and Kellogg did not provide comment.
Interlocutors of the publication estimated Kellogg’s business in Russia at 6-7 billion rubles. This is almost half of the likely estimate before the start of the special operation.
Anton Stelmakov, one of the founders of Famous Amazing Brands, says that Chernogolovka has been diversifying her business for a long time, wanting to reduce her reliance on the beverage category. In a deal with Kellogg, the group, among other things, might have been attracted to the strong Lyubyatovo brand, which would perfectly complement the Chernogolovka portfolio, he says.
Today, food represents about 17% of its business, according to the group. Chernogolovka plans to increase this figure every year, a company representative said earlier.
Kellogg’s suspended investments and deliveries of its products to Russia against the background of the start of a special operation in Ukraine, the company retained only basic food products at its Russian production facilities.
The revenue of Kellogg Rus LLC in 2021 amounted to 14 billion rubles, net profit – 888 million rubles. Kellogg’s Russian factories are located in Voronezh, Pskov and Vyazma. The company did not produce chips in Russia.
Author:
karina pardaeva
Source: RB
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