Survey of the Russian Food and Beverages Sector Opportunities for Dutch Companies December 2007 1 TABLE OF CONTENTS Table of contents............................................................................................................2 List of tables...................................................................................................................5 1. Introduction............................................................................................................7 1.1 Why the Russian food and beverages sector?.................................................7 1.2 Structure of the survey....................................................................................8 2. The Russian economy............................................................................................9 3. The major Russian food and beverages sectors ...................................................11 3.1 Meat ..............................................................................................................11 3.1.1 Introduction..........................................................................................11 3.1.2 Production............................................................................................11 3.1.3 Consumption........................................................................................12 3.1.4 Problems ..............................................................................................13 3.1.5 Opportunities and threats .....................................................................13 3.2 Poultry...........................................................................................................15 3.2.1 Introduction..........................................................................................15 3.2.2 Production............................................................................................15 3.2.3 Consumption........................................................................................16 3.2.4 Problems ..............................................................................................16 3.2.5 Opportunities and threats .....................................................................17 3.3 Fish and seafood ...........................................................................................18 3.3.1 Introduction..........................................................................................18 3.3.2 Production............................................................................................18 3.3.3 Consumption........................................................................................19 3.3.4 Problems ..............................................................................................19 3.3.5 Opportunities and threats .....................................................................20 3.4 Dairy products...............................................................................................21 3.4.1 Introduction..........................................................................................21 3.4.2 Production............................................................................................21 3.4.3 Consumption........................................................................................22 3.4.4 Problems ..............................................................................................22 3.4.5 Opportunities and threats .....................................................................22 3.4.6 Overview of dairy products .................................................................23 3.5 Fruit and vegetables ......................................................................................27 3.5.1 Introduction..........................................................................................27 2 3.5.2 Production............................................................................................27 3.5.1 Consumption........................................................................................28 3.5.2 Problems ..............................................................................................29 3.5.3 Opportunities and threats .....................................................................29 3.6 Confectionery................................................................................................30 3.6.1 Introduction..........................................................................................30 3.6.2 Production............................................................................................30 3.6.3 Consumption........................................................................................31 3.6.4 Problems ..............................................................................................31 3.6.5 Opportunities and threats .....................................................................31 3.6.6 Overview of confectionery products....................................................32 3.7 Baby food......................................................................................................33 3.7.1 Introduction..........................................................................................33 3.7.2 Production............................................................................................33 3.7.3 Consumption........................................................................................34 3.7.4 Problems ..............................................................................................34 3.7.5 Opportunities and threats .....................................................................35 3.7.6 Overview of baby food products..........................................................35 3.8 Frozen processed food ..................................................................................37 3.8.1 Introduction..........................................................................................37 3.8.2 Production............................................................................................37 3.8.3 Consumption........................................................................................37 3.8.4 Problems ..............................................................................................38 3.8.5 Opportunities and threats .....................................................................38 3.8.6 Overview of frozen food products .......................................................39 3.9 Beverages......................................................................................................41 3.9.1 Introduction..........................................................................................41 3.9.2 Production............................................................................................41 3.9.3 Consumption........................................................................................41 3.9.4 Problems ..............................................................................................41 3.9.5 Opportunities and threats .....................................................................41 3.9.6 Overview of non-alcoholic beverages .................................................42 3.9.7 Overview of alcoholic beverages.........................................................44 3.10 Conclusion: Why the Russian food and beverages sector? ..........................47 3 4 A practical guide to a successful entry on the Russian food and beverages sector 49 4.1 Preparation in the Netherlands......................................................................49 4.1.1 Understand your value chain ...............................................................49 4.1.2 Be realistic about your chances on the Russian market.......................50 4.1.3 Brochures in Russian ...........................................................................50 4.1.4 Visa ......................................................................................................51 4.2 Do’s and dont’s.............................................................................................51 4.3 Initial visit .....................................................................................................52 4.4 Partner selection............................................................................................53 4.5 Contracting and payment conditions ............................................................54 4.6 Certification ..................................................................................................54 4.7 Distribution ...................................................................................................54 4.8 Retail.............................................................................................................56 4.9 Consumers.....................................................................................................58 5. Main conclusions and advice...............................................................................60 5.1 Conclusions...................................................................................................60 5.2 Advice...........................................................................................................61 Annex 1: Schematic overview of the F&B sectors......................................................62 Annex 2: Key contacts.................................................................................................69