Expansion: Veronesi expands to Russia
Expansion

Veronesi expands to Russia

Imago Images / Panthermedia
Producers remain cautious on expansion as risks outweigh rewards, reports Rabobank.
Producers remain cautious on expansion as risks outweigh rewards, reports Rabobank.

ITALY, Verona. Italy's Gruppo Veronesi plans to invest over €11 mill. in its first integrated cross-border supply chain for white meat in Russia, reports suggest. The pilot project will enable the Italian group to enter one of the fastest-growing markets and continue its international expansion.

The pilot project will see the Italian company creating an integrated supply chain with farms and meat processing facilities. It will also be involved in the distribution and marketing of fresh meat. All meat produced in Russia by the company will be exclusive to the local market. The supply chain will be established in collaboration with equity partner, Finest, and an unnamed Russian minority partner.

Finest is an Italian financial corporation that promotes cooperation with countries of Eastern Europe. Finest will contribute as a technical and financial partner with a 22% stake of the Russian sub-holding, specifically set up for this operation.

 

Presently, Veronesi exports to more than 70 countries across the world. The company's production site in the Belgorod district, the first one outside of Italy, was set up to meet the growing demand for quality poultry products in Russia. The group is one of the top five Italian companies in the agriculture/food sector in terms of turnover (€2.97 bn. in 2018), with overseas sales accounting for 16% of the total.

Source: ESM

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