Regional expansion is the direction for our development. In 2013 we continued to enter external markets by launching deliveries to Belarus and Turkmenia. At the same time, we strengthened our positions in the domestic market.
KOMOS GROUP’s sales system involves retail and wholesale conducted by its branches. “Trading company” a branch of “KOMOS GROUP” LLC, Trade House “Udmurtsky khladokombinat “Ice Vita” LLC, “Permsky khladokombinat “Sozvezdie” JSC and Milk Trading Company “Milkom” LLC represent wholesales. They specialize in wholesale supply of meat, poultry, fish products, eggs, ice-cream of the Company’s production. At year-end 2013 sales turnover of those two companies exceeded 9.5 billion rubles. In 2013 “Trading Company” launched the first in enterprise of wholesale and small-scale wholesale in Izhevsk – “Myasobaza №1” that operates as Cash&Carry. In 2014 we are going to joint “Trading Company” and Trade house “Udmurtsky khladokombinat “Ice Vita”. “Trading Company” will assume the office to manage distribution within the local and regional markets. “Permsky khladokombinat “Sozvezdie” JSC is distributor of frozen and chilled production of the Company and other manufacturers of Perm and Perm region. In 2013 run-up of sales turnover made 50% that pierced 1.2 billion rubles.
In 2014 “Milk trading company “Milkom” – a milk production distributor of the Company will become a part of “MILKOM” JSC and will fully accept responsibility for distribution of all the MILKOM’s milk processing plants production. Sales centralization, consistent price and marketing policy will allow expanding sales geography and increase sales volume. Currently, the Company cooperates with over 1 600 agents in 44 regions of Russia and in the Republic of Kazakhstan, Belarus and Turkmenia.
In 2013 we also aimed efforts at wholesale and small-scale wholesale automatization: electronic system was embedded at all the warehouses are and small-scale wholesale centers. The system provides an opportunity to control sales turnover and cut costs. We run online-shop for retailers, which gave an opportunity to make electronic application for the goods, to control request fulfillment and to gain live news and special offers.
At the same time, we actively develop our own retail chain “Tasty house”. 2013 annual turnover of the chain exceeded 1.1 billion rubles. KOMOS GROUP member companies’ products and private label products account for over 33% of this sum.
In 2013 a Moscow region became key sales region. We increased sales turnover in the Capital and the Region in 1.5 times compared with 2012. KOMOS GROUP’s products are delivered to Russia’s largest retail chains: “Perekrestok”, “Lenta”, “Pyatyorochka”, “Magnit”, “Ashan”, “Karusel”,“Real Hypermarket”, “The Seventh Continent”, “Dixi”, “Kopeyka”, “BILLA”, and «SPAR».
In 2013, we focused on regional expansion development in Ural and Volga Federal Districts. Our major markets are the Perm region (10%), Sverdlovsk region (3%), The republic of Tatarstan (2%). Regional sales of eggs, UHT-milk are developing most rapidly. At year end 2013 KOMOS GROUP ranks fifth in Russia among major manufacturers of eggs (data provided by Rosptitsesoyuz, Russian agricultural enterprises produce 32.2 billion eggs). The Company ranks sixth among UHT-milk manufacturers(data provided by Tetra Pak. This demonstrates high growth potential for direct national and regional sales. Besides in 2013 we entered the markets of Belarus and Turkmenia.