Major frozen food producer boosting sales abroad and under private labels
In the first half of 2007 proceeds of Ledovo Group of Companies with the head office in Moscow rose by 22% as compared to the same period of 2006 and amounted to RUR270.807 million. The net profit increased by 34% and reached RUR19.44 million. The group attributed its positive financial results first of all to the general rise of sales of its own products. More specifically, in the first six months of the year the group sold 2601.4 tonnes of products, 21% up on the same period of 2006.
The largest growth of 33% was observed in the category of frozen and smoked fish products both packed and non-packed. In absolute figures, the sales volume for the above product category amounted to 1638.6 tonnes. The rise in the segment was attributed to the company's success in sales and marketing policy. More specifically, driven by consumer preferences the company focused on promotion of traditional frozen shrimp with spices. Besides, in spring 2007 Ledovo signed an annual contract with Maxima (VP Market), the largest retail operator in the Baltic States. Under the contract the group's products will be on display practically in full range in Lithuania, Latvia and soon in Estonia, Bulgaria and Romania.
In the "marinated shellfish/mollusks" category Ledovo reached a sales share of 15% or 297.5 tonnes in natural figures. In order to further strengthen its positions in the market segment Ledovo launched a new line of marinated fish products under the sub-brand of Bon Appetit!. The new range includes 19 products from three main categories: ready-to-eat marinated shellfish/mollusks for salads, ready-to-eat exotic shellfish-based salads in sauces and laminaria-based salads ready-to-eat. In the second half of 2007 Ledovo is planning to boost sales of its novelties.
Besides, in January-June 2007 Ledovo increased the product output under private labels to 298.5 tonnes to display a 7-fold rise on the same period 2006. The above trend was considered by the group as promising and its current plans provide for raising production under private labels to 35% of the group's total output. At present, under private labels Ledovo produces only frozen mixes, mushrooms and shrimps and in the coming months the group plans to add marinated shellfish to its product range made under private labels.