Russian snack leader boosts efficiency by building own plants in China

October 5, 2007 13:03

Sibirskiy Bereg Company, the recognized leader on the Russian snack market based in Novosibirsk (the largest city in Siberia with a population exceeding 1 million people) has opened own processing plants in China in order to produce its snacks range in a more efficient way. Previously they used to contract out-of-house Chinese factories to process their products under BEERka label, but now with own plants in operation the company has boosted capacities and profitability.

The company provides consumers with high-quality beer seafood snack products under label «BEERka», «FAN» natural crisps and other snack group products.

Now the turnover of the company in seafood segment is increasing rapidly.

As another step forward the company is now developing a new strategy in supply and logistics to reduce costs.

In particular, Sibirskiy Bereg has switched to outsource logistics services in Moscow to distribute their products rather than use own transit warehouses.

These measures will help reduce storage costs and the scope of stagnant inventory etc.

The new project is estimated to be finished in 1 and a half year, it needs serious planning and management to be continuously maintained and automated.

Nowadays the segment of seafood products is growing rapidly. The consumer demand for BEERka label products has been increasing.

At present the company's market share is 15% and it is planned to increase this share up to 21% by the end of the year 2007.

Seafood snacks as well as rusks is the innovation of Russian producers and the Russian snack market is unique phenomenon.

Consumers in Japan, Korea and China also buy and eat dried fish and squids, but these are not snacks. In other words, they somehow add value to dried seafood to make salads, thus end products acquire a completely different taste.

The segment of seafood snacks is growing rapidly not only in Russia, but in the Ukraine, Belarus, and Kazakhstan and in the Baltic States.

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