SUMMARY. THE FOOD DISTRIBUTION SYSTEM IN ST PETERSBURG IS IN A STATE OF TRANSITION, AS MORE AND MORE BUSINESSES BECOME INVOLVED IN FOOD AND BEVERAGE TRADE. MOST DISTRIBUTION AND WHOLESALING FACILITIES ARE OUTDATED AND REQUIRE SUBSTANTIAL UPGRADES AND RECONSTRUCTION. NEVERTHELESS, THE EMERGING DISTRIBUTION SYSTEM OFFERS INCREASING OPPORTUNITIES FOR U.S. MANUFACTURERS OF FOODS AND RELATED CONSUMER GOODS. END SUMMARY.
1. A NEW WHOLESALE/DISTRIBUTION STRUCTURE FOR FOOD PRODUCTS IS DEVELOPING IN ST PETERSBURG. MOST LOCAL GROCERY STORES HAVE BEEN PRIVATIZED AND NEW FOOD WHOLESALING ENTITIES HAVE BEEN ESTABLISHED IN THE CITY SINCE PRIVATIZATION BEGAN IN RUSSIA IN 1992. ACCORDING TO THE ST PETERSBURG COMMITTEE ON TRADE AND FOODS, THERE ARE APPROXIMATELY 9,000 RETAILERS OF CONSUMER GOODS AND FOOD PRODUCTS AND 5,000 WHOLESALERS IN ST PETERSBURG. 90 PERCENT OF FOOD SALES ARE MADE THROUGH PRIVATE SHOPS. THE FOOD RETAIL MARKET IS DOMINATED BY SMALL GROCERY STORES AND KIOSKS. THERE ARE A FEW SUPERMARKETS, WHICH ARE NO LARGER THAN 8,000 TO 10,000 SQUARE FEET. THESE LARGER RETAIL FOOD MARKETS HAVE UP TO 2,000 VARIOUS PRODUCTS ON SALE. THE DAILY REVENUE OF SUCH A SHOP IS ESTIMATED AT 10-13 MILLION RUBLES (APPROXIMATELY USD 2,300-3,000 AT THE CURRENT EXCHANGE RATE OF R 4,400:USD 1). THE LARGEST ENTITIES, SUCH AS KALINKA-STOCKMANN, AJAX, SUPER- SIWA, MENAKHEM MAY HAVE UP TO 6,000-7,000 DIFFERENT FOODSTUFFS AND GENERATE CONSIDERABLE SALES.
2. IN RUSSIA, WHOLESALERS AND DISTRIBUTORS ARE NOT THE SAME. DISTRIBUTORS ARE THOSE FIRMS WHICH ARE ABLE TO BUY DIRECTLY FROM MANUFACTURERS. WHOLESALERS ARE RELATIVELY NUMEROUS AND THEY BUY THEIR PRODUCTS FROM DISTRIBUTORS. IN ADDITION, WESTERN-STYLE CASH-AND-CARRY CENTERS ARE EMERGING IN THE MARKET. THE TRADE HOUSE OF HOLLAND AND THE GERMAN FIRM "POLAR HENDELS AG" HAVE ESTABLISHED DISTRIBUTION FACILITIES IN ST PETERSBURG. REPORTEDLY, THE VOLUME OF DAILY SALES REACHES DM 10,000-20,000. THE IMPORTANT PLAYERS IN THE ST PETERSBURG FOOD WHOLESALE MARKET INCLUDE: AJAX, BABYLON-WHOLESALE, THE FRUIT GROUP, EQUATOR, AND SOYUZCONTRACT. AJAX IS INVOLVED IN THE DISTRIBUTION OF A WIDE VARIETY OF FOODSTUFFS, INCLUDING MEAT AND MEAT PRODUCTS FROM EUROPE. THE FIRM OWNS WAREHOUSING AND TRANSPORTATION FACILITIES. BABYLON-WHOLESALE DISTRIBUTES UNIGRO'S PRODUCTS, HEINEKEN'S BEER, DAIRY PRODUCTS, JUICES, AND SPICES. SOYUZCONTRACT HAS BEEN DISTRIBUTING BEVERAGES FROM THE HERSHI AND POULTRY FROM TYSON COMPANIES.
3. THE FRUIT GROUP AND EQUATOR ARE MAJOR SUPPLIERS OF FRESH FRUIT AND VEGETABLES TO THE ST PETERSBURG MARKET. THE FRUIT GROUP OF ST PETERSBURG INCLUDES FIVE LOCAL IMPORTERS AND WHOLESALERS OF FRESH FRUIT, VEGETABLES, JUICES, NUTS AND DRIED FRUITS - RUSSATOTUKKU, KLEMENTINA, OLYMP, FRUCKTOVY SAD (FRUIT GARDEN), AND BALTKRUG. THESE COMPANIES TRADE EXCLUSIVELY IN IMPORTED PRODUCTS OF A HIGH QUALITY. THE TARGETED MARKETPLACE IS ST PETERSBURG, MOSCOW AND OTHER REGIONS. THE VARIETY OF FRESH FRUIT AND VEGETABLES COMPRISE 90 TYPES OF DIFFERENT PRODUCTS. THE GROUP WORKS THROUGH A WELL-ESTABLISHED NETWORK OF RETAILERS. OVER 70-80 PER CENT OF ST PETERSBURG GROCERY STORES BUY FRESH PRODUCTS FROM THE FRUIT GROUP.
4. AT THE RETAIL LEVEL, CONSUMER-READY PRODUCTS ARE AVAILABLE IN PRIVATE GROCERY STORES AND PRIVATIZED STATE STORES AND IN KIOSKS. THE RETAIL MARKET IS VERY COMPETITIVE. IN ADDITION, RETAIL CHAINS HAVE EMERGED IN S T PETERSBURG. THERE ARE CURRENTLY 18 RETAIL CHAINS IN THE CITY WITH RETAIL SHOPS NUMBERING FROM 2 TO 12. THESE CHAINS INCLUDE AJAX HOLDING, GASTRONOM, SPAR-MARKET, ANTANTA, COSMOS, MENAKHEM, SEASON.
5. THE ST PETERSBURG FOOD RETAILING MARKET IS DIVIDED INTO THREE SEGMENTS. THE FIRST GROUP INCLUDES STORES FOR CONSUMERS WITH LIMITED INCOME. THESE ENTITIES ARE GENERALLY STATE OR MUNICIPALLY- OWNED RETAIL SHOPS AND PURCHASE PRODUCTS FROM CENTRALLY-RUN WAREHOUSES. THE SECOND GROUP OF STORES ARE FOR PEOPLE WITH AVERAGE OR RELATIVELY HIGH INCOME. THESE PRIVATE SHOPS IN ST PETERSBURG ARE COSMOS, ALMAZ, MENAKHEM, AJAX-MARKET, SEASON, ETC. THE STORES HAVE DIRECT CONTACTS WITH FOREIGN SUPPLIERS OR WORK THROUGH THEIR LOCAL INTERMEDIARIES. THESE SHOPS ARE BEGINNING TO ORGANIZE PROMOTIONAL SALES AND ADVERTISING CAMPAIGNS FOR THEIR PRODUCTS. IN ADDITION, THEY ARE INTRODUCING SPECIAL DISCOUNT CARDS FOR REGULAR CLIENTS. THE THIRD GROUP OF STORES TARGET CONSUMERS WITH HIGH INCOME AND INCLUDE: SPAR- MARKET, SUPER-SIWA, KALINKA-STOCKMANN, SUPER- BABYLON, AND A-Z. THESE ARE SHOPS WITH SOME OR ALL FOREIGN CAPITAL. USUALLY, THEY ARE RUN BY WELL- ESTABLISHED WESTERN CHAINS AND HAVE THEIR OWN WAREHOUSES. THE STORES SELL PRODUCTS FOR CASH AND BY CREDIT CARDS. EUROCARD/MASTERCARD, AMERICAN EXPRESS, VISA, DINERS CLUB, AND JCB ARE ACCEPTED. ALL RETAILERS MUST BE APPROVED BY THE COMMITTEE ON TRADE AND FOODS IN ST PETERSBURG.
6. CONSIDERABLE CHANGES HAVE OCCURRED IN THE ST PETERSBURG RETAIL FOOD MARKET OVER THE PAST SIX MONTHS. THE NEWLY IMPOSED CUSTOMS TARIFFS AND THE 10-20 PER CENT VAT ON FOODS HAVE REDUCED THE PROFITABILITY OF MANY RETAILERS. SOME RETAIL CHAINS HAVE SOLD SOME OF THEIR STORES AND REDUCED THE ASSORTMENT OF PRODUCTS. HOWEVER, OTHER RETAILERS ARE EXPANDING THEIR ACTIVITIES AND GETTING INVOLVED IN THE WHOLESALE BUSINESS. THEY BELIEVE THAT WHOLESALING IS MORE FLEXIBLE AND RELATIVELY EASILY ADJUSTABLE TO THE PITFALLS OF THE RUSSIAN TAX SYSTEM AND IMPORT DUTIES.
7. IMPLICATIONS FOR U.S. FIRMS: FOOD DEALERS ARE CONTINUALLY LOOKING FOR NEW PRODUCTS. U.S. MANUFACTURERS AND DISTRIBUTORS SHOULD CONSIDER CONTACTING THE MAJOR PLAYERS IN THE ST PETERSBURG MARKET. FOLLOWING IS CONTACT INFORMATION ON MAJOR FOOD DEALERS IN THE CITY.
8. CONTACT LIST:
(A) AJAX HOLDING
98 LENINSKY PROSPECT
ST PETERSBURG 198332, RUSSIA
TEL: (812) 143-1342
FAX: (812) 143-1332
CONTACT: OLEG YU. NOVOSIELOV, VICE PRESIDENT
(B) SOYUZCONTRACT ST PETERSBURG
TEL: (812) 541-8622
FAX: (812) 541-8870
CONTACT: ANDREY V. MARKOVSKY, FINANCIAL DIRECTOR
(C) CONCERN ALEXANDER
OFFICE 13, 4 KONNOGVARDEYSKYI BULVAR,
ST PETERSBURG 190000, RUSSIA
TEL: (812) 311-6150, 850-1668 (INTERNATIONAL),
315-4301, 312-2670
FAX: (812) 311-7822
CONTACT: IGOR SALITA, GENERAL DIRECTOR
A WHOLESALER OF EUROPEAN AND NIS-PRODUCED
FOODSTUFFS (INCLUDING A WIDE RANGE OF NESTLE
PRODUCTS).
(D) SVAROG
45 PLEKHANOVA ULITSA,
ST PETERSBURG 190000, RUSSIA
TEL: (812) 117-2178
FAX: (812)
CONTACT: IGOR KHRUSTITSKYI, MANAGER
ONE OF THE MAJOR ST PETERSBURG WHOLESALERS OF HIGH
QUALITY ALCOHOLIC BEVERAGES FROM ITALY, FRANCE, AND
USA.
(E) PKF BOLEX
55 SREDNYI PROSPECT,
ST PETERSBURG 199178, RUSSIA
TEL: (812) 350-1866, 350-7006, 350-4274
FAX: (812) 350-2313
CONTACT: BORIS LAGUNOV, DIRECTOR
A WHOLESALER OF A WIDE RANGE OF FOOD PRODUCTS; AN
OFFICIAL DISTRIBUTOR FOR THE AUSTRIAN FIRM ARIES
(COCOA PRODUCTS).
(F) ENERGO LTD.
6 APRELSKAYA ULITSA,
ST PETERSBURG 195268, RUSSIA
TEL: (812) 226-3044
FAX: (812) 226-5711
CONTACT: AZAT GRIGORYAN, DIRECTOR
FOODSTUFFS WHOLESALER; AN OFFICIAL DISTRIBUTOR FOR
NESTLE PRODUCTS (COFFEE, COCOA).
(G) MIX COMPANY
42 RADISHCHEVA ULITSA,
ST PETERSBURG 191123, RUSSIA
TEL: (812) 273-3106, 273-0208, 272-5657
FAX: (812) 272-8885
CONTACT: SVETLA
NA BLOTSKAYA, MANAGER
A WHOLESALER OF A WIDE RANGE OF FOODSTUFFS.
(H) SETAR TRADE HOUSE
6 TOBOLSKAYA ULITSA,
ST PETERSBURG 194044, RUSSIA
TEL: (812) 541-8000; 541-8119
FAX: (812) 541-8139
CONTACT: LEONID BOROK, DEPUTY DIRECTOR
A WHOLESALER OF CEREALS, FLOUR, SUGAR, GRAINS AND
OTHER FOOD PRODUCTS.
(I) IMMS COMPANY
10-15 VOSSTANIA ULITSA,
ST PETERSBURG 191014, RUSSIA
TEL: (812) 273-4441
FAX: (812) 273-6170
CONTACT: MIKHAIL PERTSEV, COMMERCIAL DIRECTOR
A WHOLESALER OF A WIDE RANGE OF FOODSTUFFS,
SUPPLYING APPROXIMATELY 450 STORES IN ST
PETERSBURG; ORGANIZER OF THE PETERFOOD TRADE SHOW.
(J) BABYLON-WHOLESALE
TEL: (812) 119-1483; 119-1486
FAX: (812) 230-2673
CONTACT: ANDREY KOVALENKO, GENERAL MANAGER
(K) MTM COMPANY
20 NABEREZHNAYA MOYKI, 37A
ST PETERSBURG 191186, RUSSIA
TEL: (812) 314-1184, 314-2174, 311-0931
FAX: (812) 314-1164, 312-4128
CONTACT: VICTOR LOPATIN, GENERAL DIRECTOR
AN IMPORTER OF A WIDE RANGE OF ALCOHOLIC BEVERAGES,
SOFT DRINKS, BEER, SNACKS, COFFEE AND FOODSTUFFS
FROM GERMANY, PRANCE, AND USA FOR LOCAL BARS,
RESTAURANTS, AND SUPERMARKETS.
(L) RIK TRADE COMPANY
3 MONASTYRKA EMBANKMENT,
ST PETERSBURG 193167, RUSSIA
TEL: (812) 274-3888
FAX: (812) 274-3325
CONTACT: ANATOLY KAYDALOV, GENERAL DIRECTOR
A WHOLESALER OF HIGH QUALITY IMPORTED FOODSTUFFS.
(M) SENATA LTD.
P.O. BOX 98, 19 FRUNZE ULITSA,
ST PETERSBURG 196142 , RUSSIA
TEL: (812) 293-0692
FAX: (812) 293-8354
CONTACT: SERGEI GERLIMAN, GENERAL DIRECTOR
A WHOLESALER OF IMPORTED CIGARETTES, COFFEE, TEA,
CHOCOLATE, AND ALCOHOLIC BEVERAGES.
(N) RITZ LTD.
11/13 CHEKHOVA ULITSA, 34
ST PETERSBURG 191104, RUSSIA
TEL: (812) 273-3640
FAX: (812) 273-5896
CONTACT: IRINA BANTIKOVA, GENERAL DIRECTOR
BORIS BUSURIN, COMMERCIAL DIRECTOR
A WHOLESALER OF A WIDE RANGE OF FOODSTUFFS.
(0) SKK JOINT STOCK CO.
31 KORABLESTROITELEY ULITSA,
ST PETERSBURG 199397, RUSSIA
TEL: (812) 352-7797, 352-7780
FAX: (812) 352-7796
CONTACT: SERGEI LOGACHYEV, GENERAL DIRECTOR
A WHOLESALER OF ALCOHOLIC BEVERAGES, DRINKS,
CIGARETTES, CANNED FRUITS AND VEGETABLES, COFFEE,
COCOA, AND OTHER FOODSTUFFS.
(P) VTF TECHLINE LTD. TRADING CO.
48 FONTANKI EMBANKMENT,
ST PETERSBURG 192002, RUSSIA
TEL: (812) 314-1268; 314-1221
FAX: (812) 311-3549
CONTACT: MAXIM IVANOV, DIRECTOR
A WHOLESALER OF WIDE RANGE OF FOODSTUFFS FROM
EUROPE AND USA. AN OFFICIAL REPRESENTATIVE OF THE
GERMAN COMPANY "AUBACH GMBH".
(Q) TWENTY FOUR COMPANY
56 FONTANKA EMBANKEMNT,
ST PETERSBURG 191002, RUSSIA
TEL: (812) 315-0423; 112-0365
FAX: (812) 164-2522
CONTACT: ALEKSANDR TSUVAREV, GENERAL DIRECTOR
ONE OF THE MAJOR DISTRIBUTORS AND WHOLESALERS OF
CANDY, CONFECTIONERY PRODUCTS, AND FOODSTUFFS
INCLUDING PET FOOD. AN OFFICIAL DISTRIBUTOR FOR
MARS INC. AND WRIGLEY CO.
(R) LEC CORPORATION
90/92 NEVSKY PROSPECT
ST PETERSBURG, RUSSIA
TEL: (812) 271-1395; 271-1159
FAX: (812) 271-1337; 271-1152
CONTACT: ALEXANDER KOZYREV, MANAGER
A WHOLESALER OF IMPORTED FOODSTUFFS.
(S) LENIMPEX
35 BOLSHAYA MORSKAYA
ST PETERSBURG 190000, RUSSIA
TEL: (812) 310-9441; 312-7947
FAX: (812) 319-9709
CONTACT: GENNADY D. YELIZAROV, MANAGER
(T) PETERBURGOPTPRODTORG
3 BANKOVSKI PEREULOK
ST PETERBURG 191023, RUSSIA
TEL. 812-310-5773
FAX: 812-312-6048
TELEX: 321894 OBRIV
CONTACT: VITALI U. ALEKSEEV, CHIEF OF THE
EXTERNAL RELATIONS DEPARTMENT
(V) GASTRONOM ASSOCIATION
APRAKSIN DVOR, KORPUS 33
ST PETERSBURG 191023, RUSSIA
TEL.: 812-310-9878; 812-310-9479
FAX: 812-110-6595
CONTACT: RAISA V. POPOVA, GENERAL DIRECTOR
(U) LENTORG
1 YUZHNAYA PROMZONA
PETROZAVODSK, REPUBLIC OF KARELIA
TEL: (81400) 2-5501
; 2-5529; 9-8629
OFFICE IN ST PETERSBURG
47 STACHEK PROSPECT
ST PETERSBURG, RUSSIA
TEL: (812) 552-2807
CONTACT: OLEG SIROTENKO, VICE PRESIDENT
(X) EQUATOR
3 LINIA, 2 POLOVINA, 1/3
KOLOMYAGI, VYBORG VEGETABLE STORAGE FACILITIES
ST PETERSBURG, RUSSIA
TEL: (812) 301-3646
FAX: (812) 301-7619
(Y) THE FRUIT GROUP
16 MALAYA POSADSKAYA ULITSA
ST PETERSBURG 197046, RUSSIA
TEL: (812) 233-3721
FAX/TEL: (812) 119-1401
(Z) SUPERMARKETS IN ST PETERSBURG
KALINKA-STOCKMANN
1 FINLYANDSKY PROSPECT
ST PETERSBURG, RUSSIA
TEL: (812) 542-2297
FAX: (812) 542-8866
CONTACT: MR PAAVO ULLGREN, MERCHANDISE AND
MARKETING DIRECTOR
ALMAZ INTERNATIONAL FOOD SUPERMARKET
TEL: (812) 224-2048; 224-2849 (ENGLISH SPEAKING
OPERATOR)
FAX: (812) 224-3049
BABYLON SUPER
54 AND 56 MALY PROSPECT, P.S.
ST PETERSBURG, RUSSIA
TEL: (812) 230-8096
SPAR MARKETS
30 SLAVY PROSPECT
TEL: (812) 260-4121
FAX: (812) 261-2970
AND 1 STACHEK PROSPECT
TEL: (812) 186-5177
AJAX SUPERMARKET
98 LENINSKY PROSPECT
ST PETERSBURG 198332, RUSSIA
TEL: (812) 143-1342
FAX: (812) 143-1332
MENAKHEM TRADING HOUSE LTD.
29 ZAMSHINA ULITSA
ST PETERSBURG, RUSSIA
TEL: (812) 543-3857; 543-3867
FAX: (812) 543-4910
VIVO SUPERMARKET (RUSSIAN-SWEDISH VENTURE)
18 VLADIMIRSKY PROSPECT
ST PETERSBURG, RUSSIA
TEL: (812) 112-0757
FAX: (812) 113-3769
RENLUND
119 SAVUSHKINA ULITSA
ST PETERSBURG, RUSSIA
TEL: (812) 345-3393
FAX: (812) 345-1414
CONTACT: MR ROBERT MENARD, MANAGER
COSMOS MARKET
2 UTKIN PROSPECT
ST PETERSBURG, RUSSIA
TEL: (812) 528-6808