1
MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE
«UNITED CONFECTIONARY» is the leader of the confectionery market
of Russia and the leading Eastern European confectionery holding.
The company is a part of «Guta Group». It unites 19 confectionery plants,
including the largest Moscow confectionary factories: «Krasny Octyabr»,
«Confectionary Concern «Babaevsky», «RotFront».
 14-th position in World top -100 Confectionary Companies.
 14,8% of total market share in Russia.
Net revenue 2013 – 1 106 128,7 thousands of Euro.
Gross profit 2013 – 348 203,3 thousands of Euro.
Total comprehensive income for 2013 year,
net of tax 85 232,9 thousands of Euro.
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MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE
 Produces more than 3 500 SKU of confectionery products in all
confectionery categories.
 In 2014 produced 355 000 tons products.
 «UC» has leading positions in the Russian market in all categories:
caramel – 36.4% (1th position), sweets sold in bulk – 29.9% (1th position),
chocolate bars - 22% (2th position), boxed pralines – 21.6% (2th position).
 Coverage of more than 100 000 retail outlets throughout Russia and
own retail chain «Trans konditer».
«Guta Group» is one of leading multiproduct investment & industrial
corporation in Russia.
 It was established in 1989.
 Annual turnover -
«
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KEY PLAYERS IN CONFECTIONERY MARKET. RUSSIA
Main confectionery market players in
Russia in 1st half of 2014 (volume)
Orkla; 2,1%
Private
Label;
11,0%
Konti; 2,6% Roshen;
3,1%
Private
Label; 5,1%
KDV; 5,2%
Nestle;
3,3%
Konti; 2,1%
KDV; 3,3%
Ferrero;
7,9%
Ferrero;
1,8%
Others
Mars
Ferrero
Private Label
Orkla
Roshen
Orkla; 2,3%
Roshen;
2,1%
Nestle;
5,6%
Others;
45,3%
Mondelez
(Kraft
Foods);
Mars; 5,1%
6,8%
Main confectionery market players in
Russia in 1st half of 2014 (value)
Mondelez
(Kraft
Foods);
10,0%
UC; 13,7%
UC
Mondelez (Kraft Foods)
Nestle
KDV
Konti
Others
Mars
Ferrero
Private Label
Orkla
Roshen
Others;
36,8%
Mars; UC; 14,8%
10,0%
UC
Mondelez (Kraft Foods)
Nestle
KDV
Konti
Source: Nielsen
«UC» Holding is the leader of the Russian confectionery market
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RUSSIA. MARKET STRUCTURE. CHOCOLATE BARS
Key players' market shares
Key players' market shares
VOLUME
100%
75%
VALUE
100%
5,8%
5,8%
1,0%
2,4%
2,6%
3,5%
3,6%
4,7%
6,4%
0,7%
2,5%
2,4%
3,5%
3,5%
5,0%
5,9%
1,3%
1,8%
3,2%
3,7%
4,1%
4,5%
6,1%
6,2%
6,3%
6,8%
6,0%
0,0%
2,1%
2,2%
3,4%
3,4%
18,6%
17,3%
17,2%
8,5%
0,0%
1,7%
2,7%
4,9%
1,8%
4,2%
8,4%
0,6%
1,9%
3,1%
5,0%
1,9%
3,5%
9,1%
0,4%
2,0%
2,9%
4,8%
1,8%
3,7%
15,0%
15,8%
16,1%
13,5%
13,6%
27,4%
27,6%
18,9%
18,1%
75%
15,0%
50%
32,2%
18,0%
16,0%
50%
31,8%
9,3%
0,8%
1,5%
3,6%
5,0%
2,2%
2,9%
12,0%
30,8%
32,7%
27,1%
25%
25,3%
25%
20,8%
20,6%
2
2
0%
22,0%
19,7%
2
19,4%
2
2
19,3%
2
2
2
0%
UC
2012
2013
2013-1
Mondelez (Kraft Foods)
Nestle
Ferrero
Orkla
Mars
Alfred Ritter GmBH
KDV
Others
2014-1
2012
2013
2013-1
2014-1
UC
Mondelez (Kraft Foods)
Nestle
Private Label
Ferrero
Orkla
Private Label
Pobeda
Mars
Alfred Ritter GmBH
Pobeda
KDV
Others
Source: Nielsen
«UC» is the 2-ed player (volume), passed ahead «Nestle»
and taken 22.0% market share by volume.
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RUSSIA. MARKET STRUCTURE. BOXED PRALINES
Key players' market shares
Key players' market shares
VOLUME
21,2%
75%
22,8%
2,0%
1,0%
1,1%
3,7%
4,2%
VALUE
1,6%
1,1%
1,4%
3,3%
3,4%
21,0%
1,6%
1,1%
1,4%
3,2%
3,5%
6,9%
7,0%
5,3%
5,1%
8,7%
8,7%
7,9%
17,1%
1,4%
2,0%
2,1%
2,2%
2,8%
6,1%
8,6%
8,6%
14,8%
9,8%
9,9%
15,1%
16,4%
7,2%
4,7%
7,6%
4,3%
50%
75%
8,6%
8,8%
12,6%
11,1%
21,3%
1
1
1
17,8%
1,4%
0,8% 0,6%
2,2%
2,9%
6,3%
6,3%
5,8%
5,6%
8,1%
8,1%
13,7%
13,7%
24,6%
25,1%
26,5%
15,9%
1,2%
1,5%1,0%
1,7%
2,2%
5,3%
7,7%
7,8%
14,1%
17,3%
25%
22,1%
18,0%
1,4%
0,9% 0,6%
2,4%
2,8%
50%
25%
21,2%
18,8%
1,7%
0,7%0,5%
2,5%
3,4%
27,4%
21,6%
14,9%
14,6%
1
0%
2
14,3%
14,0%
2
2
2
0%
UC
2012
2013
Ferrero
Nestle
Orkla
Samarskiy Konditer
2013-1
2014-1
2012
2013
2013-1
2014-1
Mars
UC
Ferrero
Mars
Storck
Mondelez (Kraft Foods)
Nestle
Storck
Mondelez (Kraft Foods)
Konti
Private Label
Orkla
Konti
Private Label
AVK
Others
Samarskiy Konditer
AVK
Others
Market share of «UC» in Boxed pralines is increasing. Shares of Source: Nielsen
«Mondelez» (Kraft Foods) and also «Konti», «AVK» and «Roshen»
decreased. «UC» could improve its share by volume and value.
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RUSSIA. MARKET STRUCTURE. BULK CANDIES
Key players' market shares
Key players' market shares
VOLUME
3,9%
0,3%
4,0%
75%
VALUE
18,4%
18,4%
5,0%
3,6%
19,1%
3,7%
1,6%
4,4%
4,1%
1,2%
4,0%
4,9%
5,3%
17,5%
18,9%
19,1%
2,8%
3,3%
19,8%
2,3%
0,3%
4,1%
2,2%
1,1%
4,5%
2,5%
0,8%
4,1%
19,1%
1,6%
2,1%
5,0%
5,4%
5,3%
5,7%
5,3%
4,3%
3,9%
4,1%
7,1%
7,6%
6,8%
8,5%
8,6%
7,1%
6,8%
8,9%
7,3%
7,0%
33,4%
33,7%
33,2%
4,8%
75%
5,0%
5,1%
4,7%
5,0%
6,9%
7,5%
6,6%
9,3%
9,4%
2,9%
7,4%
7,2%
8,9%
9,8%
50%
7,5%
50%
7,5%
9,2%
8,4%
8,4%
8,8%
7,1%
8,2%
7,2%
6,8%
9,3%
25%
6,1%
9,0%
25%
29,9%
30,1%
29,7%
1
1
1
2012
2013
2013-1
29,9%
1
1
0%
1
1
33,8%
1
0%
2014-1
2012
2013
2013-1
2014-1
UC
Slavyanka
Konti
Roshen
UC
Slavyanka
Konti
Roshen
AVK
KDV
Orkla
Akkond
AVK
KDV
Orkla
Akkond
Private Label
Nevskiy Konditer
Others
Private Label
Nevskiy Konditer
Others
Source: Nielsen
«UC» dominates in the category of bulk candies, its share by value
is increasing steadily.
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RUSSIA. MARKET STRUCTURE. CARAMEL
Key players' market shares
VOLUME
2,7%
2,0%
0,8%
2,4%
0,7%
3,1%
3,0%
4,4%
15,5%
2,1%
1,9%
3,1%
2,5%
1,6%
3,5%
3,3%
4,2%
16,1%
2,1%
1,9%
2,8%
2,6%
0,8%
3,9%
3,3%
4,1%
16,0%
1,9%
1,9%
2,4%
2,6%
3,0%
3,3%
3,4%
4,0%
4,0%
4,5%
4,6%
4,6%
18,1%
75%
Key players' market shares
VALUE
75%
24,9%
23,5%
23,9%
22,6%
1,5%
1,3%
1,6%
22,7%
1,3%
1,4%
1,4%
8,7%
8,9%
9,2%
0,3%
1,8%
1,4%
0,8%
1,9%
1,6%
0,4%
2,1%
1,6%
1,7%
1,8%
1,9%
15,2%
15,3%
15,1%
14,1%
2,5%
2,8%
2,8%
2,8%
16,2%
15,6%
15,9%
13,2%
26,1%
26,8%
26,2%
28,6%
8,2%
50%
50%
21,9%
1,5%
1,3%
1,8%
24,5%
1,9%
1,4%
0,5%
20,5%
25%
25%
34,1%
34,2%
1
1
33,7%
1
36,4%
1
0%
1
1
1
1
0%
2012
2013
UC
Konti
Nevskiy Konditer
Private Label
Voznesensk pishekombinat
Orkla
2013-1
2014-1
Roshen
Perfetti Van Melle
KDV
Mondelez (Kraft Foods)
Konfil
Others
2012
2013
UC
Konti
Nevskiy Konditer
Private Label
Voznesensk pishekombinat
Orkla
2013-1
2014-1
Roshen
Perfetti Van Melle
KDV
Mondelez (Kraft Foods)
Konfil
Others
«UC» is the leader of the Caramel category as well,
Source: Nielsen
both in volume and value.
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LOCATION OF MAIN ASSETS
United Confectioners' assets cover
most of the Russian Federation.
19 confectionery production units in 11 cities
8 regional distribution centers (RDC) in 7 cities
4 logistic centers in 3 cities
Vyborg
St. Petersburg
Smolensk
Bryansk
Kursk
Yaroslavl
Tula
Voronezh
Rostov-on-Don
Agricultural sector – 1 agricultural
holding (38 000 hectares) and 1 sugar production unit
Tver
Moscow
Nizhniy Novgorod
Ioshkar Ola
Tambov
Penza
Perm
Yekaterinburg
Saratov
Samara
Krasnodar
2 dairy production units
Volgograd
Retail chain «Transkonditer» (30 shops in 19 cities);
3 Factory Outlets
Tumen
Chelyabinsk
Novosibirsk
Krasnoyarsk
Khabarovsk
Blagoveshchensk
Confectionery factory
RDC
WH
Agricultural sector
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Dairy prod.
Own retail shops
9
QUALITY CHOCOLATE
Cocoa beans from Cote d’Ivoire and Ghana (Africa)
Sugar and milk are produced at the
agro-industrial factories of the
Holding.
Produced in 2014
 milk - 3 t.ton
 sugar beet - 360 t.ton
 wheat – 65 t.ton
 maize – 47 t.ton
Some factories have equipment for
primary processing of cocoa beans.
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NATIONAL URBAN, VOLUME SHARE 2014 (NIELSEN)
100%
90%
80%
70%
3,0%
Others; 20,7%
2,5%
Others; 35,1%
Mars; 3,70%
Ferrero; 6,80%
Others; 61,0%
2,0%
Others; 70,1%
60%
Nestle; 16%
Mars; 11,10%
50%
1,5%
Ferrero; 17,30%
40%
Mondelez (Kraft
Foods); 30,80%
Nestle; 8,80%
30%
Mondelez (Kraft
Foods); 2,60%
1,0%
UNICONF; 36,4%
0,5%
Mondelez (Kraft
Foods); 6,10%
20%
UNICONF; 29,9%
10%
UNICONF; 22,0%
UNICONF; 21,6%
2
1
1
1
0%
0,0%
Chocolate
Boxed Candies
Bulk Candies
Caramel
 successfully compete with Kraft, Nestle,
our market share grow in all categories
Mars etc.
 unique competence in the biggest
market - candies
 win TOP positions in the Russian market
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ACTUAL GROWTH IN SALES CAGR 2006-2014
1 400
1 200
1 165,6
Sales (mln. EURO excl. VAT)
1 115,1
1 000
1 095,1
941,6
805,0
mln. EURO
1 189,3
852,4
800
656,0
597,0
600
400
200
0
2006
2007
2008
2009
2010
2011
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2012
2013
2014
12
TOP BRANDS
 Each family In Russia knows well and loves our brands.
There are legendary and new brands in the portfolio of «United Confectioners».
 Total brands - over 300.
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TOP BRANDS
Market shares of main
«UC» brands
Alenka
1,2%
Babaevskiy
1,0%
Vdokhnoveniye 0,8%
Russkiy Shokolad0,02%
since 1922
SKU - 99
since 1966
SKU - 66
since 1998
SKU - 46
since 1976
SKU - 31
since 1931
SKU - 138
since 1998
SKU - 10
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NEW BRANDS
since 2012
SKU - 40
since 2013
SKU - 7
Market shares of main
«UC» brands
Felicita
Eco Botanica
Sweet history
since 2012
SKU - 6
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0,1%
0,02%
0,04%
15
KEY RETAIL CUSTOMERS: INTERNATIONAL & LOCAL CHAINS
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THE UNITED CONFECTIONERS IN THE WORLD
«United Confectioners» is the leader in Russian Confectionery market
with strong intention to develop worldwide.
Export to 30 countries
outside Russia
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STRONG POSITIОNS
Our brands are presented of the main chains in Germany, Poland,
Latvia, Estonia…
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INTERNATIONAL BRAND PORTFOLIO
Powerful brands and ideas beloved by
millions of consumers
adopted for European market
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EXPORT BRANDS
Sweet treasure – plenty of pleasure!
 Alionka – sweets for all the family.
Legendary milk chocolate is produced since 1966.
And also bonbons, biscuits, cookies, candies.
 Alionka - is the most recognizable women
image
in Russia. It’s like Mona Lisa (da Vinci) for
Russians.
Poetry
Art
For those, who appreciate:
 Delicious taste rich in high
quality cocoa.
 Creativity and Art
symbols of the brand are world famous
Bolshoy Theatre and ballet
Passion
Inspiration
Gift boxes and elegant stick chocolate Love
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EXPORT BRANDS




No artificial colours or
preservatives
Natural products with natural taste
Wafers, biscuits, bon-bons
Korovka - a name for funny cow
Korovka for a green break

Soft small roll from two spreads

Natural product with cocoa, milk, eggs, peanut

Light product – no glazing, less
calories, perfect for summer

Unique recipe since 1959:
BonRoll doesn’t melt and stays in form

Rich taste, TOP popular product
among millions of Russian consumers
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EXPORT BRANDS
Alionka and Inspiration
Unique format:
 very slim sticks of chocolate
 original form of sticks
 each stick in individual package
 10 sticks inside
 fillings or pieces of nuts inside the sticks
 high quality and perfect taste
chocolate in sticks
 Share the taste!
 Share the pleasure!
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EXPORT NEW BRANDS OF 2013
 Only dark genuine chocolate
 Pure taste of cocoa or with
favorite flavors
 Involves rich traditions of
chocolate - making,
since 19th century
NEW LINE OF DARK CHOCOLATE
The taste of genuine cocoa inspired us to create a unique brand of dark chocolate –
DARX.
Each bar of DARX reflects rich experience of chocolate-making and a
tireless desire to create a truly valuable product.
We even have put a cocoa bean on the packaging as a symbol of our brand, because
whatever DARX flavor we produce – it’s always dark – the very best that the cocoa
beans can offer.
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INTRODUCTION
Since August 2014, we initiated the commercial activity in the
Canary Islands.
Being present in 109 shops now.
We have launched two brands:
«Korovka» is the brand of wafers and
cookies.
It is a family of excellent quality products,
with no artificial colorant nor preservatives,
with unique taste.
 «Artpassion» is a premium brand of chocolates in Russia.
These are premium products with higher % of cocoa than
competition, with a fine taste, wrapped in an outstanding
packaging.
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UNIQUE BRAND
UNIQUE BRAND







N1 Famous brand for people from
Eastern Europe
Natural products with natural milky
taste
Unique taste of baked milk
Unique “Russian pie” with
condensed milk
No artificial colours or preservatives
Simple and fun for every day
Families with children
UNIQUE BRAND
UNIQUE BRAND CONCEPT
 N1 RUSSIAN PREMIUM BRAND
 RUSSIAN BALLET TRADITION – N1
 THE ART OF BALLET & THE ART OF
RUSSIAN CHOCOLATE
 NOBLE RUSSIAN CHOCOLATES
 LEGENDARY BRAND
 INSPIRED BY RUSSIAN BALLET
Poetry
Literature
Love
Inspiration
Pleasure
Theatre
Ballet
Elegance
Art
Passion
BASIC ASSORTMENT
GIFT BOXES
CHOCOLATE STICKS
PRALINES
TENDER SOUFFLE IN CHOCOLATE
CURRENT STATUS
We have used the model of direct distribution, making the
agreements with customers, placing orders, importing the
product, controlling the points of sales, preparing and
executing the promotions
There are 15 SKU already listed in 109 shops in Canary Islands,
being present in the following chains:
Corte Ingles,
Alcampo/Achuan.
Jesuman Group,
Agrucan (SPAR),
DISA
Rumardi (distributor of impulse channel)
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VOLUME GROWTH IN 2015
In 2015, we started the sales in Spain Continent.
We have initiated the commercial contacts with Corte Ingles,
Grupo Miquel Aimentación, Carrefour, Grupo Día, among
others. We started deliveries in February 2015.
The following table illustrates the volume development for 2015
Tonnes
2014
2015
Artpassion
10
98
Korovka
28
155
Total
38
252
This represents a
growth of 560% vs 2014.
 In terms of POS, the aim for 2015
is to achieve in total 1491 shops
before the end of the year 2015,
converting all the big retailers
(except discounters),of the country.
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QUALITY AT 100 %
United Confectioners
successfully combines more than 200
years of quality traditions with modern
equipment and technologies
The quality management system
meets international standards
ISO 22000
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INNOVATION
Centre for Development and Applied Research
 Launched in 2012
 The only one in Russian confectionery industry
 Equipped with modern analytical equipments
 Source of product innovation and engineering solutions
 Manufacturing of test batches of new products
 Definition of market prospects
Investments to the project was more than 150 million rubles.
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OUR HISTORY IS OUR PROUD
1851
«Krasny Octyabr»
(«Einem»)
1826
«ROT FRONT»
(Trade House of Lenovy )
1804
«Confectionary concern
«Babaevsky»
(«Abrikosov and sons»)
Aleksey I. Abrikosov
Ferdinand Teodor
Fon Einem
Ulius Geis
A small shop of chocolate and
sweets on the street Arbat in
1867 grew into a partnership
«Einem», and in 1913 was given
the honor to become the supplier
of His Imperial Majesty.
Grigoriy A. Lenov
Ekaterina S. Lenova
Handicraft shop on production of
caramel and sweet in 1900 receives
the name of Trade house, in 1931 is
renamed in «ROT FRONT». In
1938, is one of the largest factories
in the Soviet Union.
The shop received the name
«Abrikosov» for the art of making
sweets of apricots. Since 1880 was
known in Russia and abroad. In
1899 was awarded the title "Supplier
of the Court of his Imperial Majesty".
«United Confectionary» was established in 2002
as Russia's largest confectionery Holding for the revival and keeping of
confectionary traditions.
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34
SOCIAL RESPONSIBILITY
 Philanthropy
 Donor's action
 Corporate Events
 Protection of environment
and savings of energy
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 Training and improving
of qualification
 Caring for ours veterans
35
THANK YOU
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