Sausage redistribution

A major producer of meat products, the Moscow Tsaritsyno Group of Companies, has a new co-owner. The share was received by the former top manager of the group, who can act in the interests of an investor consolidating assets in the segment. According to Kommersant’s sources, we are talking about the country’s second poultry producer GAP Resurs, which has begun to buy up meat processing plants. But the deal may be hampered by internal problems of Tsaritsyno.

The change in the composition of the owners of the Tsaritsyno Group of Companies became known from the data of the Unified State Register of Legal Entities. At the end of May, Evgeny Shalaginov received 50% of one of the parent structures of the New Partner LLC group. Previously, 50% of the company belonged to the main owners of Tsaritsyno, Lena Alenkina and Vyacheslav Kalugin, who has now become one of the founders. The “New Partner” owns 42.47% of Tsaritsyno OJSC, 27.72% each directly from Mrs. Alenkina and Mr. Kalugin, the company said in the 2019 report. Tsaritsyno produces more than 500 types of sausages and is one of the twenty players in this market in Russia. In 2019, the group produced 45.47 thousand tons of products. The revenue of Tsaritsyno OJSC in 2020 was 4.06 billion rubles, the net profit was 59.07 million rubles.

Evgeny Shalaginov was previously the director of new projects implementation practice at FMCG at the consulting company Strategy Partners. He was engaged in the integration of the distribution of Ivan Taranov Breweries after the sale of the Heineken asset, oversaw the sale of the Zolotoy Terem Group of Companies (Barents snacks) to the KDV group. In 2020, Mr. Shalaginov became the general director of Tsaritsyno Firm Trading House JSC. According to Kommersant’s sources close to the group, he was hired to sell the asset to a strategic investor. Among the interested parties, Kommersant’s interlocutors named, in particular, the structures of the AVG Capital Partners fund Rustem Mirgalimov (see Kommersant dated March 26). But these negotiations did not end with success. The Tsaritsyno office did not answer questions, Evgeny Shalaginov and an AVG representative refused to comment, and it was not possible to contact Lena Alenkina and Vyacheslav Kalugin.

According to one of Kommersant’s interlocutors, Yevgeny Shalaginov in the deal with Tsaritsyno represents a major investor who wants to create a third player on the meat market in Russia after Ostankino and ABI Group on the basis of the enterprise, by combining several more assets. The top manager of a major player in the meat market believes that the Stavropol GAP Resource of Viktor Nauruzov, the second producer of broiler meat in the country (the Blagoyar brand), may have such ambitions, which this year began to actively consolidate its processing assets. So, in February, the group became the owner of the manufacturer of sausages “Integra” (brands “Dym Dymych”, “Rossiyanka”). And at the end of May, the Resurs structure filed a petition with the Federal Antimonopoly Service to purchase the assets of the Saratov meat-packing plant Familnye kolbasy with a capacity of 25 thousand tons per year. A representative of Resurs declined to comment, and Family Sausages did not answer questions.

Agrifood Strategies President Albert Davleev says that Resurs is building vertical integration by adding deeply processed products to its assortment: meat products and semi-finished products. According to him, this makes it possible to work in all directions – wholesale, retail, HoReCa, export – and increase the market share. And the construction of enterprises today can be more expensive than buying, the expert adds. As the source of Kommersant notes, today the business of GAP Resource is concentrated in the south of the Russian Federation, where grain is expensive due to its proximity to ports, therefore, the cost of meat production is higher, so the group needs to increase the share of products with high added value. According to an interlocutor of Kommersant in the industry, in the case of Tsaritsyno, the deal may be hindered by long-standing management problems within the group and the obsolete state of the asset.

Anatoly Kostyrev