Kazan plans to dominate mayo market

- Last updated on GMT

Kazan Fat Factory (KFF) has been producing mayonnaise for the
Tatarstan market for just over a year, and it is already becoming a
major influence, Angela Drujinina reports.

In the first quarter of 2005, its ratio in the Kazan mayo market increased up to 20 per cent, and in Tatarstan as a whole by up to 10 per cent. KFF is now the biggest manufacturer of fat-and-oil products in the country.

As a result, brands belonging to KFF including Mr. Ricco, Laska and Laskusha are now as popular as traditional leaders of this market. KFF general director Dmitry Haritonov said last December that his company plans to acquire 9 to 10 per cent of the Russian mayo market.

The market volume is estimated to be about 490,000 to 530,000 tons a year.

KFF's launch onto the market began with two brands Mr. Ricco for the premium segment and Tzypa Gurman for the mid-range segment. The company plans to invest about 200 million RUR in advertising these products.

In addition, KFF plans to expand its mayonnaise activities through the development of distribution network and in working with the most attractive partners in the sector.

According to KFF director, Dmitry Haritonov, the factory aimed to have a wider assortment, because, if one manufactures the entire range of products, it is much easier for him to work with distributors. Besides vegetable oil, mayo and ketchup, KFF will probably begin producing non-traditional sauces, which are gaining popularity in Russia.

KFF's authorized capital is about 447, 8 million RUR. In 2003, the company had a gross income of 218 million RUR, while this year the company is hoping for a record 1-1,3 billion RUR. Three quarters of KFF shares belong to Nefis Cosmetics.

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