Prodeca connects Catalan agri-food companies with the leading food distributor in Russia

Last May Prodeca launched Connect With X5 Retail Group, an initiative to put Catalan agri-food companies in touch with the sector buying managers of Russia's leading food distributor, which operates several supermarket and hypermarket chains across the country. It runs convenience stores under the Pyaterochka brand, supermarkets under the Perekrestok brand and hypermarkets under the Karusel brand, as well as the online marketplace Perekrestok.ru, among others. 

Once the registration process for interested companies and X5 Import's selection of products of interest had been completed, 43 Catalan food and drink companies from 11 different sectors are taking part in this virtual initiative. The Catalan producers contacted X5 Retail Group's buying managers and, with Prodeca's support and advice, sent them their offer, digital catalogues and, in some cases at X5 Import's request, product samples. 

This initiative is a first contact with X5 Retail Group with the aim of establishing and consolidating trade relations with one of Russia's leading food and drink distributors. Since X5 Import is currently assessing products to import from 2022, and this Russian company uses tenders for new product listings, the first results will not be visible for a few months. Even so, Connect With X5 Retail Group is a tangible opportunity to enter a strategic market such as Russia — competitive and attractive for Catalan companies, but hard to access for some types of agri-food product (meat, dairy, fish and fruit) because of trade restrictions. 

Russia, an export opportunity despite the embargo

With a population of 144 million, Russia is a market that continues to offer attractive opportunities for imported agri-food products not affected by the sanctions. 

Russia's 2014 embargo on European products (fruit, meat, fish, dairy) significantly affected agri-food exports to Russia. The situation remains unchanged and there is no sign the sanctions will be lifted soon. 

Likewise, the Russian market retains its potential for exporters of wine, soft drinks, olive oil (although 70% of its sales are bulk and/or private label), sauces, bakery and confectionery products, ready meals without animal-origin ingredients, frozen products, preserved vegetables and so on. 

In 2021 the Russian food and drink market is seeing a significant recovery that could have a positive effect on exports. 

Agri-food retail distribution accounts for 50% of all sales in Russia and 16% of national GDP.