Russian retailer sets new record thanks to improved greenhouse yields

Production facilities of Magnit, one of Russia's retailers, have set a new record by producing almost 360,000 tons of goods in 2021, which is 17% more than in 2020. These products are sold under the Company's private labels in Magnit stores located in 65 Russian regions.

Increased production output was achieved thanks to the introduction of new items to the private label range, improved yields at greenhouse complexes, and ramp-up of production rates at new facilities. Magnit is the only retailer in Russia that operates its own food production facilities - its 17 sites, which are spread across different Russian regions, manufacture about 500 articles.

As of the end of 2021, the Company's production facilities put out nearly 102,000 tons of fresh fruits and vegetables (+11%), about 17,800 tons of confections (+7%), more than 150,000 tons of dry and frozen foods (+ 30%), 46,600 tons of flour-based products (in line with 2020). 

In 2021, the Company's agro-industrial facilities in Krasnodar region focused on tomato production due to import restrictions and increased their output by 16%, as well as introduced 7 new tomato varieties. The best performance was achieved in the production of cherry tomatoes (+35%). As a result, the share of tomatoes produced by the Company in sales reached 21.3%. The mushroom complex saw a record-high crop of champignon mushrooms - 7,000 tons (+2%), and the share of Magnit's home-grown champignon mushrooms in sales now amounts to 66.7%.

The Novorossiysk citrus fruit packaging facility, launched in 2020, supplied nearly 12,000 tons of packaged products to Magnit stores. Cheese packaging facilities recorded a 17% uplift and put out 36,000 tons of goods thanks to the previously launched facilities in Penza and Dmitrov reaching their full capacity.

Overall, Magnit's production facilities in different regions of the country produce vegetables, mushrooms, sweets, cookies and biscuits, pasta, frozen foods (pelmeni, chebureki, blintzes, vareniki), nuts, seeds, water, vinegar, syrups, tea, snacks, breakfast cereals, spices, and others.