Food & Beverage: come vendere in Russia nell era delle sanzioni Russian Market Overview Luca Orselli Representative for Italy, SCHNEIDER GROUP Milan, June 8 th, 2018
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Content Food and Beverage imports in Russia Key product segments What to do accounting ERP import legal tax 5
After 2013, new scenarios in Russian imports of F&B Russian Federation Total Imports Food&Beverage Value: thousands US $ 30.000.000 Total Russian Imports (Billion $) 25.000.000 20.000.000 15.000.000 10.000.000 5.000.000 2007 2016 Beverage 2,3 1,9 Food 15,4 12,8 Total 17,7 14,7 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Food Beverage Russian Federation Total Imports Food Value: thousands US $ Russian Federation Total Imports Beverage Value: thousands US $ 30.000.000 4.000.000 25.000.000 3.500.000 20.000.000 3.000.000 2.500.000 15.000.000 2.000.000 10.000.000 1.500.000 5.000.000 1.000.000 0 500.000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 Belarus Brasil China Indonesia 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Germany Cile Netherlands Italy France Italy UK Spain Argentina Poland France Spain Georgia Armenia Germany Belarus US Rest of the World USA Rest of the World accounting ERP import legal tax 6 Source: ICE-Onu/Comtrade
We have to look deeper to discover present trends B/Down Total Imports of F&B 13% 2007 2016 13% 87% 2016 B/Down Imports of Food Food, others 25% Oven products 2% Grains 3% Milk and cheese 16% Products for animal feed 4% 1% 2% 24% 8% 8% 3% 9% 11% 34% Meat 20% Oils and Fats 9% Fish 11% 2007 Fruits&Vegetables 10% 87% Mineral waters 4% Vodka 2% Rum and Rafia 1% 2016 Cider Malt (roasted and not) 2% 3% Sugared and nonalcoholic waters 7% Whiskey 12% 7 Source: SCHNEIDER analyses on ICE ONU/Contrade 8% 3% 5% 2% 6% 1% 10% Spirits 15% B/Down Imports of Beverage Ethyl alcohol 4% 6% 18% 20% Beer 7% 5% 6% 3% 7% 2007 Wines 33% Sparkling Wines 6% Vermouth 2% Liquors 2%
Opportunities can be found case by case (some examples) Share % by Region Category Year Import value (*) Food, others UE Other Europe North America Others Imports from Italy Italy Share % 2007 3.630.846 37,1 11,3 2,6 49,0 87.140 2,4 8 2016 3.126.890 47,8 13,9 3,3 35,0 162.598 5,2 3 Italy Rank Coffee Chocolate & Cocoa Ketchup & Tomato sauces Paste, with and without egg 2007 55.292 80,4 9,6 0,2 9,8 23.223 42,0 1 2016 149.195 81,1 15,2 0,1 3,6 63.109 42,3 1 2007 705.278 43,6 32,2 1,2 23,0 37.380 5,3 8 2016 811.120 46,5 8,4 1,4 43,7 54.345 6,7 5 2007 25.230 59,0 36,1 0,8 4,1 1.211 4,8 3 2016 13.748 52,9 12,5 7,7 26,9 2.351 17,1 2 2007 32.106 91,8 0,4 0,2 7,6 25.300 78,8 1 2016 41.342 72,5 2,8 0 24,7 26.087 63,1 1 (*) Thousand $ accounting ERP import legal tax Source: SCHNEIDER analyses on ICE ONU/Comtrade
Thousand US $ or in catching new legal trends Russian imports of diary products 2 067 725 1 512 457 1 994 865 1 189 914 1 205 337 4 254 489 3 619 955 3 139 280 1 789 423 1 974 002 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Russian Dairy imports by origin 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EU Ukraine Belarus Switzerland Serbia Central America Oceania Other Countries Russian imports of Dairy products from Belarus 2011: 0 2012: 1,05 Bln $ 2016: 1,58 Bln $ accounting ERP import legal tax Source: SCHNEIDER analyses on ICE ONU/Comtrade
Made in Italy products are well accepted Food 2007 2016 Russian Imports 15.416.418 12.773.432 From Italy 246.663 383.203 Italian Share 1,6% 3,0% Italian Rank 13 7 Germany 7,0% 5,2% France 2,7% 2,1% Holland 4,3% 3,0% Belarus -- 22,6% USA 7,2% 1,2% China 3,6% 6,3% Beverage 2007 2016 Russian Imports 2.302.192 1.869.119 From Italy 264.752 254.200 Italian Share 11,5% 13,6% Italian Rank 2 2 Germany 3,8% 4,8% France 22,0% 14,7% Holland 0,6% 1,2% Belarus -- 3,8% USA 2,0% 2,7% China N.A N.A Import values in US $ 1.000 Import values in US $ 1.000 accounting ERP import legal tax 10 Source: SCHNEIDER analyses on ICE ONU/Comtrade
Italy grows in all possible categories Oil&Fats 2007 2016 Russian Imports 1.243.672 1.158.984 From Italy 29.848 46.359 Italian Share 2,4% 4,0% Italian Rank 9 6 Germany 2,2% 0,9% France 0,1% 0,1% Holland 7,2% 8,8% Belarus -- 0,6% USA 1,1% 0,2% China 0,3% 0,2% Oven Products 2007 2016 Russian Imports 231.410 291.545 From Italy 43.736 57.725 Italian Share 18,9% 19,8% Italian Rank 2 2 Germany 14,3% 17,2% France 3,1% 2,4% Holland 1,2% 2,4% Belarus -- 7,2% USA 0,5% 0,7% China 1,3% 4,0% Import values in US $ 1.000 Import values in US $ 1.000 accounting ERP import legal tax 11 Source: SCHNEIDER analyses on ICE ONU/Comtrade
Neighbouring countries have benefits Manufactured Potatoes 2007 2016 Meat 2007 2016 Russian Imports 84.027 109.281 From Italy -- 219 Italian Share 0% 0,2% Italian Rank -- -- Germany 0,9% 2,7% France 0% 4,5% Holland 18,6% 34,5% Belarus -- 1,8% USA 0,4% -- Russian Imports 5.279.213 2.527.427 From Italy 31.675 20.219 Italian Share 0,6% 0,8% Italian Rank 11 9 Germany 6,1% 0,3% France 2,9% 0,7% Holland -- -- Belarus -- 28,8% USA 20,0% 0,2% China 0,1% 0,6% Poland 37,9% 35,2% Import values in US $ 1.000 Centre/South America Import values in US $ 1.000 50,1% 63,5% accounting ERP import legal tax 12 Source: SCHNEIDER analyses on ICE ONU/Comtrade
Italy is strongly nr. 1 in wines Wine 2007 2016 Russian Imports 465.466 611.273 From Italy 55.689 139.982 Italian Share 12,2% 22,9% Italian Rank 3 1 Germany 7,2% 1,7% France 27,8 15,5% Holland NA NA Belarus NA NA USA 0,8% 0,4% China NA NA Sparkling Wine 2007 2016 Russian Imports 113.249 116.590 From Italy 57.530 67.506 Italian Share 50,8% 57,9% Italian Rank 1 1 Germany 1,8% 0,2% France 32,6% 32,5% Holland NA NA Belarus NA NA USA -- -- China NA NA Import values in US $ 1.000 Import values in US $ 1.000 accounting ERP import legal tax 13 Source: SCHNEIDER analyses on ICE ONU/Comtrade
Final considerations Russian market is a roller-coaster, with a big value (15 Bln $); Italian products are very well accepted: some of them are struck by counter-sanctions; New emerging countries are expanding in Russia, being part of CIS; 2 main opportunities for Italian manufacturers: enter and expand in Russia; enter and expand in CIS countries. accounting ERP import legal tax 14
tra il dire e il fare Is my product accepted in Russia? How can I sell there? Market size Local vs imports Export Localization Importer/RepOffice/Legal Entity How do I cover the market Certifications & Legal Sales&Marketing Organization accounting ERP import legal tax 15
How to exploit the opportunity Have a strategy; Do not act alone. Select a reliable partner in the selected target country, for all issues from market study and partner search and development, to all what s linked to custom and legal aspects; Organize the follow-up to first sales: set-up an effective and efficient structure. accounting ERP import legal tax 16
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