Gruppo Veronesi and Finest SpA launch new Russian venture
Veronesi has invested some €11 million in a pilot project involving the creation of a white meat supply chain, partly financed by Finest.
Quinto di Valpantena, Verona, 24 September 2019
Gruppo Veronesi is investing some €11 million setting up its first integrated supply chain in a foreign country, producing white meat in a pilot project supported by Finest, which funds international expansion by companies in northeast Italy. The Russian operation will give Veronesi access to one of the world’s fastest-growing markets, and consolidate its international growth. The company exports to over seventy countries in Europe and around the world.
Veronesi is one of Italy’s leading agrifood companies, exporting 16 percent of the output of its twenty-three production sites in Italy. It is now working with a Russian minority shareholder to implement an entire turkey supply chain. Its new facility in the district of Belgorod, the first foreign factory in the group’s history, is being built in response to growing consumer demand for high-quality poultry in Russia.
The pilot project will create an integrated food chain comprising a number of farms, a processing plant, and fresh meat distribution and sale operations, all targeting the local market.
Group chief executive Luigi Fasoli commented: “This project is the result of our wish to explore new markets such as Russia, where white meat consumption is growing, and we believe we can achieve significant growth over the coming years. We’re proud of this startup, which is a local joint venture with Finest and gives us access to one of the world’s most promising markets.
“This is our first foreign integrated supply chain. During its initial phase, it will enable us to offer Russian consumers an extremely fresh product, one of our company’s USPs.”
The pilot project will enable Gruppo Veronesi to maximise its potential and make an impact on the complex Russian market, where 2018 trade volumes with Italy stood at €21.4 billion, up 5 percent on the previous year. It is part of the group’s wider efforts to increase its global reach, which have also included research and development aimed at developing a better understanding of foreign consumer tastes.
Finest, the project’s equity partner in Russia, has provided both technical and financial support. It has contributed direct foreign funding, and owns 22 percent of the group’s Russian sub-holding company, specifically set up for the project.
“The food sector showcases the excellence of Italian manufacturing,” said Finest SpA’s CEO, Eros Goi. “It’s one of our most valuable assets abroad, and Gruppo Veronesi’s Russian project is very much in line with Finest’s model of internationalisation. It allows companies to become global players with a combination of quality, competitiveness, and strategy. We’re proud to be partners in this exciting venture.”
Gruppo Veronesi is Italy’s leading integrated food supply chain, making, processing and distributing animal feeds and traditional Italian gourmet meat products. Its market-leading brands Veronesi, AIA and Negroni employ over 8,000 people at twenty-three factories in Italy.
The group achieved revenue of €2.97 billion in 2018, making it one of the country’s top five food companies by sales. In the same year, the company sold products to seventy-nine countries, and exports accounted for 16 percent of total sales.
Finest SpA is a company that funds global expansion by businesses in northeast Italy. Its shareholders include Friulia SpA, Veneto Sviluppo, Veneto regional council, Trento provincial council, Simest, and a number of local banks.
The company operates in forty-four countries in central and eastern Europe, the Mediterranean region, and the Commonwealth of Independent States. It has been supporting international projects for twenty-five years by acquiring interests in the foreign subsidiaries of companies in northeast Italy. Apart from finance, Finest draws on know-how accumulated from over 500 foreign transactions worth more than €300 million, providing a wide range of services designed to help companies achieve international success.