Regional expansion is the direction for our development. In 2012, we started to enter external markets by launching deliveries to Kazakhstan. At the same time, we strengthened our positions in the domestic market. Quality food products, high brand awareness, competitive packaging and advanced logistics system are key factors for successful sales development.

KOMOS GROUP’s sales system involves retail and wholesale conducted by its branches, “Trading company” and “Trading house”, with a total turnover of 5,2 billion rubles. KOMOS GROUP’s products are delivered to Russia’s largest retail chains: “Perekrestok”, “Lenta”, “Pyatyorochka”, “Magnit”, “Ashan”, “Karusel”,“Real Hypermarket”, “The Seventh Continent”, “Dixi”, “Kopeyka”, “BILLA”, and «SPAR». At the same time, we actively develop our own retail chain “Tasty house”. 2012 annual turnover of the chain exceeded 993 million rubles. KOMOS GROUP member companies’ products and private label products account for over 41% of this sum.

KOMOS GROUP’S GEOGRAPHIC REACH IN 2012, TONNES
251 340 / 52%
The Udmurt
Republic
50 202 / 10%
Perm
region
40 271 / 8%
Moscow
and Moscow
region
25 420 / 5%
Arkhangelsk
region
23 168 / 5%
Kirov
region
17 718 / 4%
Sverdlovsk
region
15 010 / 3%
Leningrad
region
12 764 / 3%
The Republic
of Tatarstan
10 528 / 2%
The Mariy El
Republic
5 745 / 1%
Samara
region
4 956 / 1%
Chelyabinsk
region
24 067 / 5%
Others

In 2012, we focused sales and distribution development on regional expansion by widening the company’s geographic reach to 53 regions of Russia and entering the market of Kazakhstan.Our major markets are the Udmurt Republic (52%), Perm region (10%) and Moscow region (8%). Regional sales of eggs, UHT-milk, hard and sem-hard cheese are developing most rapidly. In each category KOMOS GROUP ranks fifth in Russia among major manufacturers of eggs (data provided by Rosptitsesoyuz), UHT-milk (data provided by Tetra Pak), hard and semi-hard cheese (data provided by “Express-obzor”, a market research company). This demonstrates high growth potential for direct national and regional sales.

In order to create the basis for entering new markets we restructured the company’s marketing department by introducing the institute of brand-managers and trade-marketologists and implementing the system of assessment of marketing activity efficiency.

In 2012, we were actively developing distribution of the company’s dairy products in Perm region in order to strengthen our positions in the Perm market. In 2013, we plan to introduce meat and semi-finished products under “Krasnokamsky meat processing plant” brand to the Perm market and to open our own retail chain.

In 2012, “Milk trading company “Milkom” LLC, a distributor of the company’s dairy products, strengthened its positions in the regions. Currently, the company cooperates with over 1 thousand agents in 40 regions of Russia and in the Republic of Kazakhstan.Consolidation of logistics flows allowed us to expand geographic reach and improve customer service for regional clients.

Compared to 2011, sales volume increased by 29% due to centralized management of product variety, prices and discounts. A unified sales and marketing system of Milk trading company enables timely reaction to market trends and successful release of new products.