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Russia: Synergy Continues to Realize its Export Development Program

Source: JSC «Synergy»
21/11/2008

November 20, 2008 - Synergy announced the signing of contracts of BELUGA (super-premium brand) delivery to the European countries and the Middle East. These agreements were reached in the framework of export development strategy realization.

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Specifically, contracts were signed with distributors from such countries as Spain, Czech Republic, Turkey, Lebanon.  In the Middle East BELUGA will be represented in Dubai, Qatar and Bahrain. Synergy, Co. also signed the contracts with Duty Free Dubai (operating in international airport of Dubai) and Duty Free Aerofirst (operating in international airport Sheremetyevo). At the present moment the company is negotiating with distributors from France, Germany, Austria, Poland and Scandinavian countries.

In order to enhance quality and operational efficiency of deliveries to European countries Synergy, Co. established logistical center in Latvia as well.

Alexander Mechetin, the Chairman of the Board of Synergy, Co., noted: “The Company continues to realize BELUGA export program as we see the huge potential and demand for this super-premium brand abroad. Moreover, we anticipate its European sales may grow 4-5 times by 2010-2011 and BELUGA may become the dominant leader in its price segment”.

Synergy is one of the leading and fastest-growing producers of distilled spirits in Russia. It produces a wide range of spirits, but its primary focus is on vodka production. According to the Rosstat Agency April Report, the Company is the second national distilled spirits producer by production volume with a 8% share of the Russian legal market (pro-forma, including Myagkov volume).The 2007 revenue totaled  RUB11.4 billion (up 58% to 2006), operating profit - RUB1.6 billion ( up 66%), net income – RUB0.9 billion (up 30%).

Synergy has a diversified portfolio of local and national vodka brands addressing market demand across the full spectrum of price points from the low-middle price segment to the super-premium price segments. Some of the Company’s regional brands have been in the market for decades and, as a result, enjoy strong loyalty among local consumers. The Company's national vodka brands include Beluga Gold Line and Beluga Classic, Az, Russky Lyod (Russian Ice), Belenkaya (Whitish), Sily Prirody (Powers of Nature), Beloe Ozero (White Lake) and Gosudarev Zakaz (Sovereign’s Order). Its local brands are marketed primarily in the regions where the Group's plants are located and benefit from longstanding consumer loyalty in such regions. 

In November 2007, the Company made the first successful IPO in the Russian distilled spirits sector. 

Synergy operates seven distilleries strategically dispersed across Russia. It maintains a well-developed sales and distribution network which covers all Russia.Synergy also owns and operates a food business divided into four main lines: meat, poultry, seafood and dairy. The Group's food business processing facilities include eight plants located in the Saratov, Khabarovsky and Primorsky regions.  



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