Crab sticks sprout in Russia – Newspaper Kommersant No. 240 (7441) of 12/26/2022
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The Belarusian fish processor Santa Bremor can localize the production of crab sticks at its Russian Sea plant in the Moscow region. This could be facilitated by difficulties with the purchase of imported raw materials due to the geopolitical crisis, as well as a multiple increase in the production of Russian semi-finished products for crab sticks. Given the trend towards consumer savings and the potential to replace imported raw materials, experts expect the market for these products to grow.
The Russian Sea company, controlled by the Belarusian fish processor Santa Bremor, received declarations of conformity for equipment for the production of crab sticks and imitation crab meat, follows from the data of the Federal Accreditation Service. As stated in the materials, the lines are produced by the Japanese Yanagiya Machinery Co. and imported into the Russian Federation in October of this year.
Santa Bremor is part of Alexander Moshensky’s Santa group, which also includes Savushkin Produkt, a dairy producer, a supermarket chain, real estate, restaurant and hotel assets. Santa Bremor, according to its own data, includes five factories in Belarus and one in the Russian Federation. More than 120 thousand tons of products are produced annually, including products from red fish, herring, seafood, crab sticks, etc.
Santa Bremor bought the Russian Sea from the structures of Maxim Vorobyov and Gennady Timchenko in 2013. The Russian company operates a plant in Noginsk near Moscow, which specialized in the processing of salmon and trout, as well as the production of caviar. Today, retail chains have crab sticks and imitation crab meat under the Russian Sea brand, made in Belarus, Kommersant was convinced. The Russian Sea and Santa Bremor did not provide any comments.
German Zverev, president of the All-Russian Fisheries Association (VARPE), notes that Santa Bremor produced a wide range of products in Belarus, primarily from Norwegian salmon, the import of which into the Russian Federation has been banned since 2014. This spring the company has suspended supply of part of the range due to difficulties with raw materials after the tightening of Western sanctions. Probably, Belarus as a place of the main production has ceased to be interesting, Mr. Zverev notes.
A Kommersant source among fish processors adds that Santa Bremor could use raw materials (surimi) from American pollock for crab sticks, the purchase of which could also be complicated after the outbreak of hostilities in Ukraine. And importing surimi from Asian countries to Russia is more convenient, cheaper and faster in terms of logistics than to Belarus, German Zverev adds.
As noted in the VARPE, the localization of the production of crab sticks in Russia may also be associated with an increase in local production of surimi from 2021. Aleksey Buglak, president of the Pollock Association, says that by the end of November 2022, Russian pollock surimi production had quadrupled to over 24,000 tons year-on-year. Alexey Osintsev, President of the Association of Fishing Fleet Owners, adds that this year it is planned to produce 28.6 thousand tons, and in 2023 – 52.5 thousand tons of surimi. As new vessels are commissioned, production will continue to grow, which will completely replace imports from Southeast Asian countries, the expert predicts.
According to German Zverev, the possibility of substituting imports of raw materials will have a positive impact on the market, since crab sticks are one of the most popular and affordable types of fish products in Russia with consistently high demand and growth potential. Executive Director of the Association of Industrial and Commercial Enterprises of the Fish Market Alexander Fomin notes that crab sticks meet the demand of some consumers for economical consumption.
According to the NielsenIQ retail audit, from January to December 11, 2022, sales of crab sticks grew by 1.1% in physical terms and by 15.9% in money year-on-year. For comparison: sales of ready-to-eat frozen seafood over the same period decreased by 17.6% in volume and by 6.8% in money terms.
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