RDIF and Belgium’s La Lorraine Bakery Group announce joint investments in Russian food production industry
Saint-Petersburg, June 4, 2021 – The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, and Belgium’s La Lorraine Bakery Group (LLBG), one of the leading producers in Europe of bakery products, announce a cooperation agreement aimed at the joint development of projects in bakery production and distribution in Russia.
The announcement was made on the sidelines of St. Petersburg International Economic Forum.
Cooperation will be executed through investment in La Lorraine Russia - La Lorraine’s existing affiliate in Russia. The partnership will significantly increase the scale of La Lorraine’s operations and localize the production. On June 7, the construction of Company’s local plant in the Kaluga region will start.
La Lorraine’s strategy is focused on expanding the business and increasing market share in Russia with a total initial investment of almost €50 million. The local production will make high-quality affordable bakery goods available for retail and food service customers and consumers in Russia.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
“Supporting import substitution and advances in food processing is an important part of our investment strategy. RDIF’s portfolio already includes a number of major projects in agriculture and food sector, and we aim to extend it through partnership with LLBG. This cooperation will help bring advanced technology and expertise to the Russian market while also creating new jobs and reducing import costs for the Company with support from RDIF.”
Guido Vanherpe, CEO of La Lorraine Bakery Group, commented:
“La Lorraine Bakery Group is present on the Russian market for several years and is actively building commercial relationships with big retail chains & foodservice customers in Russia to develop together the frozen bake-off bakery business opportunity in both in-home and out-of-home consumption. We want to offer the Russian consumer access to a wide variety of high quality, premium taste & appearance, affordable bakery products, produced locally in Russia and are therefore investing, with the support of RDIF, in the building of a new state of the art bakery plant in Russia, which is planned to open for local production in one year from now, by mid-2022. The partnership with RDIF will provide La Lorraine Russia with additional financial resources and professional support to accelerate its investments and expansion in the Russian market.”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 80 projects with foreign partners totaling more than RUB2 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 18 countries that total more than $40 bn. Further information can be found at rdif.ru
La Lorraine Bakery Group (LLBG) is a 100% Belgian family-owned business active in the milling and bakery industries and offering a wide range of high-quality bakery products. Every day, more than 4,000 enthusiastic employees produce and sell high-quality bakery products in more than 50 countries to consumers, supermarkets and the foodservice sector. As a leading, growth-focused international company with more than 12 production units in 5 countries, we are driven by our passion for growth and our steadfast determination to transform the bakery market by deploying our many years of experience and expertise, new technologies and the talents of our highly motivated employees. The Group is structured into four business units: Bakery Frozen, Bakery Fresh, Store Concepts and Milling. Our main financial objectives are long-term value creation and qualitative growth through innovation and entrepreneurship. More info on www.llbg.com/en-en
For additional information contact:
Russian Direct Investment Fund
Director for External Communications
Mobile: +7 915 312 76 65
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133
Nele Van Malderen
La Lorraine Bakery Group
Chief Communication & Sustainability Officer
Tel: +32 470 500 200