Produkty Pitania hosts a delegation from the Saint-Petersburg Youth Business Organization in the North-West
— 2006-05-26 —

On May 26, a delegation from the Saint-Petersburg Youth Business Organization in the North-West visited Produkty Pitania – Kaliningrad’s largest investor and Russia’s leading manufacturer of frozen convenience foods. This delegation included staff from the Netherlands General Consulate and the Honored Consul of Australia, along with representatives from foreign companies operating in Saint-Petersburg. They came to learn more about successful economic development efforts in Kaliningrad, a region they find particularly interesting, given its progressive Law On Special Economic Areas.

But in addition to their primary mission, delegation members wanted to explore Kaliningrad’s potential for attracting new investors. Upon arriving in the region, they met with both the city’s Mayor and the head of his Economic Department, along with various ministers of industry and economy from within the regional government. The discussion focused on production facilities that use assembly operations.

Many of the delegation’s members concluded that Kaliningrad was a gold mine for companies that produce electronic and household products, explaining that foreign companies are highly interested in this market and might want to pursue it further by locating their operations in the region.  What’s more, Oleg Skvortsov, Executive Director for the Association of Foreign Investors in Kaliningrad (FIAK), said that the group was interested in the rapidly developing ports of Baltiisk and Kaliningrad, which are potential partners for foreign logistics companies and companies that ship overseas.

Produkty Pitania’s high-tech plant was the highlight of the tour, impressing guests with its state-of-the-art equipment, strict standards, and large production capacity. 

Natalia Kudriavtseva, Executive Director for Saint-Petersburg Foreign Investors Association, spoke on behalf of her colleagues, saying “We are amazed at the scale of this efficient company, which has managed to capture 40% pf the Russian convenience foods market. Its production development rate is also impressive, as the company generates a large number of jobs for local residents. In addition, we could not help noting the great deal of care that company employees take in terms of labor protection and product quality. This is good information to have.”

Sebastian Fitzlion, Honored Consul of Australia in the North-West region of the Russian Federation, went on to add “Produkty Pitania is an excellent example of a wonderfully successful investment, especially for companies that might doubt the region’s business potential.

“I believe that our business people, who have so far focused on the Far East, will as time goes by establish closer relationships with their colleagues in Kaliningrad.  In any case, there is already some progress in this respect. I was impressed with the region’s mayor and his deputies, and believe that Kaliningrad offers numerous advantages, particularly with its two seaports, which are a big draw for new businesses. But investors worry about the region’s limited workforce, as well as the fact that Russia remains a highly bureaucratic country. Unfortunately, visa regulations for foreigners have become stricter than they used to be five years ago. All of this impedes investments and I believe it is high time for change.”

Nevertheless, Stefano Vlahovic – FIAK’s Chairman and Produkty Pitania’s CEO – reiterated that investors should not focus on these issues, but rather learn to work around them. Vlahovic went on to say that Kaliningrad’s local and regional government actively supports business development, making the region more attractive for foreign businessmen.  In fact, FIAK now boasts 23 members, with up to three new companies applying for membership every month. 

Naturally the discussion got around to Produkty Pitania’s Russian development prospects, as well as its plans to expand the company’s sales into other European countries.  Vlahovic emphasized that CIS and Russia represent a large share of the market, “demonstrating that as fast food services evolve and average salaries continue to rise in major cities there, consumers will demand a much larger range of products.” 

He further underscored Produkty Pitania’s strategic development objectives in Russia by revealing its plans to build a new plant in Gusev, which will be one of the largest of its kind in the world, delivering thousands of tons of products each day.