Maslenitsa (formerly Bunge CIS)

Bunge CIS LLC owns three popular brands of vegetable oil - Oleina, IDEAL and Maslenitsa, which were included in the company's portfolio, respectively, in 2003, 2005 and 2008, respectively.

According to the Nielsen retail audit, oil of these brands occupies, in total, over 12% of the Russian market.

During 2004-2005, the company acquired grain elevators in the Krasnodar Territory and Voronezh Region, as well as a grain terminal in Rostov-on-Don. With the help of these elevators, as well as regional divisions in the main grain-producing regions of Russia, Bunge actively develops grain exports, and also buys sunflower seeds for its new oil extraction plant.

The construction of the oil extraction plant in the Voronezh region began in the spring of 2005, and at the end of 2008 the grand opening of the new enterprise took place. Investments in this project amounted to $130 million. The capacity of the plant is 500 thousand tons of raw materials per year, which makes it possible to produce over 200 million bottles of sunflower oil.

As part of its global strategy, Bunge identified Russia as a priority market for processing sunflower seeds, as well as harvesting and exporting grain.

Brands

Refined deodorized vegetable oils of Olein and IDEAL have long and successfully existed on the Russian market: IDEAL - since 1994, Olein - since 1997. Shrovetide is a young brand. Oil of this brand has been on the market since 2008.

Natural, clean and rich in vitamin "E," our oils emphasize the natural taste of the products, preserving their beneficial properties.

They are sources of the essential human health natural components found in sunflower seeds.

IDEAL, Shrovetide and Oleina are made with cutting-edge technology, so are equally well suited for both salad and canning and frying.

Oleina

Oleina has been represented in Russia since 1997 and has been one of the most famous brands of vegetable oil over the past decade.

Olein's homeland is Ukraine. Translated from Ukrainian, "oliya" means "oil."

Until 2008, Oleina was imported from Ukraine. In 2008, the opening of a new high-tech plant Bunge CIS LLC in the Voronezh Region took place and the production of Olein for the Russian consumer was transferred to Russia.

The range of Olein's brand is regularly subjected to careful analysis and always reflects the wishes of Russian consumers.

Oleina is versatile in application and equally well suited for frying, baking, canning and dressing salads.

Consistently high quality and attractive price allowed the brand to gain consumer confidence and receive a large number of awards, including:

• 2011: People's Mark No. 1. Awarded based on buyers' views on the brand nationally
• 2010, 2011: - LOVE BRAND in the category of vegetable oils according to the results of an independent OMI study
• 2006, 2007, 2008: Independent Reader Digest Poll Trust Mark
• 2005: SUPERBRAND from independent COMCON study, ACNielsen
• 2003: assessment "EXCELLENT" according to the results of the test of 32 oils of the Research Center of Independent Consumer Expertise "TEST"
• 1999, 2002, 2003: Product of the Year - in the category of vegetable oils
• 1998: Brand of the Year - for successful economic development in a socio-economic crisis

IDEAL

IDEAL brand appeared on the Russian market in 1994 and until 2006 was imported from Argentina.

Since 2006, IDEAL has been produced in Russia, and the assortment matrix of the brand is fully adapted to the tastes of the Russian consumer.

Throughout its existence, IDEAL is one of the most popular brands of vegetable oil in the premium segment.

• Deodorized refined sunflower oil - 1L
• Extra Virgin's Sunflower Refined Deodorized Oil and Olive Oil Mix - 1L
• Pure & Extra Virgin Olive Oil Range - 250ml and 500ml

Maslenitsa

The production of sunflower oil under the Maslenitsa trademark started at the Bunge CIS LLC plant in the Voronezh region at the end of 2008.

Shrovetide is presented in the lower price segment in the 2 most popular packaging formats - 1 liter and 5 liter.

Logistics

To ensure the sustainability and development of grain trading activities in 2005, Bunge CIS LLC acquired two elevators - in the Krasnodar Territory (Kholmsky KHP) and in the Voronezh Region (Kolodezyansky Elevator), as well as a grain terminal in Rostov-on-Don.

The company's enterprises for the storage and shipment of grain and oilseeds are located in the main agricultural regions of Russia, in close proximity to agricultural producers, on the one hand, and key transport arteries, on the other.

This makes it possible to provide raw materials to the oil extraction plant in the Voronezh region and conduct an effective procurement of raw materials for export and for trading operations on the domestic market.

LLC Rostov Grain Terminal receives grain for export and transit both from agricultural producers of the Rostov Region and from other regions of Russia and Kazakhstan.

The terminal ships river-sea class vessels with a cargo capacity of up to 5.5 thousand tons, ensuring uninterrupted deliveries of grain to Bunge customers in Russia and in countries of near and far abroad (Transcaucasia, Mediterranean, etc.).

The company is considering various options for expanding its capacity for the storage and shipment of grain and oil seeds - from the acquisition of existing elevators and port complexes to the construction of new ones.

Performance indicators

2023: Revenue reduction by 16.7% to RUB 26.15 billion

According to the results of 2023, the Russian producer of sunflower oil Maslenitsa reduced revenue by 16.7% compared to 2022 - to 26.15 billion from 31.4 billion rubles rubles, respectively. Net profit during this time increased from 3.22 billion to 3.43 billion rubles. This is evidenced by the reporting data on RAS, which the former Russian subsidiary of the American Bunge published in April 2024.

From the documents of Maslenitsa, to which Interfax refers, it follows that in 2023 the company's profit from sales amounted to 3.84 billion rubles against 2.62 billion rubles a year earlier.

Unsplash

In 2023, the company changed its name from Bunge CIS to Maslenitsa. This happened after the sale of Bunge's Russian business to the main owner of the Exoil Group holding, Karen Vanetsyan. The financial terms of the transaction were not disclosed. Vanetsyan only said that the amount was less than the threshold set by the subcommittee of the government commission on foreign investment for transactions with investors from unfriendly countries.

There are certain conditions that are dictated by the passage of the government commission. And the lower limit is twice as cheap as the estimated cost. I can say that we went below this level. Even we entered this level taking into account the large amount of working capital in the company, - said the entrepreneur.

Tatyana Kozlova, Senior Project Manager of SRG Assessment and Financial Consulting, considers the fair value of the transaction for the sale of Bunge's Russian business to be within 6-10 billion rubles, depending on the composition and structure of the transaction. At the same time, although the enterprise is quite interesting, it is no longer new, so difficulties may arise with the repair and replacement of equipment as it becomes obsolete, she noted.^[1]

History

2023

Nikolay Zhirnov director

A native of Rusagro Nikolay Zhirnov headed Bunge CIS, the former Russian subsidiary of oil producer Oleina Bunge. This became known at the end of February 2023. Read more here.

The Russians bought a business in the Russian Federation from the oil producer "Oleina"

In early February 2023, the American agricultural trader Bunge, a manufacturer of the Oleina, Ideal, Maslenitsa brands, closed a deal to sell the Russian vegetable oil business.

All details of Bunge CIS LLC remained unchanged. The name of the company will be changed in the near future, information about the change of name will be posted on the website, the company said in a statement that did not specify the new name of the organization.

Also on the Bunge website, the asset buyer is not reported. However, earlier it was reported that Bunge will sell its oil processing business in Russia to the controlling shareholder of Exoil Group Karen Vanetsyan. The deal includes a sunflower processing plant in the Voronezh region.

The Russians bought a business in the Russian Federation from the oil producer "Oleina"

Thanks to Karen Vanetsyan's more than 25-year experience in the field of agricultural processing, we are confident that the team will continue to successfully serve customers, "said Bunge CEO Greg Heckman.

Bunge CIS will continue to produce and sell vegetable oils at an oil extraction plant in the Voronezh region under the control of the new owner. The plant was commissioned in 2008. The capacity of the enterprise is 540,000 tons of raw materials and more than 200 million bottles of sunflower oil per year (data for February 2023).

The prospects of the Voronezh asset Bunge CIS depend on the plans of the new owner, said Anna Buylakova, an analyst at Finam FG.

Since Exoil Group is engaged in trading, processing, transshipment and logistics of grain and oilseeds, it can be assumed that the activities of the asset "Bunge CIS" will be complementary to the business of Exoil Group, she notes.

Albina Koryagina, partner of NEO Center, believes that if popular oil brands leave the Russian market after the owner, Vanetsyan's team, in addition to the costs of buying the plant itself, will have to work out the issue of promoting products to the market.^[2]

2022: Russians bought from the American Bunge business for the processing of oilseeds in the Russian Federation

In September 2022, the American agro-industrial company Bunge announced the sale of an oilseed processing business in Russia. The assets were acquired by Karen Vanetsyan, who controls the shareholder of Exoil Group, which is engaged in the purchase of sunflower, processing, trading of oilseeds and grain crops, port transshipment and logistics.

Шаблон:Quote 'The trade deal involves the transfer of a sunflower processing plant in Voronezh. The completion of the purchase is made in accordance with standard closing conditions, including when agreeing with regulators, Bunge said in a statement.

American agro-industrial company Bunge announced the sale of an oilseed processing business in Russia

The financial terms of the transaction were not disclosed, but it is known that it includes a sunflower processing plant in Voronezh. The construction of the enterprise cost $130 million.

According to Bunge CEO Greg Heckman, the company hopes that Karen Vanetsyan's more than 25 years of experience in processing agricultural products will allow the team to continue to successfully serve customers.

One of the main activities of Bunge's division in Russia was the production and sale of bottled vegetable oil. Some of the most famous brands of vegetable oil produced by the company in Russia are Oleina, Ideal, Maslenitsa and others.

The company made the decision to reduce its presence in Russia and sell the business in June 2022. Previously, Bunge CIS accounted for approximately 9% of packaged vegetable oil in Russia.

Other players showed interest in Bunge's Russian business, Kommersant writes, citing sources in the industry. Dmitry Rylko, General Director of the Institute for Agricultural Market Studies, notes that the asset is distinguished by its good condition, optimal location and portfolio of relatively well-known brands.^[3]

Notes