Megapolis, GC

GC MEGAPOLIS is a group of companies that owns and manages assets in the field of distribution and logistics of consumer goods (FMCG) such as: tobacco products (including cigarettes, cigars, cigarillos, tobacco), alcoholic beverages, groceries, lighters, food elements, contraceptives, power, etc.

Aktivs

For 2017, the Megapolis Group of Companies includes:

• JSC Trading Company Megapolis,
• LLC "Megakom,"
• Cigar House Fortuna LLC,
• PJSC Sovinteravtoservice.

Delivery of goods to more than 160,000 retail outlets throughout Russia is carried out by more than 3,300 own cars of Megapolis Group of Companies.

Key Product Areas

Performance indicators

2023: Revenue - RUB 1.07 trillion, net profit - RUB 25.84 billion

The revenue of the supplier of cigarettes, drinks and condoms "Megapolis" in 2023 reached 1.07 trillion rubles, and net profit - 25.84 billion rubles. These financial indicators of the group became known in July 2024.

The income of the Megapolis Group of Companies is quoted by Kommersant with reference to the data of the SPARK-Interfax system. The publication does not indicate the company's revenues for 2022. The publication notes that the group has achieved such results, including through direct contracts for the distribution of JTI products in the Russian Federation (Winston, Camel, LD, Sobranie cigarettes), Philip Morris (Marlboro, L&M, Parliament), International Tobacco Group (Davidoff, West, Jade), as well as Red Bull and Bullit energy drinks, Durex condoms.

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Freepik

As reported on the Megapolis website, by the end of 2023 the group is the largest distributor in the country for the delivery of consumer goods. The geography of the company's presence extends from Kaliningrad to Kamchatka: more than 300 branches employ 12 thousand employees. The portfolio of Megapolis Group includes contracts for the distribution of consumer goods from leading Russian and world manufacturers. The products are delivered in their own vehicles to more than 160,000 outlets across the country.

The company uses the IQ RETAIL platform, the largest corporate B2B marketplace for ordering goods and processing payment. At the end of 2023, 20,300 outlets joined the electronic system, which place orders automatically, the group said.^[1]

Informatization in Megapolis Group of Companies

Main article: Information technologies in Megapolis Group of Companies

History

2024: Court in Russia deprives Dutch company Megapolis of rights to Megapolis Group of Companies

On August 9, 2024, the Arbitration Court of the Moscow Region satisfied the claim of the Ministry of Industry and Trade of Russia to suspend the corporate rights of the Dutch company Megapolis Distribution B.V. against the Russian tobacco distributor Megapolis. This decision affects the largest wholesale seller of tobacco products and a number of other goods in Russia.

According to Forbes, the lawsuit was filed by the Ministry of Industry and Trade in mid-July 2024. As part of this process, the court decided to temporarily suspend the rights of the foreign owner to manage the company, including the right to vote at shareholder meetings, receive dividends and dispose of shares. Such a decision became possible in connection with the assignment of Megapolis the status of an economically significant organization (EZO) in June 2024. This status allows Russian beneficiaries through the court to receive shares and shares of such companies in direct ownership, excluding foreign structures from the ownership chain.

source = GC Megapolis

Megapolis is the main distributor of tobacco products in Russia, representing the interests of such large international manufacturers as Japan Tobacco International, Philip Morris International and International Tobacco Group. The company's portfolio also includes Red Bull power engineers, Baltika beer, BIC lighters and Durex condoms.

The Ministry of Industry and Trade, based on legislation on the regulation of economically significant organizations, filed a lawsuit to suspend the corporate rights of Megapolis Distribution B.V. This process is part of the government's overall strategy to re-register a number of companies from foreign jurisdictions to Russian ones. Previously, similar decisions were made in relation to the Cyprian X5 other foreign structures that own assets in. Russia

In July 2024, the Ministry of Industry and Trade of Russia filed an application with the Arbitration Court of the Moscow Region. As a result of the consideration of the claim, Megapolis Distribution B.V., registered in the Netherlands, lost its rights to manage the Russian subsidiary.^[2]

2016:300 branches nationwide

The company has more than 300 branches from Kaliningrad to Petropavlovsk-Kamchatsky, which employs about 15 thousand people.

2013: Philip Morris and Japan Tobacco each acquired 20% of the company

In 2013, Philip Morris International and Japan Tobacco International announced the acquisition of a 40% stake in Megapolis Distribution BV, which owns the Megapolis group of companies.

Each of the tobacco giants will pay 750 million for a 20 percent package. dollars Another $100 million can be paid if shareholders satisfy Megapolis's operating performance within four years of the sale.

Megapolis is a strategic asset of Igor Kesaev's Mercury group of companies. After the deal, his company, Megapolis Investment B.V, will retain control of a 60% stake.

Miroslav Zielinski, President of PMI Eastern Europe, Middle East and Africa Region and branches of Duty Free, commented on the deal:

to earnings opportunities for PMI, this transaction lays the groundwork for further infrastructure and operational improvement in a strategic area such as distribution and will ultimately have a positive impact on the development of our leading brands' broad portfolio."

Megapolis is one of the leading distributors of consumer goods in Russia. First of all, the company specializes in working with tobacco products and drinks. In 2013, Megapolis occupies about 70% of the Russian cigarette distribution market. The company partners with PMI, JTI, Imperial Tobacco Group and other manufacturers.

Russia is the largest tobacco market after China, with 370 billion cigarettes in 2012. According to Nielsen, PMI's market share reached 26.1% in September 2013. In October 2013, JTI's market share was 36.3%.

As of July 2013, the company operated throughout Russia through more than 240 branches throughout the Russian Federation and more than 40 in Ukraine. The number of outlets with which Megapolis Group of Companies works directly is more than 150,000 in Russia and more than 70,000 in Ukraine. The number of employees in Russia is more than 13,400 people and more than 2,900 in Ukraine.

The portfolio of Megapolis Group includes distribution contracts in the Russian Federation:

• with tobacco manufacturers: Japan Tobacco International, Philip Morris International, Imperial Tobacco Group;
• long-term distribution agreement with the manufacturer of alcoholic beverages, OJSC "Brewery Company" Baltika "(Carlsberg Group);
• distribution contracts with tea and coffee producers - Sara Lee (Moccona, Pickwick, Piazzo D'Oro), Milagro Food, M.J.F. Teas (Dilmah);
• distribution contract with energy drinks manufacturer Red Bull GmbH (Red Bull, Bullit);

Also, Megapolis Group of Companies promotes on the Russian market:

• lighters from Neska (Cricket), Flamagas S.A. (Clipper), Amatti,
• power cells of companies, Samsung Energizer,, Kodak
• the company's contraceptives -Megapixel medical lump (Durex, Contex, Erotica Deluxe, Hussars, Temptation).

2011: Launch of small wholesale trade for individuals

In 2011, Megapolis Group launched the Cash & Carry (Omega) format, and now most branches of the company sell products to both legal entities and individuals (end users).

In 2011, the Cigar House of Fortune began work in Russia, which is engaged in the import and distribution of elite tobacco products: cigars, hookah and pipe tobacco, cigarillos, accessories.

2009: Sovinteravtoservice is part of Megapolis Group of Companies

In 2009, PJSC Sovinteravtoservice, one of the largest dealers in commercial vehicles in Russia, became part of Megapolis Group of Companies. In the same year, MEGAPOLIS Group made the transition of the direct delivery system from sale "from board" to delivery by prior order.

2008: Signing with Japan Tobacco International

In 2008, a contract was signed with Japan Tobacco International.

2007: Signing with Philip Morris International

In 2007, MEGAPOLIS Group signed a contract with Philip Morris International, the number of regional branches exceeded 250.

2006: Distribution network for 140,000 outlets

In 2005, the number of outlets covered by distribution exceeded 71,000, and a year later this figure was already 140,000.

2003: Contracts with Gallaher Group and OAO Baltika

In 2003, contracts were signed with Gallaher Group and Baltika OJSC. Distribution of alcoholic beverages began, and the total turnover of the company exceeded 25 billion rubles. In 2004, the company's management launched a direct delivery development project, and the number of regional branches by that time had already reached 100.

2002: Launch of Grocery, Food Distribution

Since 2002, Megapolis has been diversifying its portfolio. A developed regional network, modern logistics infrastructure, a common corporate information storage system contribute to the successful implementation of other product areas: groceries, alcoholic beverages, food, etc.

2001: Development of the regional structure

The intensive development of the regional structure began in 2001, in the same year a contract was signed with the Reemtsma tobacco factory (which became part of the Imperial Tobacco Group since 2002). A year later, the number of regional branches of MEGAPOLIS Group of Companies with its own warehouse space exceeded 50.

2000: A portfolio of tobacco contracts formed

In 2000, a portfolio of tobacco contracts was formed, which forms the basis of the company's business.

1998: Establishing a Company

GC MEGAPOLIS was established in 1998.

Notes