Progress in baby food production

PROGRESS OJSC is a Russian production company for the production of baby food. The history of the company began back in 1987. PROGRESS OJSC produces FrutoNyanya and Malysham baby food, as well as Lipetsk Buvet mineral water. The high-tech plant of PROGRESS OJSC is located in the Lipetsk region and annually produces more than 1 000 000 000 units of products.

History

2024: NLMK owner Vladimir Lisin bought Progress

Vladimir Lisin, owner of the Novolipetsk Metallurgical Plant (NLMK) and one of the richest entrepreneurs in Russia, acquired a large producer of baby food JSC Progress. Information about the completion of the transaction appeared on September 30, 2024. The acquisition of Progress JSC may be a strategic step for Vladimir Lisin, allowing him to diversify his business portfolio and strengthen his position in the promising segment of the food industry.

According to Kommersant, Vladimir Lisin's structures have become the new owners of Progress JSC, known for its Frutonyanya, Malysham and Lipetsk Buvet brands. The amount of the transaction, according to estimates of the managing partner of Walnut Capital Artem Motorny, could be ₽80 - ₽85 billion.

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Freepik

Progress JSC, founded in 1988, is one of the leading producers of baby food in Russia. The company produces a wide range of products, including juices, vegetable and fruit puree, ready-made soups and porridge. The production facilities of the enterprise, located in Lipetsk, allow the production of up to 2 billion packages of products per year.

According to the estimates of the Soyuzmoloko Association, by 2024 Progress JSC occupies 10-12% of the retail market for dairy products for children, which provides the company with the third place among all players in the industry.

The acquisition of Progress may allow Vladimir Lisin, whose fortune Forbes estimates at $26.6 billion, to strengthen his agricultural portfolio. The businessman has already consolidated agricultural assets in the Rumelko group, which includes dairy complexes in several regions of Russia with a total capacity of 180 thousand tons of products per year.

Experts interviewed by the publication note that the baby food market in Russia is showing steady growth. From July 2023 to July 2024, retail demand for baby food increased 13.5% in physical terms and 16.7% in monetary terms, according to NielsenIQ.^[1]

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