It's cucumber season in Russia. The green vegetable is stacked in braided baskets in a store of the popular Moscow supermarket chain, WkusWill. Tasty tomatoes and apples are drawing in customers as well.
Unlike any other supermarket in the Russian capital, WkusWill (Eng. 'the taste of life') is betting on regional products. Whether it's ground meat or cheese, everything is produced in the area, says representative Jewgeni Schtschepin.
"We're selling pure products that only contain what is listed on the label. There's no hidden ingredients, no additives, substitutes or preservatives," he tells the German Press Agency.
Regional production has been a quality label in Germany for years. In Russia the awareness has been growing since the beginning of the sanction-wars with the West in 2014. Russia's embargo on products from the EU and USA had its third anniversary on Sunday (August 6th). Russia is using it as a counter attack to the sanctions put in place by the West due to the Ukraine-conflict.
In June, president Vladimir Putin had extended the embargo until the end of 2018. Agricultural minister Alexander Tkatschow called this "fantastic news for domestic agriculture". Obviously, this is about protectionism as well. The import ban needs to stay intact for another ten years, as it helps the investments: "We're not losing anything, we're only winning."
This doesn't convince all of the experts. If it wasn't for the ban, foodstuffs in Russia would be approximately three percent cheaper, calculated scientists of the Russian Academy for National Economy (RANEPA), according to the newspaper «RBK». This means, consumers could save an extra 4,400 Roubles (60 Euros) annually, without the ban.
At WkusWill, everyone is convinced the embargo is spurring on business. Cheese is a good example, according to representative Schtschepin. Ever since barely any Western cheese is on the market, the sales of domestic creations have increased.
"This was a surprise to us," says Schtschepin. "Our producers are even assuming, they could sell their cheeses more expensively if the ban was suddenly lifted." Nevertheless, WkusWill is working with small producers. The quality of Russian mass production is criticized by the consumers.
In a city such as Berlin, a store like WkusWill would be considered a hip organic store. The logo of the company is glowing in a healthy green, the employees are dressed in green fleece jackets. With only 80 to 220 square meters, the stores are smaller than those of the competition. There are no colourful images on the packaging and only the necessary information. The message of this minimalism: It's about what's on the inside that counts.
The founder of WkusWill is celebrated like a rockstar. The economy newspaper «RBK» selected 42 year-old Andrej Kriwenko as Entrepreneur of the Year in 2016. His casual attire on any photograph taken of him emphasizes his youthful looks; in interviews he seems relaxed.
When the trained manager Kriwenko opened his first store, with little funds - still using a different name - in 2009 - the project grew quickly. WkusWill does not want to comment on revenues and profit. Experts of the paper 'Wedomosti' estimate revenues of 5.6 billion R in 2015 and 15 billion in 2016. This year, they're expecting up to 28 billion (400 million Euros).
The chain is cooperating with 500 suppliers. At times, they've opened five new stores per week, despite the recession and sanctions. There are about 360 stores and within the next three years this number is supposed to go up to 1,000. But the company wants to retain their regional character and stay within the area of Moscow.
More and more companies are getting in on the trend of local products as well. An up and coming burger restaurant in downtown Moscow is using local meats and is additionally selling juicy steaks to go. A small butcher business is offering products from the area of Twer, North of Moscow - for a quite high price, unlike the affordable WkusWill.
The employer association Opora Rossii is betting on the sanctions staying intact for a long time. "Why do we need expensive Polish apples, if we have Russian ones as well?", says presidium member Juri Sawelow. He thinks that if imported goods were to appear on the market again today, many producers would be in big trouble.
The chain is cooperating with 500 suppliers. At times, they've opened five new stores per week, despite the recession and sanctions. There are about 360 stores and within the next three years this number is supposed to go up to 1,000. But the company wants to retain their regional character and stay within the area of Moscow.
More and more companies are getting in on the trend of local products as well. An up and coming burger restaurant in downtown Moscow is using local meats and is additionally selling juicy steaks to go. A small butcher business is offering products from the area of Twer, North of Moscow - for a quite high price, unlike the affordable WkusWill.
The employer association Opora Rossii is betting on the sanctions staying intact for a long time. "Why do we need expensive Polish apples, if we have Russian ones as well?", says presidium member Juri Sawelow. He thinks that if imported goods were to appear on the market again today, many producers would be in big trouble.
Source: Proplanta