Krasnodar, Russia (February 15, 2023): As of the end of 2022, the share of domestically manufactured products in Magnit reached 95%. Despite the high base, the Company continues to expand the presence of Russian goods on its shelves.

Turnover under contracts with domestic suppliers grew by over 19% year-on-year.

In 2022, Magnit added 905 Russian manufacturers to the list of its partners. The categories that saw the largest influx of new suppliers included fresh vegetables (184 contractors) and fruits (126), bread and bakery products (95), and manufactured goods (74). In addition to that, Magnit significantly increased the number of Russian suppliers of dairy products, cheese, confections, dry foods, and frozen products. On the back of the departure of a number of foreign brands, Magnit gained 48 new Russian soft drink suppliers.

Overall, Magnit works with more than 6,100 suppliers, 5,300 of which are Russian. Around a half of domestic suppliers are small and medium-sized local businesses.

In order to attract new suppliers, the Company regularly holds procurement sessions in the regions. For small Russian companies and farms, Magnit offers a number of projects to help promote their products, as well as special conditions for listing.

For example, Magnit works with Russian agricultural producers under long-term contracts that guarantee delivery volumes. In 2022, the volume of fruits and vegetables delivered to Magnit stores by domestic suppliers under such agricultural contracts exceeded 340 thousand tonnes. Moreover, 45% of goods supplied under these contracts are farmed products. In addition to that, the Company has developed a special contract form for small agricultural businesses that, among other things, sets shorter payment terms for the Company. To promote farmed products in its stores, Magnit created special display formats — so-called “farmers’ corners” and “farmers’ markets”. In November 2022, the Company created a special aggregator in the Tula region to centralize deliveries of farmed products, which also provides farmers with a number of specialized services (from helping with product labeling to co-financing raw material and equipment procurement). After the pilot is completed, Magnit will analyze the results to decide on whether to scale the aggregator model to other regions.

Egor Shumilin, Magnit’s Commercial Director for Fresh Products:

“Just like our customers, we too appreciate Russian producers for the fresh and unique products they offer to us. Despite already having a huge pool of domestic suppliers, we still see further potential for increasing their numbers, most notably by engaging small businesses and farms. Expanding representation of local products made in different Russian regions on the shelves of our stores remains one of top priorities.”

Share of Russian Products in Magnit Stores Reaches 95%