The first licensed private label co-branded project in the Russian market
St. Petersburg, Russia, 2016-Nov-09 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, and The Walt Disney Company CIS are pleased to announce the launch of a range of co-branded food products for children offered as Lenta’s private label products.
In 2016, the new product range will comprise six products, including breakfast cereals, jelly beans and cookies. The product packaging will feature Mickey Mouse, the world’s best known animation character, and his friends – Pluto, Minnie Mouse, Donald Duck, and others. The specially designed packaging featuring Disney characters will make the new range products particularly appealing to children and parents. The sales launch is scheduled for November 2016, with more new products to be added to the range during 2017.
All products comprising the new product range meet the highest quality standards that are consistently applied by Lenta to its private label products. Moreover, this product range meets additional requirements to product quality assurance and product safety applied by Disney. Independent social audits and checks for compliance with international labour standards were carried out at the facilities that manufacture Disney-branded products. All producers providing supplies for the new product range have been certified to ISO 22000, and their products are in compliance with Disney’s exacting dietary requirements to provide maximum health benefits to children.
Breakfast cereals, jelly beans and cookies for the new product range will be produced in Russia.
Jan Dunning, Lenta’s CEO, said: “We are excited about the start of our partnership with Disney. Today, Lenta is particularly focused on developing its private labels and we make an extra effort to ensure that these products meet the highest quality standards. Our partnership with Disney in this area is a fundamentally new stage in the development of Lenta’s private labels. We are proud to be the first company in the Russian food market to launch a licensed private label co-branded project. We hope the new products will be a success with both adult and little customers”.
“Creating new niche segments for licensing is a strategic focus for our company. The launch of the first licensed private label co-branded project in Russia is a milestone in the development of the Russian licensing market and Disney’s local business,” said Marina Jigalova-Ozkan, Managing Director for The Walt Disney Company CIS. “We are excited to drive a change in the market in partnership with a major market player like Lenta”.
In 9M 2016, sales of private label products accounted for 12.4% of Lenta’s total sales.
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 160 hypermarkets in 74 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 990,442 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.
The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 34,134 people as of 30 June 2016 1.
The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.
A brief video summary on Lenta’s business and its Big Data initiative can be seen here.
About Disney in Russia
The Walt Disney Company CIS, a subsidiary of The Walt Disney Company, was founded in April 2006. Marina Jigalova-Ozkan is the CEO of The Walt Disney Company CIS. In Russia and the CIS, the company’s business activities include film production and distribution, stage productions, the production and distribution of TV content, the Disney Channel, consumer product licensing – apparel, toys, children’s products, stationery, food products, cosmetics etc.; licensing publications – children’s books and magazines; the production and distribution of digital video content; development and distribution of console, mobile and online games; as well as promotion of Disney theme parks and Disney Cruise Lines to Russian tourists.
About The Walt Disney Company globally
The Walt Disney Company (TWDC, NYSE – DIS), a world leader in the entertainment industry, was founded by Walt Disney in 1923. Disney is one of the top Dow Jones Industrial Average companies. The company’s revenue amounted to USD 52.5 billion in FY2015. TWDC owns a variety of brands including Disney, Pixar, Star Wars, MARVEL, ABC, ESPN Maker studios and others. For further information about The Walt Disney Company please visit www.thewaltdisneycompany.com
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