World meat industry news

Following its merger into Cherkizovo Group, Samson is reviving the production of sausages under the same-name brand, the company informed.

The sausage production revival became possible after Cherkizovo Group acquired a 75% stake in Samson ? Food Products in December 2018. According to Cherkizovo's CEO Sergey Mikhailov, the acquisition was very well-aligned with the Group's development strategy as it was set to expand its branded portfolio of higher value-added products. With Samson historically being a very strong brand, the company's management had been considering to reintroduce the sausage from the very start.

The brand's assortment will feature both Soviet and modern European recipes, including the "Finnish" smoked sausage, spicy Italian salami, salchichon, fuet and chorizo. These products will fall under the medium+ and premium price categories. To test the Samson recipes and standards, one of Cherkizovo Group's plants in Moscow will house the sausage production facilities, which will then be moved to Vsevolozhsk, Leningrad region.

Samson, the cult Soviet brand, has existed for over 50 years. Sausages and other meat products under this label were at one time manufactured by the S.M. Kirov Meat Processing Plant, established in 1933 and later renamed the Samson Meat Processing Plant. In early 2000s, production was halted, and only after eight years the brand was relaunched at a new state-of-the-art plant in Vsevolozhsk, landing this time in the fresh category (fresh minced meat and ready-to-cook products).

PJSC Cherkizovo Group (tax number: 7718560636) is an agricultural producer developing an integrated production business from feed-stuffs to ready meat products. The group comprises integrated poultry farms, pork production facilities, meat processing plants, feed mills and elevators. Cherkizovo's beneficiaries are Igor Babaev and his family.

IFRS net profit of Cherkizovo for 2018 grew twice to RUB 12.004 billion from RUB 5.8 billion a year earlier. Revenue increased by 13.5% to RUB 102.639 billion from RUB 90.465 billion, gross profit by 35.5% to RUB 31.923 billion from RUB 23.559 billion, operating profit by 59.9% to RUB 15.55 billion from RUB 9.726 billion. Adjusted EBITDA amounted to RUB 20.416 billion against RUB 14.643 billion (+39.4%).