Fresh loaf "Kolomensky"
The general director of the Kolменna Bakery-Confectionery Holding, Dmitry Kozyrev, has confirmed the acquisition of ProdMaster, a major producer of ready-made food in Saint Petersburg. This move signals a shift in strategy for Kolmenna, which has been focusing on growing its bakery business for several years.
Instead of solely expanding on the bakery market, Kolmenna plans to release new products annually, with the ready-made food market being a key focus. Speaking on the matter, Kozyrev emphasized, "Prepared food - it's not just lines of hot dishes and snacks, but a large category of snacks that are increasingly popular as forms of consuming bakery products. This includes sandwiches, burgers, and so on."
Until now, Kolmenna supplied bread and pastries to other prepared food producers, but with the acquisition of ProdMaster, the company aims to become a significant player in this niche.
At first glance, this move deviates from Kolmenna's strategy of expanding its bakery business. However, Kozyrev argues that this is a strategic decision, as the demand for ready-made food is on the rise. According to statistics, the production of fresh bread has been decreasing. For instance, per data from Rosstat, the output of bread and bakery products with short shelf life has decreased by 16% from 2017 to 2023. Nevertheless, Kozyrev clarifies that this is more about structural changes rather than the decline of the bread market as a whole.
Indeed, while the production of fresh bread is decreasing, the sales of ready-made food are booming. In 2024, the growth in sales of ready-made meals reached 28.8%, and analysts expect this trend to continue[1]. By 2030, the market for ready-made food is projected to grow from its current 4 trillion rubles to 10 trillion rubles[1].
The increased demand for ready-made food can be attributed to several factors. Firstly, there is an increase in households with single individuals, and in many families, people prefer not to spend time and effort on cooking. Secondly, the trend towards ready-made food has been boosted by the growth of fast food delivery services. In 2024, the Russian market for food delivery services exceeded 600 billion rubles, marking a 21% increase[1].
Leading players in the ready-made food market are retailers and marketplaces. According to Infoline-Analytics data, retailers increased their sales of ready-made food by 33% in 2024, reaching 990 billion rubles[2].
Retailers are not only displaying ready-made meals in their regular stores but are also experimenting with different sales formats. For example, in July of this year, Magnit plans to open mini-stores called "Zarya from Magnit" in Moscow, with a focus on ready-made meals.
Online marketplaces like Yandex.Lavka also play a significant role in the ready-made food market. According to some estimates, in every third order placed on Yandex.Lavka, there are ready-made meals[2].
Major food production companies are also entering the ready-made food market. For example, Unilever, one of the largest players in the food industry, has announced plans to add ready-made soups to its product line, which could be stored on grocery store shelves for up to a year[3].
Leading players in the ready-made food market have their centralized kitchen factories. Yandex.Lavka operates its own production in Saint Petersburg, aimed at supplying the Moscow and Saint Petersburg markets[4]. Due to high demand, Yandex.Lavka plans to open a second production facility in Podmoskov'ye in 2026, with twice the capacity of the existing facility[4]. Currently, Yandex.Lavka produces approximately 600 tons of ready-made meals per month, with partners contributing an equal amount[4]. Other players in the market follow a similar model, with much of the demand for ready-made meals being met by partners and usually sold under their own brand names (Private Label).
However, Infoline-Analytics reports a deficit in production capacity in the ready-made food market. During the first conference for Yandex.Lavka's suppliers and food producers, the general director of the agency, Mikhail Burmistrov, stated that, if there were no production capacity issues, sales of ready-made food in retail could have reached 1.05 trillion rubles in 2024[2].
Despite the growth in the ready-made food market, the sector is still largely dominated by small-scale producers, and competition is low. There are few strong brands, as retailers prefer to sell ready-made food under their own Private Label brands.
In this market context, Roman Koposov, a consultant at the Institute of Training - ARB Pro, considers Kolmenna's entry into the new market sector as a wise move, especially since there is no significant risk for Kolmenna, as they can quickly learn how to manage this segment: "They have the money and all the resources for development."
In addition to the opportunities presented by the fast-growing ready-made food market, Kozyrev believes that the market for frozen bakery goods, which is more profitable than fresh bakery products, presents a significant opportunity for Kolmenna. The average price per kilogram of frozen bakery products, even despite higher production costs, is 1.5 times higher than that of industrial bakery products[5].
Kolmenna plans to invest heavily in the production of frozen bakery products, as this segment is expected to grow in the coming years. With the acquisition of ProdMaster, Kolmenna will leverage the latter's technology, research and development capabilities, extensive experience in working with various meat and gastronomic fillings, sauces, spices, and food decoration to strengthen its position in the frozen bakery goods market.
Kolmenna's decision to invest in the ready-made food market and frozen bakery goods is not confined to bakery products alone; it also involves an integration of technology to enhance the quality and variety of their offerings. The rapid growth of the ready-made food market, expected to increase from 4 trillion rubles to 10 trillion rubles by 2030, is driven by factors such as increasing households with single individuals and the booming food delivery services market. This move is seen as a strategic decision by Dmitry Kozyrev, general director of Kolmenna, to capitalize on the rising demand for ready-made meals and diversify their business portfolio.
