Magnit enterprises produced 395 thousand tons of products in 2022

Growth was achieved through the expansion of production capacities, reaching a record level of utilization of enterprises, launching new positions in the line of own brands, improving yields in greenhouse complexes, as well as acquiring a new greenhouse complex with a total area of ​​24.5 hectares in the Belgorod region. The key factors behind the increase in food output were the growth in demand for private label products and the launch of the production of private label products for the Dixy chain.

In 2022, compared to 2021, the retailer's capacity utilization increased to 64%. Magnit is the only retail chain in Russia that has its own enterprises. In total, there are 20 sites in different regions of Russia, they produce about 500 types of products. At the end of 2022, the company opened a Center for growing oyster mushrooms, honey mushrooms and shiitake mushrooms in the Krasnodar Territory on the basis of an existing mushroom complex with a planned production volume of more than 1,000 tons of products per year. Also last fall, Magnit launched a coffee roasting and packaging shop in Tver with a potential output of more than 800 tons of products per year.

At the end of 2022, the company's enterprises produced 111,000 tons of fresh vegetables and fruits (+9%), 23,500 tons of confectionery (+32%), more than 170,000 tons of groceries and frozen foods (+15%), 54,000 tons of flour products (+16%). To ensure high availability of socially important goods for customers, Magnit has maintained large volumes of sugar packaging under its own brand at the level of 2021.

In 2022, the company's agro-industrial production facilities in the Krasnodar Territory, as well as a new greenhouse complex in the Belgorod Region, focused on the production of cherry tomatoes and increased their output by 30%. New varieties of cucumbers and peppers were also launched (premium short-fruited cucumbers, gherkins, mini-peppers). As a result, the share of sales of own-produced cherry tomatoes in the network reached more than 70% in real terms. The mushroom complex repeated the record harvest of champignons last year - 7,000 tons, the share of sales of this product under its own brand "Magnit Freshness" in retail stores exceeds 60%.

The main food enterprises of the company - Kuban Confectioner and Kuban Bakery Plant - are located in the Krasnodar Territory, in the Magnit Industrial Park. In 2022, they collectively produced about 77,500 tons of products (+20%). The share of sales of pasta of own brands in the network in 2022 amounted to more than 20%, sweets in the segment — more than 10%.

The citrus packaging shop in Novorossiysk supplied almost 18,000 tons of packaged fruits and vegetables to the network, the increase in packaging volumes by 2021 amounted to 50%. A new cheese packaging workshop was also launched in Orenburg, as a result, in 2022, 30% of the cheeses on the shelves of the chain's stores were packaged in their own workshops.

“Own production is our strategic direction. Every year, Magnit enterprises increase the production of food products under private label and meet the ever-growing consumer demand for such goods, this is the main indicator of the successful operation of enterprises and competent management. Own facilities give the retail chain a number of unique advantages, including ensuring the availability of goods in stores for consumers, managing the cost and output volumes, controlling the entire chain of goods production,” said Evgeny Sluchevsky, Director for Agricultural and Industrial Complex of the Magnit retail chain.

All Magnit enterprises in different regions of the country produce vegetables, mushrooms, sweets, cookies, pasta, frozen products (dumplings, pasties, pancakes, dumplings), nuts, seeds, vinegar, syrups, soups, tea, snacks, breakfast cereals, spices and other products.