In December 2016, the Russian division of Aller Petfood Group, a private-label pet food manufacturer, received the Leningrad Regional Chamber of Commerce and Industry award in the area of “Import Substitution,” due to their work in aiding Russia’s independence of import.
“It is an honor to receive this award, we are proud to be able to offer both Russian and international companies the opportunity of European standard pet food, produced in Russia, without the import and currency risks;” said CEO and owner of Aller Henriette Bylling in a press release. “We have a very strong local team, who are able to help us navigate through the ups and downs of the market”.
Aller Petfood Group, a 96-year-old family-owned Danish company, established their Russian division in 2004 and are now have a market share of approximately 60 percent of the private label pet food market, according to the company. The Russian division is now amongst the top 50 companies in the St. Petersburg (Leningrad), Russia region.
The drive to reduce dependence of imports results from ongoing sanctions against Russia. A set of sanctions were imposed the United States in 2014 because of Russia’s military and political involvement in the Crimea region of the Ukraine, according to the US Department of State.
After the sanctions were established and the ruble suffered severe devaluation, many international brands were forced to leave the Russian market, according to a press release from Aller.
In 2012, Aller Petfood purchased the Danish Industrialization Fund for Central and Eastern Europe’s share in the pet food company’s Russian division. The fund helped with establishing Aller Petfood in Russia. Aller is now the sole owner of the Russian division.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.