Foreigners often sell their Russian businesses with a “repurchase option.” For example, American McDonald’s has set such a condition for buyers. And 15 years from now, you can buy the business back. Photo: Alexander Kryazhev / RIA Novosti
Did you know that of all the Western companies that announced that they would leave Russia in 2022, only 8.5% left our country? And this is not calculated by us, but by Swiss economists.
The reasons are as follows. A significant loss of profits, assets and, as a result, a deterioration in economic indicators is a regular prospect for businessmen.
As a result, of the 25,000 foreign companies registered in Russia, only a few hundred left altogether. And many chose a different path: foreign owners sold their Russian assets, renamed their former “possessions” and started a new life. Let’s talk about the most famous.
COFFEE STARS
(former Starbucks)
What happened:
The Starbucks network in Russia consisted of 130 coffee shops. 90 of them – in Moscow, the rest in 10 regions of Russia.
Who bought:
Initially, it was reported that Timur Yunusov, also known as rapper Timati and owner of the Black Star Burger chain, restaurateur Anton Pinsky (founder of the Pinskiy & Co holding) and Senator Arsen Kanokov’s Sindika holding.
According to the Rusprofile service, the Arena LLC legal entity has 6 founders with a share of the authorized capital for each of no more than 2656.25 rubles. Legal entity “Brilliant Consulting” and natural persons, including the aforementioned Anton Pinsky, Timur Yunusov, former vice president of Starbucks in Russia and Kazakhstan Ernesto González and two other people.
Transaction amount:
Not disclosed. According to analysts, it could range from 700 million to 1.6 billion rubles.
What changed:
Until now, more than 100 coffee shops operate in Russia: in Moscow, St. Petersburg, Sochi, Samara, Yaroslavl, Yekaterinburg, Rostov-on-Don. The logo shows a lady with a kokoshnik instead of the old two-tailed mermaid.
There are new dishes on the menu. And coffee beans are now imported from Brazil, Ethiopia and Guatemala (previously Asian countries Costa Rica and Ethiopia were suppliers). The team has more than 700 employees. Almost all are from the old Starbucks.
The dark roast coffee beans, the mugs with the customer’s name signed, and the prices stayed the same. Small cappuccino (350 ml) – 310 rubles in Moscow, 280 – in St. Petersburg and 215 – in other cities.
“DELICIOUS – AND THE POINT”
After becoming “Tasty, and that’s it”, the restaurant’s menu has not changed much. Prices have gone up 10%. And it also seems that the interest in these restaurants has even grown: many go there simply out of interest.
Photo: Vladimir VELENGURIN
(former McDonald’s)
What happened:
McDonald’s network in Russia – 850 restaurants in 62 regions.
Who bought:
Businessman Alexander Govor is the founder of GiD LLC, who developed the McDonald’s franchise in Siberia. Govor is also a co-founder of the NefteKhimServis oil refinery.
Transaction amount:
For “a symbolic fee well below market value.” Under the transaction agreement, the new owner is prohibited from disclosing the amount.
Special conditions:
Under the agreement, the owner will be obliged to return the restaurants to the previous owner in the event of his return to the Russian market for 1 ruble.
What changed:
New logo and name. New drinks on the menu: instead of the old Pepsi, Sprite and Fanta, sodas from “Chernogolovka”, “Dobry Kola”, etc. The “Poppy” prefix is no longer in the names of the dishes. This was a condition of the contract. Gone is the Happy Meal, but there is the Kidz Combo. So far, in addition to food, there is a children’s book on the set. However, the company plans to open a toy factory. The first copies in the form of our cartoon characters will appear on sets this summer.
Oleg Paroev remained the General Director, before the transaction he headed ZAO Moscow-McDonald’s.
The menu composition has not changed much.
True, prices increased by about 10%.
“LO OCCITANE”
(formerly L’Occitane)
What happened:
The network of the French cosmetics brand L’Occitane has more than 100 stores.
Who bought:
The top Russian managers of the company. Most of it went to L’Occitane Rus CEO Rostislav Kovalenko.
Transaction amount:
The French owners estimated the value of the Russian assets at 44.5 million euros. Payment will be made in installments over 4 years from 2025.
What changed:
So far, practically nothing. Now the Russian company is independent from foreign owners, and the stock of products is enough for the next year.
clearly
Photo: Dmitry POLUKHIN
rosbank
What happened:
Rosbank and its insurance business, owned by the French company Societe Generale.
Who bought:
Businessman Vladimir Potanin (Interros group of companies).
Transaction amount:
According to some reports, Rosbank bought Interros from Vladimir Potanin for 40-60 billion rubles.
What changed:
Nothing but the logo. The new owner immediately announced that Rosbank would remain stable and new opportunities would be created for its clients and partners. Now Rosbank is working as usual.
POETTI
(former Paulig)
What happened:
Russian assets of Finnish coffee producer Paulig, including a roaster in Tver.
Who bought:
Indian national Vikas Soi is the managing director of the coffee maker Milagro Beverage Company (Milagro, D’Arte, Belagio brands). He is the sole owner of Milfoods LLC (the company is the buyer of Paulig’s assets) with an authorized capital of almost 210 million rubles.
Transaction amount:
Not disclosed.
What changed:
Paulig Coffee LLC is liquidated. It is now called Milfoods LLC. The products also changed their brand name to Poetti coffee. True, the packaging design remained the same.
The new owner managed to keep the entire staff of the plant, more than 100 people, as well as green coffee suppliers from 10 countries. The company will continue to grow.
as if nothing had happened
Photo: Dmitry POLUKHIN
BOIL
(formerly Shell)
What happened:
The Russian network of service stations of the British oil and gas company Shell (411 service stations) and a lubricants plant in the Tver region.
Who bought:
The owner of LUKOIL is Vagit Alekperov.
Transaction amount:
Not disclosed. But a Shell report claims that “in the second quarter of 2022, Shell transferred all shares of Shell Oil to Lukoil, resulting in a net loss of $83 million, adjusted for foreign exchange losses.”
What changed:
The nets received a new name – this is the Finnish brand Teboil. All gas stations are open as usual. Saved jobs.
ON SALE
MONDI
What is it:
Austrian group Mondi sells its largest plant in Russia, Mondi Syktyvkarsky LPK, which produces uncoated pulp, packaging paper and tissue. Office paper “Snegurochka” is one of the most popular brands.
Who buys:
The owner of Augment Investments Limited is Viktor Kharitonin. He is also Chairman of the Board of Pharmstandard PJSC. He is ranked 66th in the Forbes ranking.
Transaction amount:
95,000 million rubles (about 1,500 million euros), but its conclusion will depend on the approval of the government commission for the control of foreign investment and antitrust approvals.
KELLOGG
What is it:
The Russian division of the US Kellogg company (breakfasts, cookies, crackers, snacks, including Krave cereals, Pringles chips, biscuits and breakfast cereals under the Lyubyatovo brand).
Who buys:
Aqualife Resource, management company of the Chernogolovka Group of Companies.
Transaction amount:
According to rough estimates, 6-7 billion rubles.
And some foreign companies simply donated their factories to Russia. This is what Renault-Nissan did: the company transferred its capital plant to the local authorities, and now Moskvich is produced there. Photo: Alexander AVILOV/Moscow City News Agency
KFC moves to ROSTIC’S
What is it:
Nearly 1,000 restaurants of the US corporation KFC Yum! Open brands in Russia. 70 of them are branches, the rest were franchised.
Who buys:
Izhevsk operator “Smart Service LTD”. It owns 41 KFC franchises, as well as IL Patio, Planet Sushi and other brands. The main investor of Smart Service is Andrey Oskolkov, the manager is Konstantin Kotov. Little is known about these people. Oskolkov is called one of the richest people in Udmurtia. Konstantin Kotov joined the Izhevsk Public Chamber in 2021 and was previously a member of the City Duma.
Transaction amount:
A stranger. Experts estimate it at 1.3 billion rubles. Hmm! Brands said on its website that the company “has entered into a sale-purchase agreement to transfer rights to the company’s Russian assets, which include its own restaurants, master franchise rights and a franchise restaurant chain management system.” .
What will change:
The name is Rostic’s. This brand appeared in Russia back in 1993 as an almost complete copy of KFC restaurants with crispy chicken thighs on the menu. In 2000, when KFC entered the Russian market, they bought Rostic’s and opened their own on the basis of their outlets. “KP” reliably realized that the restaurant menu will be preserved as much as possible, the recipe will not change. All jobs will also be saved.
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