PAVA, one of major grain processors in Russia, said it would continue to strengthen co-operation with a large Siberian retail network on supplying flour products to be sold under private label. In autumn, the company signed a long-term contract for monthly shipments of flour to retail shops, which generated significant sales growth.

“This marketing move brings us a vast increase in turnover, and ensures success of brand awareness for the retail stores.  Private label co-operation is booming worldwide, and now we have seen its benefits from own experience”, comments Andrey Ananin, Managing Director of PAVA.

Altay grain processor produces a wide range of flour grades which have gained popularity for their excellent baking characteristics and nutritional value. Contract manufacturing of private label goods is viewed as an effective way to cut marketing costs and an additional guarantee of stable order inflow.

“The project is backed by PAVA solid expertise in flour milling which enhances retailers’ image”, says Mr Ananin. “Our partners are keen to co-operate and have targeted moving private-label flour produced by PAVA into medium-price segment”.