IGA enters Russia

IGA, the world's largest voluntary supermarket network, will be advancing into Russia before the end of 2008. The stores will be opening in conjunction with Megapolis Trading Co., which recently became a licensed IGA distribution company. The two companies have made a five-year plan for expansion in Russia.

The deal gives Megapolis Trading Co., Russia's largest fast-moving consumer goods (FMCG) distribution company, exclusive distribution rights for IGA Private Brand products and the opportunity to build business relations with IGA's Global Partners, among other perks.

Megapolis Trading Company is a division of the Mercury Group of Companies, a Moscow-based holding with businesses concentrated in four main divisions, including distribution and logistics; retail; heavy industry, manufacturing and mining; and property development.

”We’re pleased with the exceptional results over the past 17 years that the Mercury Group enjoys through our various companies,” Mercury Group President Igor Kesaev said. “This new partnership between Megapolis and IGA provides tremendous synergies and opportunities for both parties for the development of independent retailing in Russia."

IGA, with headquarters in the US, is now in 4,400 stores in 44 counties of the world, is supported by 36 distribution companies and more than 55 major manufacturers, vendors and suppliers. It is a market leader in Australia, Caribbean, China, Indonesia, and Singapore. The company has worldwide retail sales of more than US$21 billion per year.

[Click here for overview of Russia's food retailers]