Lamb Weston / Meijer acquired a majority share in its joint venture with the Russian Belaya Dacha Group, which owns Russia’s largest French fries factory. At the same time, it has started a study to expand production capacity. The transaction has been approved by the Federal Antimonopoly Service (FAS) in Russia.
“In 2016 we started a joint venture with the Belaya Dacha Group because both parties saw unique opportunities in a rapidly growing Russian market. Now, after four years, we are pleased to increase our share and look forward to continuing supporting our Russian customers and international key accounts in optimizing their own value chain and growing their businesses,” Peter van Wouwe, CFO Lamb Weston / Meijer said.
This agreement builds on the successful collaboration with Belaya Dacha Group which started in 2016. At the time, starting a large-scale potato processing plant – the first large french fries factory in Russia – was a key priority for the joint venture partner. The initial partnership established that the Belaya Dacha Group would initially have a majority share position, with Lamb Weston / Meijer having the opportunity to increase its ownership position over the years. The current transaction provides that Lamb Weston / Meijer increases its ownership position in the joint venture to 74.9% from its original position of 35.5%, according to a press statement.
Belaya Dacha shareholder Vladimir Tsyganov will continue to own the minority share and continue the successful partnership.
Recently, Lamb Weston won gold in the ‘Campaign of the Year’ award and ‘Best Product Launch Campaign’ for its Dukes of Chippingdom promotion. The product has been endorsed by the Craft Guild of Chefs and by Red Tractor, while the campaign was supported by Art of the Possible Agency and WAA.
“This has a strange and challenging year for everyone in our industry and to win this award is a real boost for the team. A fitting reward for a lot of work and devotion to the cause. It’s shown that, even when pitched against some of the largest brands in the world, our efforts can make a difference,” Andrea Deutschmanek, country marketing manager for the UK & ROI at Lamb Weston said.
Lamb Weston’s entry impressed judges with its ‘dedication and passion’. The Dukes of Chippingdom campaign won after delivering a campaign to the correct target audience using the right tone of voice and correct branding throughout.