The deal includes 16 products, sold under private label brands Sladkiy Ostrov (Sweet Island), Kazhdiy Den (Every Day) and Nasha Trapesa (Our Trapesa).
Italian Institute for Foreign Trade
The sweets will be sold in 66 Auchan hypermarkets, and Simply and Ipersimply supermarkets across 60 cities, including Milan, Verona, Piacenza and Torino.
The Italian Institute for Foreign Trade (ICE) confirmed the first delivery of the Russian confectionery, which amounted to more than 107,000 products with a total weight of nine tons.
Maria Kurnosov, director, external communications for Russia, Auchan, said it is currently testing the sales of chocolate and sweets produced at the plants in Zolotaya Rus (Golden Russia) in the Tula region, Verist Kachestvu from the Ryazan region, Merletto in the Lipetsk region and Confectionery Concern Montenegro in the Republic of Khakassia.
She said the idea came after Auchan participated in an international exhibition where it showcased its partner's products made in Russia.
“Italians really liked our product line,” said Kurnosov.
Lower production costs
According to Andrey Karpov, chairman, Association of Retail Experts, the decision to export from Russia is not surprising, because production costs and prices of goods in Russia are much lower than in Europe.
He said, with the devaluation of the Russian ruble, more foreign companies will start thinking about supplying goods from Russia.
Auchan Retail, part of Auchan Holding, opened its first Russian hypermarket in Mytischi, Moscow, in 2002, and the company now operates in more than 85 cities through its hypermarkets, supermarkets, convenience stores and e-shopping.
Since entering the Russian market, Auchan Retail has invested €3bn and is the country's largest foreign investor.
It recently opened its 99th hypermarket in Tyumen in the Siberian Urals.