The contract will make Miratorg a key fast food meat supplier in Russia for the next five years, according to Burger King.
Miratorg has agreed a specified volume of semi-finished meat products within the five-year period and will ensure delivery of products to [Burger King’s] distribution centres across a territory ranging from St Petersburg to Ekaterinburg, Miratorg said.
In addition, Miratorg will ensure strict adherence to unique Burger King recipes, consistent quality and the use of meat from the company’s own farms in order to ensure compliance with Burger King’s high safety standards.
Sales growth targeted
Dmitry Sergeev, Miratorg’s press secretary, told GlobalMeatNews that the agricultural holding is currently targeting rising sales in the HoReCa (hotel, restaurant and café) segment. According to Sergeev, this market sector is serviced by the company’s Kaliningrad plant, which manufactured 43,000 tonnes (t) of products in 2016. While this figure is 27% higher than in 2015, the plant’s designed capacity is 80,000t.
Miratorg is already working with numerous market players in the HoReCa segment, including McDonald’s in Russia, Sergeev said. He added that the company was not making any comment on possible export sales of meat products for the on-trade sector at the moment, despite revealing, on 29 March 2016, that it had secured a contract to supply semi-finished meat products for Burger King’s restaurants in Mongolia, also from its Kaliningrad plant.
Big move for Miratorg
According to Ivan Shestov, marketing manager of Russia and Eastern Europe at Burger King, the latest contract covers the supply of beef cuts for burgers and semi-finished chicken products, including nuggets. He explained that the companies had cooperated in the past, but that, until now, Miratorg was not a key partner of fast food chains in Russia. In addition to Miratorg, Burger King is also working with Marr Russia and Petelino, a subsidiary of another Russian agricultural holding, Cherkizovo.
Miratorg and Burger King have not revealed the value or the volume of meat to be supplied under the terms of the contract.
Miratorg council chairman Alexander Linnik described the new contract as an important step in the development of Russia’s restaurant market. According to Linnik, supply stability and the high quality of raw materials are key conditions for successful competition and Miratorg is ready to meet growing demand at Burger King’s restaurants, which are visited by millions of Russians.
In a press release on 9 January, Miratorg’s Kaliningrad plant expanded its range last year with 12 new types of products, investing RUB1 billion (US$19m) in production modernisation and expansion at the facility. In 2017, this plant will further increase both its volume and range of manufactured products, added Miratorg.