1. METRO Cash & Carry RussiaMETRO Cash & Carry Corporate Marketing
WHAT SHALL WE OFFER THE BUYER
TODAY: HOW WILL THE STORE FORMAT
CHANGE? WHAT GOODS AND WHERE FROM?
PIETER C. BOONE
CEO METRO CASH&CARRY RUSSIA
MOSCOW, SEPTEMBER 25, 2014
2. METRO Cash & Carry Russia
THE RUSSIAN IMPORT BAN DECREE STRONGLY IMPACTS THE
BUSINESS OF MCC RUSSIA AND THE WHOLE FOOD TRADING
INDUSTRY
Page 2
US and EU sanctions Russian import ban
As of 31
st
July 2014 7
th
August 2014
Mainly affects Reduced access to EU and US finance
markets for selective Russian banks
Export prohibition of military weapons,
vehicles, equipment and technology
Export prohibition of technology and
equipment used for oil production industry
Prohibition of business activities with
defined Russian companies and individuals
Import ban of raw material, agricultural
products and food, like:
- Meat and meat products
- Milk and dairy products
- Fish
- Fruit and vegetables
Sanctioned countries are the EU, USA,
Australia, Canada and Norway
Impact on MCC Russia Minor All trading industry got effected
Impact between 5 – 10% of sales of the
food trading industry
3. METRO Cash & Carry Russia
FAST REACTION ON THE IMPORT BAN BY THE ESTABLISHMENT OF
THE STEERING COMMITTEE AND THE SET UP OF WORK STREAMS
Page 3
Steering
Committee
Board and selected Division Managers
Work
streams
Market
intelligence
Communication
Sourcing /
supply chain
Pricing
Customer and
supplier financial
monitoring
Banking sector
risks
Financial
analytics
Sales tax
introduction
Sanctions
compliance and
response
Intensified
inspections
Operating cost
optimization
Human
resources
Safety and
emergency
Meetings
Daily meetings
of work stream
groups
Regular update
on Steering
Committee
meetings two
times a week
Comprehensive
update of the
work streams
every two
weeks
4. METRO Cash & Carry Russia
Meat Fish Fruits Vegetables Dairy
Russia
Belarus
Uruguay
Brazil
Argentina
Serbia
Switzerland
New Zealand
Russia
Chile
Faroe Islands
Turkey
Morocco
Tunisia
India
Thailand
Russia
South Africa
Egypt
China
Iran
Argentina
Serbia
Asia (exotic)
Russia
Azerbaijan
Belarus
Israel
China
Turkey
Chile
Russia
Serbia
Switzerland
Argentina
New Zealand
MCC RUSSIA CONSEQUENTLY SOURCES FROM RUSSIA AND
OTHER COUNTRIES IN ORDER TO MEET CUSTOMERS’ NEEDS
Page 4
5. METRO Cash & Carry Russia
STRENGTHENING THE WORK WITH GOVERNMENTAL AUTHORITIES TO
PREVENT DRASTIC PRICE INCREASES AND SOURCE SUBSTITUTIONS
PRICES & GOODS AVAILABILITY ASSORTMENT
Work Group participation under the patronage
of the Deputy Prime-Minister:
Daily price monitoring
Producer-Retailer-Memorandum
Logistic cost optimization for Russian fish
Work with administrative bodies and trade offices:
Increase the number of local producers
Meetings with trade representative offices of
“allowed” countries
Certification of new foreign producers
6. METRO Cash & Carry Russia
THE AVAILABILITY IS IMPORTANT – THE QUALITY IS EVEN MORE
CRUCIAL FOR OUR CUSTOMERS