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7 november 2019
O`KEY Group expands its assortment of locally sourced products in the Tyumen Region

The procurement session was hosted by the Tyumen Region Consumer Market Department, helping O`KEY to expand its cooperation with local suppliers in the ultra-fresh category, in particular, suppliers of fresh fish and meat.  
 
Currently, O`KEY Group maintains partnerships with 30 companies based in the Tyumen Region and producing dairy, meat and fish products, as well supplying fresh fruit and vegetables. Specifically, more than half of dairy products in O`KEY hypermarkets are sourced locally under companies Zolotie Luga, Tyumenmoloko, Yasen, Novoderevenskoye, and other local producers. All locally sourced products are marked with “Choose Fresh. Buy Tyumen Products.” 
 
Contracts with local suppliers allow O`KEY to offer fresh products in its hypermarkets in the Tyumen Region, as well as keep down prices by reducing supply chain costs. 
 
The procurement sessions we run in the regions are largely focused on maintaining a full-fledged dialogue between the government, retailer, and regional producers, without which, as participants of such meetings note, the Russian consumer market cannot be stabilised. During these events, the retailer holds multiple meetings and workshops for local producers. Procurement sessions allow local businesses to strengthen their position in the market and grow with our federal-level network, scaling up production. 
 
 
Alexander Sidorov, Deputy Director of the Tyumen Region Consumer Market and Tourism Department:

“The procurement session with the federal retailer O`KEY is an opportunity for Tyumen-based producers to learn about the retailer’s needs and partnership terms, to showcase their products, taste new products, as well as have talks on supplies.” 
 
Daniil Tsvetayev, O`KEY Group Commercial Director for Food Products:

“O`KEY is keen to offer its customers only fresh, high-quality products. Procurement sessions are a great opportunity not only to find new partners in the regions, but also to share best practice in cooperation with regional producers, as well as in product quality control, transportation and storage standards. We are confident that the “consumer patriotism” trend and customer preferences for local products will only grow in the coming years, and O`KEY will maintain an increased focus on this area.” 

OVERVIEW

O`KEY Group S.A. (LSE: OKEY, RAEX – ‘ruA-’) operates under two main formats: hypermarkets under the O`KEY brand and discounters under the DA! brand. As at 14 October 2019, the Group operates 166 stores across Russia (78 hypermarkets and 88 discounters). The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O`KEY is the first among Russian food retailers to launch and actively develop e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group operates six e-commerce pick-up points in Moscow and six ecommerce pick-up points in St. Petersburg. The Group operates four distribution centres across the Russian Federation – two in Moscow and two in St. Petersburg. As at 31 December 2018 the Group employs more than 20,000 people. For the full year 2018, revenue totalled RUB 161,303,411 thousand, EBITDA reached RUB 8,644,008 thousand, and net loss for the period amounted to RUB 599,755 thousand. The O`KEY shareholder structure is as follows: NISEMAX Co Ltd – 44.79%, GSU Ltd – 29.52%, free float – 25.69%.

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