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chains reduce their combined market share in one particular area of the Krasnoyarsk Region to 35%. Their combined share in most regions would probably be below the thresholds set by the FAS, as X5 Group is not widely represented in the Siberian Federal District. This means that X5 should have some room to expand. In 2021, the group generated just 3.5% of its total revenues there (R77 bln), which was only 5% of food retail turnover in the district. In contrast, almost half of X5's revenues in 2021 came from the Central Federal District, in which the group accounted for 16% of food retail turnover.
According to our estimates, the combined revenues of Krasny Yar and Slata exceeded R67 bln in 2021, while X5 Group generated a total of R2.2 trln in revenues last year. We estimate that for the full year 2022, both chains will generate around 3% of X5 Group's revenues.
• Magnit
• Detsky Mir • Other
Russia's own KFC chain of 70 restaurants, owned by the American Yum! Brands, sold to a large franchisee from Izhevsk "Smart Service", writes "Kommersant". The buyer undertakes to rebrand all franchise establishments (not only his own) as Rostic’s, although he will retain the original brand for a while. According to Kommersant, part of the transaction will be financed by borrowed funds. The amount is unknown, but experts estimate it at 1.3bn rubles. The entire network without a brand was estimated at a maximum of 10bn rubles, compared with 30bn before the war. The revenue of Yam Restaurants Russia last year reached 18bn rubles, net profit - 2.4bn rubles. The owners of Smart Service are businessmen Konstantin Kotov (ex-deputy of the Izhevsk City Duma) and Andrey Oskolkov (ex-deputy of the State Council of Udmurtia, co-owner of the Komos-Group agricultural holding).
Trademarks Rostic’s and Rostik’s belong to the Russian legal entity Yum! Brands, which received them in the 2000s with the Russian network of the same name. The latter was founded in the early 1990s by the Venezuelan-born restaurateur Rostislav Ordovsky-Tanaevsky-Blanco (an interview with him from 2018 can be read here). Rostik's gradually became KFC, and for several years the establishments were called Rostik's - KFC, and the Russian brand was completely removed only in 2012.
Sistema announced it had agreed to buy 47.7% Melon Fashion Group. According to the agreement, Sistema will buy the stake in the company from Swedish Eastnine and East Capital Holding, as well as a group of individual investors, for Rb 15.8 bn. Sistema will finance the deal with its own and borrowed funds. The deal is expected to close by the end of 2022 subject to further regulatory approvals and satisfaction of certain conditions. Melon
126 RUSSIA Country Report November 2022 www.intellinews.com