ConAgra Foods’ European Partner Announces Agreement to Serve Russian Market Through Joint Venture

Eagle / ID. (caf) Lamb Weston / Meijer, a partnership between US-based ConAgra Foods Inc. Lamb Weston and Netherlands-based Meijer Frozen Food, announced they have signed an agreement with Russian company Belaya Dacha to establish a new joint venture partnership that will serve the Russian market. The deal is subject to FAS (Federal Anti-monopoly Service) approval.

At close, the collaboration will enable Lamb Weston / Meijer and Belaya Dacha to combine their complementary knowledge and skills. The partnership will benefit from Lamb Weston / Meijer’s in-depth experience in potato growing and french fry production while leveraging Belaya Dacha’s experience in the Russian quick service market.

«Lamb Weston leverages its well-established dual sourcing model to supply customers in North America and Europe», said Greg Schlafer, President, Lamb Weston. «This new partnership between Lamb Weston / Meijer and Belaya Dacha will allow our partners at Lamb Weston / Meijer to serve our customers expanding in the growing Russian market».

The newly created partnership will, at close, invest in a new french fry manufacturing facility in Lipetsk, a special economic zone situated 280 miles south of Moscow. Construction is planned to begin mid-2016, with production starting in early 2018.

Worldwide demand for frozen french fries continues to increase, and Euromonitor predicts that the frozen potato category will grow 2.6 billion pounds by 2020. Recently, Lamb Weston announced its plans to expand operations in Richland (WA), adding a new french fry line to allow them to meet growing global demand. A frozen potato industry leader, Lamb Weston operates, directly and with its partners, 22 manufacturing facilities in North America, Europe and China.