Russian became a dollar billionaire thanks to seeds and breadcrumbs

The owner of the manufacturer of snacks "KDV Group" (brands "Kirieshki", "Babkin's seeds", "Chipsons") Denis Shtengelov became a dollar billionaire. The recession in Russia played into the hands of his company. RBC with reference to experts.

The fact that the state Shtengelov exceeded $ 1 billion, writes Bloomberg. Shtengelov founded the KDV Group in the year 1997. The company currently employs 11 factories that produce 350 product names under more than 20 brands, including crackers "Kirieshki", "3 crusts", chips "Chipsons", waffles "Yashkino", and also "Babkin's seeds." Snacks produced by KDV Group are exported to some CIS countries (for example, Belarus and Azerbaijan).

“Shtengelov used recession in order to expand and seriously strengthen his business,” says Artem Motorny, managing partner of a consulting company Walnut capital. “The devaluation of the ruble caused an increase in cocoa prices, as a result of which chocolate prices increased - because of this, Russians began to give preference to flour confectionery products (one of the KDV Group’s business areas),” says Elizaveta Nikitina, executive director of the Center for Confectionery Market Research.

According to Euromonitor International, in 2016, KDV Group became the second largest producer of snacks in the Russian market, giving up Mondelez (biscuit Oreocrackers Tuc) sales of sweet snacks and company Frito-lay (chips Lay`s) - in the category of appetizers with spices.

The business model of the KDV Group is viable in terms of inflation, as Shtengelov buys those businesses that operate throughout the supply chain - from dairy farms to chocolate factories, notes Bloomberg. This allows “KDV groups” even at high inflation rates to keep prices for 1 kg of snacks by 24% lower than that of competitors, the agency leads research results Nielsen.

The revenue of the KDV Group has more than doubled since 2013. The company is ranked 117 in the RBC 500 ranking of the largest Russian companies. The head office of the company is located in Tomsk (there KDV groups was founded). Shtengelov began with the sale of raw sunflower seeds, then switched to the production of confectionery (waffles, cookies, biscuits). The basic production for the company was Yashkinsky food factory (Kemerovo region). In 2008, KDV Group acquired the manufacturer of chips and crackers, Bridgetown Foods, and in 2009, the then leader in the Russian market of crackers, Sibirsky Bereg. A year later, KDV Group acquired the largest producer of dried seafood in Russia - Golden Tower.

In 2012, the company launched the retail grocery chain "Brighter" and fitness clubs "Kangaroo". In 2016, the group acquired a minority stake in the company. UFG Asset Management (the amount of the transaction and the size of the package are unknown).

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