In August, 2006, Discovery Research Group Agency completed with investigation and analysis of ice cream market in Russia.

From 2001 growth rates as to milk production in Russia have not been exceeding 6%, while during two last years they have come to only 2—3%. These figures are conditioned by setting in the phase of market satiating, volume of which, at that, has been increasing in value terms. From immediate market participants’ point of view, the potential for increasing is still being actual.

In 2005, the output volume came to near 405 thousand tons, growth rate came to 2—2.5%. For the 1^st quarter of 2006, ice cream production volume in Russia had increased by 9.7% in comparison with corresponding period in 2005, and came to approximately 62 thousand tons of ice cream. Output volumes were increased by Northern-western (186.4%), Central (128.6%), and Far-Eastern (102.4%) federal districts. But indeed, the high growth rates in the 1st quarter of 2006 in particular federal districts are conditioned by low indices during same period in 2005. In 2006, Discovery Research Group experts forecast the stability in ice cream production volume growth rates at the level of 2—3%.

Ice Cream deliveries to Russia in 2004 were provided from 15 countries, among what Ukraine took the considerable position. Its share in natural terms came to 29.5%, in value terms — to 21.1%; Germany and France — 24.6 and 44.9%, and 22 and 18,3%, accordingly. Import volume in 2004 came to approximately 4.5—5.5 thousand tons, while in 2005, it was increased up to 7.6 thousand tons.

As regards export, Russian ice cream is being mainly delivered into CIS countries, and first of all — to Kazakhstan, Ukraine, Belarus, etc., totally to 14 countries. Considerable volumes of the ice cream are being exported to Czech Republic and Israel. Moreover, foreign companies are in charge of orders disposal as to ice cream production in Russia.

Export deliveries volume in 2004 exceeded import volume almost in three times and came to a little more than 3.6% from total Russian production volume. In 2005, ice cream export was increased in comparison with 2004 by 2 thousand tons, namely — up to 15.3 thousand tons.

The following companies are considered to be the leaders at Russian ice cream market: Inmarco, Talosto (Metelytsya), Iceberry, Russian Cold, Nestle, Showy Borough (Snizhne Mistechko) and AlterWest.

In the contrast to European countries, where share of some companies in total consumption volume comes up to 80%, Russian ice cream market is considered to be weakly consolidated. Total share of seven key ice cream producers in the country comes to only 40%. There is only one company having the share more than 10%, while four ones overcome the level of 5%. Up to 70% of the market is under the control of 20 producers. Residual 30% are divided among 250—300 producers. In the future, market will be shared among the companies taking at the moment first 10—15 position in the rating.