Rot Front, the oldest Moscow factory, launched a line for processing cocoa beans and the production of raw materials for the confectionery industry. New production facility will be the largest of its kind in Russia and throughout Eastern Europe.
According to Vladimir Yefimov, Deputy Mayor for Economic Policy and Property and Land Relations, the investments in the project made up RUB 1.3 billion, with the enterprise offering now 150 new jobs.
"Rot Front factory has been working as an industrial complex since 2016, which allowed it to save over RUB 260 million of tax liabilities. Thanks to cooperation with Moscow, the company has been successfully engaged in the creation of new jobs and the introduction of advanced technologies," said Vladimir Yefimov.
Production of sweets in Moscow
Moscow has always had the largest chocolate and confectionery market in Russia. According to Confectionery Market Research Centre, in 2018, confectionery products for a total amount of RUB 177 billion were sold in Moscow, that is 16% of all sales in the country, with 25% for chocolate products only.
In recent years, Moscow enterprises have increased the output of the main types of confectionery products, and Moscow has already been leading among other regions in many fields.
According to Vladimir Yefimov, Moscow share of the total volume of shipped confectionery products in Russia amounted to 8.1% for five months of 2019.
"Moscow ranks first in the production of chocolate confectionery of all kinds. The capital's share accounted for 19.6 % of the production of all types of chocolate confectionery in 2018, with every 8th chocolate sweet produced in Moscow," Deputy Mayor said.
Since 2015, confectionery production in Moscow has increased by 11.6%, up to 268,000 tons per year in 2018. As for chocolate products, this figure has increased by 15.6%, to 148,000 tons.
In the period from January to May 2019, 69,200 tons of chocolate and confectionery have been produced in the capital, which is 8% more than in the same period of 2018.
Moscow has several large confectionery enterprises, in addition to Rot Front, such as Babayevsky Confectionery Concern, Red October JSC, Russian Chocolate Factory, Udarnitsa JSC, Bogatyr Confectionary Factory, as well as Frenchkiss and Bastion.
Russian sweets are very popular abroad. The main volumes are exported in Kazakhstan and Belarus, geographically close markets with a similar consumption culture.
Recently, however, the geography of supplies has expanded. So, since 2016, China started to buy confectionery products from Russia on a large scale, ranking second importer now. And since 2018, Russian products have been in great demand in the UAE and Saudi Arabia.
Old Soviet brands are especially popular, production of which is well-developed in Moscow.
"The confectionery industry in Moscow is actively developing, with new production lines opened, new jobs created. At the end of 2018, the number of confectionery industry employees made up 12,800 people, 0.8% more than in 2017," Vladimir Yefimov reported.
Moscow confectionery factories receive large-scale support from Moscow government. Thereby, four industrial enterprises have been granted the status of an industrial complex. Such production facilities enjoy significant tax benefits such as reduced income tax and preferential rental rate.