The AFG National Agro Holding appeared in February 2013 as a result of merger of the Russian leader in rice cultivating and processing — agro-industrial holding AF-Group — and the largest distributor of packaged cereals in Russia — Angstrem Group.
Before they merged, each of the companies had survived a long period of formation and development.
ОCreated in 2006, AF Group — then it comprised two small enterprises — has developed itself into the largest rice producer in the country. According to the Southern Rice Union, by 2012 AF-Group had on hand the most significant area of land for rice cultivation in Kuban and Rostov Region.
The 2013 AF-Group and Angstrem merger was a key event not only in the history of the companies.
Angstrem Group began to operate in sales and buying segment in 1992 and one year later it was already actively developing its dealership chain in Russia; in 1996, it launched the first packaged cereals plant. By constant monitoring of trends both in home and global markets, expanding the brand portfolio, improving the manufacturing complex and logistics, by 2012 Angstrem had become one of the largest Russian producers of packaged cereals.
The 2013 AF-Group and Angstrem merger was a key event not only in the history of the companies, but the whole Russian market. The resulted from the merger agro-industrial holding AFG National became the first vertically integrated company operating under the principle “from field to counter”, the largest rice producer and a leading grocery distributor.
Сapacity building
After the merger, an agro-division specializing in the production of cereals was created on the basis of AF Group, and based on Angstrem Group — a retail division which was in charge of expanding the retail and B2B wholesale outlets. In the next three years of work the merged company’s turnover increased by 2.5 times and its income tripled.
By the beginning of 2015 AFG National already had over 70,000 ha of agricultural land in hand, more than 50,000 ha of which were used for rice cultivation, which is around 22% of all the existing rice acreage in the Southern Federal District of Russia.
After getting a foothold in the rice market as one of the largest players, AFG National began to digest other segments.
Market development
In 2015, the holding began the implementation of a project for production of table and seed potatoes at sites located in Nizhny Novgorod Region and Novgorod Region. In 2016, the company began to develop lands in Rostov Region in order to cultivate potatoes and other vegetables.
Under the “from field to counter” principle which provides for retail sales of in-house products, the development of vegetable market resulted in another expansion of product lines. New trademarks — “Естественный отбор” (Yestestvenny Otbor — Natural Selection) and “Овощная лига” (Ovoshchnaya Liga — Vegetable League) — appeared in the brand portfolio of AFG National.
Today AFG National yields products under the following trademarks: “Националь” (National) (this vast product line includes rice, traditional cereals, beans, Arabic cereals and confectionary series), “Cento Percento” (traditional Italian sauces and balsamics, canned olives, capers, artichokes and cured tomatoes), “PROSTO” (boil-in-bags cereals), “Русский завтрак” (Russky Zavtrak — Russian Breakfast) (flakes and porridges), “Агрокультура” (Agrokultura — Agriculture) (rice, cereals and beans within economy segment), “HORECA” (elite rice varieties for HoReCa segment), “Естественный отбор” (premium washed potatoes) and “Овощная лига” (washed potatoes packed in nets).
AFG National is a leading producer of the store brand groceries for retail chains, such as Lenta, О´key, MetroCash&Carry, Auchan, Dixy, supermarket chain “Vernyi” and shopping chain “DA!”.
Moreover, AFG National supplies large wholesale quantity of own-produced agricultural products to processors and end-consumers, as well as exports products to the CIS countries, Middle East and Europe. The volume of export reaches up to 80,000 tons a year.