Lamb Weston / Meijer increase stake in French fries factory in Russia

Frozen potato products producer Lamb Weston / Meijer has acquired a significant stake in its existing joint venture (JV) with Russian potato processor Belaya Dacha Group.

The latest stake acquisition in the JV, which owns Russia’s largest French fries factory, is part of Lamb Weston / Meijer’s strategy to boost its position in the Russian potato market.

The company’s CFO Peter van Wouwe said: “In 2016 we started a joint venture with the Belaya Dacha Group because both parties saw unique opportunities in a rapidly growing Russian market.

“Now, after four years, we are pleased to increase our share, and look forward to continue supporting our Russian customers and international key accounts in optimising their own value chain and growing their businesses.”

With the latest deal, the company increased its ownership stake in the JV to 74.9% from 35.5%.

Financial details of the deal remain undisclosed.

Belaya Dacha shareholder Vladimir Tsyganov will retain a certain stake, continuing the successful partnership.

The Federal Antimonopoly Service (FAS) in Russia approved the deal.

Engaged in growing and processing of vegetables, the Belaya Dacha Group operates two production facilities in Moscow and one in the Republic of Tatarstan.

The two companies commenced their partnership in 2016.

Under this collaboration, the two companies agreed to combine their respective knowledge and skills.

Lamb Weston / Meijer contributes by sharing its experience in potato growing and french fry production, while Belaya Dacha offers its experience in the quick-service market.