Azbuka Vkusa

A store of the chain in Moscow

Azbuka Vkusa (Russian: Азбука Вкуса; literally "The ABC of Taste") is a Russian supermarket chain founded by Maxim Koscheenko and Oleg Lytkin in 1997. As of 2014, it operates 90 stores in Moscow, Moscow Oblast, Saint Petersburg and the Leningrad Oblast. It is one of Russia's 50 largest retailers.

Ownership

The founders, Maxim Koscheenko and Oleg Lytkin control more than 50% of Azbuka Vkusa. 6.9% of Azbuka Vkusa belongs to the top 14 network managers.^[1] Much of the rest of Azbuka Vkusa is in the hands of VMHY Holdings Limited, owned by the former owners of "Expobank" - Andrey Vdovin, Cyril Jakubowski, Paul and Peter Maslowski Hambro, who gradually acquired control from the other two co-founders of the network - Oleg and Sergey Vereshchagin Trykin. As of 2011 Oleg and Sergey Vereshchagin Trykin ceased being shareholders in VMHY Holdings.^[2] As of 2013 more than 12% of the network owned by the sons Paul Maslovskoye - Yuri and Alexei.^[3]

Business Facts

1. Revenue has never contracted since Azbuka Vkusa's founding (including the Financial crisis of 2007–08).
2. The annual sales growth is about 30%.
3. The company increases turnover by more than 30% a year.
4. Azbuka Vkusa is based in Moscow, Europe’s 3rd wealthiest and most populous city.
5. Azbuka Vkusa works with over 900 suppliers from 70 countries across the world.
6. Revenue per square meter of floor space is $ 25 000 - higher than any other Russian food retailer.
7. Azbuka Vkusa's finances are regularly audited by Ernst & Young, one of the big four auditing firms.

Private Labels

Azbuka Vkusa launched their store brands in 2011. These now account for 15% of the goods that Azbuka Vkusa sells. All dishes are created under the direction of Moscow chef Michael Chevais. The growing culinary division has a daily output of 16 tons. It occupies 7000 square meters and produces over 350 different kinds of products. These fall into five categories.

"Only Azbuka"

These are upmarket everyday products allegedly of a superior quality to their competitors.

"Our Farm"

These "organic" farm products are marketed as produced fresh from the retailer's own farms, that follow "international standards of eco-agriculture".

"Almost Ready"

These are ready-made meals that need only to be heated.

"Ready-to-eat"

Those meals are ready for consumption.

"Selection"

This collection of imported products recommended by the retailer.

"Enoteka"

In 2011, Azbuka Vkusa opened Enoteka, a series of shop-in-shops and three boutiques in Moscow. These stores specialise in alcoholic beverages, and in particular wine, of which Enoteka stocks 1 500 different varieties. These wines, from both the Old World and the New World, are chosen by sommeliers trained at the company's own Wine Academy. They help customers choose the finest wines and create the best epicurean combinations.

History

The first store registered to the shareholders was opened on Kutuzovsky Prospekt in 1991-1992. It was called simply "Delicatessen". Only in 1997 did they open their first supermarket under the brand name "Azbuka Vkusa". In 2002, four of the supermarkets were united by the common concept of branding, including corporate identity, interior design and an updated approach to the maintenance of a wide stock. In 2009-2010, the company's corporate identity was modernised and stores were redesigned.

In 2014, after lengthy negotiations, the company acquired a suburban estate sales network, operating under the brand “Spar” This compromised 5 hypermarkets and 3 supermarkets a total storage surface area of about 10 000 m ² and production area of about 6 000 m ². The value of the acquired network is estimated at $85–105 million, and the size of the transaction was about half the amount.

Azbuka Vkusa has expanded steadily since 1997, balancing external acquisitions and internal growth. The table below charts that growth using figures provided courtesy of the company.

References