Russian leading health food retailer Vkusvill launches hot meal delivery

Russian leading health food retailer Vkusvill launches hot meal delivery
Russian leading health food retailer Vkusvill launches hot meal delivery
By bne IntelliNews August 31, 2021

Russian leading health food retailer and foodtech company Vkusvill has announced expanding its delivery of prepared meals with a new project offering hot food delivery. The service is now available via the VkusVill mobile app. 

As followed by bne IntelliNews, in the fast-growing foodtech and e-grocery segment Vkusvill emerged as the third-largest player in Russia along with Sbermarket and X5 Retail Group. The company is an emerging market player to watch amid news that the company is reportedly preparing for an IPO

Now Vkusvill customers located within the delivery zone will be able to use a new subservice Sgoryacha that allows delivery of prepared meals in a thermal container within two hours from the moment an order is placed.

Hot meals are prepared using 11 dark kitchens that VkusVill currently operates in Moscow, St. Petersburg, Volgograd and Cheboksary; these have already delivered around 53,000 hot meals to date.

The service launched with a menu of 15 dishes, including borscht, cabbage soup, various pastas and cutlets. By August, the menu expanded to include more than 60 different dishes.

About a dozen domestic players account for almost 90% of food deliveries in Russia. As of the first half of this year, the leaders were Russia’s largest food retailer X5 Group with a 16% market share, followed by Sbermarket and VkusVill with 14% each, according to Infoline. 

VkusVill, a fresh dairy product vendor-turned major health food brand and retailer, posted by far the largest growth in online grocery of 437% year on year. These results are all the more impressive given that the company had close to zero e-commerce presence at the beginning of 2020. Today it has emerged as a leading food tech player, with online sales accounting for nearly 25% of turnover.

VkusVill has the best known health foods brands and is the number one "clean-label" food brand in Russia as well as the largest Russian food brand by sales, according to Infoline. VkusVill’s private-label products account for 96% of its assortment of more than 2,700 SKUs and stand out for their freshness and limited shelf life, says the company, making VkusVill "the trusted partner of Russian consumers for a curated selection of fresh, high-quality products," according to a company spokesperson. 

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