Own Brands of Food Retail under Sanctions

Abstract

The Russian food retail has faced a number of issues caused by the aggravation of the geopolitical situation and the subsequent imposition of sanctions against Russia. International logistics companies have withdrawn from the market resulting in disruption of logistics supply chains. Due to the sanctions against the Russian banking sector, it has been increasingly difficult to pay for imported goods. Purchasing power has lowered, as multiple key suppliers of consumer goods withdrew from the Russian market and there are problems of importing raw materials and packaging for goods in this segment. Logistical issues forced food retailers to restructure their assortment strategy. The article looks into the issues of the Russian companies introducing their own brands in their operation in the context of the formation of a new trade policy of grocery retail. It is pointed out that both the network retail and the manufacturer will benefit from introducing their own brands. Based on the study and analysis of the latest regulations and sources of modern literature, a hypothesis has been proposed, stating that the policy of using one’s own brand in food chain retail will lead to increased sales volumes and minimized costs of promotion and display. Based on statistical and factor analysis methods, a forecast of the development of the Russian food retail is proposed within the framework of the strategy of introducing business’s own brands.