H&N CEO Yakub Zakriyev on Building a Fully Independent Russian Dairy Powerhouse
Source: DairyNews.today
Following the departure of French dairy giant Danone, Health & Nutrition (H&N) has completed a transformation into a fully Russian-owned and operated entity. Now under the control of Tatarstan’s Vamin R, the company has restructured to become an independent powerhouse in the Russian dairy industry. Yakub Zakriyev, H&N’s General Director since July 2023, shared insights on the company’s transition, its focus on local sourcing, and ambitions for future growth in an interview with Interfax.
A New Era for H&N
Zakriyev highlighted that the most significant change over the past year has been the localization of H&N’s brands, operational systems, and management structures. "We have evolved into a completely Russian, standalone business with a portfolio of strong local brands," Zakriyev said. While the company leverages global best practices in quality and safety, no radical changes in structure or management methods are expected, as the existing systems continue to perform efficiently.
The company operates a nationwide network with 12 production plants and a robust distribution chain covering all of Russia. H&N’s product range includes both traditional dairy products and plant-based alternatives, catering to the growing demand for diverse dietary options.
Localized Brands and Market Success
Following the rebranding efforts, H&N introduced localized versions of its well-known brands, such as ActiBio, Actimuno, and the plant-based Planto. Zakriyev noted that these rebranded products have seen strong market growth, achieving seamless transitions that comply fully with Russian and international intellectual property regulations. With the brand localization complete, H&N plans to maintain a stable portfolio while exploring expansion into new product lines.
Rising Demand for Dairy and Plant-Based Products
H&N continues to meet the rising demand for both dairy and plant-based beverages in Russia. Zakriyev pointed out that the market for plant-based beverages has grown by 26% in the first half of the year, with sales of the Planto brand increasing nearly 44% when including HoReCa channels. Simultaneously, dairy product consumption is booming, indicating that these categories can thrive side by side. “We are exploring ways to expand the Planto range, and consumers can expect exciting new options soon,” Zakriyev added.
Strengthening Supplier Partnerships
As one of Russia’s largest raw milk buyers, H&N has built a long-standing network of suppliers, with some partnerships exceeding 20 years. Approximately 20% of its milk suppliers operate under three-year contracts, which Zakriyev describes as optimal for market cycles. Since becoming a fully Russian-owned business, H&N has intensified its collaboration with local milk producers, emphasizing long-term relationships that support sustainable operations.
Investment in Innovation and Expansion
H&N is advancing its capabilities through a five-year investment plan, focusing on enhancing production efficiency and increasing localization of components and materials, which are now 98% domestically sourced. One of the major upcoming projects is the construction of a milk powder facility at the Kazan plant, intended to boost export potential to North Africa, the Middle East, and Saudi Arabia.
In addition, H&N is pursuing targeted export growth in the Commonwealth of Independent States (CIS), leveraging similar consumption patterns and favorable logistics. The company is also assessing opportunities in China, North Africa, and the Middle East, regions that offer promising expansion avenues. To support these efforts, H&N has begun the process of obtaining Halal certification, aligning with regional market requirements.
State Support and Future Prospects
Zakriyev acknowledged that the Russian dairy industry benefits from a range of government support measures, including subsidies for milk processing and preferential lending. However, he underscored the need for additional sectoral support, particularly for projects that would foster technological sovereignty, such as the localization of starter cultures and enzyme production.
With its rebranded products, a focus on local partnerships, and a strategic plan for both domestic and international growth, H&N is positioning itself to become a central player in the Russian dairy industry, driving forward not only its own success but also the sector’s broader development.
Zakriyev highlighted that the most significant change over the past year has been the localization of H&N’s brands, operational systems, and management structures. "We have evolved into a completely Russian, standalone business with a portfolio of strong local brands," Zakriyev said. While the company leverages global best practices in quality and safety, no radical changes in structure or management methods are expected, as the existing systems continue to perform efficiently.
The company operates a nationwide network with 12 production plants and a robust distribution chain covering all of Russia. H&N’s product range includes both traditional dairy products and plant-based alternatives, catering to the growing demand for diverse dietary options.
Localized Brands and Market Success
Following the rebranding efforts, H&N introduced localized versions of its well-known brands, such as ActiBio, Actimuno, and the plant-based Planto. Zakriyev noted that these rebranded products have seen strong market growth, achieving seamless transitions that comply fully with Russian and international intellectual property regulations. With the brand localization complete, H&N plans to maintain a stable portfolio while exploring expansion into new product lines.
Rising Demand for Dairy and Plant-Based Products
H&N continues to meet the rising demand for both dairy and plant-based beverages in Russia. Zakriyev pointed out that the market for plant-based beverages has grown by 26% in the first half of the year, with sales of the Planto brand increasing nearly 44% when including HoReCa channels. Simultaneously, dairy product consumption is booming, indicating that these categories can thrive side by side. “We are exploring ways to expand the Planto range, and consumers can expect exciting new options soon,” Zakriyev added.
Strengthening Supplier Partnerships
As one of Russia’s largest raw milk buyers, H&N has built a long-standing network of suppliers, with some partnerships exceeding 20 years. Approximately 20% of its milk suppliers operate under three-year contracts, which Zakriyev describes as optimal for market cycles. Since becoming a fully Russian-owned business, H&N has intensified its collaboration with local milk producers, emphasizing long-term relationships that support sustainable operations.
Investment in Innovation and Expansion
H&N is advancing its capabilities through a five-year investment plan, focusing on enhancing production efficiency and increasing localization of components and materials, which are now 98% domestically sourced. One of the major upcoming projects is the construction of a milk powder facility at the Kazan plant, intended to boost export potential to North Africa, the Middle East, and Saudi Arabia.
In addition, H&N is pursuing targeted export growth in the Commonwealth of Independent States (CIS), leveraging similar consumption patterns and favorable logistics. The company is also assessing opportunities in China, North Africa, and the Middle East, regions that offer promising expansion avenues. To support these efforts, H&N has begun the process of obtaining Halal certification, aligning with regional market requirements.
State Support and Future Prospects
Zakriyev acknowledged that the Russian dairy industry benefits from a range of government support measures, including subsidies for milk processing and preferential lending. However, he underscored the need for additional sectoral support, particularly for projects that would foster technological sovereignty, such as the localization of starter cultures and enzyme production.
With its rebranded products, a focus on local partnerships, and a strategic plan for both domestic and international growth, H&N is positioning itself to become a central player in the Russian dairy industry, driving forward not only its own success but also the sector’s broader development.
