Health & Nutrition (H&N), a leading dairy company in Tatarstan, has transformed into a fully Russian-owned entity following the exit of Danone. Under CEO Yakub Zakriyev, the company has localized its brands and production systems, positioning itself as a key player in the Russian dairy market. H&N focuses on expanding both dairy and plant-based products while enhancing supplier relationships and investing in domestic production capabilities.
Health & Nutrition (H&N), a prominent dairy company based in Tatarstan, has recently transformed into a fully Russian-owned and operated entity following the departure of French dairy giant Danone. Now under the control of Tatarstan’s Vamin R, H&N has restructured to establish itself as a powerhouse in the Russian dairy industry. Yakub Zakriyev, who has served as General Director since July 2023, shared insights into the company’s transition, its focus on local sourcing, and its ambitions for future growth in an interview with Interfax.
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. The company has evolved into a standalone business with a diverse portfolio of strong local brands. While H&N continues to leverage global best practices in quality and safety, it is not anticipating any radical changes in structure or management methods, as the existing systems are performing efficiently.
With a nationwide network of 12 production plants and a robust distribution chain, H&N offers a wide range of products that include traditional dairy items and plant-based alternatives, catering to the growing demand for diverse dietary options. Following its rebranding efforts, H&N introduced localized versions of well-known brands such as ActiBio, Actimuno, and the plant-based Planto. These rebranded products have seen significant market growth, achieving seamless transitions that comply with both Russian and international intellectual property regulations. With brand localization now complete, H&N plans to maintain a stable product portfolio while exploring expansion into new lines.
The demand for both dairy and plant-based beverages in Russia is on the rise, with H&N’s plant-based beverage market growing by 26% in the first half of the year and sales of the Planto brand increasing nearly 44%, including sales in the HoReCa (Hotels, Restaurants, and Cafés) channels. Zakriyev pointed out that dairy product consumption is also booming, indicating that both categories can thrive side by side. The company is exploring ways to expand the Planto range, promising consumers exciting new options soon.
As one of Russia’s largest raw milk buyers, H&N has cultivated a long-standing network of suppliers, with some partnerships lasting over 20 years. Approximately 20% of its milk suppliers operate under three-year contracts, which Zakriyev considers optimal for navigating market cycles. Since becoming a fully Russian-owned business, H&N has intensified its collaboration with local milk producers, emphasizing the importance of long-term relationships that support sustainable operations.
H&N is also advancing its capabilities through a five-year investment plan focused on enhancing production efficiency and increasing localization of components and materials, with 98% now sourced domestically. A major upcoming project includes constructing a milk powder facility at the Kazan plant, aimed at boosting export potential to North Africa, the Middle East, and Saudi Arabia. Additionally, H&N is pursuing targeted export growth in the Commonwealth of Independent States (CIS), leveraging similar consumption patterns and favorable logistics. The company is assessing opportunities in China, North Africa, and the Middle East, regions that offer promising expansion avenues. To support these efforts, H&N has begun obtaining Halal certification to align with regional market requirements.
Zakriyev acknowledged the support from the Russian government for the dairy industry, including subsidies for milk processing and preferential lending. However, he emphasized the need for additional sectoral support, particularly for projects fostering technological sovereignty, such as localizing the production of starter cultures and enzymes.
With its rebranded products, a focus on local partnerships, and a strategic plan for domestic and international growth, H&N is positioning itself to become a central player in the Russian dairy industry. The company aims to drive not only its own success but also the broader development of the sector.
