The food industry is one of the leading sectors in St. Petersburg. Due to the city’s geographical location and other pertinent factors it has been greatly developed in recent years. In 2008 the total value of dispatched goods in the sector reached 185,8 bln. RUB, having increased by 12% since 2007 (in current prices). The share of food, beverages and tobacco in the total volume of goods dispatched in manufacturing industry amounted to 26,7%. In the structure of employment in manufacturing industry 13,7% are employed in the production of a wide range of foodstuffs, beverages and tobacco.
St. Petersburg has a significant share in the volume of a number of foodstuffs produced in North-Western Federal District, including flour (60,0%), confectionery (48,0%), dairy products (38,0%), cooked meats (20,5%).
St. Petersburg is recognized as the beer and tobacco capital of Russia. Up to 50 % of the local food industry is held by breweries and tobacco companies which, to a large extent, is due to the efficient operation and administration by Western companies. Practically all beer and tobacco producers in St. Petersburg are owned by foreign investors.
During recent years, a number of new production facilities have been established in the food industry of St. Petersburg (for instance, the new largest dairy plant in Russia was launched by Petmol in 2008) while existing facilities have been modernized, reconstructed and technically re-equipped. As a result, the sector is dynamic and capable of satisfying the needs of the local population while still managing to sell products to other regions of Russia and abroad.
