Gebr Heinemann has announced the acquisition of Russian border store operator Kapo Duty Free.

The company currently operates 12 border shops and three smaller regional airport shops in Russia. It has been a Gebr. Heinemann wholesale customer for more than 20 years and Heinemann says there has been ‘a good long-standing partnership’ between the two companies.

Kapo’s main border shops are located in Torfjanovka and Svetogorsk (on the Russian/ Finnish border) and in Zabaikalsk (on the Russian/Chinese border). As a result of the acquisition, Gebr. Heinemann will now be represented in Russia with around 12 border shops at eight borders to five countries.

MODERNISATION PLAN

The sores will be modernised to make them in line with European travel retail standards and the focus of the assortment will be liquor, tobacco, confectionery, perfume and cosmetics and local products, depending on the needs and requirements of the respective border. Travelling tourists and foreigners will be the primary target groups.

Oleg Zhytomyrsky, Director Sales Eastern Europe Central Asia, Gebr. Heinemann said:  “We are very happy about the acquisition of Kapo. Gebr. Heinemann’s goal in the deal was the continuous and further expansion of our (East) European border shop business, in which we see great potential and want to position ourselves in the long term as well as expand and secure our market leadership in the Russian duty free market.

“Extending our business in this area gives us the opportunity to serve all passengers along the borders for example to Finland, Estonia or China and thus reach out to customers in a completely different way. In future, we will have even more opportunity to bring in our international experience, especially in terms of product range development and target group orientation.”

News of the Kapo Duty Free acquisition follows further recent significant Russian development with the opening of arrivals duty free stores at Koltsovo and Sheremetyevo Airports. This was after travel retailers were given the green light in January to operate arrivals duty free shops in the country.