X5 Group announced the acquisition of the Nice Ice ready-to-eat food business in the Leningrad Region. The Company has obtained the relevant permit from a government commission. As part of the deal, X5 will take over ownership of a 4,200-square metre ready-to-eat food smart kitchen in the Vsevolozhsky District.

The production site will become a part of the X5 Food business unit, which develops the ready-to-eat segment across the Company's retail chains. The smart kitchen already produces about 7,000 ready-to-eat meals a day for X5's Pyaterochka and Perekrestok retail chains and has a total daily capacity of up to 40,000 meals, with the potential to be upgraded to up to 70,000 meals. The facility produces ready-to-eat meals in a variety of categories, including salads, breakfasts, hot meals, starters, sandwiches and desserts.

At present, X5 Food's existing in-house and contracted production facilities produce about 100 tonnes of ready-to-eat food per day across more than 400 SKUs. As at 2023-end, ready-to-eat food accounted for 2.3% of sales at Pyaterochka and 6.3% at Perekrestok. The Company plans to grow its share in the combined retail and HoReCa ready-to-eat market to 9% by 2026.