22 April 2020

Perekrestok stores in Central Russia to use recycled plastic branded bags

Moscow, 22 April 2020 – X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains (LSE and MOEX ticker: “FIVE”), announces that Perekrestok supermarkets in the Central Federal District are moving to more eco-friendly branded grocery bags with 35 percent recycled plastic content.

In May 2020, 496 Perekrestok supermarkets in the Central Federal District, which represent about 70 percent of the total store count, will offer grocery bags with one-third recycled content. The decision was made following a pilot project in four supermarkets in Moscow. The pilot project was carried out in cooperation with EcoTechnology Group, Russia’s largest plastic packaging recycler, and Tver Pak, a packaging manufacturer. Grocery bags with high recycled plastic content were successfully field-tested and their durability and quality are on a par with conventional plastic bags.

To ensure this transition of supermarkets in Central Russia to bags with 35 percent recycled content, Perekrestok adjusted its business requirements for bags suppliers, making high recycled content a prerequisite. Grocery bags are made from granules containing recycled plastic waste from the retailer as well as household plastic waste. Polyethylene recycling includes sorting, crushing, thorough washing, and high- temperature treatment, which guarantees that the end material is of high quality and completely safe. Going forward, Perekrestok plans for its stores in all regions to use bags with high recycled content.

The requirement for manufacturers to use recycled materials in the production of plastic bags is yet another step for the company to developing the circular economy. X5 strives to recycle as much waste as possible and reduce what is sent to landfills. In the meantime, the company focuses on promoting reusable packaging and incentivising its customers to be responsible consumers.​​