Zhytomyr confectionary factory ZhL is one of the top five confectionery producers in Ukraine. It is a successful company, which has been steadily growing for many years. For more than 60 years on the market the company has built successful relationships with partners and consumers while its products went on to become favorites for many families.
Beginnings and growth
The factory was founded in 1944. In those difficult war years the company produced about 130 kg of cakes, cookies and biscuits per day. Most of the products were sent to the front. Through the years ZhL has grown into a large enterprise and developed a broad range of products. As the company grew so did its production capacity. In 1945 the company manufactured around 500 tonnes of confectionary products per year, in 2011 this volume can be produced in just 2 days. During 2006-2009 the company has undergone modernization which further increased its production capacity. Now it is estimated at 70 000 tonnes per annum. The company significantly developed its product range. Today the confectioners of ZhL develop truly unique sweets. All the changes did not influence the company’s commitment to quality. Quality and taste always remain the driving force behind the making of ZhL sweets. ZhL is a truly innovative company. It focuses on creation of unique products as well as on the technological innovation of its workshops. Knowledge and experience acquired over the years combined with modern technologies produce great results.
Products that won the hearts of customers
The product range of ZhL is varied. The company developed three well known sweet brands: ZhL, Doma, and Optimix. ТМ ZhL brand includes sweets that customers remember from childhood. Sweets, cookies and wafers under this trademark are produced on the basis of classical recipes, most of which were created in the Soviet times. Everyone from elderly people to their grandchildren can enjoy the sweets that they like. Constant commitment to quality and a reasonable pricing policy of the company ensure availability of sweet, cookies or waffles to any customer, which creates a unique selling proposition. Affordable price, high quality and taste known and loved since childhood are the main principles behind the ZhL brand. These advantages distinguishes ZhL from its competitors. ТМ Doma was created with the thought of loved once, family, and friends. This product line was created with special requirements to taste and quality because people always choose only the best for their loved ones. This is why the Doma brand includes the most exquisite and refined confectionery that can express the feelings for the loved ones in the best way. With these sweets a pleasant quiet evening with your family or a nice get-together with your friends are guaranteed. It comes as no surprise because the name of the brand originates from the word “Dom” (“Home” in English), the word that associates with warmth, comfort and the most enjoyable moments. Creation of Optimix desserts was inspired by new healthy lifestyle trends. Optimix represents an optimal combination of taste and healthy lifestyle. The nutritious desserts have been designed to satisfy hunger and restore energy in a healthy way. Natural ingredients such as dried fruits, nuts, corn flakes, cereals and yogurt support the immune system and help to reduce the impact of everyday stress on the body. Optimix brand offers a wide variety of products that will meet the requirements of the most demanding customers. Optimix desserts have all the chances to occupy a leading position in the new promising segment of the confectionery industry, which is developing rapidly both in Ukraine and around the world. The quality of Optimix goodies meets European requirements. An innovative combination of delicious and healthy products and use of only natural ingredients distinguish the Optimix brand on the Ukrainian market.
Best quality guaranteed
The quality of ZhL’s products is confirmed by certificates of conformity, sanitary expert reports and quality certificates. Certified quality management system is implemented at the enterprise. It complies with the international standards such as ISO 9001:2000 and ISO 22000:2005. A specially the company pays attention to quality of the raw materials that are used for its products. All external raw materials are tested in the factory’s laboratory to assure the best standards. Moreover, the company accepts only those raw materials that have certificates of conformity and quality certificates. The control of production processes and quality control are carried out around-the-clock. There must be a quality assurance engineer in every workshop at all times. Compliance with all quality requirements is confirmed by certificates.
Mission and future objectives
Today, 1800 specialists work for ZhL. Its factory consists of 7 manufacturing workshops with 28 production lines. This enables the company to produce many different types of sweet: chocolate and sweet boxes, chocolate bars, coated and uncoated sweets, chocolates, snacks, chocolate wafer sweet, fudge, cookies, waffles, cereal bars, sweets sweetened with fructose, and corn and yoghurt desserts. The company exports its products to more than 20 countries including Germany, Israel, Russia, Moldova, Estonia, Latvia, Azerbaijan and others. The company is looking to enter other attractive and promising markets in Europe, Far East, North America and Pacific Island countries. ZhL has all the necessary tools to achieve success in this area: new design and packaging solutions, competitive pricing strategy and terms of delivery, private label experience and many others. The company shows positive development dynamics. In the near future ZhL plans to increase its presence on the confectionery market of Ukraine up to 7%. As for the share of exports in total production, it is estimated to increase up to 40%. Every year ZhL attracts over 5 million euro of investment. At the end of 2011, the company has successfully closed a five-year buyer’s credit deal for the purchase of a new production line. This deal was financed by international bank Rabobank (Netherlands). Insurance coverage has been granted by the state export credit agency of the Netherlands Atradius Dutch State Business NV. The completion of this deal significantly influenced the strategic development of ZhL, as acquisition of a new production line increased production capacity of the factory. It also open up new opportunities for the company, which has already began construction of another new workshop and started to plan strategy for entering the markets with international capital. A significant increase of profits can be traced in the recent years. In 2011 the profits increased 21% in comparison with 2010. In October 2012 the profits increased by 28% compared with the same period of 2011. Increase in sales in October 2012 confirms that the company has a good marketing strategy which allows it to grow even in conditions of general decline in the market of confectionery products. Today, the company has three major goals. First of all it focuses on creation of unique, high-quality, healthy products and sustainable long-term growth. Secondly, ZhL strives to be a company that can balance increase of its cost with profitability and establishing strong brands. Thirdly, the company is coming up with ways to create favorable conditions for personal, professional and financial development of the employees. Moreover, ZhL is constantly working to minimize the influence of its activity on the environment. One of the main priorities in this case is to reduce the technogenic impact on the environment and sustainable use of natural resources. ZhL aims to become a national leader of the confectionery market of Ukraine. Experience, knowledge and hard work always lead to success.