Friday, 08 January 2010 12:05
OJSC Confectionery Group „SladCo”
CEO: Vadim Ter-Israelyan
OPERATIONS: Confectionery
ESTABLISHED: 2001
EMPLOYEES: 2 600
www.sladco.ru
The Confectionary Group SladCo is one of the major confectionary producers in Russia. It was established in 2001 and its headquarters are in Yekaterinburg. The name of the company means ‘sweet’ in Russian and it reflects the wide product range of the firm, which includes chocolate, sweets, caramel, biscuits and wafers. Delicious sweets sealed inside bright and shiny wrappers with SladCo logo enclosed lure the consumers looking for a sweet tooth’s paradise. In 2005, the company was acquired by ORKLA, which is one of the largest company holdings in Norway and a premier supplier of branded products to the Scandinavian grocery market. The international partnership marked a new era. During last three years operational activities of the company have changed quite significantly. The new management team has applied the western multinational standards and quality systems. SladCo has realized the project of restructuring its production facilities, i. e. Yekaterinburg factory has been focused on producing pastry, while Ulyanovsk one on chocolate products. It also initiated a project of logistics and purchasing optimization. It opened up possibilities for the cooperation with strong global players and for the use of innovative technologies. Currently, more than 3000 employees, who are young, motivated and enthusiastic, contribute to the success of the company.
Written by: Karolina Burkiewicz
Talented staff and quality of the products
SladCo company boasts of professional workers with accumulated experience and commitment to excellence. They do not only define the core values of the company, but also live by them, which makes SladCo a gratifying place to work. They proved their effectiveness and dedication during the challenging periods for the company. Their vast knowledge and loyalty accelerated the development of the firm, as their career growth is aligned with the company’s goals. But, what makes them outstanding is their flexibility and mobility. Their target is to satisfy the consumers’ needs and concentrate on their preferences and quality of the products. Life-long customers are the backbone for any successful company. Certainly, limitations breed creativity and stimulate innovation, as the saying goes, necessity is the mother of invention. However, in SladCo, employees are encouraged to stretch their minds and go beyond their limits. They may be limited by the resources, but not by the management of the firm. They embrace new technologies and use them to improve the traditional products and production. Moreover, the staff is supported by their colleagues from other ORKLA confectionary and food production units. They share their experience and know-how to manufacture high-quality products. Quality is the fundamental approach that SladCo company integrates into daily operations. It is not just a declaration, but an integral part of the production. State-of-the-art products are top priority. Therefore, the firm sometimes sacrifices profitability and competitive pricing strategy for over-the-top quality. Mediocre confectionary materials are unacceptable. Moreover, the company promotes traditional Russian ingredients, which a consumer can find in famous ‘Ptichka’ sweets. Their name in Russian means a ‘little bird’ and it reflects their light and delicate texture, as they are made of condensed milk and whipped white coated with chocolate. Although, SladCo defends old Russian candy and confectionary recipes, it does not stand in the way of modernizing and spicing them up. They are altered to suit the customers’ needs. High quality of the products brings success for the company. Another important factor is the distribution and advertising of the products. The firm is focused on the whole distribution chain, from the factories and warehouses to the supermarkets where the new commodities hit the shelves. The promotion activity of SladCo products is often combined with the ones of its business partners to meet the customers’.
National ambitions
Two regional factories, ‘Volzhanka’ in Ulyanovsk and ‘Konfi’ in Yekaterinburg, laid the foundations of SladCo company. They have a long history and strong position in the Russian market. The Confectionary Group is represented in most of Russian regions, not only in Volga and Ural federal districts, but also in Siberia and the Far East of Russia. It is one of the top five players in confectionary industry in Russia and it strives to retain its lead position. The target seems realistic considering the fact that during the last two years the company strengthened its operations in Russia’s central regions. The success is achievable by the growing presence of SladCo’s products in global, national and local retail chains. Taking a similar approach as other companies with national ambitions, the firm follows the modern trade concept, which became a trend in Russia. As opposed to traditional retail shops, modern trade puts emphasis on the sales methods and advertising of products to reach the customers effectively. It met with a favourable response in Russia, because the Eastern market is flooded with strong global operators. SladCo company modernized its retail market to satisfy the consumers’ requirements and provide them with high-standard products. The quality and taste of the product itself is the major focus of the firm. It is obvious that if it does not live up to the expectations of the customers, it will not be purchased again. Thus, a team of experts works hard to improve the quality of the products constantly. The staff acquired lifelong experience and honed their skills for many years working for SladCo, so they do their best to address the consumers’ needs. The key brands of the company are ‘Slad&Co’ for chocolate and ‘Happy Day’ for biscuits and wafers. Yet, the company does not only concentrate on the new confectionary goods. Owing to SladCo, old local brands, such as ‘Konfi’ and ‘Volzhanka’ live again and regained their popularity. They existed in the Russian market and were leading candy manufacturers before SladCo was established. Observing the market mechanism, the firm is targeting local market expansion and foreign market penetration. It is worthwhile to combine the introduction of new brands with the revitalisation of old brands, as ‘Konfi’ and ‘Volzhanka’ are winning Russian and CIS countries’ markets.
International relations
SladCo offers its products outside the borders, mainly, to CIS countries, Georgia, Ukraine and Mongolia. Amid the global economic crisis, the company’s growth and prosperity remained stable thanks to its flexibility in business approach and eagerness to explore new possibilities. Its export expansion was focused also on Middle East financial markets. Currently, SladCo is in the process of negotiations with Qatar and Kuwait. International cooperation with ORKLA resulted in significant changes for the Confectionary Group SladCo. The company was successfully valued at strict external and internal audits on account of adopting Western multinational standards and quality systems by the management team. In 2009, it re-launched its key brand ‘Slad&Co’, which was positively acclaimed by the customers, who appreciated the quality of a familiar product.
Certificates and awards
SladCo company is justly proud of its achievements. It is ISO and HACCP certified, which guarantees food quality and safety and accordance with international standards. Apart from that, it has been nominated as one of the ‘Russia’s top 100 products’ since it was set up. Every year the company rakes in awards and succeeds under the strict assessment of the jury scrutinizing the products for details. This year, SladCo has been awarded as a recognized leader for ‘Wide range and high quality standards of its products’ in the competition called ‘Agricultural Olympus’. Furthermore, this year Europe Business Assembly has adjudged SladCo the prize “Best Enterprises of Europe” as an innovative, competitive, visionary, market-leading company. As well as chief executive officer Vadim Ter-Israelyan has become the laureate of the international Award “Manager of the Year”.
Bright future
The future of SladCo looks promising. Within the next 5-10 years, the company plans to retain the continual and balanced growth of its core products along with the building the qualitative and efficient national distribution and improvement of their qualities. It aims at implementing modern technologies, innovating its traditional products and introducing new brands including ideas for entrance into new price segments (premium portfolio level). The firm is also considering the third party acquisitions, potentially in the core business segments, but also in the new ones, to reach synergy effects and economies of scale. The goals of the Confectionary Group SladCo are clearly defined, and undoubtedly, they will be attained. The company has a great potential for success and honest core values. High quality of the products and flexibility of the staff have already been appreciated by a considerable number of Russian candies’ consumers.
