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Orkla Brands Russia was established in 2011 as a result of a merger between OJSC Confectionery factory named after N. K. Krupskaya and OJSC Confectionery Group “Slad&Co.” Today the association is one of the largest manufacturers of confectionery products in Russia. It consists of four production facilities located in St. Petersburg, Ulyanovsk, Ekaterinburg and Razbegaevo. The company’s offer includes chocolate in bars and boxes, cookies, cakes, waffles and different types of candies.
History and structure
It is too early to talk about the history of the company as such. In February 2011 a merger between two companies was announced, however, legally and factually this process was completed just on 26 December 2011. It was a sum of a tremendous experience gained over the years on-site (all plants included in the association have more than 40-year history) with a modern approach to business. Unification of companies was a launching pad for growth and development. It will enable to optimize costs, improve competitiveness, give new impetus to brands’ development and enhance the company’s leading position in the confectionery industry. The company consists of: Confectionery factory named after N.K. Krupskaya, Confectionery factories SladCo in Ekaterinburg and Ulyanovsk, as well as Confectionery factory Pekar in Razbegaevo, Leningrad Region. Confectionery factory named after N.K. Krupskaya began its operations in 1938. In 2006 it was purchased by the Norwegian concern Orkla. Today, the company is a modern production facility with capacity of over 20 thousand tons per year. The factory uses both modern, high-performance as well as traditional, manual equipment for the manufacture of luxury chocolates. The priority of the factory is to preserve traditional taste and quality, which means respect for long-standing confectionery traditions and willingness to meet the demands of modern life. Confectionery factory SladCo in Ekaterinburg was established in 1967. It is a stable growing company. By strengthening its position in the confectionery market, development of production and expanding its presence, the company became the winner of various famous competitions. Three times in a row it was awarded the Certificate “Expert 200”, according to the rating of Russian largest companies in terms of sales volume. This is one of the first confectionery factories in Russia that has implemented a quality system compliant with international standards ISO-9000. In 2005 the company introduced an international system of food safety guarantee HACCP (Hazard Analysis and Critical Control Points). In the same year, the company was acquired by Orkla. The company pays special attention to upgrading equipment and improving production processes. Since 2008 the factory in Ekaterinburg has focused on the production of biscuits. SladCo factory in Ulyanovsk has more than 35-year history. Over these years, the factory has gained many international awards, for example Golden Prize from Global Quality Management for the best quality in 1995 and 1996, Torch of Birmingham from the International Institute of Finance and Economic Development for the successful economic development during transition economy, and many others. Today the company specializes in the production of chocolates and caramels. The history of Confectionery factory Pekar dates back to 1913 when it was established by I.I. Volfisblengom and O.L. Zeftingeno. During its history the plant has successfully competed with domestic and foreign confectionery manufacturers. In order to satisfy requirements of consumers the plant was systematically modernizing production processes and launching new production lines.
Strategic potential
People and their creative genius are the main asset and strategic potential of the company. Those, who, through their daily hard work and dedication, prove loyalty and devotion to the business. The company’s staff can be proud that it gives people pleasure by producing sweet products which are known and loved not only on the territory of Russia, but also abroad. Excellent taste and quality of Orkla Brands Russia’ products are noted not only by customers, but also professionals, what has been confirmed by the prestigious awards and certificates.
Factors deciding about the success
Quality of work is the main priority at Orkla Brands Russia. By using marketing tools, you can force consumers to buy a box of chocolates once. However, if the product is of poor quality and not tasty, the client will never buy it again. Loyal and regular customers are the guarantee of high sales, which is why the quality of products is so important for the company. Unquestionable advantage of the company as a manufacturer is also a wide range of offered products. Orkla Brands Russia’ portfolio contains pastries of all price segments, the company also produces all major types of confectionery: chocolate, candies, caramels, cookies, waffles – dozens of names in each category.
Production characteristics
The company invests heavily in product development. It strives to keep pace with time, which is very difficult without modern equipment. The future of Orkla Brands Russia lays in innovations. During 2011 several projects were implemented in this field, and the company launched such interesting products as: ”Vernissage”, a line of premium cookies “Pekar”, candies under the brand name “Osoby” (Special) and others. The company also strengthened its strategic brands: “Bear in the North” and “Fluide.” By taking the best from two creating it companies, Orkla Brands Russia has developed a unified product portfolio and its brands will achieve in the future the national level. Among the company’s major brands, there are: “Slad&Co”, “Factory named after N.K. Krupskaya”, “Pekar”, and “Azart.”
Export destinations
Russian products have potential to compete with goods manufactured by Western producers – in terms of the quality, design and price. It is worth noting that the Soviet confectionery, particularly chocolate, in the consciousness of Russian consumers has never lost its quality characteristics. Moreover, nostalgia for the real Soviet chocolate and sweets versus Western production suits domestic producers, especially those, who own the relevant trademarks. In general, the volume of export of the company’s total sales amounts to five percent. The entity exports its products to the United States, Mongolia, Israel, Germany, Bulgaria and all CIS countries. Orkla Brands Russia does not stand still. It is constantly working on innovations and is gradually including in its portfolio innovative, bright and remarkable products. Here are just few examples: identifying growing interest of consumers in the “Easy sweets” segment the company launched a new product – a dessert “MonLiebe.” It is a gentle air sufflé covered with a thin chocolate layer. The innovative formula enabled to significantly reduce calorific value of the product, compared with traditional sufflé. Undoubtedly, the company can call its boxed candies “Fluide” its pride. They are produced with the use of the most advanced Swiss technology. For the production of premium chocolates the company purchased and installed a new Swiss production line and invented original packaging.
Employees
Creating of a new team can be considered as the most important achievement of 2011. It is a team of the most experienced experts in their field, a team united by one vision, shared challenges, and the spirit of the winners. The team has grown – currently corporation Orkla Brands Russia brings together about 3500 people who work on four production sites: in St. Petersburg and Leningrad Region, Ekaterinburg and Ulyanovsk.
Mission
The company serves as an impetus for the creation of a new mission which should be comprehensible not only to each employee of Orkla Brands Russia, but also to its customers. By creating delicious, modern, innovative products, the company brings joy everyday to every home – and this is precisely the company’s new mission. It always has been and still remains the main task of Orkla Brands Russia to delight customers with high quality and modern products. The company tries to make sure that this mission does not exist only on paper, but has also been realized through specific actions, concentrated in one direction. Behavior and relationships at Orkla Brands Russia are based on the following principles: consistency in quality development, passion for innovation, thoroughness in decision making and goals achievement.
Awards and certificates
Numerous awards and diplomas of prestigious Russian and international exhibitions and competitions as well as prizes from professional organizations are recognition of the high quality of the company’s confectionery products. 2011 is the first year of operations of the renewed company – it considerably enlarged the treasury of these achievements. For example, according to International Tasting Competition “Product of the year 2011” chocolate boxes under the brand “Fluide” entered the top three winners. Moreover, the company’s products have once again received gold and silver medals during the competition “100 best goods of Russia.” The company can also boast one of the most prestigious awards in the field of marketing development, the award “Effie” and the title “Brand of 2010”, received by the brand “Slad&Co.” The company is proud of its team that has kept pace with the times, developing itself and increasing production capacities. The company is also proud that its products are loved and appreciated not only by ordinary consumers, but also professionals across the country and abroad.
