Dairy giant Valio greatly increases the sale of its products on the Russian market, despite sanctions.
Finnish companies that operate in Russia, the best things are the company Valio, because she managed to benefit from Russia’s counter-sanctions.
This has been possible because the company Valio owned distribution center and the production of processed cheese not far from Moscow. The plant was able to continue working, using local raw materials.
In 2014, the company Valio has lost 90% of turnover in one night. Loaded with melted cheese Viola and Oltermanni cheese truck remained on the other side of the border because of retaliatory sanctions imposed by Russia. But Valio has managed to rise to his feet and begin the manufacturing of its products at its own plant in Russia.
General Director of OOO “Valio” Lennstrom Raul (Raul Lönnström) built a modern logistics distribution center and factory in Odintsovo for another five years before the world learned about sanctions and counter-sanctions. Now Lennstrom very happy. Both Russia and Finland won!
The Odintsovo factory saved all the activities of Valio in Russia, thanks to him, the company Valio has increased its momentum in Russia after the imposition of counter-sanctions by 150%. The plant is located on a private plot Valio and, if desired, can expand to two or three times.
Lundstram believes that Valio will continue its activities in Russia and in the case of the lifting of sanctions. Of the products can be brought from Finland, and some continue to produce on the spot.
According to Lundstrem, the effect of Russian kontrsanktsy exactly as planned, President Vladimir Putin and Prime Minister Dmitry Medvedev. Retaliatory sanctions contribute to the development of import substitution.
Of course, for Russian it would be even better if they owned the production and received all the economic benefits.
© RIA Novosti, Evgeny Odinokov | go to photobackgrounds in Russia processed cheese Viola
Lennstrom with doubt refers to the fact that EU and US will impose sanctions on import-substituting production. He believes that it would be too heavy a weapon in a contemporary setting in which a trade war not erupted in full force, but is only a means of pressure.
In 2007, engineer-chemist of the company Valio Raul Lindstrema handed a whole bag of money and a ticket to Moscow. He was given a brief instruction to buy land and build in Russia, distribution center and factory for the company Valio.
Now, ten years later, in the village of Ershovo near Moscow is the Valio plant, which supplies the market with a wagon for the wagon Viola processed cheese and Oltermanni cream cheese and many other dairy products.
Six months ago, the company Valio entered the Russian market of baby food. His contractee is not affected, so baby food can be delivered to Russia and from Finland. Last year, Valio began producing in Russia, developed in collaboration with pediatricians, the Baby brand Valio.
Lennstrom says that they are faced with serious competition, because in Russia there are all the well-known global brands of baby food. He hoped that the reputation of Valio as a seller of quality products to help promote the products.
“It’s slow, but I believe in baby food. Valio Baby took well.”
A mass Exodus of Finnish firms from St. Petersburg
The Finnish company leaving EN masse Petersburg in connection with the Russian economic crisis. The economic decline is mainly caused by collapsed oil prices, not sanctions. Among the deceased — Stockmann, Kesko grocery stores, sports store Intersport, as well as the insurance company If.
Part of Finnish firms only reduced the production in the hope that the economy will start to revive. For example, the network Prisma, at its 19 shopping centers in Russia, and now only 16.
The low exchange rate of the Russian ruble supported the revival of the economy. Therefore, many economists say hurry with the lifting of sanctions is not worth it because they are pulling the ruble down.
Company Valio has supplied products to the Imperial court in 1908
Company Valio began exporting their products to Russia in 1908. The Finnish oil so quickly gained a good reputation that it began to eat at the Imperial court. A new Finnish company Valio has become a supplier of the Imperial court on the third year of operation.
Great success for the company Valio was that she got the opportunity to supply dairy products during the Moscow Olympics in 1980. However, the real breakthrough came in 1956: then processed cheese Viola came to the Soviet market the first foreign cheese.
Viola processed cheese has maintained its popularity throughout time. He is still the most famous product of the company Valio in Russia. Lennstrom quips that back in 2000, cheese Viola was in Russia better known than Nokia phones. Cream cheese Oltermanni followed in the footsteps of Viola.
Processed cheese Viola is 32% of the cheese sold in St. Petersburg and 21% in Moscow.
Now Russia sold 120 products company Valio. The company has its own factory and six suppliers. In Russia, the company Valio employs 380 people, the total number of employees is 2 thousand.
