2 November 2005 - CEO Sanders underlines ambitions for growth in talks with Russia's President Poetin
Campina, one of Europe's leading dairy organisations, is set to further strengthen its position in the Russian market. Recent approval was given for expansion of the dairy drinks lines at Campina's production location in Stupino (Moscow region). With this investment Campina passes the USD 100 million mark for investments in the profitable Russian market. Expansion of the assortment and the introduction of fresh dairy products should also ensure future above average growth figures for Campina in Russia. In talks today with the Russian President V. Poetin, Mr J.J.G.M. (Justin) Sanders, CEO of Campina, explained the organisation's ambitions for growth in Russia. The structural expansion of brands and production capacity, and a qualitatively high dairy infrastructure form the basis for Campina's success, as expressed by Sanders. Poetin will be paying our country a state visit this week and will speak to several captains of industry, including Campina's CEO Sanders.
In the Russian Federation Campina Fruttis is an extremely popular brand. Campina realises a turnover of more than Euro 100 million (2004) in Russia. The organisation has been active in Russia since 1992 and in recent years has shown average growth figures of more than 10 per cent. This year again the Russian Federation declared Campina to be the best performing Dutch organisation in Russia; the so-called RUS Prix Award 2005.Campina Russia is a booming business with predominately Russian staff. Approximately 400 people are employed at the Stupino production location.
Campina Fruttis (fruit yoghurt) is the fastest growing brand in Russia and is expanding more rapidly than the total market for fruit yoghurt. With sweet desserts too Campina is scoring well: with the brands Campina Puddis and Campina Piruet, Campina is the second largest supplier in Russia and holds a market share of 15 per cent. By offering a wider range of different products Campina aims to strengthen its presence in the dairy section. Campina’s image in Russia will be increasingly formed not just by yoghurt and sweet desserts, but also drink yoghurt, Campina YoghoYogho and even fresh dairy products. Fresh dairy products may sound rather mundane but in a country where transport to Vladivostok takes eight weeks, long-life products are the standard. Campina distributes its fresh dairy products primarily in the Moscow region and the west of Russia.
“We have a clear ambition for Russia: growth”, says Tiny Sanders, CEO of Campina. “Since the opening of our Stupino plant in 2000 we have tripled our capacity in yoghurt. In January of this year we began with the local production of dairy drinks to meet the strongly growing demand for these products. Yoghurt drinks sell like hot cakes. Our people have to keep production running around the clock in order to meet the demand of the Russian consumers. It’s likely therefore that we shall be further expanding our production capacity in the near future. In Stupino, but depending on developments in the market and at government level, in other regions too.”
Campina is the first to acknowledge the major importance of a qualitatively sound dairy infrastructure. Dairy farming forms a crucial link in the chain – from cow to consumer – and is vital for the quality of the end product. Campina is therefore actively involved in a number of projects to support Russian dairy farmers in permanently improving and assuring the quality of their milk. Projects in which the Agricultural Finance Centre (AFC), supported by the RABO Bank, International Finance Company (IFC) and the Dutch Financing Company for Developing Countries (FMO), create the conditions for investment in milk and animal feed installations in dairy farms.