DENMARK: Danisco reviews expansion in Russia
Food ingredients giant Danisco revealed today [Thursday] that 6-7 years after establishing a sales office in Moscow, the company is now generating annual sales worth three-digit million figures in DKK terms. And sales are increasing by 20 to 25% a year, Danisco added.
The Moscow sales office and the Russian sales force of about a dozen people report to Danisco in Brabrand and Frederik Gejl-Hansen, President, EUROW. On the back of strong growth in Kazakhstan, he holds great expectations for the coming years - not only in Russia, but in several states within the Caucasus region.
"Russia is a rich country and with a population of 140 million it holds huge potential. In his time as prime minister, Putin has generated stability and a sense of optimism in the Russian people and the Russian industry, which is vital to generate growth and increased welfare," says Frederik Gejl-Hansen who spends a lot of time in Russia.
The progress has led to an increasing number of imported ingredients on the Russian market. In order to be able to compete with these ingredients, the Russian food industry has had to produce ingredients of similar quality. Customers simply demand it. Many of the food manufacturers have never used food ingredients before, so Danisco in Brabrand has a big challenge on their hands in teaching these businesses how to use the ingredients and which qualities they add to food. The close dialogue between Danisco and the Russian consumers is thus a major contributing factor to Danisco´s success.
Danisco uses local distributors in order to be able to cover the huge market. These distributors are supported by Danisco´s own staff, of whom by far the majority are Russians with a sound technical background supplemented by training at Danisco.
Russian consumers represent a broad section of the food industry: dairy products, bread and cakes, meat products, beverages, chocolate and confectionery, margarine, ice cream, mayonnaise and dressings. The food ingredients sold by Danisco in Russia are, among others, flavours, emulsifiers, starter cultures, enzymes, pectin, carrageenan, sweeteners, as well as the functional systems (typically integrated blends of emulsifiers and thickeners). These ingredients are produced at Danisco production plants in Mexico, the Czech Republic, Germany, Sweden, Finland and Denmark, where production takes place in Grindsted and Haderslev and development in Brabrand.
"We deliver food ingredients from the corporate production sites that are able to do the most efficient job, but who knows, in time we might establish a Danisco production site in Russia, seeing the potential that exists over there. For instance, we might buy up existing companies, which has been the case in several countries, or we might establish them ourselves. Our customers like us to have a local place of production," explains Frederik Gejl-Hansen.
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