SAMPLES OF PRESS ARTICLES WRITTEN ABOUT INGREDIENTS RUSSIA'99
Russia is a country known for unpredictable weather, open hearted, good natured people and young democratic government. It was at the end of the 80s that the old communist government reached a deadlock and global changes began to shake the country. First came Perestroika, the period of recovery and education for Russian people. Perceptions had to change to cope with a new economic relationship. By the 90s many private firms were finding their place in the Russian economy, several multinational companies were also establishing a foothold in Russia with considerable success and enjoyed a prosperous life. The economy of the country seemed to be stable but life is like a rose, it has not only flowers but thorns as well. The economic policy of the country had its gaps, resulting in rouble devaluation on August 17 1998.
During the following weeks a lot of Russian firms and joint ventures were ruined. The system collapsed. The price for imported finished foods increased and imports fell by 50 per cent. To remain competitive, multinational food producers quickly shifted their strategies from imports to local production and international companies like Nestle, Coca-Cola, Wrigley invested millions of dollars to set up local factories throughout Russia.
Ingredients companies and food manufacturers have several difficulties working in the Russian market. The specific legislative requirements issued by GOST (the state Committee for Standardisation, Metrology and Certification) differ from those in European countries. In addition there is specific Russian taste for confectionery products, giving preference to the bitter dark chocolate.
At the same time working in the Russian market is very profitable for international ingredient companies. As the Russian ingredients industry is not yet developed, most Russian manufacturers purchase the ingredients and additives they need from abroad. They understand that to create competitive products they must both extend categories of products and improve their quality, which is impossible without using food, bio-active additives and improvers.
Taking into consideration the interest and increasing needs to the Russian food market, ITE Group Plc organised for the second time, the exhibition Ingredients Russia 99. This time it took place in the prestigious Olympisky Sports Complex. A record 46 per cent growth in the size of the exhibition from 1998 highlighted the importance of Russia as a major market and central hub for food innovation in the C.I.S. A total of 150 exhibitors from 29 countries made this event a primary forum. At the seminars alongside the exhibition Ingredients Russia 99 the latest issue and technologies within the confectionery, nutrition, meat and drinks industries were discussed. Each day was dedicated to one particular industry. The programme also included beverage tastings plus cocktail and chef competitions. The Ministry of Agriculture, the Ministry of Science and Technology, the Institute of Nutrition, the professors from Moscow State University of Applied Biotechnolgy and the Russian Meat Union and Leatherhead Food Research Association showed their interest and offered their support to this event.
A great many food and confectionery manufacturers from Russia and the countries of C.I.S. showed interest in new technologies, latest achievements in science and production represented by the international ingredients professionals. Most of them found new contacts, partners and suppliers. Among visitors were the largest Russian confectionery manufacturers: JSC Rot Front, Moscow, JSC Pekar, Saint-Petersburg, JSC Krasnyi Ocyabre (Red October), Moscow and confectionery factories from Siberia, Voronej and Ekaterinburg.
Mr Sheherbak, Deputy head of the Government of the Russian Federation concluded "We are confident that this expertise will positively influence and further increase the production volume as well as improve the quality of food products. He wished that all participants success in their business and hoped that the exhibition would be fruitful for them.
Source: Confectionery Production January 2000 Issue.
(Kennedy's Publication)
Russia is currently offering great opportunities for the ingredients industry. ALEXANDRA PEARL highlights the nature of increased regional growth as Ingredients Russia'99 opened its doors in Moscow.
Russia's leading exhibition for producers of food ingredients, additives and raw materials was attended by over 150 international suppliers from 20 countries and attracted over 30,000 visitors from around the world. These figures are a reflection of the increased demand amongst Russian consumers for high quality food and drink products. A year after the devaluation of the rouble, the market now appears to be stabilising as many multinational companies are shifting their strategy from export to local production. Consequently, Ingredients Russia'99 has become the primary forum for new developments, innovations and opportunities in Russia's food industry. "Last year's event took place in the midst of the rouble crisis, yet was considered a great success. This year, almost all our clients have returned and the show has attracted a number of additional producers, including Cargill Foods, Kerry Ingredients, National Starch, Rudolf Wild and Eridania, commented Birgitte Lundebye, Manager of Ingredients Russia'99.
The exhibition was the largest of its kind in the former Soviet Union, due to the fact that Ingredients Russia'99 has doubled in size. Many international companies were impressed by the event. Andy Long, Marketing Director, Kerry Ingredients commented that "Ingredients Russia gave us the perfect opportunity to demonstrate the full scope of our ingredient offer and to show how we are able to bring value to our customers through the use of both existing and new ingredients. We were able to use Ingredients Russia to arrange meetings with several of our existing customers, but we are delighted to have been able to introduce the Kerry Ingredients range of products to many new contacts in the region".
Maarten Van Ancum Plax, the export director of Eeghen International BV confirms this view by stating "Eeghen International has been doing business in Russia for almost 30 years and has experienced all the changes with all their ups and downs. We are impressed by the high quality visitors from exactly the right industries we were looking for".
A notable trend emerging from this year's event, was that companies are striving to promote their products and would like to project the same high image as in western Europe to potential Russian customers. More and more companies brought their own stands and walking around the exhibition, one could have been in Paris, Shaghai, Warsaw, Chicago or Sao Paulo shows. ITE awarded Eridania Beghin Say the prize for the best International Exhibition stand. The best Russian stand was won by Vremia.
In conjunction with the exhibition a seminar programme regarding state policy for healthy nutrition was hosted by F. Hoffman La Roche. Further interesting seminars were held by Rhodia and Aarhuis Olie.
Next year's Ingredients Russia event will be held form 28th November - 1st December at the Olympiski sports Palace, Moscow. It promises to be just as exciting and informative.
Source: International Food Ingredients, Issue January/February
(Miller Freeman BV)