07.12.2007

“Vitmark-Ukraine” has joined the Global Agreement of the United Nations.

On the 6th of December 2007, the certificate of membership in the Global Agreement of the United Nations was presented to “Vitmark-Ukraine”. Three months before that the juice holding company had expressed its willingness to join the initiative of the United Nations as a company following the social responsibility of business.

The main reason of any company joining the Global Agreement is the decision to follow the principles of the social responsibility of business.

«Vitmark-Ukraine” Company had initially based its activities on the principles of the social responsibility. Vice-president of the holding company Victor Stanislavsky: “During the years we have been rendering specially aimed selective aid to various societies and organizations helping low-income, disabled people, children without parental guardianship, disabled children. But on our opinion it is not enough. We believe that the Global Agreement of the United Nations will help to consolidate the efforts of business in the complex solution of the social problems of our society, to invest into the charity and social projects more effectively”.

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On the opinion of “Vitmark-Ukraine” management, the United Nations, which is a blameless and authoritative organization, possessing strong resources, can help socially responsible business and get the social problems which cannot be resolved with a simple charity off the ground to join their forces.

Alongside with the decision to join the Global Agreement “Vitmark-Ukraine” Company initiated a large-scale social initiative – creation of the Charter “For the Healthy Baby Food in Ukraine” and called all the domestic producers of baby food to join this initiative.

Each member of the Charter, which had expressed a wish to join it, undertakes voluntary obligations connected with manufacture of baby products, namely, to produce them only of the highest quality, qualitative raw materials meeting the criteria of medical safety and profitability to all the known international norms, as well as takes obligations on the provision of transparency of its activities with the opportunity to control the quality of the products for children by the public.

The certificate of the member of the Global Agreement of the United Nations was presented to Victor Stanislavsky, Vice President of “Vitmark-Ukraine” Holding Company, by Coordinator of the System of the United Nations in Ukraine Jane Kazana-Vishnevetskaya.

20.11.2007

Odessa Baby Food Cannery and the company “Sandora” Reached the Out-of-Court Settlement.

The company “Sandora” reverts to its old design – that is the result of the negotiations of the heads of Open Joint Stock Company “Odessa Baby Food Cannery” and “Sandora” LLC.

The representatives of Open Joint Stock Company “OBFC” agreed not to advance a claim against “Sandora” in return of the latter terminating the production of juices in the package similar to the degree of confusion to the package of Odessa Baby Food Cannery.

As the President of Open Joint Stock Company “OBFC” Victor Stanislavsky declared that such resolution of the conflict was a good example of the right approach of both sides under which one and another company managed not only to come to an agreement but also to avoid rather painful judicial procedures.

As it was reported earlier, in the middle of October the product of “Sandora” similar by the appearance to the product produced by Open Joint Stock Company “Odessa Baby Food Cannery” had appeared in Ukrainian supermarkets, after which the Odessa enterprise made a declaration about the unfair competition from the part of “Sandora” LLC and about its intention to go to law thereupon.

26.10.2007

Odessa Baby Food Cannery is Going to Bring an Action Against Pepsi-Co.

As it is known, competition can be different – fair and not very fair one. And competitors can be also different. Honest and vice versa. It’s a blessing that Ukraine slowly but steadily comes to civilized forms of competitive activity. One of the methods of fair competition is the implementation of new ideas, technology, and offer of something new to a market which has a remarkable competitive advantage and can really stand out itself among the multitude of other offers. Since there are still hundreds and maybe even thousands unimplemented original ideas, for example, in the industry of non-alcoholic beverages.

Though the aspiration of the Ukrainian companies to follow the example of civilized rules of business conduct to which the Western companies with world-wide name adhere (still the West was and remains the standard of fair competition for the countries of the post soviet area, at least western society is constantly “teaching” former Soviet Republics how to follow the author’s right) isn’t always noticed and appreciated by the same Western companies.

In July of this year rather important event took place in the Ukrainian market of juices, nectars and beverages – purchase of the largest player in the market of juices, nectars and beverages – “Sandora” – by the largest well-known producer of non-alcoholic beverages – the company Pepsi-Co. The reaction to the bargain of the market insiders was different, but generally positive.

Expert opinions coincided with one fact – purchased “Sandora” is now another company with different strategy and priorities. Though, as the Ukrainian experts thought, a new owner – the company Pepsi-Co was known for its innovation and the market was probably to see new interesting products.

Everybody relied on that. But it seems to be that the new owner of the Ukrainian company had its own considerations about that – in the middle of October a new product which had been produced and copied by its appearance from the product produced by another company – Open Joint Stock Company “Odessa Baby Food Cannery” – appeared in the Ukrainian supermarkets. The new product was produced by “Mykolaiv Juice Factory”, which, as it is known, affiliates the company “Sandora”.

What does the jest consist in? There have been some preceding events since the beginning. In 2002 Open Joint Stock Company “Odessa Baby Food Cannery” put the juices of the similar trade mark on the national market, having created thereby a new for the Ukrainian market low-price segment. Owing to the fact that the production was produced from fresh primary products and considerable sums were saved by the producer on the manufacturing of package, the production advanced in popularity among consumers almost at once and became a phenomenon of the national market of juices and nectars. Less than in a year the juices of OBFC occupied more than 10% of the juice market. Currently, this number made up more than 14%.

The success of TM “Juices of OBFC” has become a precondition for the various duplications and cloning of the package of this trade mark by the unfair competitors. “The first swallow” was the juice in white package similar to the degree of confusion of “Sandora”. The shareholders of Open Joint Stock Company “Odessa Baby Food Cannery” addressed the founders of “Sandora” LLC with a claim in the oral form. Then, the representatives of this company recognized their actions, expressed in the duplication of the product, illegal and agreed to change the colour of the package to yellow under the threat of the reference to the court. Verbal arrangements of the two largest Ukrainian companies have been working up to the present day, the founders of “Sandora” LLC, recognizing the singularity of the idea of “OBFC” and having respect for their main competitors, have been following the arrangements to the end.

The next company which had been tempted by the success of the original project was the company “Vinnifruit” that in 2004 produced the juice in white package bearing a strong resemblance by its appearance to the package of juices of Odessa Baby Food Cannery.

After ineffective negotiations of the author of the idea – Open Joint Stock Company “Odessa Baby Food Cannery” with the unfair competitor OBFC was forced to go to the law. According to general director of Open Joint Stock Company “OBFC” V.G. Stanislavsky, the main reason by which OBFC decided to assert its rights in court wasn’t the fact that Open Joint Stock Company “Vinnifruit” could rival OBFC, but the one that most of the consumers were misled by a similar package and the unsuccessful experience of the consumption of “similar” juices could affect the sales, and what is the most important, the prestige of the juices of OBFC.

During three years the courts of all degrees up to the High Economic Court of Ukraine have recognized the rightness of Odessa Baby Food Cannery and prohibited Open Joint Stock Company “Vinnifruit” to use the white package for juices similar to the package of Odessa Plant without the permission of Open Joint Stock Company “OBFC”. Besides, the judicial bodies obligated “Vinnifruit” to destroy the produced packets of white colour.

Currently, the company “Vinnifruit” stopped the production of juices in the package similar to the original white package of OBFC.

By the example of the legal process “OBFC”- “Vinnifruit” we can draw a consolatory conclusion that the state structures of Ukraine still understand in the right way what an unfair competition is. And help the Ukrainian companies that had scored a success in a fair competitive activity to assert their right to the singularity and exclusiveness of the successful projects.

The situation causes at least bewilderment. It’s understandable when small national companies commit such illegal actions to achieve even something like a result, having found nothing better than to duplicate somebody’s successful project. But nobody expected anything like that from an international company with the recognized world-wide name.

It seems to be that the largest producer of non-alcoholic beverages – the company PepsiCo – decided to prove the absurdity of fair competition in Ukraine. It would be interesting to know how to interpret the actions of the new owners of “Sandora” by the other Ukrainian producers who decided to take the road of civilized rules of competitive activity?

Anyway, Odessa Baby Food Canneryis going to assert its rights in court again. This time the actions of the company would be more rigorous – the sum of the claim will make up tens of millions of dollars.

18.10.2007

OBFC Launches New Format of Baby Food in at the Market.

On the 19th of October, 2007, Odessa Baby Food Cannery brings up an absolutely innovative product into Ukrainian market – the juices for the smallest ones under the mark “Chudo-Chado” – to the market.

“Chudo-Chado” is the first juice for baby food in Ukraine in convenient carton package Base.

“Chudo-Chado” juices will be produced with the account of higher demands for the quality of primary products and technology of production, without the application of preservatives, colouring agents, flavors and other synthetic components. The high quality of the product is confirmed by the fact that it’s recommended by the Ministry of Health of Ukraine and Research Institute of nutrition for the consumption by the children from the age of 5 months that is from the moment of the introduction of additional nutrition.

Specialized juices for the smallest ones are currently produced mostly in glass jars. They are expensive and it isn’t very convenient to use a glass package, especially when the family is going to pay a visit or go for a walk. “Ordinary” juices in their turn refer to the category of general nutrition and are recommended for the consumption from 3 years only.

For that very reason the specialists of created a product, which completely meets all the requirements of the reference documentation for the products of the baby food category for its quality and safety, and for the convenience of consumption and price it can be rather compared with the ordinary juices in the unit dose glass package.

Such products exist in the Russian market from 2002 and for 5 years they have become choice №1 for parents of preschoolers, having considerably bunched up both a unit dose size of juices and other products of baby food.

The priority channels of distribution will be groceries and the shops “close to home”, that is why it will be very easy and convenient to buy this product at any time for the main customers who are mothers with children aged from 5 months to 3 years.

20.09.2007

“Vitmark-Ukraine” Company Enters International Financial Markets.

Last week “OTP Bank”, the International Bank, has opened the credit line for the amount of 50 million dollars, 25 million of them being investment funds, for the Ukrainian producer of juices – «Vitmark-Ukraine” Company. The event is the clear evidence of transparency of business conducted by one of the leading producer of juices.

The principal criteria for crediting “Vitmark” by “OTP Bank” have been the estimation of the financial condition of the company, commensurability of the inquired financing to the volume of sales, quality and sufficiency of the offered provisions, goodwill of «Vitmark-Ukraine” Company, as well as its dominant position in the national market of juices, nectars and beverages.

“The factor of agility of the development of this holding company, the growth of the volume of sales, the position of the holding company in the market, its stable financial condition, competent approaches of the management of “Vitmark” to the cooperation with the European banking structure played a significant part in making a decision about the issuance of financing to «Vitmark-Ukraine” Company by our bank” – Dmitriy Zinkov, President of the Closed Joint Stock Company “OTP Bank”, comments on the event.

According to the statement of Dmitriy Zinkov, “OTP Bank” is planning to expand its business relations with the holding company “Vitmark” from now on, including the increase of the financing limit.

“As OTP Bank is rather selective banking structure in its approaches to the corporate clients, the cooperation of OTP Bank with “Vitmark-Ukraine” definitely testifies the appreciation of business of one of the leaders of the market of juices, nectars and beverages of Ukraine” – Dmitri Zinkov said.

27.07.2007

“Vitmark-Ukraine” Calls up for Joining the Charter “For the Healthy Baby Food”.

«Vitmark-Ukraine” Company (Odessa) calls up the producers of baby food to join the Charter “For the Healthy Baby Food”. The head of the line of the development of baby food of “Vitmark-Ukraine” Constantine Melnikov said about that at the press conference.

“We call up all the producers of baby food to combine our efforts and have an influence on the development of the industry of baby food” – he said. He has informed that the text of the Charter had already been sent to all the producers of baby food, and the company hoped that they’d join it soon.

In accordance with the given document, all the affiliated producers must agree to an open mutual control of their production, meanwhile they are obliged to produce their products from the ingredients of the highest quality; their products mustn’t contain hormones, antibiotics, pharmacologically active substances and other components, which can have a negative influence on the health of the consumer.

The producers which had joined the Charter are also obliged not to use nonhermetic containers when packing the products of baby food, the production must be produced, packed and stored in sanitary conditions in accordance with the international norms of hygienic practice for the foodstuff for younger children.

The coordination of the functioning of the Charter is entrusted to the National Association of Producers of baby food, juice and milk-canning production “Ukrkonservmoloko”, and the participation of the representatives of mass media in the public examining of the produced products will be coordinated by the National Press-club of reforms and the Forum of the Social Responsibility of Business of Ukraine.

16.02.2007

“Vitmark-Ukraine” Company Launches a New Line of Juices and Premium Nectars Under the Trade Mark “Jaffa Natura”™ on the Ukrainian market.

Since the beginning of the year «Vitmark-Ukraine” Company has set the fast pace to the Ukrainian market of juice production – in the second part of February one more novelty enters the market of juices, nectars and beverages – a new line of juices and nectars of the TM “Jaffa Natura”. Thereby “Vitmark-Ukraine” proved its position of the absolute leader of innovations again.

“Jaffa Natura” is a line of classical and exotic monoflavouring juices and premium-nectars in the popular format – Tetra Prisma 1L package.

As the vice-president of the marketing and sales company Sergei Malets says, when creating this product the company tried to hand down the maximum simplicity, clarity and naturalness of the fruit taste. That’s why monoflavours will dominate in the range of the “Jaffa Natura” line.

“The conception of monoflavours found its reflection both in the assortment and design. The principal essence of TM “Jaffa Natura” is the proximity to the nature, its naturalness, clarity and simplicity” – Sergei Malets says.

In the primary stage the assortment will include 8 flavours: orange, pineapple, peach, cherry, mango, tomato, banana, and apple.

Such assortment of monoflavours is to ensure the widening of its share of the market, which comes to the fore in the segment of original, exotic, innovative flavours, to the TM “Jaffa Natura”.

Sergei Malets: “The goals of the TM “Jaffa Natura” for 2007 are rather ambitious – 5% of the Ukrainian market of juices, nectars and beverages. But they are more than achievable to our mind taking into account the quality and advantages of the product we succeeded to create. And taking into account the fact that “Jaffa Natura” will become the most affordable offer in the upper-medium price segment in Tetra Prisma package, there are no doubts in the success of our new product.”

Following the strategy of innovation and leadership «Vitmark-Ukraine” Company has started the year of 2007 in leaps and bounds – in January canned fruit of ТМ “Jaffa Selected fruits”™, the line of vegetable juices with tomato one as the base under the trade mark “Jaffa Select Tomato+”™ entered the Ukrainian market. By this time the line of juices and nectars “Jaffa Natura” is the third innovation of the company from the beginning of this year.

27.01.2007

The Volumes of Sales of “Vitmark-Ukraine” Company Have Grown in 2006 by 44%, the Volumes of Production – by 45%.

“Vitmark-Ukraine” Company, one of the largest Ukrainian producers of juices and nectars (TM “JAFFA”, “SOKOVITA”, “The JUICES of “Odessa Baby Food Cannery”, baby food of TM “Odessa Baby Food Cannery”), has resumed the results of its work in 2006.

In 2006 the volumes of sales of the company have considerably grown in compare with 2005 and made up 230 million of the units of production. And when in 2005 “Vitmark” sold 126 million litres of juices and nectars, in 2006 this figure grew up by 44% and made up 181 million 300 thousand litres. In the monetary correlation the growth of 2006/2005 made up 50% (in 2006 the company has sold its production to the amount of UAH 600 million). The production indices in 2006 had positive dynamics as well – the volumes of production grew up by 45%.

The volume of capital investments made up more than UAH 50 million last year. And “Vitmark” invested more than UAH 40 million into its brands in 2006.

In 2006 the company has paid taxes to the Budgets of all levels in the amount of UAH 41 million 711 thousand.

In 2006 the company launched the new products at the market of juices, nectars and beverages: juices and nectars of premium-class of TM “Jaffa Select” in Tetra Prisma 1and 0.5 L package, as well as in glass container of 0.25L, fruit drinks and baby food of TM “Odessa Baby Food Cannery”, the line of canned fruit of TM “Jaffa Selected fruit” as well.

In 2007 the company is planning to develop its principal strategic brands – TM “Jaffa” and “Odessa Baby Food Cannery”, and, of course, to amaze and make the consumers happy with its unique novelties, as a tradition. By the way, the new tear of 2007 the company has started from the very present – a new unique line of innovative vegetable juices with tomato one as the base under the trade mark “Jaffa Select Tomato+”.