United Confectioners moves to protect its brands

- Last updated on GMT

Related tags: Russia

United Confectioners Holding has initiated a complex
standardisation programme across its product range, a fact that
will allow products at different factories to be manufactured to
the same stable quality and taste, Angela Drujinina writes.

From now on, all confectionery factories affiliated to United Confectioners will be able manufacture goods using the same packaging. It will now be possible for example to manufacture "Dlea Vas (For you)" chocolate, which is produced under the trade mark of the "Krasnyi Okteabri (Red October)" factory, at the firm's "Rot Front" factory.

Each package will also have the factory's code, and will have the name of the manufacturer on the packet. This move was undertaken in order to avoid unsanctioned usage of united Confectioners' trademarks.

This is the second measure taken by the firm to protect its own property. The first step was made before the New Year, by sending the media a warning about the inadmissibility of using trademarks belonging to 'Rot Front', 'Krasnyi Okteabri' and 'Babayevskiy'.

This initiative forms a central part of United Confectioners' development strategy for the period up to 2008, which is contained in the "Holding development strategy for the period of 2005-2008"​ document. The company hopes to achieve further diversification and ensure production flexibility to fulfill the increasing demand for confectionery.

In order to help achieve this, United Confectioners opened a common storage facility in 2004. This facility allows products from Moscow and regional manufacturers to be distributed all over Russia.

The business strategy has so far proved effective. The group sold about 270,000 tons of confectionery in 2004, with sales volume increasing by 14.5 per cent since 2003. Turnover for 2004 was more than US$670 million.

In fact, every company affiliated to United Confectioners experienced an increase in sales volume in comparison with the last year. "Confectionery "Babayevskiy" had an increase of 16 per cent, "Rot Front" a 19,1 per cent increase and "Krasnyi Okteabri" a 15.7 per cent increase.

United Confectioners, which is made up of 15 Russian confectioners, also managed to continue strengthening its integration into the international market. The export of production increased two times within CIS countries - Kazakhstan, Georgia, Tajikistan, Turkmenistan, Armenia and Azerbaijan. Products are now being exported to USA, Germany, Israel, Mongolia, New Zealand and Greece.

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