Valio's former Russian subsidiary creates brand specifically for CIS markets

MOSCOW. Nov 10 (Interfax) - Viola (formerly, OOO Valio, a former subsidiary of the Finnish concern Valio), has designed a new product brand for the CIS.

Deliveries of cheese and butter products branded Creamburg will begin as early as this month, the company said in a press release.

"The first batches of OOO Viola's products will head to Kazakhstan, Armenia, Kyrgyzstan, Uzbekistan, Azerbaijan and Turkmenistan. Subsequently, the company plans to expand the geography of deliveries," the statement said.

"The CIS market has serious potential. Over the past decade we have been developing this area not as actively as we could have but now we are confident that we can realize the full sales potential," OOO Viola's Senior Vice President Nataliya Dobrynina was quoted in the press release as saying.

Overall, the company plans to export more than 20 products to the CIS. Creamburg products bound for the CIS are manufactured to the same standards as the Russian range, at a facility in the Moscow region, the company said.

The company did not disclose how much it will produce and export, nor its investment in the design of the new brand. "As to investment costs, first of all, these are the team's resources for the creation of the new brand, the development of its design and, of course, for the establishment of relations with partners in various countries. From the standpoint of new recipes, no further investment was needed: Creamburg-branded products are made with the same technologies as the company's Russian range," the company's press service told Interfax.

It recalled a 2021 investment project, which boosted its production capacity by 2,500 tonnes per year. "Thanks to this, the company was able to focus on developing its exports in 2022. The CIS markets have a big potential and the company will further evaluate the investments needed to expand its presence. "

The Finnish dairy group Valio sold its Russian business to meat product maker Velcom. The deal included a facility for making cheese spreads and semi-hard cheese in Yershovo, Moscow region, and the rights to the Viola brand of cheese spread. The Valio brand will remain in Russian stores until the packaging runs out and the product's shelf life expires. Oltermanni cheese, known to Russians for the past 25 years, will be made under the brand Laplandia.

The company changed its name from OOO Valio to OOO Viola in October.