On 20 December 2007 «Cheese Club» GC announced about completion of the first stage of Kaniv Butter and Cheese Factory capacities modernization (Kaniv, Cherkassy region).
Due to the new equipment installation, Kaniv Butter and Cheese Factory capacity increased for more than 40% – from 42 tons/day to 59 tons/day. Technical reorganization let achieve record production for the company of such type and to optimize financial and energy man-hour production coasts.
According to James Dwyer, the «Cheese Club» GC Managing Director, the aim of modernization was factory production capacities balancing and liquidation of so called working cycle «bottlenecks» that increased company production and milk raw materials processing quality that means better Kaniv BCF products quality. General investments volume of Kaniv BCF for 2007 is 6,7 million dollars.
Yuriy Lutskov, Kaniv BCF Chairman of the Board, admitted that during this investment project the factory purchased and installed a high-capacity bactofuge of Westfalia Separator АG German manufacturer, equipment of which is known to be the world leader of centrifugal separating machinery (Westfalia Separator АG company is one of few machine-building companies in the world having world-wide quality certificate).
At the ceremonial opening of modernized milk reception & processing workshop there were present such honorable guests as Cherkassy Regional State Administration (CRSA) Chairman Deputy Vasiliy Kornienko and representatives of Kaniv regional and city authorities. Moreover, for the first time during the period of Kaniv BCF existence the representatives of more than 20 national and regional mass media were invited to get acquainted with cheese making process and taste it directly at the factory.

On 6 December 2007 the «Cheese Club» GC Managing Director came out with the presentation report «Cheese Club» GC regional policy bases» at the «Investment perspectives. Cherkassy region»round table meeting that was initiated by the “Delovoy” magazine editorship.
In his report Mr Dwyer drew attention to the fact that Cherkassy region was one of strategically important regions in «Cheese Club» GC business development strategy. There are situated several company factories, including Kaniv BCF – the leader «Cheese Club» production.
Being a big investor in Cherkassy region (in 2007 investment amount in Kaniv factory modernization was $6,7 millions), also the company will be a significant business partner for agriculture companies and active participant of the regional development. For this purpose the company is going to develop and implement the program of stimulation of reinvestments to the Cherkassy region milk branch development, to implement motivation programs aimed on the milk manufacturers in order to increase volumes and improve milk quality, and also to draw to cooperation in developing of regional contractors investments.

At the meeting of Regional State Administration Head Olexandr Cherevko with the “Cheese Club” GC management the matter concerned the perspectives of the “Cheese Club” GC work and their support of social programs in Cherkassy region.
The «Cheese Club» GC Managing Director James Dwyer confirmed that enterprises of the company meet support and promotion in the region. For now on the region territory there are 3 enterprises that are members of the Group. They are "Kaniv Butter and Cheese Factory" Open Joint-Stock Company, "Korsun-Shevchenkivskyi Butter and Cheese Factory" Open Joint-stock Company and "Concentrated Milk Factory" Open Joint-stock Company (Talne city) that together manufacture products for the amount from 23 till 28 million UAH per month that is 32,7% of the total regional milk branch volumes and almost 6,9% of total regional volumes of food and processing industries. Annual volumes of milk processed by these enterprises is about 300 k tons. They produce more than 18 k tons of hard cheese and about 10 k tons of dry milk powder and cream.
According to the operative data, 433 k tons of milk were processed by region milk factories during 10 months of 2007. From them Kaniv BCF – 30,8 % (133,2 k tons).
Generally in 2007 the “Cheese Club” GC investments into development of enterprises made up $6,7 millions and in 2008-2009 it is planned to invest $25 millions that will let increase Kaniv BCF capacities till 100 tons of cheese per day.
As for social policy, till the beginning of a new school year Kaniv BCF provided money to equip a computer class for one of Kaniv schools. In plans – realization of a large social program of orphan life quality improvement on the territory of Ukraine. In the sphere of factory workers social security it is planned further improvement of work and rest conditions. Moreover, the “Cheese Club” GC increased milk purchasing price and in future plans to stimulate increase of cattle with the help of motivation programs, formation of partnership and giving guarantees of long-term cooperation that will ensure sales stability to the farmers, reduce season risks and also will give opportunities for effective reinvestments in the branch.
Generally next year the “Cheese Club” GC plans to invest in regional social programs twice larger amount than this year. James Dwyer assured Olexander Cherevko that taking care about orphans is one of the “Cheese Club” GC social responsibility constituents and in the second quarter of the next year the results of Cherkassy region orphans life improvement program will be seen. In memory of our region Olexander Cherevko granted to the guests illustrated guide “Travelling about Ukraine. Cherkassy gold horseshoe” as a sign of partnership.

Cherkassy Regional State Administration press-release

Kaniv BCF (Kaniv, Cherkassy region) is going to increase the authorized fund from 24,6 millions UAH till 30,6 millions UAH by additional shares issuing. Factory is going to issue additionally 82 millions of simple nominal shares (0,3 UAH of nominal value each). Way of shares floatation is open. The reason of the authorized fund increase is circulation assets renewal for manufacture modernization. Shares floatation is planned to take place from 30 January 2008 till 21 December 2008. According to the agenda, the issue on the authorized fund increase will be considered by the factory share holders on the meeting 12, 19 and 21 November.

«Ukrainian news»

Svetlovodsk BCF (Kirovograd region) that is owned by “Cheese Club” GC renewed export supplies to Russia. It became possible after Russian Agriculture Inspection permitted export of cattle breeding products received by this milk processing enterprise after joint Ukrainian-Russian research.
Earlier the same milk powder and cheese export permission from Russian authorities was received by the “Cheese Club” GC production leader - Kaniv BCF. First export shipments of this enterprise products to the Russian market took place on 18 June this year.
Evgeny Astafurov, the “Cheese Club” GC Commercial Director, admitted that export was one of the most important constituencies of the “Cheese Club” GC supply strategy. «But we are aware of existing risks and that’s why actively develop sales in other CIS countries – Kazakhstan, Armenia, Azerbaijan, etc», -- stated Mr. Astafurov.

Gathered information

Russia enlarged the list of Ukrainian milk enterprises that are allowed to export their products to the Russian Federation. As Russian Agriculture Inspection informs, as a result of common Russian-Ukrainian inspection of Ukrainian milk processing enterprises export of cheese and milk powder by "Kovelmoloko" Open Joint-stock Company (Volyn region) and Svetlovodsk BCF (Kirovograd region) was allowed to Russia.
Thus the number of Ukrainian meet and milk processing enterprises having right to export their products to Russian Federation increased till 23.
As it was stated before, Russia forbad supply of Ukrainian cattle breeding products from 20 January 2006 because of complaints to the work of Ukrainian veterinary service.
Russian specialists made several tests of Ukrainian meet and milk enterprises and some of them received permission to export their products to the market of the Russian Federation.

«Gazeta po-ukrainsky» newspaper

On 19 October Cherkassy Regional State Administration Head Olexander Cherevko signed a decree about the changes in the Investments Attraction Council staff that satisfied application of CRSA Foreign Affairs and European Integration Administration and also International Investment Company «Renaissance Capital». From this time “Cheese Club” Closed Joint-stock Company, owned by «Renaissance Capital» Group, is a full member of Regional Investment Council. Let’s remind that Cherkassy Region Investments Attraction Council was founded approximately 2 years ago. The aim of its creation is to promote improvement of investment climate in the region by attraction of the largest regional investors to formation of regional investment policy.
The “Cheese Club” GC is one of strategically important investors for Cherkassy region. Here is situated one of the biggest enterprises of the Group Kaniv BCF that produces 42 tons of cheese per day and by capacity is one of the biggest cheese-making enterprises on the territory of CIS countries. Till 65% of the products manufactured by the enterprise are supplied for export. Among the connoisseurs of famous Kaniv cheeses are consumers Russia, Kazakhstan, Azerbaijan and the other countries.
«We estimate this decision as the opportunity of more efficient cooperation with the local authorities to achieve a common goal – improvement of investment and social climates in Cherkassy. Such interaction of power and business can accelerate development of entrepreneurship in the region and influence positively locals material well-being», -- commented James Dwyer, «Cheese Club» GC Managing Director.

Gathered information

On 4-7 October in Yalta city the «Cheese Club» GC gathered at the conference its trade partners to present new retail cooperation policy and also to get acquainted its clients with and partners with the new top management staff. Ukrainian «Cheese Club» GC trade partners and representatives of other countries (Russia, Kazakhstan, Azerbaijan, Armenia, Moldova, etc) participated in the conference. The «Cheese Club» GC Managing Director James Dwyer told to the participants of the conference about key constituencies of the company strategy, its products and business development plans. Managers responsible for separate business units gave more detailed information about development policies of separate branches.
Thus Operations Director Jean-Louis Caudron told about the «Cheese Club» GC key benefits in the manufacture sphere. «Having innovative production technologies we can offer to market products unique by its quality and taste characteristics. Complete process automation provides stable quality of manufactured product. We are using only natural components purified with help of the most modern technologies», -- he said.
Marketing Director Viktoria Dubrovskaya get acquainted the participants of the conference with the results of the company marketing researches, according which the «Cheese Club» GC is the only company on the Ukrainian market that actively develops cheese branding segment. For now company has 10 exclusive brands. Among the priority objectives of company product assortment development in 2008 Mrs. Dubrovskaya pointed out company brands assortment modification.
The “Cheese Club” GC Commercial Director Evgeny Astafurov accented attention that the “Cheese Club” GC task is to keep and strengthen its leader position on Ukrainian market and also increase export supplies. Mr. Astafurov considers Russia, Kazakhstan, Azerbaijan, Armenia, Moldova, etc to be among the priority export markets.
Alina Yureva, Trade Marketing Department Manager, announced the beginning of trade marketing program, aim of which is providing each trade point with product assortment – so called products «golden line» (balanced assortment of the most marketable marks that corresponds to the customers needs) and implementation of another trade marketing instruments that are capable to mark out the “Cheese Club” GC products on the background of competitors.
Generally, all the manager”s presentations were composed by general idea: the most efficient business development strategy consists of clear vision of the objective and concentration of efforts on its achievement.

Gathered information

Today Kaniv BCF (Cherkassy region) made first hard cheese supplies on the Russian market. It became possible after Russian Agricultural Inspection granted a permit to for export of cattle breeding products received from this milk processing enterprise after common Russian-Ukrainian research. Let’s remind that on 20 January Russia forbad to export Ukrainian cattle-breeding products. And starting from 21 February Russian veterinary and phitosanitary control inspectors started inspection of Ukrainian ports and cattle-breeding enterprises.

Gathered information

This year, Russian IC Renaissance Capital, which had bought Ukrainian cheese producer Cheese Club expects to return their products to the Russian market, whose closure resulted in double reduction of the Company’s production output. In order to save Cheese Club, for the first time within the branch, Renaissance Capital has employed James Dwier, world-famous manager and ex-head of the Russian Representative Office of Danone.
According to the information received by Ъ, IC Renaissance Capital having purchased 51% shares of Cheese Club, one of the leading Ukrainian cheese producers in October 2006, initiated active changes within the Company. In mid-January, James Dwier, who had held the Head position at the Russian Representative Office of French Company Danone for 4 years, and in October 2006, took the office of Managing Director for Direct Investments in Renaissance Capital, was appointed as Cheese Club Manager instead of Aleksandr Petrov, founder of Cheese Club. The position of Cheese Club Production Director was taken by Jean Louis Gourbin, who held the same position in Russian Danone, the position of Financial Director was taken by Ruslan Romanenko, Financial Manager of Philip Morris Ukraine. Moreover, new position of Sales Director in Russia and Ukraine was established in the company; this position was taken by Evgeniy Astafurov, Sales Director of Pepsi International in Central Russia.
Cheese Club Corporation involves 11 cheese, butter, and dried milk producing enterprises. The Company’s turnover of in 2005 was $108 million.
According to James Dwier, new managers have been given a task to increase the market share of Cheese Club in Ukraine and re-enter the Russian market. We have to remind that upon introduction of the Ukrainian animal products import ban by Russia on January 20, 2006, the export share in Cheese Club’s sales reduced from 75% to 16%. "Experts of the Federal Agency for Veterinary and Phytosanitary Supervisiona had inspected our enterprises, and they had no significant remarks, so we expect to receive the permit in the nearest future”, said Mr. Dwier. “By the end of 2007, we expect 35% increase in the production output".
Market participants consider the appointments of international managers to the leading positions of the Ukrainian cheese producer as a precedent. “Previously, it was possible only in case of a Ukrainian company’s acquisition by an international participant”, says Vyacheslav Rekov, Director of Milkyland-Ukraine. President of Union of Russian Milkmen Vladimir Labinov points out that James Dwier proved to be an efficient manager in the Russian market. “After taking the lead of the Russian Representative Office of Danone, he managed to increase the Company’s sales and load the new plant’s capacities”, comments Mr. Labinov. According to Mr. Dwier, for the time of his work for Danone, the Company’s market share grew from 4 to 30% in money equivalent.
According to Natalia Ignatova, Senior Consultant at Astarta-Tanit Group, last year, Cheese Club managed to achieve significant increase in their share at the internal Ukrainian market in kind (to 7.3% against 5.2% in 2005) by squeezing small participants out. However, according to the expert, in spite of success in the internal market, last year, the sales of this previously export-oriented plant were halved (to 10.4 thousand tones). According to Ms. Ignatova, Cheese Club is able to increase their output by 35% by the end of 2007 only in case of resumption of their products export to Russia. Nikolay Vasiletsky, Director General of Baltsky Children Product Milk and Cannery Plant believes that Cheese Club will have no difficulties in re-establishment, if they receive the permit from the Federal Agency for Veterinary and Phytosanitary Supervision. “As far as I know, the Company has good relations with its previous distributors, and the old contacts will be easily re-established”, says Mr. Vasiletsky.

Ъ-Комерсант

Cheese Club Corporation presented types of cheese manufactured by its enterprises to the annual professional degustation competition conducted by National Milk Producers Association of Ukraine UKRMOLPROM. We‘d like to inform you with pride that our production was rewarded with the following awards:

Kaniv Dairy
Vityaz’ cheese – Grand Prix
Kanevskiy cheese – gold medal
Premium cheese – gold medal
Tilsit cheese - silver medal

Svitlovodsk Dairy
Rossiyskyi cheese – gold medal
Svetlovodskiy firmennyi cheese – gold medal
Aivenho cheese – silver medal

Moreover, Cheese Club Corporation was decorated with special award – Quality guarantee mark that once more proves high level of quality of our products.

Cheese Club Corporation took part in 8th special-purpose exhibition Ukrmiasomolprom 2005 held in Kyiv since 14th till 18th March. For the first time Cheese Festival was held within the bounds of exhibition. Cheese Club Corporation sponsored the festival, took part in a cheese fair, sponsored competitions and quizzes.

Cheese Club Corporation took part in the annual exhibition ProdExpo 2005, Moscow, Russia. Corporation and its products have provoked a vast interest among visitors and exhibitors.

According to the rating results of hard cheese producers in Ukraine, Cheese Club Corporation has taken third place in the year 2004, by producing 13.6 thousand tones of hard cheese at two cheese-making plants (Kaniv Dairy and Svitlovodsk Dairy). Taking into consideration that Svitlovodsk Dairy has started production of cheese just in May 2004! In monthly rating November – December 2004 Cheese Club Corporation already stands on the first place. It is necessary to say that the nearest competitor regarding the volume of cheese production is represented by 8 factories.
At the same time Cheese Club is an unconditional cheese exporting leader in Ukraine in last year.

Ah! Such appetizing novelties of 2005! There are three new specialties in our assortment: Svetlovodskiy cheese, Aivengo cheese (with baked milk taste), Slivochnyi cheese.

Breaking news to our customers. Smetankovyi cheese, 55% milk fat produced under Kaniv Traditions TM - new position in our assortment. We hope its creamy flavour will justify your expectations.

The range of hard cheeses produced by the Cheese Club Corporation under the trade mark "Svitlovodsk Standard" is extended. We are glad to present "Marmurovyi" cheese. Cheese dough colour is from yellow to orange, with evenly distributed areas along the mass, like a marble structure. The taste of "Marmurovyi" cheese is strong cheese, slightly sourish. Hurry to taste!

Further expansion of cheese range produced under the trade mark "Kaniv Traditions". To the "Premium" cheese positioned in an average price segment, there was added a 50% fat in dry matter "Тilsit" cheese. The cheese is produced according to classical technology, has a moderately strong cheese taste, with slightly cream tinge. The elegance of packing design made in the same stylistic decision as that of the "Premium" cheese and restrained soft colour spectrum also underline individuality of product and its status of high-quality European cheese.

Svitlovodsk Dairy which is part of the Cheese Club Corporation, launches the first in Ukraine modern automated line for production of hard rennet cheeses with daily productivity of 45 tons of cheese. Due to this fact Svitlovodsk Dairy became the largest and most modern cheese-making enterprise in CIS countries!
A unique milk conditioning department, practically complete exclusion of human participation in the cheese production process and line universality have opened to Svitlovodsk Dairy enormous opportunities in production of a wide range of high quality cheese.
The enterprise was the first to master production of the “Rosiyskyi” cheese with further planned stage-by-stage range extension. Follow the news!
For the basic range of cheeses which will be produced by the enterprise there has been developed a trade mark "Svitlovodsk Standard"– a new standard of quality in cheese-making.