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Roshen Confectionery Corporation (Ukrainian: Кондитерська корпорація «Роше́н», translit. Kondyterska Korporatsiya «Roshen») is a Ukrainian confectionery manufacturing group. The leading manufacturer of confectionery products in the country,[4] it operates facilities in the Ukrainian cities of Kiev, Vinnytsia and Kremenchuk, as well as in Budapest, Hungary and Klaipėda, Lithuania[1]. The name of the company was derived from the last name of its owner, Poroshenko.

Roshen Confectionery Corporation
Privately held company
Industryconfectionery
Founded1996
FounderPetro Poroshenko
Headquarters,
Area served
Europe, Asia, North America[1]
Key people
Petro Poroshenko
Products200 various types of confectionery
RevenueIncrease USD 1 billion (2010)[2]
Number of employees
10 000 (2012, including subsidiaries)[3]
Websitehttp://www.roshen.com/

In 2012, the Roshen Corporation was ranked 18th in the "Candy Industry Top 100" list of world's largest confectionery companies.[3] It has a total annual production volume of 410,000 tonnes.[1][5] It exports to Kazakhstan, Uzbekistan, Kyrgyzstan, Azerbaijan, Armenia, Moldova, Estonia, Poland, Latvia, Lithuania, the United States, Canada, Germany, Romania and Israel.[5] It exported to Russia, with 40 percent of the company's grosses came from there until Russia stopped importing from the company in July 2013.[6] In early 2017 Candy Industry put ROSHEN on 24th place in "2017 Global Top 100" of confectionery producers and estimated its annual revenue at $800 million.[7]

Contents

HistoryEdit

 
Roshen chocolate.
 
Kiev Roshen Factory in the New Year 2012

Ban of exports to the Russian FederationEdit

In July 2013, Russia banned all Roshen imports due to dissatisfaction with the packaging labelling.[1][8][9][10] Soon after Roshen products were also checked in Kazakhstan, Belarus, Kyrgyzstan and Moldova but this did not lead to complaints.[9] On 21 October 2013, Russia's ambassador to Ukraine Mikhail Zurabov said, "There are no problems with the quality of products, they are safe. But there are problems associated with the production technology, using some ingredients that are not certified in accordance with the law."[9] According to the 17 December 2013 Ukrainian-Russian action plan by 1 March 2014 Roshen products should have been back in Russian stores.[11] But on 12 March 2014, acting head of the Russian Federal Service for Supervision of Consumer Rights Protection and Human Welfare Anna Popova stated that Ukraine had not yet fulfilled their requirements to return Roshen products to the Russian market.[12]

Late March 2014 the Roshen factory in Lipetsk (Russia) was closed down and its local manager director charged with "conspiring with unnamed others to use a registered trademark illegally to extract additional profits".[13] Ukraine and the factory workers suspected the factory was closed because of Roshen's owner Petro Poroshenko involvement in Euromaidan and his participation in the 2014 Ukrainian presidential election.[13] According to Reuters some of the Roshen factory workers in Lipetsk felt embarrassed to work for Ukrainians "swept up in a wave of Russian patriotism since Moscow annexed Crimea" and gossiped about rumours of how the management "paid Ukrainians more money and were cheating the Russians".[13] On 13 May 2014 Russia banned the sale of Roshen products in Crimea.[14] In April 2017 full production stopped in the Lipetsk factory; leaving 700 people jobless.[15]

As noted, the seizure of property of the Lipetsk confectionery factory, imposed by the Investigative Committee of the Russian Federation under a criminal case, made it impossible to sell the factory.[15]

During the election campaign of the 2014 Ukrainian presidential election Roshen owner Poroshenko pledged to sell all his shares in Roshen if elected President; Poroshenko was elected President but by late December 2014 was not able to find a buyer for the company.[16] Because of this in January 2016 Poroshenko transferred his share of the corporation to an independent blind trust.[15] The Bank Ruling Trust has a four-year-old proxy to negotiate the sale of assets.[15]

Production network changesEdit

Roshen has closed down its confectionery factory in Mariupol (Ukraine) in 2015 after the Donbass war in the vicinity and export ban by Russia deemed the production there unviable.

The corporation was earlier reported to operate facility in the town of Bershad (Ukraine), but it's not listed on the corporate web site.

Since March 2013, Roshen began co-production with a contract manufacturer in Hungary named "Bonbonetti".

Social projectsEdit

ROSHEN plays an active role in the promotion of social issues by supporting the development of a stable and successful society. Corporation implements high-impact and systemic charitable and socio-cultural projects. Thus, in 2015 ROSHEN Corporation initiated a large-scale charity project in health care. During 2015-2018 ROSHEN spent UAH 99.7 million on charitable aid within this project. Furthermore, aid for the people suffered by combat operations (ATO area) is provided – treatment in clinics and rehabilitation centers, as well as physical and psychosocial rehabilitation in Ukrainian medical centers. Socio-cultural projects include Theatre on Podol reconstruction, Cherkassy Zoo modernization, skating rink opening in Kharkiv, renovation of playgrounds previously mounted by the corporation, full technical maintenance of light and music fountain set by the corporation in Vinnytsia and creation of its new shows, etc. Each project is launched with love and care for people. The total investment of ROSHEN in socio-cultural projects, including healthcare projects, during 2015-2018 is estimated at UAH 312 million[17].

Products and brandsEdit

"ROSHEN" (depicted in capitalized Latin script only) is the umbrella brand of all of the corporation's products. The name is a truncated version of Poroshenko, the last name of its owner. ROSHEN produces more than 350 kinds of perfect quality confectionery products. The product line includes chocolate and jelly sweets, caramel, toffee, chocolate bars, biscuits, wafers, sponge rolls, pastry and cakes. Some of these are absolutely unique products for Ukrainian market. The total volume of production reaches around 300 thousand tons per year. ROSHEN confectionery products are manufactured in accordance with the latest technologies. Modern high capacity equipment, strict adherence to the production technologies, only high quality raw materials guarantee key strengths and superiorities of the Roshen products. But is famous mostly by "Kyiv Vechirniy" chocolate candy and Kiev cakes, produced by the flagship Kiev Roshen Factory in Kiev. The corporation has a wide range of more affordable and less sophisticated products famous for high chocolate content.[8] In 2013 the company manufactured about 200 types of confectionery products and in total produced 410,000 tonnes of products that year.[5]

Public commitmentsEdit

Recently all company's facilities practice intense and sophisticated decorative lighting on their buildings, especially during national holidays.

ReferencesEdit

  1. ^ a b c "Attitude of Russian watchdog to Roshen products related to labels alone – Ukrainian confectioners". Interfax-Ukraine. 6 August 2013. Archived from the original on 22 August 2013. Retrieved 8 September 2013.
  2. ^ "Roshen Corporation". UPIGROUP. Archived from the original on 15 July 2011. Retrieved 3 March 2011.
  3. ^ a b "2013 Top 100 Candy Companies". Candyindustry.com. Retrieved 19 August 2013.
  4. ^ "Roshen suspends export of confectionery products to Russia". Kyiv Post. Interfax-Ukraine. 31 July 2013. Retrieved 8 September 2013.
  5. ^ a b c "Roshen products to be allowed back to Russian market after violations eliminated - Rospotrebnadzor". Interfax-Ukraine. 24 December 2013. Retrieved 3 November 2015.
  6. ^ "Ukraine Election: The Chocolate King Rises". Spiegel Online. 22 May 2014. Retrieved 3 November 2015.
  7. ^ "2017 Global Top 100". Candy Industry. Retrieved 29 October 2017.
  8. ^ a b Kuryata, Nina (17 Aug 2013). "The Fifth Floor". BBC World Service. Retrieved 8 September 2013.
  9. ^ a b c Anastasia Zanuda (21 October 2013). Росспоживчнагляд почне перевіряти Roshen на якість [Russian agency will start checking the quality of Roshen] (in Ukrainian). BBC Ukraine. Retrieved 3 November 2015.
  10. ^ "Russian inspectors have woeful impression of products of Roshen's Ukrainian factories - Onishchenko". Interfax-Ukraine. 28 October 2013. Retrieved 3 November 2015.
  11. ^ "Ukrainian wagons, Roshen sweets to return to Russian market in early 2014, says Russian economy ministry". Interfax-Ukraine. 20 December 2013. Retrieved 3 November 2015.
  12. ^ У Путіна кажуть, що Roshen не виконав їхні вимоги [Putin said that Roshen has not fulfilled their requirements] (in Ukrainian). Ukrayinska Pravda. 12 March 2014. Retrieved 3 November 2015.
  13. ^ a b c Elizabeth Piper (2 April 2014). "Bitter times for chocolate factory in Russia-Ukraine crisis". Lipetsk, Russia. Reuters. Retrieved 3 November 2015.
  14. ^ Росія заборонила ввозити цукерки Roshen в Крим [Russia has banned the import of Roshen sweets in Crimea] (in Ukrainian). Ukrayinska Pravda. 12 May 2014. Retrieved 3 November 2015.
  15. ^ a b c d Roshen quits activity of its factory in Lipetsk, Interfax-Ukraine (20 January 2017)
  16. ^ "Poroshenko won't rule out Roshen sale to management in installments due to absence of buyers". Interfax-Ukraine. 29 December 2014. Retrieved 3 November 2015.
  17. ^ "Social projects". www.roshen.com. Retrieved 26 November 2018.

External linksEdit