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International Marketing Group Ukraine:
Marketing News
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Starting from October 1 Ukrainian customs service will be reorganized
Added: 25/09/2006
Editor: Dmitri Rodenko
Source: Forum

From October 1 the State customs service of Ukraine will start reorganizing customs bodies. As the Press Service of the State customs service reports, the customs system in Ukraine will be optimized and improved in accordance with articles 14 and 15 of the Custom code of Ukraine.

Among the major procedures are liquidation and creation of several regional customs services instead with the direct subordination to the State customs service of Ukraine.

There also among them: liquidation of the Northern regional customs and establishing of the Central regional Customs (location – Kyyiv city); liquidation of Lviv customs service and formation of Western regional customs (location – Lviv city); liquidation of Donetsk customs service and formation of Eastern regional customs service (location – Donetsk city); liquidation of Odessa customs service and formation of Southern regional customs service (location – Odessa city); liquidation of Crimean customs service and formation of Crimean regional customs service (location – Symferopol city).

The order of formation, reorganization and liquidation of customs services will be held in compliance with administrative-territorial system of Ukraine.




Europe’s largest outdoor advertiser comes to Ukraine
Added: 25/09/2006
Editor: Dmitri Rodenko
Source: Kyiv Post

One of the world’s biggest outdoor advertisers has moved into Ukraine’s and Russia’s large-format advertising industries by consolidating forces with a major regional big board outfit in a multimillion-dollar merger aimed at staking out its share in these potentially lucrative growth markets.

French big board and street furniture giant JCDecaux announced Sept. 7 that it had entered the Ukrainian and Russian outdoor advertising markets through the creation of a joint venture called BigBoard BV with Czech-based BigBoard Group SA, in which BigBoard Group SA will have a 60 percent interest, and the family-run JCDecaux will have the remaining 40 percent.

According to JCDecaux, it is the number one outdoor advertising company in Europe and the Asia-Pacific, and number two worldwide.

In addition to large format billboards, the company provides street furniture, such as bus shelters, freestanding units, public toilets and kiosks, and operates more than 700,000 advertising displays across 3,500 cities in 45 countries around the world. The company reported more than 1.7 billion euros ($2.1 billion) in revenues in 2005 and nearly 950 million euros ($1.2 billion) in revenues in the first half of 2006.

Founded in 1992, BigBoard Group SA has been operating on the Ukrainian market for the last 13 years. In addition to the Czech Republic, Ukraine and Russia, BigBoard also operates in Slovakia and Belarus.

JCDecaux said in its Sept. 7 statement that BigBoard Group SA is the leading outdoor advertising company in Ukraine, with “more than 7,400 faces in 32 cities and a market share of approximately 20 percent.”

In Russia, BigBoard operates more than 3,000 advertising faces, and maintains a presence in eight out of 12 Russian cities with more than 1 million inhabitants.

JCDecaux said that BigBoard Group’s combined Ukrainian-Russian operations generated around $30 million in advertising revenues last year.

“Russia and Ukraine are currently two advertising markets where it is possible to achieve more than 10 percent growth year-on-year,” JCDecaux quoted its co-CEO Jean-Francois Decaux as saying.

“Our joint venture with BigBoard Group SA will enhance our growth profile in the fast growing East European advertising markets, where JCDecaux has already achieved market leadership in the Czech Republic, Slovakia, Croatia, Serbia,” he said.

Under the 60-40 deal, JCDecaux said that BigBoard Group SA is contributing its existing outdoor advertising network in Ukraine and Russia, while JCDecaux is making “a cash injection, which will … allow it to participate in the consolidation of the outdoor advertising market in both countries.”




Danone buys into Ukrainian dairy market
Added: 25/09/2006
Editor: Dmitri Rodenko
Source: Olga Gnativ, Kyiv Post

International food company Groupe Danone has acquired a small Ukrainian dairy plant in a bid to reduce dairy product imports into the country from its facilities in neighboring Russia while diversifying its product lines and increasing its market share.

The Paris-based Groupe Danone announced Sept. 7 that it had bought local market player Rodych Dairy Plant, based in the southern Ukrainian city of Kherson.

Neither Rodych nor Danone have disclosed how much the French dairy products giant paid for the Ukrainian plant, but the deal has been reported in Ukrainian media to be worth around $10 million.

With around $16.5 billion in total sales in 2005, Groupe Danone says it is the world leader in fresh dairy products.

Groupe Danone posted sales of $1.5 billion during the same period in Eastern Europe: Russia, Poland, the Czech Republic, Hungary, Romania and Bulgaria.

According to Groupe Danone, the Rodych Dairy Plant “enjoys a strong market position, with its Rodych and Vesely Pastushok brands, and posted sales of 10 million euros ($12.6 million) in 2005.”

“As a result of the acquisition, Danone will benefit from significant additional local distribution capabilities, as well as access to a strong milk sourcing network and production platform,” Danone said in its Sept. 7 statement.

Yuriy Voloshyn, the director of the Rodych plant, confirmed that Rodych was owned by private individuals, but would not disclose their names.

“This acquisition will enable Danone to strengthen its existing Ukrainian portfolio by adding traditional products, such as kefir and sour cream, thereby providing Ukrainian consumers with an enhanced range, produced mainly in their own domestic market,” Danone said.

With its current capacities, Rodych can produce up to 120 tons of dairy products a day, according to Voloshyn.

According to Ukraine’s State Statistics Committee, the country as a whole produces an average of around a million tons of dairy products a month, or about 33,000 tons a day.

Some industry specialists say that the move by Danone to buy a plant in Ukraine is a sign that the underdeveloped Ukrainian dairy products industry will begin to see greater commercial diversification on the market, and that consumption of homemade counterparts will be squeezed out, as disposable incomes and demand for plant-produced products continue to grow in the country.

According to Danone, per capita fresh dairy consumption in Ukraine averages 4 kilograms per annum, compared with 22 kilograms in Western Europe, leaving significant room for development. It said that average annual growth of the Ukrainian dairy products market has exceeded 15 percent in the last three years.

Danone has been importing its Activia, Actimel, Rastichka and Dannisimo dairy products into Ukraine since 1999 from its two Russian factories, which the French company built itself. However, it now says it will save money and increase its share of the Ukrainian dairy products market by making its products in Ukraine and phasing out its Russian imports coming into the country.




Russia has classified the inspection of Ukrainian dairy and meat enterprises
Added: 25/09/2006
Editor: Dmitri Rodenko
Source: Forum

Russian experts have resumed the inspection of Ukrainian meat and milk enterprises. As the Press Service of Ministry of Agrarian Policy reported, on September 19 a working meeting of the chief state inspector of veterinarian medicine of the country Ivan Bysyuk and Hosvetdepartament (State department for veterinary) experts together with specialists RosSelkhozNadzor (Russian federal supervisory agency for agricultural goods quality), who arrived in Ukraine aiming to inspect Ukrainian dairy and meat enterprises.

Five experts of RosSelkhozNadzor will be checking Ukrainian process industries enterprises for 10 days. A compulsory requirement of Russian part is mass media nonintervention in this process and prevent going public the list of enterprises to be inspected, reports “ForUm”

The complete information will be presented to general public after the commission summing-up and its official public exposure.

As they stated in Ministry, the meat processing enterprises proposed to be inspected don’t deal with import primary material, but using home primary material base in producing. Some of them have foreign investors, that’s why their documents are considered by European Commission with the purpose to entitle them to trade their production on world market.

They stated in relation to milk processing enterprises in Ministry of Agrarian Policy, that the list include only those enterprises using for 80-100% the primary material of powerful agrarian enterprises.

Bysyuk assured that in connection to All-State Standard introduced on July 1 2006 “creamy butter” and “PAC and fat mixes”, consumers may not hesitate in the quality of the purchased Ukrainian production – the inscription on the tag will conform the contents.




Tourist flow into Ukraine increased by 10%
Added: 23/09/2006
Editor: Dmitri Rodenko
Source: Regnum

“Tourism dynamically develops in Ukraine; the tourist flow increased by 10% in Ukraine and by 30% in Transcarpathia,” Ukrainian State Service of Tourism and Health Resorts First Deputy Chairman Yuri Zubko informed in Uzhgorod, while he was attending the fifth international exhibition-fair ‘Toureurocenter Zakarpatye (Transkarpathia) – 2006.’

According to Zakarpatye State Regional Administration Department on European Integration, Tourism, and Health Resorts Chairman Alexander Marchenko, “not much budget money – about 30,000 hryvnias ($6,000) were spent for the exhibition’s organization.” Active contribution of the fair participants to its preparation conditioned on the fact. As a REGNUM correspondent was informed at the regional administration press office on Sep 18, more than 100 subjects of regional tourist branch, as well as ones from other Ukrainian regions, Hungary, Byelorussia, and Russia participated in the exhibition. The fifth international exhibition-fair ‘Toureurocenter Zakarpatye (Transkarpathia) – 2006’ were held on Sep 14-17 in Uzhgorod.

Information: there are 298 objects of sanatoria and health resorts, tourist-recreational, and hotels’ institutions in Zakarpatye region. On the data by July 1, $17.6 mln worth five investment projects in tourist sphere were registered in the region.




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