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Roshen

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Roshen Confectionery Corporation
Native name
Кондитерська корпорація «Роше́н»
Company typePrivately held company
Industryconfectionery
Founded1996
FounderPetro Poroshenko[1]
Headquarters
Kyiv
,
Ukraine
Area served
Europe, Asia, North America[2]
Key people
Petro Poroshenko
Products350 various types of confectionery
RevenueIncrease €803 million (2023)[3]
Increase €141 million (2023)
Number of employees
10,000 (2012, including subsidiaries)[4]
Websiteroshen.com

Roshen Confectionery Corporation (Ukrainian: Кондитерська корпорація «Роше́н», romanized: Kondyterska korporatsiia "Roshen") is a Ukrainian confectionery manufacturing group.[5] It operates facilities in the Ukrainian cities of Kyiv, Vinnytsia, Ivankiv, and Kremenchuk, as well as in Budapest, Hungary, and Klaipėda, Lithuania. The company's name is derived from the last name of its former owner, Petro Poroshenko (Poroshenko), who was the president of Ukraine from 2014 to 2019.

A Roshen storefront located in Ukraine.

In 2012, the Roshen Corporation ranked 18th in the "Candy Industry Top 100" list of the world's largest confectionery companies.[4] It has a total annual production volume of 410,000 tonnes.[2][6] The company exports to Kazakhstan, Uzbekistan, Kyrgyzstan, Azerbaijan, Georgia, Armenia, Moldova, Estonia, Hungary, Poland, Latvia, Lithuania, the United States, Canada, Germany, Romania, Finland, Bulgaria, and Israel.[6] Previously, it also exported to Russia, from which it derived 40 percent of its gross revenue until Russia ceased importing from the company in July 2013.[7] In early 2017, Candy Industry placed ROSHEN in 24th place in the "2017 Global Top 100" of confectionery producers and estimated its annual revenue at $800 million.[8]

Owners and management

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Participating in the 2014 presidential election in Ukraine, Petro Poroshenko announced his intention to sell Roshen after his victory to avoid any conflicts of interest. At a press conference on June 5, 2015, in Kyiv, Poroshenko assured that he intended to transfer his stake in the confectionery corporation "Roshen" to the management of a private investment banking company, N M Rothschild & Sons, owned by the Rothschild family. In January 2016, he announced the signing of an agreement on the transfer of these shares.

History

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The Roshen Factory in Kyiv during New Year's in 2012.
A piece of Roshen chocolate.

Banned exports to the Russian Federation

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In July 2013, Russia banned all imports of Roshen products due to dissatisfaction with the packaging labeling.[2][9][10][11] Subsequently, Roshen products underwent inspections in Kazakhstan, Belarus, Kyrgyzstan, and Moldova, but no complaints were raised.[10] On 21 October 2013, Russia's ambassador to Ukraine Mikhail Zurabov stated, "There are no problems with the quality of products; they are safe. But there are problems associated with the production technology, using some ingredients not certified by the law."[10] According to the 17 December 2013 Ukrainian-Russian action plan, Roshen products were expected to return to Russian stores by 1 March 2014.[12] However, on 12 March 2014, the 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 its requirements to allow Roshen products back into the Russian market.[13]

In late March 2014, the Roshen factory in Lipetsk, Russia, was closed down, and its local managing director was charged with "conspiring with unnamed others to use a registered trademark illegally to extract additional profits."[14] Ukraine and the factory workers suspected the factory was closed because of Roshen owner Petro Poroshenko's involvement in Euromaidan and his participation in the 2014 Ukrainian presidential election.[14] According to Reuters, some 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 rumors of how the management "paid Ukrainians more money and were cheating the Russians".[14] On 13 May 2014, Russia banned the sale of Roshen products in Crimea.[15] In April 2017, total production stopped at the Lipetsk factory, leaving 700 people jobless.[16]

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.[16]

In February 2024, the Oktyarsky District Court of Lipetsk decided to transfer the Lipetsk factory to the ownership of the Russian state.[17]

During the election campaign of the 2014 Ukrainian presidential election, Roshen owner Poroshenko pledged to sell all his shares in Roshen if elected President. Although Poroshenko was elected President, by late December 2014, he was unable to find a buyer for the company.[18] Because of this, in January 2016, Poroshenko transferred his share of the corporation to an independent blind trust.[16] The Bank Ruling Trust has a four-year-old proxy to negotiate the sale of assets.[16]

Production network changes

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Roshen closed down its confectionery factory in Mariupol (Ukraine) in 2015 due to the proximity of the Donbas war and an export ban imposed by Russia, which made production there unviable.

The corporation was previously reported operating a facility in the town of Bershad (Ukraine),[citation needed], but it is not listed on the corporate website.

In March 2012, Roshen began co-production with a contract manufacturer in Hungary called "Bonbonetti."[19]

A bar of Roshen chocolate.

Products and brands

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"ROSHEN" serves as the overarching brand encompassing all products within the corporation. The name is derived from Poroshenko, the surname of its owner. ROSHEN makes over 350 confectionery items, including chocolate and jelly sweets, caramel, toffee, chocolate bars, biscuits, wafers, sponge rolls, pastries, and cakes. Annually, the corporation produces approximately 300,000 tonnes of confectionery.[9] In 2013, the company had a product range of approximately 200 confectionery items and achieved a total output of 410,000 tonnes.[6]

References

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  1. ^ Power structure Roshen - ukrainian confectionery manufacturing group. Retrieved July 19, 2023.
  2. ^ 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.
  3. ^ "In the first quarter of 2024, CC Roshen increased sales and profits".
  4. ^ a b "2013 Top 100 Candy Companies". Candyindustry.com. Retrieved 19 August 2013.
  5. ^ "Roshen suspends export of confectionery products to Russia". Kyiv Post. Interfax-Ukraine. 31 July 2013. Retrieved 8 September 2013.
  6. ^ 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.
  7. ^ "Ukraine Election: The Chocolate King Rises". Spiegel Online. 22 May 2014. Retrieved 3 November 2015.
  8. ^ "2017 Global Top 100". Candy Industry. Retrieved 29 October 2017.
  9. ^ a b Kuryata, Nina (17 Aug 2013). "The Fifth Floor". BBC World Service. Retrieved 8 September 2013.
  10. ^ 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.
  11. ^ "Russian inspectors have woeful impression of products of Roshen's Ukrainian factories - Onishchenko". Interfax-Ukraine. 28 October 2013. Retrieved 3 November 2015.
  12. ^ "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.
  13. ^ 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.
  14. ^ a b c Elizabeth Piper (2 April 2014). "Bitter times for chocolate factory in Russia-Ukraine crisis". Reuters. Lipetsk, Russia. Archived from the original on March 6, 2016. Retrieved 3 November 2015.
  15. ^ 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.
  16. ^ a b c d Roshen quits activity of its factory in Lipetsk, Interfax-Ukraine (20 January 2017)
  17. ^ "Липецкую фабрику Roshen Петра Порошенко передали в собственность РФ". Kommersant (in Russian). 2024-02-19.
  18. ^ "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.
  19. ^ "Our brands » Roshen". Bonbonetti. Retrieved 16 July 2020.
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