TM
GRAND LAITIER
Traditional French Soft Cheese Production
Agro Conference
Business France / CCI
French Embassy in Moscow
February 14, 2017
1
Preamble
TM
Geopolitics making ripples …
Cause and …
Although the cheese offer has been more varied since the mid 2000’s, finding specialty
cheeses in Russia has always been a challenge and if available, mostly at exorbitant prices.
The import ban on various food products imposed by the Russian Government in
response to the sanctions in August 2014 made the country realize how much
it was depending on imports.
With dairy products topping the list of banned products, store
shelves quickly emptied offering almost exclusively local
products, very limited in variety such as Brinza,
Sechil, Tvorog, …
… Effect.
As many then predicted, the
Sanctions triggered a fast pace
investment and development of the
sanctions-hit market segments, of which
the dairy industry.
www.grandlaitier.ru
2
Definition & Target
TM
When opportunity knocks …
Develop daily production
from 500Kg to 7 ton of
cheese per day over a period of 4 years.
Grand Laitier is a green field
project aiming at being
the first semi-industrial
producer of traditional
Specialty Cheeses (Goat and Cow)
based on Traditional French
“savoir faire”in Russia.
Create a variety of up to 8 local
specialty cheeses each with up to 3 varieties
based on traditional French recipes.
Favor Quality over
Quantity at all times!
Gain, secure and consolidate a
Leading position within the
actual embryonic and untapped
specialty cheese market in Russia and the CIS.
Keeping an eye on the opportunity to extend the dairy
product range: Butter, yogurt, …
Thrive to secure PDO certification of Grand Laitier
products. (PDO =Protected Designation of Origin)
with production units and farms in minimum 3 Russian Regions.
Develop goat and cow farms ensuring
stable and high quality raw material supply.
Establish a very close cooperation
with local farmers to fine tune
the breeding processes,
improve the quality and quantity of the milk output.
Profit from the actual conjuncture
for a fast and swift market penetration and Development.
www.grandlaitier.ru
3
The Russian Cheese Market
Before and during the sanctions …
Overall cheese consumption in Russia.
2013
790.000 Ton
2015
1.055.000 Ton
+34%
of which domestic cheese production:
2013
420.000 Ton
2015
850.000 Ton
+103%
of which Imported cheese volume.
2013
370.000 Ton
2015
205.000 Ton
-45%
Source: USDA –Freign Agricultural Service
Cheese and Curd (HS Code 0406) Production
FAS/Moscow raised the 2015 cheese production estimate to 850,000 MT, which is 11 percent growth year-onyear. Supplies of milk for factory use were up only 1 percent, so the major contributor to increased
production was the addition of vegetable oils in cheese and butter. FAS/Moscow forecasts 2016 Russian
cheese production to increase by slightly more than one percent to 860,000 MT compared to revised 2015
production forecast, given the anticipated rate of growth in raw milk production by agricultural establishments.
Cheese producers will continue to take advantage of the reduced competition in the market due to trade
restrictions imposed on several western suppliers.
Source: USDA –Freign Agricultural Service
www.grandlaitier.ru
4
Consumption
Actual consumption per capita in
Russia is of 7Kg per year. (6Kg. in
2013) In France and Italy 24Kg.
Culture & culinary habits
Kg cheese consumption per capita 2013
0
5
10
15
20
25
TM
Cheese consumption in a country
is determined by more than just
consumers' welfare; such factor as
traditions of national cuisine also
matters.
In Russia cheese is a highly rare
ingredient in national meals mostly
accompanied
by
hard
liquor,
whereas in France and Italy cheese
and wine are part of cooking and
eating culture.
France
Italy
Germany
Poland
Spain
UK
Russia
Source: GIRA
As the Russian population is
discovering and getting used to
Western cuisine, cheese will most
certainly know a sustained annual
growth actually ranging from 10 to
15% both in volume and value,
making the cheese segment one of
the most promising and attractive of
the Russian food market.
www.grandlaitier.ru
5
Our Niche …
The specialty cheese market.
Specialty cheese departments and/or stores offering a wide choice of
specialty cheeses such as shown on the picture, are quite common in the
Western countries, but non-existing yet in the CIS :






Specialty cheeses from the EU and the US are banned.
Specialty cheeses are not produced at the exception of a couple of farms and
a few enthusiasts.
Whenever available, prices on the shelves are in between 2.500 and 6.000
Rbl per Kg.
The market is considered too small by the large local players.
Quality of the local milk does not reach the needed standard yet.
Production processes are simple but require specific conditions, equipment
and know-how, experience and unconditional discipline.
Grand Laitier has the vocation to produce up to 8 varieties of specialty
cheeses:






Milk has been tested and allows for the immediate production of some of the
targeted varieties.
Own milk production will be implemented for specific cheeses.
High quality genuine product output is guaranteed by French cheese masters
who are hired on a permanent basis.
Grand Laitier will provide breeding support and consultancy for milk quality
improvement to its suppliers.
When the ban is lifted, Grand Laitier top quality product insured by French
cheese masters and local product cost will allow continuous competitiveness.
The planned development foresees to reach an annual production of 2.555
MT or 0,25% of the actual Russian cheese market.
www.grandlaitier.ru
6
Our products.
TM
Precision is key.
Important Notice :
What took hundreds of years of cheese making evolution in France, Grand Laitier is
going to reproduce in a period of a few years. Most of the specialty cheeses aimed to be
produced by Grand Laitier have the same basic recipe. What makes the wide variety
tastes are the following elements:
•
•
•
•
•
•
•
Region  climate  harvest.
Breed of cow.
Farm hygiene.
Feed composition.
Technological processes (dripped, pressed, cooked, …)
Ripening conditions (temperature, moisture, air circulation, air renewal, …)
Ripening period.
Based on the available milk quality in the region of implementation, Grand Laitier will be able to produce a range cheeses based on specific
processes which will give a “LOCAL RESULT” : specific consistency, look, feel, aroma and taste.
The following slides describe the cheeses of which basic recipes and processes will be used following the quality of the milk available.
Own milk production is the only guarantee to realize the widest possible range at the required quality.
Grand Laitier is convinced Russia needs its own AOC cheese sorts and names/branding. Seen most of the cheeses we want to produce are
unknown on the Russian market as well as their names may be AOC protected, Grand Laitier also represents a unique but challenging marketing
opportunity: that of creating new products and brands.
www.grandlaitier.ru
7
Lactic Cheeses.
Production time: 5 to 15 days.
St. Marcelin.
Palet.
Chaource.
This cheese was born many centuries
ago and was originally made from goat
milk. The Saint-Marcellin today is also
produced from cow's milk. It has a light,
subtle acidic taste and gives off a
vegetable and nutty aroma. The cheese
has a soft paste and should be eaten in a
creamy state.
Made from cow milk, goat milk or a mix of
both, the Palet is a small cheese
originating from the West of France. They
may be enjoyed fresh, semi-matured or
fully matured as well as aromatised in
many different ways. Formats vary from 20
to 60 grams and cover a large array of
tastes.
Belonging to the white paste family, its
strong acidity prevents the heart of the
cheese from maturing. It was accepted in
the AOC family in 1977. Its slightly sour
taste is tempered by a salty savor. Its
paste melts like snow in the mouth.
www.grandlaitier.ru
8
Our Products
TM
What and when.
The milk quality available today in Russia allows for the production of lactic cheeses like the St. Marcelin
and the Pallet. The table below shows the cheeses and varieties that Grand Laitier will be capable to
produce at launch.
All other cheeses will be the fruit of the cooperation with the farmers and later, own milk production. Indeed,
whereas levels of fat and proteins are satisfactory in the available milk or, can otherwise easily be improved,
the bacteriological levels are not. Mainly a question of hygiene and operational systematics at the milk farms.
Grand Laitier will guide its suppliers on this issue.
Cheese
sweet
diamete
weight
r
(gr) honey red
(mm)
fruits
Fresh small ''palet''
spices
herbs
other pepper Paprika other Onion
Garlic
Green
herbs
Natural
double
cream
30
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
20
No
No
No
No
No
No
No
No
No
Yes
No
60
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
50
No
No
No
No
No
No
No
No
No
Yes
No
140
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
120
No
No
No
No
No
No
No
No
No
Yes
Yes
40
Aged small ''palet''
Fresh medium ''palet''
60
Aged medium ''palet''
''St Marcellin'' fresh
82
''St Marcellin'’ aged
www.grandlaitier.ru
9
Processes & Facilities.
Systematic conceptual approach
The Grand Laitier product range is based on traditional recipes of French Specialty Cheeses
thoroughly studied under the guidance and supervision of professors and cheese masters of the French
National Institute for Water and Milk who realized Russian milk sample analyses provided the
dissection of processes and study on processes integration for Russia.
The result is a the elaboration of :
• The GL Studio (Rented facility of 300m2)
o Start-up format.
o Processing capacity: 3.000 l./day
o Output: up to 400 Kg/day
• CREALAB (580m2)
o Test facility.
o Processing capacity: 5.000 l./day
o Output: up to 700 Kg/day
• GL Prod Line (1.500 m2)
o Full cycle production facility
o Processing capacity: 12.000 l./day
o Output: up to 1.450 Kg/day
• GL Units (4.500 m2)
o Full cycle production facility
o Processing capacity: 3 x 12.000 l./day = 36.000l./day
o Output: up to 4.350 Kg/day
www.grandlaitier.ru
10
Green Field
TM
Location
The village of Myatlevo and the Kaluga
Oblast were chosen for:

The
proximity
to
the
Moscow
agglomeration and its 30 Million
consumers.

The availability of the milk: the Kaluga
region produces approximately 240.000
litres of milk per day of which more than
half in a radius of 90 Km from Myatlevo.

Workforce availability in the vicinity and
nearby municipalities.

The
investment
friendly
legal
environment and pro-active local and
regional administration.

The availability of a single land mass
made of industrial, residential and
agricultural land.

Presence/availability of utility networks.
Myatlevo
Obninsk
Myatlevo
www.grandlaitier.ru
11
Green Field
TM
Land plots, zoning and utilities

The land plots are located at the
intersection of the federal road A101
Moscow-Belarus and the road leading
to the Safari Park, a 13.000Ha hunting
and recreation area.

Indutrial – 4Ha
Agricultural – 390Ha
Housing – 2Ha
The industrial land plot is of 4 Ha
holds gas and electricity networks.
 Lease hold for 10 years with
municipality of the village of Myatlevo.
 Purchase right at 15% of cadastral
value after construction of facilities.
(Bounderies are aproximative)

The 2Ha land plot for housing is
adjacent to the industrial area and is
bordered by forests.
o Lease hold under process through
public auction.

10Ha of the agricultural land will hold
a goat farm producing 5.000 Litres of
milk per day. The remaining 380Ha will
be used to grow food for the goat farm.
 Lease hold for 49 years with the
administration of the Kaluga Oblast.
 Purchase right at 100% of cadastral
value from the 4th rental year.
www.grandlaitier.ru
12
Initial development.
TM
Main principles.
The building hereby pictured is the
CREALAB. This 580m2 facility is designed to
produce any of the targeted cheese sorts
processing up to 5.000 liter of milk per day or
an average of 1MT of cheese per day.
It’s purpose is the fine tuning of all processes
and the production of test volumes, important
enough to measure the commercial potential
before launching larger volumes in the various
future production lines of Grand Laitier.
Based on the guidelines given by the French
dairy experts, CREALAB was designed and
engineered by VLI Vostok, a French
Architecture and Engineering company in
Moscow.
Grand Laitier possesses a Building permit
for this facility and construction is scheduled to
take 6 months.
Each following production Unit will be able
to process from 12.000 to 36.000 litres of milk
per day depending on the chosen format.
www.grandlaitier.ru
13
Long term development
TM
Grey’s Anatomy …
The initial project as described in previous slides, foresees a
small scale but very down to earth development plan, keeping
in mind regional development as long term target.
Regional development is undoubtedly the final target that is
based on a vertical integration strategy with the introduction of
own milk farms.
CAPEX
This results in planning operations on a different level. The
authors, have the capability to bring this to a good end in
terms of conceptualizing and the realization of the needed
infrastructure, the set up of all technical and operational
needs, assuring the requirements of a broader scenario.
www.grandlaitier.ru
OPEX
Own milk farms require a large investment with long term
returns. On the other hand milk farms enjoy access to very
substantial grants and other government support. The main
advantage however is a better cheese at a lower cost!
14
Vertical integration.
TM
Supply chain / Vertical integration.
Approach.
The graph below, although very common, emphasizes on the elements that are interconnected and
require particular competences and attention (orange frames) as impacting the final product.
• Soil analyses
• Maximum 4.000 Ha
• Harvest timing
• Equipment
• Vegetable genetics
• Phytosanitary
Land
Crop
farming.
• Nutrition
• Equipment
• Specific breeds + genetics.
• Maximum 800 cash cows per farm
(Herd of 1900 heads.)
Traditional manufacturing processes.
• Infrastructure
Harvest.
Storage
Feed.
Milk farm
Milk
processing
Aging
Packaging
Storage
Logistics
& distrib.
CONSUMER/E
ND PRODUCT
Manure
DEFINITION OF REQUIREMENTS
www.grandlaitier.ru
15
Thank You !
You’re welcome to try the first batches at the buffet !
www.grandlaitier.ru
16