Nissen grand latier

GRAND LAITIERTraditional French Soft Cheese Production

Agro Conference

Business France / CCI

French Embassy in Moscow

February 14, 2017

TM

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PreambleGeopolitics making ripples …

www.grandlaitier.ru2

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.

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Definition & TargetWhen opportunity knocks …

www.grandlaitier.ru

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.Develop daily production

from 500Kg to 7 ton of

cheese per day over a period of 4 years.

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Create a variety of up to 8 local

specialty cheeses each with up to 3 varieties

based on traditional French recipes. Thrive to secure PDO certification of Grand Laitier

products. (PDO =Protected Designation of Origin)

with production units and farms in minimum 3 Russian Regions.

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, …

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.

Favor Quality over

Quantity at all times!

Profit from the actual conjuncture

for a fast and swift market penetration and Development.

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The Russian Cheese MarketBefore and during the sanctions …


790.000 Ton

420.000 Ton

Overall cheese consumption in Russia.

2013

2015

370.000 Ton

1.055.000 Ton

850.000 Ton

of which domestic cheese production:

205.000 Ton -45%

+103%

+34%

2013

2015

of which Imported cheese volume.

2013

2015Source: 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-on-

year. 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

ConsumptionCulture & culinary habits


Actual consumption per capita in

Russia is of 7Kg per year. (6Kg. in

2013) In France and Italy 24Kg.

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.

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.

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Kg cheese consumption per capita 2013

France

Italy

Germany

Poland

Spain

UK

Russia

5 10 15 20 250

Source: GIRA

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Our Niche …The specialty cheese market.

www.grandlaitier.ru

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.

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Our products.Precision is key.

www.grandlaitier.ru

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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.

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Lactic Cheeses.Production time: 5 to 15 days.

www.grandlaitier.ru

St. Marcelin.

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.

Palet.

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.

Chaource.

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.

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Our ProductsWhat and when.

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Cheesediamete

r(mm)

weight(gr)

sweet spices herbs

Naturaldoublecreamhoney

redfruits

other pepper Paprika other Onion GarlicGreenherbs

Fresh small ''palet''40

30 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No

Aged small ''palet'' 20 No No No No No No No No No Yes No

Fresh medium ''palet''60


Aged medium ''palet'' 50 No No No No No No No No No Yes No

''St Marcellin'' fresh82


''St Marcellin'’ aged 120 No No No No No No No No No Yes Yes

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.

Processes & Facilities.Systematic conceptual approach

www.grandlaitier.ru

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 Output: up to 700 Kg/day

• GL Prod Line (1.500 m2)

o Full cycle production facility


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

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Green FieldLocation


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Myatlevo

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

Green FieldLand plots, zoning and utilities


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Indutrial – 4Ha

Agricultural – 390Ha

Housing – 2Ha

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.

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.

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.

(Bounderies are aproximative)

Initial development.Main principles.


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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.

Long term developmentGrey’s Anatomy …

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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.

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!

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.

CA

PEX O

PEX

Vertical integration.Supply chain / Vertical integration.

www.grandlaitier.ru

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CONSUMER/END PRODUCT

LandCropfarming.

Harvest. Milk farmStorage

Manure

Milk processing

Aging PackagingStorage

Logistics& distrib.

Feed.

• Specific breeds + genetics.• Maximum 800 cash cows per farm

(Herd of 1900 heads.)

Traditional manufacturing processes.

• Nutrition• Equipment

• Infrastructure

• Harvest timing• Equipment

• Vegetable genetics• Phytosanitary

• Soil analyses• Maximum 4.000 Ha

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.

DEFINITION OF REQUIREMENTS

Thank You !You’re welcome to try the first batches at the buffet !


Presentations & Public Speaking

Nissen grand latier