Galactica Group of Companies is one of the largest independent manufacturers of a wide range of dairy products. The company is fully implementing the entire cycle of production of the dairy products from the farm and to the store shelves, which is why the manufactured dairy products undergo the shortest distance from the cow to the consumer.
Strategic potential
As of today, the Galactica Group of Companies is one of the largest producers of the dairy products in Russia and the largest producer in the Northwest region. The Group includes the Galactica dairy plant, Baby Food Plant, Galactica Vyatka dairy plant, several agricultural industrial enterprises of the Leningrad region, as well as the Galactica Trading Company. All production plants of the company are equipped with modern automated equipment, which guarantees the consumers a consistently high level of quality of the dairy products. Every month Galactica produces 13 million packs of ready-made dairy products. The most important moment in the development of the company was the construction and opening of the main production site, located in Gatchina, Leningrad region in 2008. On August 22, the company celebrated the 10th anniversary of the factory, which is one of the most modern dairies in Russia. The only manual operation in the production of finished products is the connection of the milk hose.The strategic potential of the Galactica group of companies are brands and employees who produce and develop them. Now the company’s portfolio includes 4 brands. Bolshaya Kruzhka is the most famous brand of the company. It accounts for about half the sales of all products produced by Galactica. The brand is focused on the most mass consumer, who wants to provide his family with natural dairy products, and indulge them with useful dainties from milk, fruits and berries. In addition to the Bolshaya Kruzhka the company produces two premium brands Svezhee Zavtra and BE Dairy 2.0. The first offers more sophisticated and wealthy customers high-quality classic dairy and sour-milk products and cottage cheese, while the second – modern, enriched and functional products. And for those who value the combination of price and quality, the company offers Sudarynya - the basic dairy products produced in accordance with the requirements of GOST at an affordable price.
Main products and manufacturing process
The main activities of Galactica are the industrial processing of milk, as well as sales and promotion of ready-made dairy products both under their own trademarks and on the order of other companies. One of the main partners in this direction is the Finnish concern Valio.Valio and Galactica have long-standing mutually beneficial relationships. At the stage of construction of a new production site, Finnish colleagues shared their experience, knowledge and expertise with Galactica to create a high-tech modern enterprise. Close partnership relations connect the Galactica with the company Tetra Pak. Most of the packaging lines and processing equipment in production are manufactured and serviced by the Swedish concern. Galactica often acts as an experimental platform for Tetra Pak pilot projects to test the most advanced packaging and technological solutions. Now there is a joint project on printing a unique dynamic code on the packaging that can be used both for carrying out incentive actions and for tracking the way of the finished product from the moment of production to the end user. This will provide an opportunity to better control the quality, optimize logistics solutions, improve the effectiveness of CRM and establish direct links with end users of products. Galactica has always been one of the first to respond to the packaging innovations of Tetra Pak. For example, for the first time in Russia, the company installed a Tetra Top line in its production, designed to pack fresh “live” products such as pasteurized milk, sour milk products and yoghurts. After that, similar packaging solutions appeared at many manufacturers in Russia and in the world, but Galactica still remains one of the largest customers of Tetra Pak in this type of packaging. The company supported Tetra Pak in developing a new type of Tetra Brik Aseptic Edge packaging, launching the production of of 0.2 / 0.25 liters volume and installing the line for Tetra Brik Aseptic 500 ml & 1000 ml Edge. At the moment Galactica manufactures products in 10 dairy categories. Milk, kefir, fermented milk and milkshakes with ice cream became the most popular and loved by the consumers. Galactica is trying to exclude the human factor, which could adversely affect the results of the company’s activities from the production process. The company has installed the Tetra Plant Master system, which allows several employees to fully control all production processes from the moment of milk acceptance to the automatic formation of pallets with finished products in the warehouse.
New products and brands
In the fall of 2018, the company launches a new line to produce dessert and yoghurt products. It will be able to produce up to 12 thousand cups per hour. In addition, Galactica starts a large investment project (until 2023) of the production of fresh and soft cheeses without maturation. The cheese market is one of the most dynamically developing in the dairy industry. Despite this, cheese production in St. Petersburg and the Leningrad Region is very poorly developed. Having high-quality milk and a large modern sales market in the region, the company saw a perspective in the segment of cheeses with short shelf life. The new line will produce modern dairy products of yoghurt and dessert group. Following the global and European trends on improving the convenience of packaging and individual consumption, the new line will mainly produce portion products, in a package that is convenient to take with to the office or school. It will be useful and tasty snacks for those who aspire to a healthy lifestyle. In comparison with the current assortment, the novelties will contain less sugar, asit will be replaced by stevia - a natural vegetable sweetener. In addition, the company will add to the products the dietary fiber - prebiotics, which support the growth of useful microcloflora of the stomach and improve digestion. The new equipment will allow Galactica to add big pieces of the freshest succulent fruits and berries, as well as make multi-layered, thicker foods with a high protein content. The new items will be supplemented with a small folding spoon for convenience of consumption. The new products will help the company better respond to the needs of consumers oriented towards a healthy lifestyle and meet the increasingly accelerating pace of life in the metropolis. The segment of modern dairy products is growing rapidly. According to various sources, this growth in the first half of 2018 reached from 7 to 12%. Current production capacity no longer allows the company to meet these growth rates. The new equipment will allow Galactica to significantly increase the presence on the shelfs in this segment of dairy products.
Latest achievements
The pride of the company is the cooperation with the Federal agency Roskosmos under the program for the supply of astronauts, which began in 2011. On October 25, 2012, sublimed sour-milk products were delivered to the International Space Station. It happened for the first time in the history of Russian cosmonautics. The products were highly appreciated by cosmonauts, and in 2014 were included in the main diet of astronauts.The company has many awards and certificates, but it is especially proud of the fact that the sour cream Bolshaya Kruzhka has received Russian state quality mark. According to the results of independent laboratory tests, sour cream Bolshaya Kruzhka was recognized as a high-quality product, as it meets not only the mandatory requirements of legislation, but also the state quality mark. In addition, ultra-pasteurized milk Bolshaya Kruzhka of 2.5% fat content was the winner of the popular broadcast of the First Channel of the Russian TV - “Control Purchase”. Bolshaya Kruzhka, entered the top three, and laboratory research not only showed the safety and high quality of the product, but also the highest amount of useful protein in milk, which brought the brand a victory. Galactica is trying to introduce the most advanced management technologies to improve the efficiency of the enterprise. Competitive advantage of the company is mobility, efficiency in decision-making, ability to respond quickly to changes in the market and the surrounding business environment. Thanks to that approach in 2017, the company achieved 4.6% growth in EBITDA.
Further development plans
The company is actively developing digital communication channels. All brands of Galactica have their own pages in social networks. On-line video, online contests, participation in cash back services, QR and data matrix codes, bloggers - these and many other tools the company actively uses and is going to develop in the future. Great attention is paid to the fuller satisfaction of a modern buyer needs. The company is working to make the packaging more convenient and the product more functional and tastier. Focusing on the latest trends in healthy eating, Galactica plans to reduce the sugar and fat content and increase the amount of protein. The company pays much attention to the development of B2B channel, to which refers institutional channels (schools and other government institutions), food service enterprises and HoReCa. In Galactica’s portfolio there are products specially designed for the needs of special customers. The main market for Galactica’s products is St. Petersburg and the North-West region. The company’s products are represented in all federal and local retail chains. Galactica has long-standing mutually beneficial ties with partners in Siberia and the Far East. There are certain growth prospects in Central Russia and the Urals.
