Dorblu: or how to deliver sanctions cheese to Russia?

We will remind that since August 2014, Russia banned import of some food and agricultural products from the USA, the EU, Canada, Australia and other countries. The list of embargo included cheese and it seriously affected the market both of the Russian Federation and the one of exporting countries that traditionally supplied this product to Russia.

Today on the shelves of many major food retailers one can see the cheese under TM "Dorblue" owned by Kaserei Champignon Hofmeister GmbH & Co. KG, which in its turn produces products (blue cheese) under this TM at the factory in Bavaria (Germany). At present the product is sold to Russia by LLC "Allgoy" - a subsidiary of GC "Optitrade".

According to public information "Optitrade" cooperates with such networks as “Auchan”, Metro cash & carry, Okey, X5, 7th continent, Azbuka Vkusa, Alye Parusa, Victoria, Bahetle, Tander (Magnit), BILLA, Spar, Magnolia, Your house, Stockmann. Indeed, the stores of these networks present a variety of products, manufacturer of which, according to the labeling, is LLC "Allgoy" specializing in the packaging. In the "Auchan" the cooperation with "Allgoy" and Optitrade was confirmed, the X5 did not respond to a request.

The right holder of TM "Dorblue" on the official German website and on the Russian version of the portal declares the following: "the production of Dorblu is located in ecologically clean regions of Bavaria. To create a totally unique product the manufacturer uses innovative technologies". In the German version of the website Käserei Champignon Hofmeister GmbH & Co.KG it is said that cheeses are produced at production sites in Bavaria: http://www.champignon-international.com/en/company/group/organisation-chart. The company refused to clarify details about the production of blue cheeses and about the sale of its own brand in Russia, citing the fact that the license to use the TM on the Russian market belongs to "Allgoy".

"After the imposition of economic sanctions in early 2012 we stopped shipping our products to Russia and to this day strictly adhere to the Russian legislation. We have granted LLC "Allgoy" with a license to use the brand of cheese "Dorblu" on the Russian market. We ask you, in all matters related to the sale of cheese "Dorblu" in Russia, to address LLC "Allgoy," replied to The DairyNews in Käserei Champignon Hofmeister GmbH & Co.KG with reference to the Export Manager of the company Mr. Herbert Muller.

Quote verbatim, to be wrong in time of economic sanctions (especially for a company that was theoretically affected by the introduction of food embargo) is difficult, but a mistake has been made. And the Käserei Champignon Hofmeister apparently is not too worried about date of sanctions as the selling of "Dorblue" is going on in Russia.

It is worth emphasizing that "Dorblue" – a brand focused largely on Russia and Eastern Europe. In the EU blue cheeses have been made for a very long time. However, in the German market, they were barely represented until the 1990-ies, when there was produced "Dorblu" (Source). Simultaneously with the German market the cheese began to be sold and gained popularity in Russia and some other Eastern European countries. Cheese in Russia cost much cheaper than the one of many competitors and thus was perceived as a very famous European cheese. As noted by most experts, beyond the markets of Eastern Europe and Russia, the cheese is little-known. It is also interesting that in October 2015 at the German version of the website of the manufacturer of Dorblu cheese, it was not mentioned at all — only at the English version. Also to this day there is a Russian version of the website.

There is mentioned the German manufacturer of the product (Käserei Champignon Hofmeister), brand news for 2014-2016 is presented.

"Dorblue" is a product primarily aimed at the Russian market. The loss of this market would mean serious problems for the German manufacturer, which he successfully solved by handing the license for TM over to LLC "Allgoy" in November 2014, three months after the introduction of the food embargo.

In LLC "Allgoy" it was stated to The DairyNews that the company does not violate the presidential decree "On special economic measures" and is a manufacturer of packaged cheese "Dorblu" according to the Russian legislation.

"LLC "ALLGOY" has official consent from the right holder to use the trademark "Dorblu" (IR 624 809, certificate No. 624 809 dated 20.11.2014 issued by the international office of trademarks WIPO) on packing of cheese and the sales of products throughout the Russian Federation. The use of the trademark "Dorblu" does not mean the importation and distribution in Russia of the prohibited product. Raw materials used by LLC "ALLGOY" in the production of products under the trademark "Dorblu", comes to the territory of the Russian Federation from Switzerland by absolutely legal way on the basis of contracts of delivery (purchase and sale)", said in LLC "Allgoy".

We will remind that according to official sources "the production of unique cheese DORBLU is located in ecologically clean regions of Bavaria". Thus, either LLC "Allgoy" introduces consumer confusion, giving the Swiss blue cheese for the "Dorblu", withal made in Russia. Either the company Kaserei Champignon Hofmeister, together with LLC "Allgoy" is doing smuggling under the guise of supplies of permitted products from Switzerland, and both is the reason for the investigation of the Prosecutor's office and the Rosselkhoznadzor.
The DairyNews asked market experts to comment on the situation.

There is no cheese "Dorblu" in Switzerland, but there are other blue cheeses, said Director of "Remma" Ekaterina Karpunina.

"I believe that "Dorblue" is a protected name, as well as Parmesan, Gruyere. In a particular situation we understand that the supplier uses the gaps in the legislative framework of Russia in order to use the trade name "Dorblue" for selling this cheese. I believe that if there is a re-packing of the cheese made from Swiss raw materials, it is also a topic for investigation of the Prosecutor's office, we need to understand how it happened and got on the Russian counter. By law, everything that is under sanctions, both packaging and raw materials – all considered sanctions products and such products are prohibited for import to our country from the territory of the European Union. I also believe that Swiss cheese should be packed in Switzerland, and not in other countries," - commented Ekaterina Karpunina.

Vladimir Labinov, head of the Secretariat ТК470 and the expert of the dairy market noted that a lack of information about the source of raw materials in case of packaged cheese can speak on the introduction of consumer confusion.

In LLC "Allgoy" they also commented on the information published on the website of The DairyNews in August this year.

According to assessment of RDRC (Russian Dairy Research Center), 80% of blue cheese is supplied by GC Optitrade (packing it at the facilities of subsidiary company "ALLGOY"). 

"GC Optitrade including LLC "Allgoy" operates in strict accordance with the current legislation of the Russian Federation. There were no issued regulations or requirements by inspection of government agencies, especially with regard to selling of the contraband", - stressed in the letter signed by General Director of LLC "Allgoy" A. Murashov. (READ THE FULL TEXT OF THE LETTER OF REFUTATION)

Thus, LLC "Allgau" officially supplies raw material from Switzerland for packaging blue cheese under the trademark "Dorblue". At the same time the German trademark holder tells about unique production of the product "Dorblue" in Germany and does not have a single factory in Switzerland, while in Russia the product is sold, positioned as domestic cheese.

It has to be noted that according to The DairyNews, the supply of blue cheeses to the Russian Federation is also carried out through the Customs Union countries, including Armenia.

NOT ACCORDING TO THE REGULATIONS

According to public information, the production complex "Optitrade" is designed to produce 6 thousand tons of finished products per year. For production the range of cheeses that the company offers under the "own brands", one needs a considerable amount of raw milk. On the website of LLC "Allgoy" it is stated that the production sites are designed to produce 3 thousand tons of products per year under own brands: "Alpino", "Terra del Gusto", "Cisse", "BlueDelice", "Cheese maker" of such kinds of cheeses as Cheddar, Gouda, Tilsiter, Maasdam.

As explained in the LLC "Allgoy", "under paragraph 1 of part 4.8 of article 4 of TR CU 022/2011 the name and location of the manufacturer of food products are to be indicated in the labelling of food products regardless of food production on the territory of the member states of the Customs Union or imported from third countries; the location of the manufacturer of food products is determined by the place of state registration of the organization or individual entrepreneur. In accordance with paragraph 5 of part 4.8 of article 4 of TR CU 022/2011 products, packaged not at the place of their production (except cases for the packaging of food products in consumer package by retail organizations) shall contain required by paragraph 1 of part 4.8 of this article, information about the manufacturer and the legal entity or individual entrepreneur engaged in the packing of food products not at the place of their production for further sale or by request of other legal entity or individual entrepreneur. Thus, if the applicant of a Declaration of conformity is the manufacturer of "packaged cheese" the labelling on consumer packaging has to indicate a "manufacturer" of packaged cheese as a manufacturer of packaged food products that is further "responsible for the compliance of the products with requirements of technical regulations" (article 4 TR CU 021/2011)".

An expert in the field of technical regulation, on condition of anonymity, commented on the statement of The DairyNews. "If on the shelf the packaged product is called "Packaged cheese (sliced)" without specific name and references to State Standard and National Standard of Belarus, etc., then this hodgepodge can be called just like that and it’s possible to be presented as its manufacturer. But if being sold the product is called the same as by the true manufacturer - "Dutch", "Maasdam" etc. and State standard is specified - here the company is not right. Slicing hardly changes the composition of the product, it's not butter, it does not need defrosting, homogenizing, refreezing, etc. Summary: if this cheese is sold as branded, then there must be the manufacturer, packer, date of manufacture and date of packing (in case of sliced cheese). Of course, the shelf life of sliced cheese will be less than it was established by the true manufacturer. And this is what is written in paragraph 4.8 TR CU 022/2011" - said the expert.

According to the interviewed by The DairyNews market participants the issue of traceability can be solved with the help of electronic veterinary certification. It is not necessary to focus on the word "veterinary", the system itself has a very good opportunity to support the market, experts say. There is another point of view, according to which, taking into account the gaps in the legislative framework of the Russian Federation and imperfections of the existing control system that allows to deliver the banned products to Russia, the Rosselkhoznadzor is to engage in domestic veterinary matters, providing control over the finished product to the competent authorities.

Federal and phytosanitary service (Rosselkhoznadzor) in response to the request of The DairyNews reported that "control of the supply to the territory of the Eurasian Economic Union controlled by the state veterinary surveillance of goods from third countries is carried out using GIS “Argus”.

"Rosselkhoznadzor has information about the volumes of cheeses, supplied on the territory of the Russian Federation and controls the delivery of these products to Russia", - said in a letter of the Supervisory authority signed by the Deputy Head of the service Konstantin Savenkov.

We will remind that the Rosselkhoznadzor is one of the state services, tracking the supply of products that fall under the food embargo.

"According to GIS "Argus" LLC "Optitrade" in 2017, controlled by the state veterinary surveillance products were not imported to the territory of the Eurasian economic Union and an import permit for controlled by the state veterinary surveillance products was not issued by the Rosselkhoznadzor to this society. From the analysis of information from the website of "Optitrade", it follows that the company sells cheeses originated from Argentina, Azerbaijan, Armenia, Russia, Serbia and Switzerland", - stated in the answer of the Rosselkhoznadzor to the request of the DairyNews.

It is obvious that the Rosselkhoznadzor does not own all of the information, or prefers to turn a blind eye on it.
According to the Director of the Russian Dairy Research Center (RDRC) Mikhail Mishchenko, a category of blue cheeses has great development prospects. "Another thing is that the regulatory authorities at the head of Rosselkhoznadzor and Rospotrebnadzor put domestic producers at a disadvantage. They introduce “Mercury”, citing the need for the formation of a system of traceability in the Russian Federation, but at the same time they are not able to control the supply of smuggled imported products", - said Mikhail Mishchenko.

Meanwhile The DairyNews got the answer of the Department of Rospotrebnadzor of Moscow to the appeal of one of the readers on the selling of "Dorblue" cheese by LLC "Allgoy". (SEE HERE). It seems that the regulatory authorities are either interested in doing nothing, or have their own interest in free activities of companies engaged in the field of packaging of cheese, said one of the market participants in the conversation with The DairyNews. At present, the packers of cheese without any trouble improve the statistics of production, by naming themselves cheese producers, which is certainly beneficial to state agencies that look at such "improvement" through their fingers. However, Supervisory service is ready to check domestic producers of cheese at the slightest provocation or without it.

Read full article in Russian on DairyNews.ru