A Look At Valio Group Ltd
- Company Profile -
In 1905, seventeen co-operative dairy farmers founded Valio Group Limited (Valio), Finland. Today, the parent company is one of Finland’s largest food producers. The company’s primary “product categories are milk powders, producing approximately eighty percent of the milk consumed in Finland” (Valio). The company also produces a large quantity of Finland’s demineralized whey powders, butter, and cheese.
Valio has positioned itself as a producer of high-quality dairy products in both its domestic Finnish and international target markets. One way the company fulfills its mission statement, “To promote the business of Valio milk producers” is by continually upgrading its facilities and inventing new and improved product lines. (Valio) The company also uses its eight international subsidiaries to distribute its premium produces around the globe.
The well-trained professional employees have extensive knowledge and skills in the production of functional foods, and the company takes its responsibility of advancing the health of its customers seriously. One method used by Valio to promote healthy diets and ensure that it products are of premium quality is through research and development. For example, the Valio Evolus spread, introduced in March 2009, has been clinically proven to lower people’s cholesterol levels. This heart healthy product is the world’s fist spread to “lower total cholesterol and harmful LDL … but leave the beneficial HDL cholesterol” (Valio).
- Indirect Export -
Valio’s domestic business grew from seventeen to 172 members in the first seven years of operation. However, it was the international operations for which the company was initially established. The company was formed as a cooperative for the export of Finnish butter and with almost a hundred years of experience in the exporting business the company has extensive capability and competitive advantages in international business. Today, Valio’s international operations are carried out primarily through indirect marketing via its eight international subsidiaries. It is through the knowledge and expertise of the skilled staff at these subsidiaries that the company is able to customize its products to meet the diverse needs of its multi-national target markets.
- Partnership -
Valio’s exports consist largely of cheeses, butter, and fresh dairy products and are distributed to more than sixty countries. Valio networks with other academic and manufacturing partners in the dairy industry in order to keep abreast of the changes in technology and food processing standards. The company’s networking is also done through memberships in organizations such as International Dairy Federation, European Dairy Association, European Association of Dairy Trade, and International Co-operation is a Must. Valio’s international sales continue to grow as its brand names gain global recognition and respect. The company also sells licenses to its inventions for use by other companies outside its domestic Finnish market. Approximately half of the milk products processed in Valio’s Finland facilities are sold in international markets.
Evolus Milk, produced by Valio, is the first lactose-free milk to be sold in Asia. This fermented milk is specially formulated to promote the consumers’ health. The process used to manufacture Evolus Milk retains the original milk taste and nutritional composition, but the modification of the carbohydrate content removes the lactose. This lactose-free milk has been proven to help stabilize blood pressure.
Assets giving Valio a competitive advantage over its competitors include human capital in the areas of research and development, and health and nutrition as well as its high-quality products. Through its competitive advantage the company continues to gain a favorable position in the international dairy markets, spreading its brand name across the globe .
Valio. Bring taste to life. (2009). Retrieved January 31, 2010 from: http://www.valio.fi/portal/page/portal/valiocom/Valio_Today