Quality is a habit according to the new technical director of Sladko Confectioners, Rene Mayer.

In early February, Sladko made an unusual decision. New emphasis was placed on quality control and a new Swiss technical director, Rene Mayer, was selected for what was traditionally an exclusively Russian position. The new manager of production at Sladko is one of the five best candy men in the world, and has been practicing his profession for 44 years. For 22 of those years, he worked for world-famous Nestle, which sent him to improve production in various corners of Europe, South America, and Australia. This experience served him well as he branched out on his own and opened a consulting company. He has worked as a consultant on a dozen successful projects in Korea, India, Switzerland, Kuwait, China, Saudi Arabia, and Croatia.

Mayer considers his main challenge at Sladko will be to establish a unified system for quality control. He filled one of Expert's correspondents in on how he plans to do it.

Uneven brands

- You are trying to solve quality problems at Sladko's companies. But do consumers think their candies and chocolates taste good?

- I was at every factory belonging to the holding company. A lot of their products are very good, even excellent. There are even some of likes I've never seen in Europe. However, the company does not have a single, unified standard. One product at one factory turns out better than some other product, and at another factory, it's just the opposite. Moreover, at one and the same enterprise, one type of product in terms of quality might approach the best in the industry or even exceed it, but another product might lag far behind the norm. So in the next two or three years, I am supposed to bring all the factories in line with a single standard for quality which will be equal to that of our main competitors.

- What if the quality of what Sladko produces is already high enough for the Russian market? Russian consumers have limited funds, and higher quality means higher prices.

- I have this kind of argument more than once from a range of people, including some holding important positions in the business: "The quality is high enough for our markets, so why improve it?" But the quality isn't high enough. This point of view is completely mistaken. Even at Nestle, I had to argue about this issue hundreds of times. A technical specialist, when developing and trying out new production methods, doesn't wonder how much his new development will sell for and where it will be sold. He only cares about one thing: is it good or bad? If he sees that what he has made is not good enough, he will change the technology or recipe without paying any attention to price and potential markets.

- Is that what they told you at Sladko: forget the price, just give us quality?

- Well, naturally, we must bear the market in mind. But on the other hand, those responsible for sales are always insisting that if they had a better product, they would sell more. Okay, we'll give you a high-quality product. I am confident that there won't be a problem with price. Consumers will buy our chocolate and other sweets at a slightly higher price if we prove that the Sladko brand-name means high-quality products, better than average.

This is what is happening with the Russian products on the market. From the very same factory, one product is much better than another. Today's chocolate bar tastes great, but tomorrow you end up with something made with inferior ingredients. Now, Nestle or Lindt's quality is stable, and they have been successful precisely because of that. That's the same stability we need to achieve. We need it for all of our products, as we make a wide variety of chocolate, caramels, wafers, and candies. Our image depends on the quality of each and every one of those types. We have to make sure people who try our chocolate say to themselves, "Yum, this is really good chocolate. I think I'll start buying Sladko instead of Nestle," for example. Because the price will be a tad lower, but the quality will be the same. Once we stabilize quality, we will have solved the main problem, as consumers will return to our products again and again.

Our competitors, as you know, are strong. The major international companies are constantly improving the quality of their products and perfecting their production technology. In the past sixty, seventy years, they have subtly adjusted manufacturing and quality control and have painstakingly compared the quality of different ingredients from different sources and chosen the best. That's how they got to be where they are now. Nestle has already passed on some of that accumulated expertise to Rossiya's factory.

- Aren't you also competing with Korkunov Candies? They also make candy using Western technology.

- Yes, Korkunov makes a good product. And how could it be bad? They buy their chocolate in Italy and only mold candies here. They use the right technology, which is central to the issue of quality. But we, on the other hand, want to fix all stages of production here in Russia. Also, Korkunov makes only about 8,000 tons a year, while Sladko's factories produce in the tens of thousands.

Teaching old specialists new standards

- What needs to be done in order to create a single standard?

- That's no secret. We use a quality-control system called NASSR which was developed by NASA (National Aeronautics and Space Administration) thirty years ago. At that time, NASA was getting ready to launch a mission to the Moon. The agency's specialists understood that it was not only crucial that no equipment fail, but also that food was produced properly for the astronauts. In the worst case scenario, the expedition could end up not returning. I have heard that Nestle was also involved in the development of this system. Anyway, Nestle was one of the first to use NASSR at its factories. More recently, this system has become common knowledge and is used world-wide.

- What does this system consist of?

- Every step of production is provided with instructions: what is being inspected for quality at that step; where, who, what and how it is being inspected; and the time of inspection. Let me give an example. A load of nuts has been brought to a factory to be used as an ingredient. The goal: to make sure the nuts measure up to standards when they come in. When: on the day of delivery. Where: at the warehouse. Who: warehouse personnel. How: the inspector checks how the nuts look, if the bags are dirty or ripped. If something doesn't meet the standards, the warehouse employees are required to call specialists from the lab. In addition, the lab itself runs regular checks of its standards at strict intervals.

Or, here's another example: the nuts are roasted. An operator checks the roasting oven every ten minutes. He watches the temperature and opens the oven to check the extent of roasting by color and smell. Every two hours, the operation is checked by a foreman.

Every operation from beginning to end of the production process is described in this way. Just like for pilots on airplanes, who have to follow very clear and detailed flight instructions. If all this is done properly, I guarantee you that we will succeed. My experience indicates that there are no surprising obstacles in correcting a quality control problem. In South America I started a project from scratch, without even knowing the language, but it was successful. Just like Nestle was successful at Rossiya. There are no absolutely no secrets involved. We can do the same thing. Because the raw materials are the same everywhere. We buy our cocoa from the same places as European manufacturers, from Ghana, Malaysia, or South America. And other ingredients like sugar or fillings ingredients are up to standard.

- What about equipment?

- The equipment is almost the same, either Swiss or East German machines. During my first factory visits I was simply shocked at what good condition they are in. The ones which had gotten run down had been replaced and modernized wonderfully. That's why I don't think that it will take a major investment to get equipment to fit the new standards. We need first and foremost to improve efficiency.

First, it makes sense to conduct an inventory of all the machines Sladko has. I already know for a fact that at one factory, there's a packing machine just sitting around that is desperately needed at another factory. So, we don't need to buy anything, just move it. Part of the equipment will probably have to be replaced. But we won't have to replace everything. We can buy some new wafer ovens, but we don't have to replace the entire production line. In addition, all kinds of machines can be found used.

- Are the factories' specialists ready to switch over to these new standards and new technology?

- Yes, they are. I just met with the lady managers at Volzhanka Factory and was absolutely delighted by their professionalism. They have a broad knowledge of the production process but they are just stuck in the past compared to their European counterparts.

- What do you mean by "stuck in the past?"

- For example, I was talking to them about truffles. In Western Europe, this means a very specific product, an expensive luxury. Candies which are hard on the outside, but inside, melt in your mouth. In Russia, truffles are something completely different. So, I say, okay, ladies, let's make Swiss truffles. They answer: we can't because we don't know how. So, the problem is clearly not due to the level of professionalism but due to not knowing how to do something. They have simply never seen Swiss truffles. We will show them, teach them, advise them what machines to buy, just like they do at Nestle's factories.

- Often managers complain about Russian workers' lack of discipline. Working with a system like NASSR requires careful attention to directions. What happens when a worker doesn't follow instructions?

- That is a real challenge. But we have already seen that every worker's work is also checked and if that work isn't done properly, sooner or later, that worker will be out of a job. On the other hand, Russians have lived through difficult times and they are far from stupid. I have seen some of the ladies working on the assembly line. They are focused and precise. So, the important thing is to direct the training process correctly. We aren't after all demanding anything superhuman from our workers. I learned my profession over many years, and that's way I can do any task in the factory. I know every machine and can explain how to use each and every one.

- Where is it easier to work, in Russia or South America?

- Every country has its own mindset. Both South Americans and Russians have their crazy sides. But in terms of manufacturing and equipment there is no big difference who you work with. At the same time, I am confident that I will reach my goal much faster here with the help of our lady engineers who have been working at the factory for twenty five or thirty years. As soon as they understand why we are changing something, they will do exactly what needs to be done.

- We keep talking about a high-quality product, an above-average product. Let's talk specifically about chocolate for example. What makes chocolate good or bad?

- Well, let's say all women love perfume. And they know there is cheap perfume and then there's good perfume. It's the same way with chocolate.

- It's simpler with perfume. Perfumes are different, more subtle or unusual…

- Okay, sure. We won't even consider cheap chocolate because the only thing it has in common with real chocolate is sugar. Real chocolates differ in terms of how refined they are. For instance, there is an index to describe these differences. If a chocolate is twenty one microns, you can still feel the sugar crystals in it. If it is at fourteen microns, then you will already have a very soft chocolate, almost like custard.

- In Russia, everyone is talking about putting out "premium" quality chocolates and candies. To be honest, I can't quite picture what that means, premium chocolate. Can you help?

- First of all, in Switzerland, premium chocolate is understood to be truly good chocolate. Chocolate beyond all criticism. Most importantly, premium chocolate is always packaged in a high-class manner. In Russia, you get regular Russian chocolates in a big box with a big picture by some Russian painter. You open the box and inside are a couple candies. It seems like the bigger the box, the fewer the candies. This is deceptive and confusing. But premium packaging…

Think of Chanel. A modest little box and a simple name, Chanel. That is real class! The wealthy don't need to flaunt their wealth because they know what they're worth. That's why Lindt packages its candies in a simple but attractive box with a modest ribbon. You open the box and there's a layer of good paper. Then some padding and a little card which reads "If you are not satisfied with the quality of this product, just send the box back." Then come the chocolates, attractively arranged. Half of cost of the box is for the candies and packaging, while the other half is for class. To put it metaphorically, for having a date with a lady of taste instead of a barmaid.

- What should we expect from the Russian market?

- In terms of chocolate production, I would look at Germany. It's a country right next to Switzerland with hundreds of mid-quality producers. All of them make money. They all have their niche and their approach.

In terms of consumers, the development of market niche for high-quality chocolate is still in the distant future in Russia. But it has already started. Ferrero is already here, meaning that its presence on the market is already noticeable. Nestle has also started going after this niche. It's moving slowly, but a grande dame never hurries. Nestle started with the Rossiya brand, and is now slowly promoting its own brands like Nestle Classic. This work to promote brands will continue for ten years or so. Rossiya as a brand will disappear in ten to fifteen years, but Nestle will remain. That's their policy.

We will start with an improvement in our dark chocolate because Russians are quite attached to it. But I think that we need to also get our milk chocolate on par with imports.

- Do you think that despite years of consumer preference, Russians will start eating milk chocolate?

- Of course. No market can expand in directions opposed to other markets. That's impossible. Changes in Russia will happen in the next three to four years. Russia will be Europeanized and Americanized. I would say look at China. People there never drank cow's milk and didn't care to. But Ferrero brought its milk chocolate for kids to the market. Now young Chinese moms pour liters of milk into their kids because they think it's good for them. They have already started drinking less green or black tea. It's phenomenal. Milk chocolate for kids is already in Russia. A specific Russian consumer culture won't disappear; it will just change.

Interview by Anastasia Matveyeva