Food from Poland 02/2018

CHINESE MARKET Polish opportunities in China » p. 51

PRIVATE LABEL Private label is profitable » p. 67

DISCOVER Polish Products

» p. 76

Issue 02/31

May 2018

FoodfromPoland Polish Magazine for Professionals

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CONTENTS MARKET NEWS.................................... 6 INTERVIEW Krzysztof Jurgiel, Minister of Agriculture and Rural Development ......................... 10 Evangelos Evangelou, “Herbapol – Lublin” S.A. ........................ 14 Bogdan Łukasik, Modern-Expo Group .. 18 Robert Okoński, Wawel S.A. ................. 20 Wiktor Sawosz, Brand Distribution ..... 24 Zenon Daniłowski, Makarony Polskie Group . ...................... 28

IN NUMBERS

Polish food exports are on the rise....... 30

TOMASZ PAŃCZYK

INTERVIEW

Katarzyna Kwiecień, KOWR................... 34

Editor In-Chief t.panczyk@foodfrompoland.pl

IN NUMBERS

Polish agri-food exports in 2017........... 36 Record food export.................................. 40

INTERVIEW

Tomasz Łuksza, 3 Topole......................... 42 Jakub Kołodziej, Roleski.......................... 44 Łukasz Dominiak, National Poultry Council – Chamber of Commerce........ 46

CHINESE MARKET

Polish opportunities in China ............... 51 China – market for dairy products ...... 56 Sweetness of Poland .............................. 59

PRIVATE LABEL

Challenges and opportunities facing private label .................................. 62 Commercial Brochures............................ 64 Private label is simply profitable............ 67

WHAT I LIKE: POLISH FOOD........ 69 LIST OF POLISH COMPANIES....... 70 DISCOVER POLISH PRODUCTS... 76

Discover great Polish food!

Foreign consumers love the taste and appreciate the quality of Polish food, which is confirmed by numerous certificates, awards and good opinions. They are the guarantee that it is worth establishing business cooperation with Polish producers.

Each year, a growing number of new products are conquering international markets.

There are more domestic producers who decide – with the success of sales departments – on export. When we read or listen to the opinions of foreign admirers of Polish food, we can draw a clear thesis, namely: Poland is famous for its excellent products, and hence the tasteful food. Both the quality of Polish products, as well as the taste of our food is the result of a strong connection with tradition.

Welcome to the new issue of Food from Poland Magazine where you can read about Polish companies and the excellent traditional food products they make.

Enjoy reading!

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4

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MARKET NEWS

Zubrowka (Bison Grass) vodka is one of the top brands in the world In the annual, prestigious ranking of Shanken’s IMPACT magazine, Zubrowka maintained, for a second consecutive year, its third place position among global vodka brands, giving way only to the Smirnoff and Absolut brands.

With regard to both global and regional brands, Zubrowka is

Top vodka brands in the IMPACT* ranking: Rank

Brand

Producer

Reach

2017 sales in millions of 9-litre packages

Percent change in sales 2016 vs. 2017

1

Smirnoff

Diageo, Great Britain

Global

26.0

+1%

2

Absolut

Pernod Ricard, France

Global

11.3

+2.7%

3

Khortytsa

Khortytsa Distillery, Ukraine

Regional

8.0

+4%

4

Zubrowka

CEDC, Poland

Global

7.9

+11.3%

5

Khlibniy Dar

Bayadera Group, Ukraine

Regional

7.1

+2.9%

ranked fourth, just behind Smirnoff, Absolut, and Khortytsa vodka which is distributed mainly on the Ukrainian market.

According to the data included in the IMPACT ranking, Zubrowka was also at the forefront of vodkas with the largest sales increase among all spirits in the ranking, calculated on the basis of the number of 9-litre crates sold. Compared to the data for 2016, last year, a total of 11.3% more Zubrowka crates were sold in Poland and on export markets.

Zubrowka is the highest-ranked Polish brand of vodka in the IMPACT ranking. Another CEDC brand – Soplica – was also ranked, with total sales of 3.5 million 9-litre crates in 2017. According to the IMPACT ranking, the sales of Soplica increased by almost 13% compared to 2016, affording it the rank of 5th place among the fastest growing spirits in the entire ranking.

*Shanken’s IMPACT, World’s Top 100 Distilled Spirits Brands Worldwide, March 2018.

Suppliers see growth ahead for private label Competition

Retailer brands climb in Germany

across

Private label keeps

Europe may be very dif-

gaining

market

ficult, but private label

in Germany. GfK re-

suppliers are optimistic

ports that sales of re-

about their prospects

tailer brands climbed

for growth in the years

4%, while manufacturer

ahead. A new PLMA

brands increased only

survey of 567 manufacturers from 36 countries found that 88% of

0.5% in 2017. Private label gains are due to the growth in both the

them say they are optimistic about the outlook for overall growth of

price entry brands (+ 0.5% market share compared to 2016) and the

retailer brands.

value-added brands (+ 0.3% market share). The increase in private

What’s behind the optimism? More than three quarters of the respondents pointed to increased consumer awareness and purchase of private

label is reflected in a decline in the middle brands by 0.8% to nearly one third of the market share.

label products. Expansion of premium private label products was cited

The gains for private label come as retailers enjoyed strong sales last

by 74% of the suppliers, while 64% noted increased consumer interest

year. The GfK market researchers report an increase in sales of 3.6%,

in value. Nearly two thirds of respondents believe that increased retailer

or around six billion euros for food retailers (full-range supermarkets,

commitment to private label will lead to further growth.

discounters and drugstores) compared to the previous year, the largest

Despite their optimism, manufacturers say there are significant

increase since the end of the financial crisis.

challenges ahead. Providing consistent quality and competition from other suppliers in Europe were the two most frequently cited challenges. Consolidation of private label suppliers, finding enough skilled personnel, and consolidation of product assortments by retailers were also identified. To get an insight in the survey results, please click here to request the report.

6

share

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FOOD EXPORT CONGRESS

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FOOD FROM POLAND AWARDS CEREMONY DISCUSSION PANELS B2B MEETINGS

PRODUCT SHOWCASE EXPERTS’ LECTURES

MARKET NEWS

Dariusz Sapiński, President of the Management Board, MLEKOVITA Dairy Cooperative

A year of records and successes for Mlekovita On 21 March 2018, the General Meeting of Representatives of Members of the MLEKOVITA Dairy Cooperative was held, at which the President of the Management Board – Dariusz Sapiński – presented the report on the company’s operations along with the results from 2017.

“I am very pleased with last year’s summary because it shows that 2017 was another year in which MLEKOVITA could boast of being in good shape,” says Dariusz Sapiński, President of the Management Board of the MLEKOVITA Group. “We have succeeded in achieving a permanent development of the company and an increase in the value of the MLEKOVITA brand, which is currently the most valuable brand in the production sector of the Polish economy, and the most expensive brand in the category of ‘Food products.’ We have introduced new products and many of the products introduced last year, since their market launch, have gained the recognition of consumers and won prizes at national and international trade fairs and competitions. We have completed further important investments, expanding and modernising the internal infrastructure – including the milk powder plant, a key investment and the largest implemented investment in the history of the company so far; as a result of which MLEKOVITA will not only be the largest producer of milk powders in Poland, but also in Central and Eastern Europe.

Aldi and Leader Price enter Italy

Tesco may create discount format

Tesco is reportedly working on a plan to launch its own discount store format in the UK to help it win back customers from Aldi and Lidl. The Sunday Times said the new group would match the discounters on price and carry a far more limited range of prodTwo grocery retailers are entering the Ital-

ucts than a typical Tesco store. The group is believed to be working with advisers from

ian market. Aldi Süd is opening its first stores

Boston Consulting on the format. The newspaper added that private label suppliers are

there this month and is looking to open stores

being asked to sign non-disclosure agreements before contributing to the project.

in all regions of northern Italy as well as in Tus-

A separate report by The Guardian said Tesco has also been considering a second

cany. The retailer says that 75% of the food

option, which would involve a Costco-type bulk purchase format, similar to a business

products will be sourced from Italian suppli-

the group already operates in Thailand.

ers. The retailer brand offer features a range of

UK retailers reduce plastics

Italian SKUs including Regione Che Vai (pasta and cooking oils), I Taglieri del Re (cold cuts), Natura Felice (organic products) and Bontlà (dairy products).

Leader Price discount stores also will be entering northern Italy later this year, following an agreement between Italian retailer Crai and Groupe Casino. The network will be run

8

independently from the rest of Crai’s opera-

UK grocers are declaring war on plastic packaging. Asda has become the latest UK

tions, and only a limited number of Crai stores

retailer to outline its plans to reduce plastic packaging. The supermarket aims to reduce

will be converted to the Leader Price banner.

the amount of plastic in its private label products and packaging by 10% this year, while

The retailer will replicate the standard concept

working with suppliers to find more recyclable solutions.

of Leader Price’s French stores, which have

Earlier, frozen food retailer Iceland committed to eliminating plastic packaging for all

a typical size between 300 and 1,100sqm.

its own label products. Waitrose plans to stop selling private label food in black plastic

The ambient assortment is 80% composed of

packaging by the end of next year. The Co-op says that its aims for 80% of its product

Leader Price private label.

packaging to be recyclable by 2020, with a long-term goal of 100%.

MARKET NEWS

Asda rolls back prices

Lidl cuts back

plastics

Aldi Nord and Aldi Süd collaborate

Lidl will be cutting

back

the use of plastic packaging in its private label

Asda in the UK says it will shift to even

products as part of its programme to reduce

more of an everyday low price position to

Aldi Nord and Süd are talking about ways to

use of plastics in Germany by at least 20%

compete against discounters. The retailer

work more closely together, but say they are

by 2025. The retailer wants to achieve this

predicted the market share of the discount-

“not considering nor planning a merger”. Aldi

goal through measures regarding packaging

ers to grow by another 5% by 2022 and

Nord and Aldi Süd will investigate whether

and repackaging of private label products,

that it is determined to make the compara-

they can collaborate on marketing and pur-

which make up around 70% of the entire

tive cost of an Asda basket cheaper.

chasing, specifically in Germany. The goal is

product range.

Asda also says it aims to step up its

to lower costs and take full advantage of scale.

At the same time, Lidl announced that it

support for innovation among its private

It could be a first step towards the reunion of a

will ensure 100% recyclability of the plastic

label suppliers. The supermarket retailer

company that split in 1961, when brothers Theo

packaging for its own brands by 2025. Lidl

is set to launch Asda Innovation Awards

and Karl Albrecht split the company in two. Aldi

has already created its own recycling cycle for

and is also promising to match-fund new

Nord is active in Belgium, the Netherlands and

PET bottles of its Saskia and Freeway brands,

product development by new suppliers

the rest of Western Europe and Aldi Süd manag-

which currently ensures a recycled content of

who bring exclusive product develop-

es Middle and Eastern Europe, Great Britain and

more than 60% per bottle.

ment to Asda.

the United States. Germany is the only country where both divisions are active.

Conad revamps its brands Conad in Italy is investing 25m euros to re-

Aldi goes organic

launch its private label range this year. Conad CEO Francesco Avanzini said that the retailer will introduce modern packaging and clearer labels, especially for its premium lines, along with new products that meet the growing demand for sustainability.

The retailer will launch a brand, Alimentum, which will include gluten-free and lactose-free products. There will also be a new beauty care range under the Conad Essentiae brand as well

Aldi is going all in on organic products. It is

as a new baby product range. Conad’s private label has seen turnover increase by 46% over

looking to eventually expand its organic range

the last five years, from 2.2 bn in 2012 to 3.2bn euros in 2017.

so that these products are available in almost all major categories. The expansion will see

Kesko launches new format

Aldi Süd’s organic range grow almost 30%,

Finnish retailer Kesko has launched a beauty and wellness

310 products by the end of the year, includ-

store format under the Hehku banner. The stores were created

ing trial products, seasonal, promotional and

in collaboration with the retail pharmacy company Oriola-KD.

standard items at the discounter.

Two stores have opened as plans call for 100 stores to open in the next few years.

from around 240 products currently, to about

Meanwhile, Aldi Nord, plans to expand its GutBio organic private label to around 350

Along with the physical stores, the retailer has also launched

products, with varying offers depending on

the online store hehku.fi, offering its selection of almost

season and region. Aldi’s share of organic

10,000 products to over 2,000 pick-up points all over Finland.

products in food sales, including private label,

Kesko plans to open 30 of these stores by the end of 2018.

rose from 5.6% in 2015 to 6.5% in 2016.

9

INTERVIEW

Krzysztof Jurgiel, Minister of Agriculture and Rural Development

Polish food is becoming increasing popular in many countries. Index of export is still growing but there are many barriers yet to overcome.

Polish Minister of Agriculture and Rural Development – Krzysztof Jurgiel tells us about actions which has been taken to support Polish products abroad.

Polish food products have managed to conquer the palate

long and arduous. However, we continue to consistently implement

of many foreign consumers. What are the reasons behind

our goals. As I have already mentioned, the result of our efforts in the

the success of our food?

last two years has been 30 new markets where Polish exporters can

We know how to produce food. In this respect, we not only have

sell our products. I am convinced that consistency, consolidation and

a rich culinary heritage which we draw on, but also one of the most

targeting of specific activities towards specific markets will bring about

state-of-the-art processing plants. We focus on family farms and sus-

positive results.

tainable development. This results in the extremely high quality and excellent flavour of our products. However, we must remember that

Many of our companies strive to enter the Chinese market,

our agriculture has enormous potential. We produce more than is

some have already been successful. Establishing a presence

necessary for our domestic consumption, and for this reason, we are

on such a remote and culturally different market requires

on the constant lookout for new, potential markets. Over the past two

support from the highest level. Can you give examples of

years, we have gained access for our agri-food products to an addi-

such activities?

tional 30 potential markets. According to preliminary reports, we have

China is a huge market that everyone is striving for. We are not

exported more than EUR 27.3 billion worth of agri-food products.

alone in this and we are well aware of the high level of competition.

At the same time, we have maintained a positive exchange balance

However, I believe that our chances are good. Our food is perceived

exceeding EUR 8 billion.

as very high quality food on that market. However, the scale of the market requires strong consolidation, in order to offer large batches of

10

With each passing year, the volume of Polish food exports is

a uniform product. This is a challenge for our companies that wish to

growing, but are there still markets that are less accessible

sell in China. The specificity of this market also requires the presence

for our products? What can you do to turn this around?

of the most important people in the state. Both The President of the

What supportive activities are carried out by the Ministry

Republic of Poland, Andrzej Duda and former Prime Minister Beata

of Agriculture?

Szydło, and the then Deputy Prime Minister, Mateusz Morawiecki,

We are primarily responsible for setting out the conditions of access

paid visits to China. These bilateral contacts, which were also recipro-

to specific markets. This is a tremendous job performed by veterinary

cated with visits to Poland, serve to solve problems and open up the

and phytosanitary services. We also support informational and pro-

road to further progress in trade negotiations and market access.

motional activities that are carried out by industry organisations within

Secretary of State Zbigniew Babalski, at the end of August last year

the framework of, for example, promotion funds. We participate in

participated in the 12th China-CEEC Agro-trade Forum, which took

many of the most important food industry related trade fairs in the

place in Slovenia. The meeting was also attended by representatives

world. We are aware that gaining new potential markets is sometimes

of the ministries of agriculture from Albania, Bosnia and Herzegovina,

INTERVIEW

Bulgaria, Croatia, Montenegro, the Czech Republic, Estonia, Lithuania, Latvia, Macedonia, Romania, Serbia, Slovakia, Slovenia, Hungary and China. During the session, a Joint Declaration was adopted, in which the countries undertook to further strengthen cooperation, support business contacts, and to facilitate procedures in trade exchange.

The Chinese Minister of Agriculture, Han Changfu, took part in the forum and paid the first official visit to Poland. We discussed cooperation prospects in both bilateral and multilateral formats. We also discussed the access of Polish agri-food products to the Chinese mar-

The most prospective markets for Polish exports (...) in 2017 were: United Arab Emirates, India, Japan, China and Taiwan, Canada, Algeria, South Africa, the United States, Saudi Arabia, Egypt, Vietnam, Iran, Belarus and Kazakhstan

ket. The head of the National Veterinary Research Institute, Krzysztof Niemczuk, and the head of the Veterinary Institute in Lanzhou, Hong

that can be taken. It is more difficult on non-EU markets. We under-

Yin, both signed a memorandum on cooperation between the two

take certain courses of action, such as in matters related to ASF for the

institutes. This bodes well for the future.

recognition of regionalisation. However, non-EU countries have their own interests and do not necessarily want to agree on such solutions.

What barriers in the development of food exports are the most difficult to remove?

The Ministry of Agriculture strongly supports the promotion

Barriers related to protectionism are the most difficult. Protection-

of Polish food abroad. Please tell us about your recent

ism and the so-called black PR hamper the conditions of competition

activities and plans for the near future?

and are unlawful forms of restricting access to a market. However,

We undertake determined actions aimed at expanding the access

they are difficult to combat. We have already had to deal with such

of Polish agri-food products to the markets of non-EU countries, with

activities on the Czech market. There was also an attempt to discredit

particular emphasis on Asian markets which are enjoying the growing

Polish sausage in Germany. We strongly oppose all of these types of

interest of Polish entrepreneurs. Our actions mainly include bilateral

activities, to which we react both directly and on the EU forum.

cooperation regarding the arrangements for access of Polish agri-food products to such markets, as well as informational and promotional

Our food meets the highest sanitary and veterinary

activities. The most prospective markets for Polish exports have been

standards; however, there are countries where our food is

defined in the priorities of the Ministry of Agriculture and Rural De-

not accepted. This can be frustrating for Polish producers.

velopment for the opening of new markets in 2017 and subsequent

What can be done to solve this problem?

years. These are: United Arab Emirates, India, Japan, China and Tai-

Within the European Union, it is easier for us to respond. We all

wan, Canada, Algeria, South Africa, the United States, Saudi Arabia,

have to meet certain conditions and we meet them. As I have already

Egypt, Vietnam, Iran, Belarus and Kazakhstan.

mentioned, we react immediately, as demonstrated in the cases I have mentioned. There are EU mechanisms, services and defined actions

Thank you

11

INTERVIEW

Evangelos Evangelou, President of the Board, “Herbapol – Lublin” S.A.

About the Polish healthy food, Polish herbs, teas and other excellent Herbapol products we talk with Evangelos Evangelou, President of the Board, “Herbapol – Lublin” S.A. Herbapol company has 70years of tradition and grounded

ment-related reasons, but we have managed to start cooperation

position on polish market. How important is export of the

with several entities there and, in this respect, we are developing

company?

very dynamically.

We export our products to many countries around the world. Of

In February this year, during the Gulf Food Show in Dubai, we held

course, the majority are exported to countries where Polish commu-

a series of meetings with contractors from Gulf countries. Since last

nities live, but year after year we have noticed a growing interest in

year, our products have been available in Iran, where we are witness-

them also in markets which, until recently, were considered rather

ing a huge increase in interest in our functional teas. Natural Ice Tea

exotic. Herbapol-Lublin products can be bought for example in Ice-

and the energising drink Green-Up are also extremely popular.

land, Japan or even Taiwan.

Export means not only business for the company, but also the pro-

14

Which of Your products are the most popular abroad?

motion of Polish brands and our wonderful products abroad. Polish

Among Herbapol products, fruit teas and syrups continue to be the

herbs with their unique quality parameters are a perfect example. At

most popular abroad. For the last two years, we have also introduced

the same time, we should remember that by promoting Polish brands

functional teas to new markets, where they are becoming increasingly

that offer natural products, we also promote the whole Polish healthy

popular with local consumers. These products support the proper func-

food sector.

tioning of the body, which is in line with global healthy lifestyle trends.

Which markets are the most perspective for Herbapol?

Herbapol leads the functional and fruit tea segment. What

Our future directions are China and the Gulf countries. Last year,

other segments do you plan to conquer?

we took part in the International Import Food Expo in Guangzhou;

We are committed to maintaining our leading position in the func-

this year, we are planning to exhibit at the SIAL trade fair in Shang-

tional and fruit tea segment; products from the Polish Herbarium The Es-

hai. Entering these markets is very difficult for formal and invest-

sence of Health and Natural Ice Tea ranges are also gaining recognition.

INTERVIEW

Has global trend of healthy lifestyle and organic food positive influence on interest in Herbapol products?

Global healthy lifestyle trends and organic food definitely contribute to the interest in the Herbapol brand, which for 70 years has drawn inspiration from nature and is now winning the hearts of cus-

Export means not only business for the company, but also the promotion of Polish brands and our wonderful products abroad. Polish herbs with their unique quality parameters are a perfect example.

tomers with the highest quality products. Ingredients from local suppliers, recipes without unnecessary additives or ‘enhancers’ as well as

us. They confirm that the direction to draw inspiration from nature,

the highest quality at every stage of production are elements that per-

which we took 70 years ago, is still relevant. We are delighted that

fectly meet the current needs of increasingly conscious consumers.

consumers are becoming increasingly aware and pay attention to the

FfP_HL_ZP_herbal_205x290+3 mm_1okladka.indd 1

How about the plans of developing Big-Active brand?

high quality of products. We are proud that we meet their needs and 2018-04-11 16:28:37 offer products of the highest quality.

The Big-Active brand is constantly growing. In the future, we want it to be available not only in Poland, but also abroad. With its

What should we expect in the nearest time? Will next

rich and diverse portfolio and high-quality products, it will surely be

products and news raise products of abroad recipients?

successful there.

We are constantly working to develop our portfolio to meet the ever-changing needs of our customers. Further novelties will surely

Herbapol is the conqueror of many awards for their

be introduced not only to the Polish market, but also for export. We

products, among others The Gold Receipt 2017 for syrup

are certain that high quality ingredients will conquer the hearts of

Raspberry from the Fruity Pantry line. Which distinctions

consumers, as they have done so far.

are the most important for You? All the awards that our brand has won are equally important to

Thank you

15

INTERVIEW

Interview with Bogdan Łukasik, Chairman of the Supervisory Board of Modern-Expo Group displayed. For the first time at a trade fair, Modern-Expo presented itself as an innovative company offering chiefly intelligent solutions.

However, they were not only conceptual solutions, but by and large solutions that were ready for sale. As for the factory in Lublin, it turns out that it is progressively becoming too small. At the moment, we are already working on a project to expand it with new production floors.

We also moved our offices to the new headquarters. We tried to do so in a very modern, yet modest fashion. First and foremost, these offices are to be functional and employee-friendly, because their work effect in successes achieved by the company.

Looking at the development of the company so far, this probably isn’t the end of investments...

Further investments will certainly be implemented in Poland. One of the most important investment phenomenon is investment in other entities that we acquired last year, and this year we are planning further acquisitions. Acquisition is definitely a new direction in the development of the company. In fact, it was only a year ago that we decided to take over companies which have specific competences.

Bogdan Łukasik, Chairman of the Supervisory Board of Modern-Expo Group

In general, the idea is to shorten the time it takes to reach certain solutions. We know which expertise we have and which are expected from the market – whether it is competence in the field of design or competence in the field of IT, or in the areas of new technologies or robotics. These competences are built over a relatively long period, which is why we have decided to acquire other entities. The negotiations are quite advanced, but at the moment I can only say that one such company is located in Eastern Europe and another in Western Europe. We are currently working on both acquisitions. I think it may be a surprise for the market.

The year 2017 was certainly very important for the development of Modern-Expo Group – the noticeable

What are the new retail solutions introduced by Modern-

participation in the EuroShop trade fair in Dusseldorf,

Expo Group in the recent period that you are particularly

the announcement of cooperation with Schweitzer, the

proud of? Which of them have been fully introduced into

opening of a factory in Vitebsk, and finally a new factory

trade and which are in the testing stage?

and headquarters in Lublin...

18

Virtually all solutions that we presented at the EuroShop are cur-

The year 2017 was really intense, but at the same time very suc-

rently in the process of commercialisation. Both our flagship product,

cessful for the entire group. First of all, we have met all sales targets,

i.e. Fresh Box and Click&Collect, are solutions that are currently be-

as a result of which we can implement further investments. We have

ing tested by many customers. We have some implementations in

also concluded two investments that we have talked about for a long

the postal segment, which is new for us, and the product is constantly

time – one in Belarus as the foundation of our position on the Eura-

being improved by our team of engineers. The innovation that we are

sia, Russia and Kazakhstan markets and the second in Poland for our

currently developing in this product is an automatic cooling system

European partners. Meanwhile, with reference to the EuroShop trade

for each individual cell. It is associated with huge energy savings and

fair, it is worth emphasizing that this is the ‚Olympic Games’ for us, for

high flexibility. This is a complete novelty on a global scale because

which we had been preparing for a long time, and in 2017 we were

usually entire boxes are chilled. Another product we talked about are

most definitely rewarded with a medal. Our stand was distinguished

smart shelves. At the moment, this product is already patented, so we

not only by its visual design but, above all, by the products we

are prepared for mass production. Other pilot projects are also under

INTERVIEW

way. However, at the moment we are focusing mainly on the issue of

changed a bit, as well as the way of servicing these customers. They

software and extensive functionality based on the latest technologies

can use our services directly through contact with the branches loca-

and solutions in the cloud. We aspire to the global launch of this

ted in chosen part of the world, but also I want to remind you that we

product from day one.

have more than 45 partners who distribute our products. Therefore, our products can also be purchased through the dealer network.

You are the leader in the field of store equipment in Central and Eastern Europe, but you are not limited to this market...

Recent significant projects and plans for this year...

The fact based on figures is that our products have gained a fo-

Our greatest success was the venture in Dubai, where, for the first

othold. However, I have often said that our aspirations are much big-

time, Modern-Expo also carried out construction work. We took over

ger. Our next short-term goal is the leading position in Europe. Me-

the responsibility of managing the entire project, i.e. laying tiles, organi-

anwhile, the long-term goal is to achieve the leader position, which

zing lighting and, of course, providing the full range of equipment. The

we can do only through realization of projects on the global market.

project was extremely difficult, because the entire project management

However, we constantly assume the position to think globally while

rested on our shoulders, but it was a complete success. As a result, we re-

maintaining a local strategy. We want to be very well-rooted in local

ceived 7 more hypermarkets that we will be realizing in the coming mon-

conditions. This is why we have branches in every country in Europe

ths. It is a 2-year plan being implemented in the United Arab Emirates.

and we are opening more. We currently cooperate with entities that

Moreover, we received an invitation from other companies in that region

are global players and receive from them invitations for cooperation

to take on the organization and implementation of such projects. Undo-

in Asia, India and America. By receiving these types of offers, we

ubtedly, this is one of the biggest successes, because it was a immense

make investment decisions about opening new offices or companies.

challenge and few companies in the world would be able to cope with

Therefore, I think that

these types of pro-

the current 9 branches

ject. Certainly, yet

that we have is not the end and soon more will be established.

We deliver products to over 60 countries around the world and cooperate with global companies.

So you are already

another is the fact that we have worked out the leader position in the production of checkout

a global player?

counters and practi-

Yes we are. We deliver products to over 60 countries around the

cally all of retail chains in Europe have invited us to participate in the

world and cooperate with global companies. Even if we look at it in

development of new concepts. This is special for us because we were

terms of classification of suppliers – through global companies, espe-

not invited merely to take part in a tender where we are to submit an

cially from the FMCG industry – then if a company operates in two or

offer, but we were requested to develop a product together with them.

more regions, it already automatically receives the status of ‘Global

Participation in such preparations where we are able to share our expe-

Supplier’; meanwhile, we operate in the regions of Eastern, Central

rience, such as the organization of the checkout area, gives us great satis-

and Western Europe. In addition, we also operate in the Middle East

faction, and when we create a product, and based on our design other

and North Africa, and last year we also completed the first delive-

companies are invited to take part in the tender – this is an enormous

ries to America. We don’t neglect Poland either. I believe that our

pleasure. Our self-checkout counters, which were presented as a novelty

products should be in every Polish store and this is not just wishful

at the EuroShop trade fair, can now be seen in stores. They are working

thinking, but a deep conviction that they are simply the best, both in

great and I must admit that we are preparing further versions. We are

terms of quality and functionality.

also working on dedicated solutions, which may soon be quite a surprise for the Polish market, because individual store chains have decided to

You equip the largest retail chains both in Poland and

implement our self-checkouts. We have obtained the feedback of recent

worldwide. Can the owners of smaller retail stores also

research, to the effect of 98% of recognisability, which is actually a phe-

benefit from the Modern-Expo offer? How can they get

nomenal result and creates a very good insight into the future, where we

information and choose the right range of equipment?

will truly be able to forget about the checkout area and queues. I hope

We never divide our customers into the worse and the better. We

that we will be the first company in the world that will effectively imple-

value each and every one of them. Especially that we really and truly

ment artificial intelligence in trade, which our clients will be able to use

grew out of a small trading company and it was thanks to small en-

and thus generate greater profits.

tities that we were able to build our company. So the owners of smaller stores are always welcome. Of course, our product structure has

Thank you

19

INTERVIEW

Analysis and Critical Control Point), BRC

universities, specialising in food technology. We

(The British Retail Consortium), IFS Food

follow Consumers’ expectations, we stay ahead

(The International Food Standard), and – for

of the trends, and – as you can see – we make

selected products – the NO GMO, HALAL

no compromises with regard to quality. This

and KOSHER certificates, which make our

strategy is being well received by our Business

products a very-attractive choice for the

Partners, and, above all, by the Consumers.

Consumers from different countries. Howev-

Interview with Robert Okoński, Sales Director at Wawel S.A.

er, the quality required for the certification

In which countries is there a greater

purposes is one issue. Another, and quite an

demand for such products? Are “clean

exceptional one at that, is our decision to be-

label” products more desirable abroad

come the industry pioneer, by improving our

than in Poland?

products through the removal of any unnec-

Our observations show that this is a global

essary additives – something particularly ap-

trend, and the behaviour and expectations of

preciated by Consumers, not only in Poland,

Consumers, especially in Europe, are becom-

but also on foreign markets. All this is having

ing more-and-more similar. The vogue for

an impact on the stable development of our

broadly understood naturalness in the FMCG

How important are exports in Wawel’s

exports. Our foreign sales are growing, ac-

industry is a global trend, and the “Good In-

business mix? The data published by

cording to forecasts, at the rate of more than

gredients” policy fits in with this perfectly. In

you indicate that this area of your

a dozen percent annually.

its most-recent report, the Mintel research

activity is systematically growing.

22

agency, the world leader in market intelli-

Wawel has a strong, leading, position in

True – for today’s consumers the

gence, presented the trends in the global

the manufacturing of confectionery in Po-

quality of products is very important.

food and beverage markets in 2018. It turns

land, but indeed we do not forget about

How far advanced is your Good

out that among the basic expectations of the

exports, which are a very-important part of

Ingredients project?

modern Consumer is the “clean product”

our business. We are systematically work-

Today, our “Good Ingredients” strategy al-

tag, i.e. free from any unnecessary additives,

ing on our international expansion, and the

ready covers all our products, which means

which still provides 100% taste, and is sold at

growing popularity of our sweets, their high

that they have received the simple “clean la-

a fair price. And, according to the research-

quality, and the ready-made system solutions

bel.” This is a unique initiative, and our key

ers, a perfect example of a response to these

for our product merchandising and sales, all

project, which is being developed continuously

trends on our domestic market is our project!

stimulate the good results we achieve. We

and dynamically. Thanks to efficient work on

Since it is an independent report, such a dis-

are prepared for the expectations of modern

recipes, today we are one of the first, or maybe

tinction pleases us all the more.

trade, when it comes to the exposition of our

even the first, large producer in Europe, which

products, sales support and way of packaging

has successfully modified the formulation of all

Wawel is one of Poland’s favourite

adapted to the highest standards. In particu-

its products. We have successfully eliminated

brands. It is also one of the oldest

lar, I mean our modern packages for shelves,

artificial aromas, unnecessary preservatives,

companies which manufacture sweets

racks e.t.c. and interesting forms of display

and the E476 emulsifier, as well as colourants;

in Poland. But how are your products

systems for bulk products as well. We can

instead, we now focus on natural raw materi-

being received by foreign customers?

offer many surprisingly interesting solutions

als, certified additives, e.g. GMO-free soya lec-

Which foreign countries are the major

which means to our Business Partners a sig-

ithin, and the gradual elimination of palm oil;

importers of your confectionery?

nificant degree of freedom, and a guarantee

at the moment, it is not contained in any of our

We have recorded dynamic growth in sales

of successful sales. Our foreign Partners ap-

chocolates (without filling) any more. We have

in the countries of the European Union – we

preciate the fact that Wawel has 100 years

also increased the content of ingredients which

are pleased with our success in both the old

of tradition, yet today it is an extremely

are desirable in a given product, such as nuts

and new Union States. We have also man-

modern company, with two state-of-the-art

and fruit juices. All this to provide the more-

aged to go outside the so-called ethnic shelf

production facilities. The two plants meet all

and-more demanding Consumer with natural

– our products, in specially prepared export

the international safety and quality standards

and innovative sweets of the highest quality,

packages can be found on the shelves of the

required in the food industry, including the

with no unnecessary additives. In the process

largest trading chains in Germany, the UK,

Certified Quality Management System com-

of so-called “label cleaning,” we were advised

and the Central and Eastern European coun-

pliant with ISO 9001, HACCP (The Hazard

by outstanding experts – professors of reputable

tries. The tastes of our foreign Consumers

INTERVIEW

Various types of the sales system called “Freedom of choice” created by Wawel for effective selling of bulk sweets.

match those of the Poles. The top sellers in

cility. The coming years will see us actively

ation with Distributors in the more-distant re-

our export sales include, similarly to those on

taking advantage of the investments we have

gions of the world. Apart from top-quality prod-

the Polish market, our high-quality chocolate

made, and the opportunities here are many.

ucts, we provide our Business Partners with a

bars, Choco & Fruity agar agar jellies or Fresh

Our constant strategic goal is to produce con-

professional and very-efficient service, as well

& Fruity pectin jellies, as well as Tofflairs and

fectionery of the top quality, and each and

as support in promotion and marketing tailored

Choco & Peanut candies – extremely trendy,

every product we sell must meet the highest

to the markets on which they operate. Partic-

not only on the domestic market.

standards, which we have set ourselves. Ad-

ularly noteworthy is our proprietary system

ditionally, we try to engage our Customers in

supporting the sale of sweets by weight, the

Wawel still manages to surprise its

social activities, mainly through the “Growing

“Freedom of Choice” programme. Our sales

customers with new ideas. What

Heart” project, under which we are coop-

modules, available in 4 different configurations,

should we expect in the nearest future?

erating with the leaders of Poland’s greatest

work very well in both the smaller stores and

Last year we further developed our pro-

charities, transferring a specific amount from

the large retail spaces, and at the present time

each product for social purposes.

they are operating in over 4,000 stores in Po-

duction plant, which will not only increase our production capacity by some 20%, but,

land and abroad. Thanks to our solution, our

most importantly, it will improve the quali-

What are the export plans of Wawel,

Customers can create their own mixes of their

ty of our flagship products, and will allow us

and what special solutions does it

favourite sweets, while simultaneously benefit-

to include new categories of products in our

have for its foreign Business Partners?

ting from unique offers which go with this pro-

portfolio. Even as we speak, our new prod-

Our products are already available in almost

gramme – either by receiving an attractive gift

ucts are entering the market, and this is pos-

50 countries in the world, and this is still not our

or by purchasing sweets in specially-designed

sible thanks to our most-recent investments.

last word in this regard. Our goal is the consis-

gift packs for every occasion. So it is safe to say

Our Customers can rest assured that all our

tent development of their distribution in collab-

that we are fully prepared for cooperation with

products leave the factory at their best, and

oration with the largest European networks, as

foreign distribution networks, and we are in a

that they are made in a state-of-the-art fa-

well as the development of long-term cooper-

position to meet any demand.

Thank you

23

INTERVIEW

What is the most important factor when it comes to doing business right? Good relations, experience, knowledge of the global supply chain and cooperation with professional partners.

Wiktor Sawosz, Owner of the Brand Distribution tells us about cooperation benefits and difference between Poland and others markets. they always find a way to win with an ever-growing competition.

For a long time, our products have been very successful on British or American markets. Now, they are also appreciated by clients from Kazakhstan, Uzbekistan or Mongolia. We are also starting export into Taiwan, Singapore and Australia. Additionally, we have many inquiries from African markets, and also countries such as Iran, Iraq, Afghanistan, Libya, Israel or United Arab Emirates. This is possible

Wiktor Sawosz, Owner of the Brand Distribution

because of the dedication of our management staff and our experienced team of merchants. Brand Distribution employs 130 persons

When was Brand Distribution established and what services

and has very ambitious, future development plans. Due to regular

does it offer?

participation in trade fairs, our customer base is constantly growing

Brand Distribution Group is a family business established in 1993

and our high quality of service strengthens the loyalty of our clients.

by me and my wife. This year we are celebrating the 25th anniver-

For us, this is crucial information, which inspires further develop-

sary of the company’s existence. From the start, we were involved

ment and conquest of subsequent markets.

in the export of goods produced in Poland into foreign markets. In the ‘90s, countries such as: Belarus, Ukraine, Russia, Baltic States

Which Polish products are most wanted around the world?

and Kazakhstan were the natural sales markets for our products.

Confectioneries, chocolate products and drinks have been at the

We are still providing these markets with our merchandise, but after

top for many years. Recently we have noticed a big interest in ice

Poland joined the European Union the scope of our activity has

cream, which constitute a gradually bigger part of our overall sales.

significantly widened. Presently, we export FMCG products to 94

We would like to triple the sales of this product type. Polish ice cream

countries on the globe. We are constantly looking for new goods

are sought-after in the farthest parts of the world, e.g. African coun-

and developing our partnerships with manufacturers. Food products

tries. In many foreign markets, Polish meat and dairy products, and

constitute about 60 percent of all of the provided goods. Formerly,

fruit or vegetable preserves are objects of great interest.

this ratio was entirely different. In the ‘90s, we sold many more

26

cosmetics and household chemicals. Since 2007, the sale of Pol-

What challenges do you encounter in your work? What

ish food products have dominated our activity, which is a proof of

obstacles are there for the Polish export?

the high quality of these goods. Numerous Polish companies focus

Brand Distribution Group has its branches in Germany, Spain

on innovative production methods and modernize their facilities.

and Great Britain so there are numerous experiences I can share.

Clients from all over the world appreciate this fact, since they are

Our department in London has been functioning for five years and

aware of the high quality and affordability of the Polish food prod-

during this time we have noticed that starting a partnership with Brit-

ucts. From my experience, I can say that Polish entrepreneurs can

ish manufacturers is easier than with Polish ones. Even owners of

be characterized as proactive, innovative and industrious, therefore

brands known in the British market express the will to expand their

INTERVIEW

sales into new markets and we manage to formulate very benefi-

many, but firstly they should be thoroughly researched before starting

cial conditions of collaboration. I have noticed that such openness to

a business there. Brand Distribution Group focuses on developing

cooperation among the manufacturers is not yet present in Poland.

sales in countries such as: Brazil, Peru, Ukraine, USA, Great Britain,

Brand Distribution Group has several hundred regular customers in

Nigeria, Egypt, China, Taiwan and Singapore. The aforementioned

various regions of the world and our clients utilize the whole package

markets are characterized by big competition from around the world,

of services which we offer. Polish companies do so less willingly and

e.g. China, USA, Great Britain and Germany, which are faster in pre-

it is hard to say what is the reason. I wish our domestic companies

vailing on new markets. American and British products have been

are able and not afraid to take advantage of the potential offered by

available for years in almost all markets. We, however, still have to

entities such as Brand Distribution. A change of Polish manufacturers’

pave the way. It is important to find reliable partners in the new mar-

attitudes is precisely one of the challenges of this industry. We believe

kets and formulate rules facilitating a good partnership.

that because of the partnership with our company, Polish manufacturers can increase their export, as well as enter new markets more easily. We are a trading and service company and our mission is to „Help people and organizations all over the world regain time for important matters�. We realize that mission in the FMCG industry using complex commerce, marketing and logistic solutions based on partnership. Having such considerable experience we are able to quite

For many years, Brand Distribution Group has been developing partnerships with international and local commerce networks in Poland, and abroad, by supplying them with, among others, Polish brand products.

precisely predict the prospects of a product in a given market. Good relations with our customers all over the world, which we have devel-

Which foreign trade fairs are the most important for you?

oped over the 25 years of our activity are critical to the functioning of

Brand Distribution Group sales team is present at almost all of the

our business. I also think it would be beneficial if the Polish govern-

most important foreign trade fairs such as: ISM Cologne, ALIMEN-

ment would increase its support for export. A more active promotion

TARIA Barcelona, ANUGA Cologne, IFE London, GULFOOD Dubai,

of Poland, our brands and manufacturers is necessary. We have many

PLMA Amsterdam, PRODEXPO Moscow or SIAL Paris. Additionally,

commendable products and therefore we should intensify actions

we participate in fairs in the United States, which we consider a pro-

aimed at increasing export of the Polish merchandise.

spective market. We are also present at fairs in Iran or Africa.

There are many more development topics on which we are work-

Do you support the manufacturing of private label products?

ing in our company. We care about expanding our portfolio with

Which export markets are the most prospective?

innovative Polish products which would interest our foreign contrac-

For many years, Brand Distribution Group has been developing

tors. There are many small and medium Polish manufacturers re-

partnerships with international and local commerce networks in

sponsible for exceptional products. However, they are not sufficiently

Poland, and abroad, by supplying them with, among others, Polish

promoted or do not have experience in international sales required

brand products. We receive requests from such networks to recom-

to arise on the foreign markets. Basing on our experience we are ca-

mend Polish manufacturers which could be interested in producing

pable of helping them in these matters. The benefits will be mutual,

for particular own-brands. This is another opportunity to grow for the

so we invite to cooperation.

Polish food manufacturers.

When it comes to the most prospective export markets, there are

Thank you

27

INTERVIEW

Looking for new partners The Makarony Polskie Group can consider the past year of 2017 a very successful one. Revenues from sales amounted to PLN 144.9 million, approx. PLN 20.7 million higher than in 2016. Zenon Daniłowski, the President of the company’s Management Board, told us about the share of exports in this success and about prospective markets.

Zenon Daniłowski, President of the Management Board, Makarony Polskie Group

How large is the share of export in the company’s revenue?

a considerable volume, which makes it hard in logistics. It is not

Last year, exports of pasta from Poland reached 19 thousand tons,

economically viable to sell in small batches – the quantity has to

at a production exceeding 150 thousand tons – so approx. 15 per

be counted in containers, otherwise no profit will be achieved. As

cent of the production was exported. In 2017, the Makarony Polskie

I have already mentioned, pasta does not like being transported

Group exported approx. 4 thousand tons of pasta, accounting for

over long distances, so it seems valid to intensify cooperation with

approx. 6-7 per cent of our revenues. Export is among the most prof-

our closest neighbours. It is better to perform deeper penetration

itable area of our business.

of a market on which you have already managed to succeed than to try and build your presence on a completely new one. A local

What countries are the main recipients of your products?

business partner is the key to success. We have them in Ukraine

Our largest customer is Ukraine, having increased the imports of

and Egypt, and we are looking for more.

pasta from Poland by nearly 50 per cent last year. In 2017, our exports to Ukraine reached the value of PLN 4 million, and our pasta under

How do you search for new customers on foreign markets?

the Sorenti brand can be found on the shelves of leading Ukrainian

It is best to acquire new contacts on foreign markets during foreign

distributors. Ukraine and Egypt are our major markets. Another very

trade fairs. We often exhibit on national stands organized by the Min-

interesting direction of business is Scandinavia. Such products as ani-

istry of Agriculture and Rural Development or the National Support

mal-shaped pasta for children or bio products sell there. Abroad, one

Centre for Agriculture. We have been in Dubai, we will also be in

has to stand out particularly and offer what the competitors do not

Singapore, Shanghai, and at the SIAL fair in Paris. We participate in

have. We are also present on the Chinese market with our products.

many events of such a kind. Finding new customers is always a chal-

We introduced the Sorenti pasta to a large trade chain six years ago.

lenge. Today, there is no such thing as a simple sale, because a fierce

This market is somewhat problematic because few companies are

price war is taking place on the market. Many foreign producers offer

able to satisfy the substantial needs of a Chinese distributors.

prices so low that they prevent us from entering e.g. African markets.

There are two types of pasta consumers: those who look for a good

Does the company plan to enter new foreign markets?

product and those who want to satisfy their hunger at a low cost. Our

We are considering cooperation with the Middle East and de-

products belong to the premium segment.

velopment of operations in countries bordering Poland. Pasta is a difficult product for export sales – it is lightweight but with

28

Thank you

IN NUMBERS

+%

POLISH FOOD EXPORTS ARE ON THE RISE Maciej Szatkowski, Senior Manager Consulting Services Department of the Advisory Team for the FMCG sector at KPMG in Poland

The main markets where Polish food products are sold are EU countries – 81% of

30

Since 2010, the value of exports of Polish agri-food products have been steadily increasing, and in 2017 they reached EUR 27.3 billion, which is 12.3% more than in the previous year. The balance of foreign trade in this commodity group is also improving – as we read in the report of the National Centre for Agricultural Support – the value of the balance sheet over the last 7 years has more than tripled, reaching EUR 8.4 billion last year.

40% increase). In total, sales to the CIS coun-

position. The Polish export hit is chicken win-

tries account for 5% of total exports.

gs, which are increasingly sold to Far Eastern

the value of all food exports. Among the EU

Another important market for our agri-food

markets. The second group in terms of the

countries, Germany remains the largest reci-

products is the United States – in the last year,

value of exports is cereal grains and their pro-

pient – sales to this market increased by 18%

the value of sales on this market increased by

ducts, the third is tobacco and tobacco pro-

in the last year and now accounts for almost a

as much as 40% and constitutes 2% of the va-

ducts, where the value of exports is generated

quarter of all Polish food exports.

lue of foreign sales of Polish food.

mainly by sales to foreign markets of cigaret-

Despite the embargo on some groups of

The largest exported product group is li-

tes manufactured in Poland by international

food products, the value of food sales to Rus-

vestock, meat and meat products – which is

tobacco concerns. Important groups are also

sia increased by 23% year-on-year. The value

responsible for 21% of the sales value. As part

dairy products, as well as sugar and confec-

of exports to Ukraine is also growing (a 24%

of this group, in the first position, we sell poul-

tionery products, among them chocolate pro-

increase in comparison with 2016) and Mol-

try meat and products, followed by beef and

ducts, which we sell very effectively to Eastern

dova (a 24% increase) as well as Kyrgyzstan (a

beef products, with pork holding the third

and Middle Eastern markets. Both commodity

IN NUMBERS

Germany

is the largest recipient of Polish goods abroad

81%

of the value of all Polish food exports goes to European Union

32

groups account for 8% of the value of exports.

titions in Germany for the tastiest products

of the ‘old union,’ whose plants were built

For several years, the export of fish and, abo-

from this group).

at the turn of the century and are unable to

ve all, processed fish products has been gro-

As the main barriers to the development of

compete with us in terms of cost effective-

wing rapidly (currently, this group already has

exports of Polish food and agricultural products,

ness of production or new processing tech-

a 7% share in the value of sales), and fruits

the respondents indicated currency risks, bar-

nologies. The second competitive advantage

and fruit products – a 5% share in exports.

riers resulting from the political situation in re-

which we are still effectively using is access

Considering the above-mentioned values

cipient countries, as well as unclear procedures

to a relatively cheaper workforce. These two

and the dynamics of Polish food exports, the

and bureaucracy associated with obtaining the

advantages increasingly allow Polish entre-

results of a survey carried out in mid last year

necessary certificates and permits.

preneurs to win tenders for the production

by the KPMG consulting company among

Considering the structure of retail trade in

of processed foods for Western chains. The

110 Polish companies exporting food pro-

EU countries – particularly in the so-called

increase in sales to these channels would pro-

ducts are not surprising, showing that only

‘old EU’ – it is very difficult for Polish expor-

bably be even higher, if it were not for local

10% of respondents indicated that they are

ters to sell products under their own brands.

protection programmes and ‘consumer pa-

dissatisfied or rather dissatisfied with sales

The costs they would incur for the promotion

triotism’ movements, which force the chains

success abroad. According to the respon-

of their own trademarks and the introduction

to produce a certain part of the products sold

dents, the highest quality of the products sold,

of products to retail chains, which are re-

in the country in which they operate.

the trust that the exporters have been buil-

sponsible for the lion’s share of grocery trade,

However, in the case of Eastern and Far

ding for several years, and the professional

mean that few entrepreneurs decide on en-

Eastern markets, the sale of Polish products

sales service combine to contribute the most

tering the markets under the banner of their

under own brands is easier. This is due to two

important factors to the success. The price le-

own brands. Most producers decide to pro-

reasons – first of all, ‘traditional’ trade is still

vel at which Polish products are offered was

duce PLB (Private Label Brands) for leading

the dominant retail channel – it is easier to

indicated only as 7 out of the top 10 most im-

retail chains. In this area, Polish entrepreneurs

introduce a new brand for sale; and secondly,

portant success factors. Polish producers are

are scoring increasing wins over their counter-

products marked as being produced in Euro-

appreciated for using the latest production

parts from the western part of our continent.

pe are perceived by local consumers as being

technologies, exemplary control of the entire

Most of the major food producers in Poland,

of much higher quality than their domestic

production process from ‘egg to finished po-

with the aid of, among other measures, EU as-

products. The Chinese market is especially

ultry product’, and for very high flexibility in

sistance programmes, have radically moderni-

eager to buy Polish products with the ‘Made

adapting recipes to consumer flavour prefe-

sed and expanded their production facilities.

in EU’ label; but likewise, there is the growing

rences in target markets (e.g. for several years

In this manner, a major strategic advantage

tendency to eagerly reach for the ‘Made in

Polish herrings in cream have won compe-

was created for producers from the countries

Poland’ products.

INTERVIEW

For more than ten years, we have been observing a constant increase in the turnover of Polish foreign trade in agri-food products. Moreover, the growth rate of the value of exports is noticeably higher than the one of imports, affecting the systematic increase of the positive trade balance.

Since 2004, the accession of Poland to the EU, the balance of foreign trade in agri-food products has grown more than ten times. mention: fish and fish preparations, cereal and flour preparations, meat, mainly poultry, offal and meat preparations, cereals, confectionery products, vegetables including mushrooms, dairy products, and fruit, including nuts.

Katarzyna Kwiecień, Director, Export Support Department, KOWR

It is an interesting and possibly surprising piece of

Polish food exports keep growing year by year. This is surely

information that excluding the EU countries, the largest

good news for our producers. Could you discuss the causes

recipient of our food is the United States. Immense growth

behind this positive trend?

has been recorded here. What lies behind this success?

The increase in Polish agri-food exports is being affected by many

The cornerstone of this success is the large attractiveness of the US

factors. These include the favourable situation on the markets of Po-

market, comprising several factors, such as over 300 million potential

land’s main trade partners, or competitiveness of domestic export

consumers with diverse tastes, whose numbers are still growing; open-

goods. Consumer awareness is on the rise as well; a foreign consumer

ness of the market to new products – the US economy is among the

is increasingly likely to choose low-processed, high-quality food, rich

world’s most absorptive ones and is able to find outlets for the con-

in nutritional value. The Polish offer perfectly fits in with this demand.

stantly increasing new goods; the increasing interest in healthy foods,

We would like the Polish offer to compete – to stand out on foreign

BIO products, due to the increasing demands of the society concern-

markets thanks to the quality, high taste and nutritional advantages of

ing the quality and origin of the products consumed (health-oriented

Polish foods, high safety standards, as well as the unspoiled produc-

trends apply primarily to metropolis inhabitants).

tion environment and the richness of our product offer. We increas-

However, the US market is also characterized by very high competi-

ingly encounter such reception of Polish foods on foreign markets, as

tion. Therefore, in order to succeed, promotion of Polish foods on this

evidenced by export results. Moreover, export is an important factor

market should be intense and continuous. One should also make the

stabilizing the domestic market, enabling transfer of surpluses to for-

Americans associate a Polish product with high quality and the best in-

eign ones. Strong competition on the domestic market encourages

gredients. Very good export results of Polish foods to the USA in 2017

Polish entrepreneurs to initiate export operations.

(volume of exports: EUR 523 million – a 40% increase compared with 2016) evidence the high awareness of the Polish exporter in this regard.

Our largest customer is Germany. What Polish products enjoy most popularity there?

On what other distant markets do our foods have the

Germany invariably remains Poland’s main trade partner with re-

chance to succeed?

gard to exports of agri-food products. In 2017, exports to this country reached EUR 6.5 billion, being 18% higher than the year before. The

34

Asian, Middle Eastern, African and North American markets are indicated as the most prospective ones for Polish agri-food exports.

German market is a potential outlet for products of all branches of

Additionally, the plan of foreign promotional activities of the

the agri-food sector, as evidenced by data concerning the turnover of

National Support Centre for Agriculture for 2018, upon consulta-

foreign trade in agri-food goods over the recent years.

tion with entrepreneurs cooperating with the NSCA, includes the

An important role in the choice of a product by a German consum-

following markets: Germany, France, Mexico, Singapore, South

er is played by its high quality, as well as food production methods

Korea, Taiwan, Thailand, Indonesia, Kenya, and Russia. These

and standards, such as animal welfare issues. Among Polish products

are markets with a market potential, on which Polish foods have

with the most potential of export to the German market, one can

a chance to succeed.

INTERVIEW Many companies I interview would gladly build their presence on the Chinese market. How do you assess the chances of Polish food products on that market?

I believe Polish food products have a great opportunity to succeed on the Chinese market. They are products with proven high quality, enjoying the trust of consumers as compliant with EU standards and coming from clean regions of Europe. However, support to entrepreneurs interested in exports to this market is necessary in order to really make it true.

On the one hand, it may come from the entrepreneurs themselves, as they benefit from associating and mutual assistance. The poultry industry can serve as an example, as it has decided to open an agency in Shanghai. Although avian influenza has thwarted the plans of the industry,

KOWR National Support

Centre for Agriculture

poultry exports to China will soon be possible again (upon completion of the work on updating the veterinary certificate). On the other hand, the Polish administration has a vital role to play, supporting the recognizability of Polish food in China and building the Polish brand through numerous promotional and informative activities, as well as supporting the presence of Polish entrepreneurs in China through such activities as the organization of economic missions of Polish exporters to China, combined with the participation in major fair events of the agri-food industry.

Polish agri-food exports in 2017 reached the value of EUR 27.3 billion, which is a EUR 3 billion growth in relation to the previous year.

The highest level of exports is recorded by the dairy industry

the market. However, the growing trade results evidence that our

and meat producers. Why do these two sectors fare best?

food is gaining popularity and the trust of foreign consumers.

What contributes to the export success of these sectors is, above all, the high quality of the goods produced , as well as Europe’s lead-

What actions in support of food exports are conducted by

ing modern production facilities. After its accession to the EU, Poland

the National Support Centre for Agriculture?

had to modernize its machinery which is now technologically ahead

The NSCA conducts a range of activities supporting the exports

of the Western European countries, particularly in the dairy industry.

of Polish agri-food products to foreign markets. The most important

Another vital fact is that the Polish dairy industry has strong brands

ones include the organization of economic missions combined with

which can successfully conquer foreign markets. In the case of the

participation in international agri-food fairs at exhibition stands un-

meat industry, it is worth paying attention to the production potential

der the common slogan “Poland tastes good”. A large part of them

of Poland – we are the European Union’s largest poultry producer and

will be organized under the industry’s programme of the promotion

the EU’s fourth producer of pork. Exports of Polish meat are supported

of Polish food specialities, financed from the resources of the Smart

by numerous promotional and informative campaigns implemented

Growth Operational Programme (SGOP). In 2018, the NSCA gives

on markets in many countries. Each year, the Ministry of Agriculture

the entrepreneurs an opportunity to participate in more than 20 such

also opens access to further global markets, contributing to the devel-

economic missions to countries with the most export potential. More-

opment of the export of Polish meat.

over, the NSCA manages the implementation of information and/or promotional campaigns under the Common Agricultural Policy mech-

What are the greatest difficulties encountered by Polish

anism “Support to promotional and informative activities on markets

exporters?

of assorted agricultural products.” 6 informative and promotional pro-

On foreign markets, Polish exporters face strong competition from

grammes are being implemented on 5 continents in the current year.

countries that have been building their export position for many

Moreover, the NSCA conducts numerous promotional actions popu-

years. Foreign markets, such as the Western European ones, are

larizing Polish foods worldwide, holds B2B meetings for Polish and for-

strongly saturated. The Poles have to compete with global players

eign entrepreneurs from the agri-food sector, acts as an intermediary

benefitting from large capital and extensive distribution networks.

in the establishment of contacts, and also organizes inbound missions

Outside Europe, unfortunately, Poland is not a well-known country

of foreign importers and journalists from the countries considered to

with worldwide recognition, although various cultural bonds have

be the most prospective for the development of Polish exports.

linked us with many countries. This makes it harder to convince global consumers to choose Polish foods out of all the offers available on

Thank you

35

IN NUMBERS

POLISH AGRI-FOOD EXPORTS IN 2017 Iwona Szczepaniak, Mirosława Tereszczuk Institute of Agricultural and Food Economics, National Research Institute

The years 2004-2017 was a period of steady growth with an improvement in the results of foreign trade in agri-food products

Trade in agri-food products occupies an important position in the structure of total Polish foreign trade. The share of food exports in total Polish exports in 2017 amounted to 13.4% (0.2 pp less than 2016), and the share of imports was 9.3% (0.3 pp less). Between 2004 and 2017, the difference in favour of exports was mostly on the rise, achieving 4.1 pp in 2017 (see Fig. 1).

Fig. 1. The share of agri-food products in Polish foreign trade (%) 15

(see Fig. 2). Positive changes had already been visible in the year of accession, when

10

8.9

the Polish trade in agri-food products was almost 30% higher than in 2003. Due to the sustained increase in value of both exports

6.1

11.2

9.8

9.6

13.2

13.4

9.6

9.3

9.0

8.8

8.1

7.0

6.3

13.0

12.5

5 export share

and imports, trade also increased in the

import share

following years. In 2017, the total value of 2004

Poland’s trade in agri-food products exce-

2006

2008

2010

2012

2014

2016

2017*

eded EUR 46.2 billion, of which exports reached the level of EUR 27.3 billion, whi-

Source: Study based on unpublished data of the Ministry of Finance (MF).

le imports accounted for EUR 18.9 billion.

Fig. 2. Foreign trade in Polish agri-food products (in EUR billion)

Compared with 2004, this shows that trade has increased more than 4.5 times, whereas

3.0

exports alone grew by more than five times,

2.5

and the increase in imports was more than fourfold. Since Poland’s accession into the EU, the positive balance of trade exchange in agri-food products has increased as well.

2.2 1.8

2.0 1.5 1.0

1.2 1.0

nearly EUR 8.4 billion, ten times higher in

0.5 0.4 0.1

relation to 2004. For comparison, the cumu-

2004

2008

In 2017, the value of the trade balance was

0.5

0.4

in the same period . Therefore, the export growth rate and of the balance of foreign trade in agri-food products significantly exceeds the GDP growth rate, confirming the pro-export nature of development in this economic sector in Poland.

0.7

0.7

2014

2016

0.8

0.2 2012 balance

export

2017* import

Source: Own study based on unpublished data of the MF.

GEOGRAPHIC STRUCTURE OF EXPORTS OF AGRI-FOOD PRODUCTS

However, the EU-15 countries have remained Poland’s most important trade partner in the trade exchange of agri-food products. Their

The year 2017 saw an increase in exports of

share in Polish agri-food exports, compared

agri-food products in most country groupings.

with 2016, rose to 62.6%, i.e. by 2.3 pp (EUR

*preliminary data 1 Data of the Central Statistical Office (GUS): https://stat.gov.pl/wskazniki-makroekonomiczne/ (accessed on 30 October 2017).

36

1.9

1.7

1.5

1.4

lated growth rate of the GDP expressed in constant prices amounted to approx. 156%

2.7

2.4

IN NUMBERS

17.1 billion). The share of exports in the EU-

Fig. 3. The geographic structure of Polish exports in agri-food products in 2017* other

13 countries dropped by 2.1 pp, i.e. to 18.9% (EUR 5.1 billion). On the other hand, the sha-

NAFTA

1.0%

0.1%

re of exports in CIS countries was maintained

EFTA

at a level from 2016, amounting to 4.8% (EUR

0.1%

1.3 billion) – see Fig. 3.

CIS

For many years, the most important reci-

0.5%

pient of agri-food products from Poland has

UE-15

6.3%

been Germany. In 2017, its share in Polish agri-food exports reached 23.7%, higher by

UE-13

1.9%

1.1 pp than the year before. The value of exports of these products rose to EUR 6.5 billion, i.e. by 18%. The largest receipts were achieved on the sales of: fish and fish preparations, including mainly smoked fish (15% of the value of Polish exports to Germany), to-

Fig. 4. The main recipients of Polish agri-food products in 2017* Great Britain

Germany

0.9%

2.4%

Netherlands

0.6%

bacco products (7.2%), poultry meat and of-

Italy

fal (7%), bakery and confectionery products,

0.6%

including biscuits and wafers (6.2%), as well

Czech Republic

0.5%

as chocolate and chocolate products (4.5%) – see Fig. 4.

The second major outlet for Polish agri-food products in 2017, with an approx. 9%

France

0.5%

other

3.5%

Spain

0.3%

Slovakia

share in total Polish agri-food exports, was

Romania

the United Kingdom where we sold agri-food products worth approx. EUR 2.4 billion (a growth by 12%). The main Polish goods pur-

mainly purchased the following from Poland:

rations, including sausages, preserved meat,

beef (19.4% of the value of exports), tobacco

hams and other products (11% of export

products (18.2%), pork (6.5%), pastry goods

value), chocolate and chocolate products

(4.8%), dried fish (4.6%), as well as cheese

(11%), poultry meat and offal (10%), tobacco

and curd (4.6%).

tionery products (6.5%).

38

0.3%

0.3%

Source: Own study based on unpublished data of the MF.

chased by the British included: meat prepa-

products (9%), as well as bakery and confec-

Hungary

0.3%

COMMODITY STRUCTURE OF EXPORTS OF AGRI-FOOD PRODUCTS The

commodity

structure

of

Polish

exports of agri-food products is dominated

The next, fifth position (a drop from the

by products of plant origin. Their share in

third place in 2016) was occupied by the

the value of agri-food exports in 2017 amo-

Outrunning the Czech Republic, the

Czech Republic which reduced its purchases

unted to 53.9%, lower by 2.6 pp than the

Netherlands shifted to the third position (a

of agri-food products from Poland by 12% to

year before. The largest share in this com-

6.2% share in Polish agri-food exports); re-

EUR 1.4 billion in 2017. The main products

modity group comprised tobacco products

ceipts from sales in that direction in 2017

exported to the Czech Republic included:

(almost 11%), followed by sugar, confectio-

amounted to EUR 1.7 billion, higher by 24%

poultry meat and offal (9.7%), tobacco pro-

nery and chocolate products (almost 9%),

than the year before. The commodity structu-

ducts (9.6%), pastry goods (6.9%), cheese and

as well as cereals and cereal preparations

re of exports to the Netherlands was domina-

curd (5.6%), pork (5.3%), food preparations

(nearly 8%). The share of products of ani-

ted by: tobacco products (17.7% of the value

(4.0%), rapeseed oil (3.5%), and chocolate

mal origin in Poland’s agri-food exports in

of exports), poultry meat and offal (8.7%),

products (3.4%).

2017 grew to 39.2% (i.e. by 1.6 pp). The

beef (5.2%), chocolate products (5.1%), birds’

The receipts from the export of agri-food

main item in the export structure of ani-

eggs in shell (4.4%), fruit juices (4.2%) and

products from Poland to non-EU countries in

mal products remained meat and meat

whey (3.8%).

2017 amounted to EUR 5.0 billion, higher by

preparations (21% of the value of agri-food

The fourth largest recipient of Polish agri-fo-

12.4% than the year before. The highest in-

exports). Dairy products were also of great

od products in 2017 was Italy where exports

crease was recorded in exports to the NAFTA

importance (7.6%) as well as fish and fish

grew by 14% to EUR 1.5 billion. The Italians

countries (up by nearly 40%).

preparations (7.3%).

* preliminary data

IN NUMBERS

RECORD FOOD EXPORT Roman Przasnyski Main Analyst at GERDA BROKER

40

In 2017, the value of food exported by Poland reached a record high level of EUR 27.3 billion and was 12.3 percent higher than the preceding year, surpassing in terms of dynamics, the increase in the value of total exports, and reaching 10.2 percent. At the same time, the share of agri-food products in exports amounted to 13.4 percent.

Statistical data shows that the previous

labour market and an increase in wages,

products in this sum reaches to more than

year was marked by the continuation of a

and thus, all factors which favourably affect

10 or so percent. Poland exports mainly

very good streak in the Polish agri-food sec-

consumer demand, including a demand for

meat, poultry and dairy products to China.

tor, best confirmed by the export results. It is

food products.

The situation is a lot less flattering when

also worth emphasising that although trade

Traditionally, the biggest recipient of Polish

it comes to other goods; this was due to,

exchange was generally favoured by a good

agri-food products is Germany, where last

among other factors, numerous administra-

economic situation throughout the global

year Polish exports of agri-food products top-

tive barriers, including sanitary approvals

economy, the high dynamics of exports of

ped almost EUR 6.5 billion, over 18 percent

and other requirements. China is a particu-

agricultural commodities and food products

more than in 2016. The United Kingdom

larly demanding and capricious partner in

was achieved in not always favourable con-

ranked second, with EUR 2.4 billion worth

this respect. It was not until mid 2016 that

ditions and circumstances, not to mention

of exports (an increase of 12.2 percent), fol-

Poland obtained a license for the export of

the appreciation of the zloty. Despite the

lowed by the Netherlands, ranked third, to

apples to China; and in 2014 for fish and

forecasted slight slowdown in global econo-

where goods were exported for EUR 1.7 bil-

preserves. Another problem is also the ma-

mic growth, in the coming years it should re-

lion (23.7 percent more than in 2016).

ladjustment of the scale of demand from

main at a high level, and this should favour

The exports from Poland to China incre-

Chinese companies to the capabilities of

the export of Polish food; especially, that in

ased heavily last year, by approximately

our producers. The former are usually inte-

almost all countries the phenomena accom-

one third, reaching a record high level. The

rested in exports of large batches of goods,

panying a good economic situation include

value still remains modest and amounted

which is a tall order for Polish small and

a clear improvement of the situation on the

to PLN 12.5 billion, and the share of food

fragmented suppliers.

IN NUMBERS

IN 2017 POLAND HAS EXPORTED

+12.3%

MORE FOOD THAN IN 2016

+350%

INCREASED EXPORT TO SRI LANKA IN 2017*

+40%

INCREASED EXPORT TO USA & TURKEY IN 2017* Polish companies are increasingly boldly looking for new, often quite exotic, directions of export. Exports to Sri Lanka increased almost 3.5 times last year (mainly sugar), while flour exports to Senegal increased by 70 per-

+60%

INCREASED EXPORT TO BRAZIL, GHANA, MALAYSIA AND MEXICO IN 2017*

+9.3%

THE VALUE OF FOOD EXPORTED

BY POLAND

EUR

27.3BN IN 2017

IN 2017

THE SHARE OF EXPORTS OF AGRIFOOD PRODUCTS IN THE TOTAL VALUE OF POLISH EXPORTS

EUR

8.4BN

SURPLUS OF EXPORTS OVER IMPORT**

THE BIGGEST RECIPIENT OF POLISH AGRI-FOOD PRODUCTS IS GERMANY, WHERE LAST YEAR POLISH EXPORTS OF AGRI-FOOD PRODUCTS TOPPED ALMOST EUR 6.5 BILLION

cent. Exports to Brazil, Ghana, Malaysia and Mexico were 60 percent higher in the case

and food production industry contributed in

actually have a positive impact, it is benefi-

of each of these countries. We exported over

a significant manner to the maintaining of a

cial for partners who operate under similar

40 percent more food to the United States

positive trade balance.

conditions. However, Polish producers may

(mainly pork) and Turkey (mostly beef).

Poland still sells the vast majority of its

find it difficult to compete with countries

According to Central Statistical Office

food exports to its closest neighbours. Last

such as Ukraine, due mainly to costs; or in

data, there are several thousand companies

year, 81.5 percent of exports went to Eu-

some areas of production and cultivation,

operating in the Polish agri-food industry,

ropean Union Member States, and 4.7 per-

due to an advantage resulting from natural

with an annual turnover of around PLN 200

cent to the Commonwealth of Independent

(climatic, soil or structural) conditions. Reci-

billion. Almost one third of the production

States. This structure has hardly changed in

pients and consumers are paying more and

finds buyers abroad. Poland ranks sixth in

comparison to 2016.

more attention not only to quality, ecologi-

terms of food production in the European

In addition to chances and opportunities,

cal and health requirements, but also, for

Union. The share of our country in the total

it is also worth being aware of the challen-

example in the case of animal products, to

value of the European Union’s food indu-

ges and threats that the export of Polish

well-being and obtaining of the raw material

stry production increased from 6.9 percent

food may soon face. The biggest challenges

in conditions more akin to natural practices

in 2004 to over 8.5 percent. The share of

include growing competition from other co-

rather than large-scale procedures. More

exports of agri-food products in the total

untries, increasingly higher demands from

and more demanding legal regulations rela-

value of Polish exports in 2017 was 9.3 per-

customers and the proliferation of various

ted to many issues of production and tra-

cent; hence, it was only slightly lower than

types of legal regulations. One of the threats

de are also becoming a problem, including

the level of 9.6 percent achieved in 2016. It

may be the consequences of Brexit, i.e. the

growing protectionist tendencies aimed at

is also worth pointing to the EUR 8.4 billion

exclusion of this country from the common

protecting a given country’s producers or

surplus of exports of agri-food commodities

market and the perturbations associated

markets, and often serving to block in a ca-

over imports. In total, in Polish foreign tra-

with a possible trade war.

mouflaged manner (for example through the

de, this surplus amounted to only EUR 0.4

Although competition, objectively spe-

billion, which indicate that the agricultural

aking, is not a bad phenomenon, and it can *in comparison to 2016 **agri-food commodities

use of sanitary issues), access of producers from other countries.

41

INTERVIEW

Jellies are

our realm

Tomasz Łuksza, President of the 3 Topole

3 Topole is a family company with many years of tradition. It has already gained the trust of many customers in Poland and abroad. The company does not rest on its laurels, continuously aiming to improve quality and satisfy the needs of increasingly demanding customers. The president of the company, Tomasz Łuksza, told us about the future plans of 3 Topole and its products which will conquer the world!

How important are exports for the business of 3 Topole?

What are your development plans for the upcoming

This is a crucial area of activity in our company; essentially since

months? Do you plan for any new products?

the mid-1990s, exports have been the main component of our sales

We have been working on them quite intensely since the beginning

strategy. In recent years, it has stabilized at the level of 40 per cent of

of this year. One of the areas where we are introducing new products

total sales. This is important to us for several reasons. Firstly, it enables

is confectionery decorations, known as inclusions. Increasingly more

diversification of risks and distribution channels, and secondly, it helps

customers look precisely for such kinds of sweets. The products we

equalize the demand for our products during a given year.

manufacture are later used in ice cream, cakes and other confectionery products. The other area we are developing comprises the so-called

Which markets are the largest recipients of your products?

clean label products. We modify the composition of our products,

These are, above all, European countries, both those in the Europe-

consciously abandoning artificial colourings or preservatives. To make

an Union and those outside it. Traditionally, they also include Russia

our products even more healthy, we have e.g. replaced glucose syrup

and eastern markets which have always been a recipient of Polish

with honey.

food products. Recently, we have been getting more orders from European customers than from domestic ones. Speaking about specific

So you follow the trends on the market, such as those

countries, they are: the Netherlands, Hungary, Lithuania, the Czech

connected with a healthy lifestyle?

Republic, Ukraine, and Russia.

That is true, although the trend towards ecological products or li-

As for other world markets, neither North America nor the Far East

mitation of sugar in the diet has not significantly affected the confec-

have belonged in the area of our interest so far. However, we do re-

tionery industry yet. People will not give up their sweet delights so

alize these markets have many niches we can fill. We remain open to

easily. Inquiries concerning clean label products or those with spe-

cooperation – we are primarily concerned with long-term relations.

cial ingredients do appear and 3 Topole is able to meet all customer

I will not deny we have already taken steps into establishing long-term

expectations.

cooperation with recipients from those markets.

An important part of building a brand is holding certificates How do you acquire new partners or recipients on foreign markets?

42

of its quality. What certificates do you hold?

In 2000, 3 Topole started pursuing various certificates confirming the

Industry fairs and events are surely important for the establishment

quality of our goods. Quite early on, we implemented the ISO certifi-

of relations. Valuable contacts are always acquired during such func-

cate and the BRC system, guaranteeing the quality, legality and safety

tions. Recommendations are another channel, 3 Topole cooperates

of our products. The BRC certificate is derived from the ISO 9001

with many international distributors, which helps in acquiring new or-

and HACCP standards. Currently, it is required by most trade chains,

ders. The fact that the company has existed on the Polish market for 34

and consequently, used by major players on the global confectionery

years additionally strengthens our reliability. We are not anonymous.

market. 3 Topole has had a quality management system, compliant

INTERVIEW

with BRC standards, in place since 2008. For several years, we have also held the UTZ certificate granted to companies using raw materials from sustainable farming in production. In our case, this is chocolate.

We are also a member of the Fair Trade organization the mission which includes the promotion of the Fair Trade idea and standards.

We also plan to implement the Halal certificate, at least for part of our products. We wish our products to reach Islamic countries where such certificates are required. European customers look for products holding this certificate as well, since Muslims are becoming an increasingly larger group of customers. For future partners, our certificates are a clear message that we are a reliable company. strategy is the possibility to provide customers with a new, attractive

3 Topole is also the owner of the Figle Migle Candybar brand

product without them incurring additional investment outlays. We

in the premium confectionery segment. Please tell us about

guarantee a short lead time for concepts, as well as relieve own pro-

the products of the Figle Migle Candybar brand – how do

duction resources. We have been an active participant on the private

they fare on other markets?

label market since its very inception. We cooperate with many trade

Yes, Figle Migle Candybar is our Premium brand. We strive to make

chains and producers who have decided to trust us and place their

each of products stand out somehow, with respect to its appearance,

logo on products made in our factories. We are willing to develop

form and taste alike. So far, the Figle Migle Candybar brand only used

custom recipes at the request of our customers, or to suggest product

to be available in online sales. Now, we are starting traditional distri-

solutions meeting specific marketing requirements.

bution, but we are mainly prepared for presence in restaurants and cafés with a higher demand for high-quality products with original

Which product categories fare best abroad?

taste and appearance. As for the exports of this brand, this will be

This depends on the distributor. Some only sell products under our

the first year – we will see how foreign customers react to Figle Migle

Figle Migle brand, while others cooperate with foreign trade chains,

Candybar.

supplying their private label products. Sometimes our products are also supplied as raw materials for other confectionery production. As

How is the private label production developing and how

you can see, it is hard to name specific products. In general, the best

large is its export potential?

product category are our jellies which have been our flagship product

This is essentially the lion’s share of our activity. It has been more

for many years.

than a dozen years since we started developing this area and I think we are quite good at it. The basic benefit from using the private label

Thank you

43

INTERVIEW

Roleski is a Polish company that specialises in spices and condiments. Consumers can find Roleski’s products under private label across the Europe. We talk about plans and new challenges with Jakub Kołodziej, Management Team Member of Roleski.

How about new products sector? Tell us more about the plan for them.

When designing new products or improving taste profile of the current ones, we take into account suggestions and advice from our consumers. We always try to emphasise the fact that we are a fully family-owned and Polish company, as we believe this guarantees highest quality and also allows us to promote values that we see as most

Jakub Kołodziej, Management Team Member of Roleski

important, not only in business. In the last couple of years we launched three flavours of marinades in handy and easy-to-use bags – we call it

Roleski is family company with Polish capital. The company

“cleand hands” concept. We also launched two flavours (poultry and

produces more than 15 types of mustards, but also ketchups,

beef) of highly concentrated bouillon products in glass bottles.

mayonnaises, dressings, broths, marinates. Which of them are most desired abroad?

Which countries are the most important for your export?

We can see increasing demand for Roleski mustards not only in se-

What about the further countries like China, USA, UAE.

veral countries of Europe, as well as in the USA. Our ketchups are also

When it comes to our Roleski brand, we focus on the European

becoming more and more popular because of their convenient pac-

countries, as they are the easiest to get to. What is more, there are a

kaging (PET squeeze bottle with hygienic closing and dosing system,

number of Polish people living in the major European countries and

but also thanks to their “clean label” recipe. The ingredients list is very

this fact creates sort of “natural demand” for our products that we use

short, there are no “E” additives and no starch.

as leverage when talking to potential importers and distributors. We are also investigating Asian markets and we have just begun exploring

About 50% of your production is private label? How do

the MEA region.

you develop this segment? Which products are the most popular under private label brand abroad.

What kind of certificates do You have? Which of them are

We do not refer to this part of our activities as private label produc-

the most helpful in case of export?

tion per se. We have been trusted by some of the biggest FMCG com-

We have all the key quality certificates when it comes to the food

panies and act as their co-manufacturer or third-party manufacturer

production sector. We are IFS, BRC and FSSC 22000 certified, we are

of some of the most popular “wet condiments” brands from all across

also FDA approved. What is more, we undergo regular SMETA audits

Europe. We produce mustard, ketchup, mayo and dressings. State of

and we are registered in SEDEX, therefore our current and potential

the art technology and equipment together with automatisation of key

business partners can rest assured we are a reliable, trustworthy and

production and cleaning processes ensuring proper food safety make

ethical company.

it possible for us to establish cooperation with companies looking for a flexible and reliable manufacturer of food products.

44

Thank you

INTERVIEW In 2017, we exported over 1 million tonnes of poultry, which is approximately 45% of our domestic production. On perspectives and the development of Polish poultry export we talk with Łukasz Dominiak, General Director of the National Poultry Council – Chamber of Commerce.

Is the production of private labels a chance for development for the Polish poultry industry?

Private labels in supermarket chains have become a serious competition for many products; they also impact the meat market. However, the importance of the brand in the case of packaged meat is not as important for consumers as it is in the case of other food products, especially those which are processed. Therefore, I would not overestimate their impact on the poultry industry. However, taking into account the marketing effort aimed at promoting Polish meat, private

Łukasz Dominiak, General Director of the National Poultry Council – Chamber of Commerce

labels may be an additional opportunity for poultry development and improvement of sales results for many poultry producers.

How does the National Poultry Council support export development?

Is Polish poultry popular abroad? Which countries are the

We carry out a number of activities abroad, aimed at, on the one

largest recipients of this Polish resource?

hand, presenting Polish poultry meat in a positive light as a product

For several years, actually since Poland’s accession to the EU, the

that is of the highest quality and one which is entirely safe; on the

value of exports of Polish poultry has maintained a steady upward

other hand, we work intensely at the level of negotiations with policy

trend. In 2017, we exported well over 1 million tonnes of poultry,

makers on the issues of the poultry market in the EU and non-EU

which is approximately 45% of our domestic production. The growth

countries. The National Poultry Council – Chamber of Commerce is

of exports is also desirable for us because it allows Polish producers to

the participant of high-level business missions – for example, in the

avoid overproduction, which incidentally contributes to shaping our

autumn of last year we participated, alongside EU commissioner Phil

export potential. Germany, Great Britain and France are the largest re-

Hogan, in a mission to the Middle East (Saudi Arabia and Iran). We

cipients of Polish poultry meat. Slovakia, Lithuania and the Czech Re-

also host policy makers in our country, as was the case with the visit of

public are very important markets which receive a significant percent

the Chinese veterinary services before the ban on exports to this coun-

of our domestic production. Meanwhile, the most dynamic increase

try was lifted. In addition, our official representative office in Shanghai

in exports compared to the previous year occurred in the case of,

has been in active operation for several years.

amongst other countries, Belgium, Romania and Ukraine.

What are the challenges facing the industry? What must Do Polish poultry producers have a chance to secure

change in order to facilitate the development of the poultry

a position on the Chinese market? What is the potential of

sector?

this market?

Among the current threats to the development of the poultry sector,

China is currently one of the most important markets when it comes

I would point to three main areas: unfavourable legal regulations at

to the further development of the export potential of Polish poultry. In

the level of both the EU and Poland – I am thinking here, amongst

November 2017, Chinese veterinary services announced the official

other things, about restrictions on the use of GMOs, or restrictions on

opening of the market to Polish poultry, although we will have to wait

religious slaughter. The second area is the threat from growing exports

just a bit longer for the actual launch of exports to China; the final

of poultry from Mercosur countries and unfair practices in the export

version of the bilateral protocol still needs to the established. The pri-

of poultry from Ukraine. The third is the challenges posed by Brexit –

mary focus of the National Poultry Council – Chamber of Commerce’s

let us be mindful that Great Britain is our most important export mar-

activities is the matter of Polish poultry establishing a presence on the

ket. In order to be prepared for adverse changes, we must continue to

Chinese market. Let us hope that this will happen soon – the potential

acquire new markets for Polish poultry.

is huge. What remains to be done are arrangements at the diplomatic level of both countries, and the final green light from China.

46

Thank you

perfect hydration

high oxygen content

increases endurance

restoration of acid-base balance

t e k r a M Chinese IEW

OVERV

CHINESE MARKET

POLISH OPPORTUNITIES ON THE CHINESE MARKET Andrzej Juchniewicz (PhD) Head of Shanghai-based PAIH Office

Market opportunities are huge, and the numbers that describe it make an impression on entrepreneurs from all over the world.

Each entrepreneur who wants to do business in China will face many obstacles. In order to successfully start importing to China, first we

Through many years China transformed into a modern country with ultra-modern metropolises and more than one billion customers. Value of local consumers purchasing power increased during huge economic growth which led them to become consumers of luxury and high valuable products. In comparison to domestic products, western recognizable brands have advantage because of its high quality and prestige.

Foreign Trade Offices of the Polish Trade Agency (PAIH) are a global, constantly developed network of the Agency’s divisions responsible for providing support for Polish exporters and investors, overseas. Offices have also been designed to attract foreign investors. PAIH is Honour Patronage of Food Export Congress 2018 held in Warsaw, Poland.

CHINA IN NUMBERS

need to understand local expectations and

tion. It is not only a business opportunity, but

business culture. Without the experience in

an opportunity to improve the offer for the

Export of Polish products to China incre-

Asian market, entrepreneurs are exposed to

Far Eastern customers. This is undoubtedly a

ased in 2017 almost by 1/3 comparing to

huge risk and potential financial loss.

complex, multi-faceted trade operation that

2016 and was highest in the history. Total

requires the manufacturer to fully engage in

export from Poland to China in 2017 was va-

the project at every stage.

lued at 3.35 billion dollars.

Many small and medium enterprises in Europe have marketable products for Chinese consumers, but that doesn’t simply mean that

The largest volumes of export from Poland

Total value of imported goods in 2016 to

it’s the only factor to achieve business success

to China are caused by the exporters of dairy

China was valued at 1779.152 billion dollars.

on the local market.

products. Among others: Mlekpol, Mlekovita,

Biggest exporters to China are South Korea,

Łowicz, Rotr, Colian, Van Pur, Bakalland, San-

Japan and Taiwan. Polish import was only

te, Tago, Flis etc.

0.2% of total imported goods.

We strongly recommend taking into consideration China as a strategic export direc-

51

CHINESE MARKET

FOR IMPORTING COMPANIES, THE MOST ATTRACTIVE GROUP OF CONSUMERS IS MIDDLE CLASS AND HOUSEHOLDS IN URBAN DISTRICTS IN 2012

IN 2022

256M 357M 10YRS

Tyberiusz Marciniak Export Manager Indykpol The Indykpol group of companies is Poland’s largest organisation of poultry companies specialising in the production of turkey fodder and turkey poults, turkey fattening and the production and sale of turkey meat and turkey products.

Indykpol strives to provide its customers with the widest possible range of high-quality, branded turkey products. Thanks to the control of production processes, from feed and poults to store shelf, the company can take full responsibility for the quality and safety of our products. Indykpol is a modern Polish brand that offers turkey meat products that have unique properties when compared to other types of meats.

Responding with ingenuity to changing trends, the company offers its products under both its Indykpol brand and under its contractors’ private labels. It also offers its products under the brands of foreign clients, both large store chains as well as local distributors, discount and restaurant chains. In developing cooperation with contractors in this area, we are assisted by many years of production and commercial experience, a raw material base and an accommodating approach towards the customer. As the leader in the production of chicken frankfurters and processed meats, we create new trends on the market by introducing innovative new products. In cooperation with our clients, we develop dedicated private labels – frankfurters, hams and processed meats, offered in various packaging configurations (vacuum, Modified Atmosphere Packing, bulk), both chilled and frozen.

Various packaging forms take into account both the diverse expectations of our customers and the requirements of target markets. We offer products packed in small vacuum packs intended for retail; in larger packaging for wholesalers and restaurants; up to large collective packaging for restaurant chains and convenience food producers. We implement our projects both on the main European Union markets and on third-country markets, including key Asian markets and other even more exotic destinations. A wide range of production capabilities (both the product itself and the form of packaging), as well as export licenses allow us to adapt to the diverse, often very specific requirements of the markets in which we operate. Indykpol, as one of a few Polish plants, has export licenses for the Chinese market, where it can export frozen, raw turkey parts.

With its 30 years’ experience in raising poultry and in the poultry processing technology, the company is among the top industry leaders. It is also the largest producer of processed turkey products in Poland. Through its nationwide distribution network, the company offers its products throughout the country, and is also a recognised exporter of meat and poultry products. The Indykpol brand is a European symbol of quality specialising in a range of turkey products.

~39% KEY FACTORS OF ENTERING THE CHINESE MARKET For importing companies, the most attractive group of consumers is middle class and households in urban districts. According to McKinsey’s report „Mapping Chinese Middle Class”, in 2012 this group was counting 256 million citizens. In the next ten years, it means till 2022, this number will increase to 357 million citizens. When analyzing the market, entrepreneurs should take into consideration the purchasing power of the social group under investigation. During the analyzed 10 years, by 2022, as a result of the enrichment of the middle class, the annual disposable income of households of the entire middle class (all of its component sub-classes) will increase by 166% from USD 1,476 billion to USD 3.912 billion, giving an amount of 11 thousand. USD per year for a household in 2022.

OPPORTUNITIES In the new 13th Five-Year Plan (2016-2020) key opportunities for Polish entrepreneurs include: children, baby and maternity products; elderly healthcare and home medical; e-commerce retail.

Key opportunities for FMCG imported from Poland are dairy products such as milk serum, milk, baby formula, milk powder, yogurt.

Other products with huge potential are also: sugar, cocoa and its products, biscuits, frozen strawberry, apple, chicken, beer, vodka, tea, frozen fish, potato starch, honey and cereals.

52

CHINESE MARKET

ONE OF THE KEY FACTORS IN DOING BUSINESS IS TRUST. TO BUILD TRUST BETWEEN POLISH AND CHINESE ENTREPRENEURS REQUIRES BIG AMOUNT OF TIME AND BIG AMOUNT OF CAPITAL INVESTMENT.

BARRIERS TO ENTRY First and the most important barrier is distance from Poland. Because of huge distance, logistic is one of the biggest cost to consider when calculating business profitability. Another important factor is right business partner in China. Also, we cannot forget about different business culture. Before starting business with Chinese partners, it is good to acquire some knowledge about doing business with domestic partners.

Another issue is the barrier of acquiring information and knowledge about Chinese market.

One of the key factors in doing business is trust. To build trust between Polish and Chinese entrepreneurs requires big amount of time and requires big amount of capital investment.

CHARACTERISTIC OF THE CHINESE CONSUMERS The Chinese citizens are travelling the

WAN-VIT The Wan-Vit company focuses on the development and recognition of the 4proactive brand. One of the planned activities of promoting and distributing our nut creams is participation in international food market trade fairs.

Europe is an important market and we are focused on our expansion within it. However, following an analysis and conclusions drawn from talks with our potential customers from around the world who visited our stand, we came to the realisation that Asia may also be a target market for our products.

We are aware of the fact that exporting to China as one of the selected Asian destinations is long and complicated. We know, nevertheless, that Chinese consumers positively assess products from Poland as high quality and safe. They also trust private label products with the logo of international retail chains. An additional facilitation for Polish exporters is the fact that Poland has joined the group of beneficiaries of the Chinese project: The New Silk Road.

The type of nut creams we produce are very popular in China, which presents us with both the opportunity to export and to be successful in sales. In presenting our products at ANUFOOD CHINA, Wan-Vit hopes to find new customers and distributors of our 4proactive products, in addition to private label products.

We have taken into account the fact that the process of ‘implantation’ of imported products in China is long and complicated. In addition, cultural differences play a significant role here. The Chinese authorities set requirements for import approval, certificates, and labelling and packaging rules. Each product has a set of special legal regulations. In spite of these challenges, we are determined to ‘implant’ our products onto the Chinese market.

We are not discouraged by these procedures, because our goal is to export our products to China, and it is with this goal in mind that we are participating in ANUFOOD CHINA.

world and thus become more and more open

53

CHINESE MARKET

Jacek Bogucki Secretary of State Ministry of Agriculture and Rural Development China is an important prospective trade partner of Poland. It is also one of the priority directions for our activities in the area of foreign trade in agri-food products. This is a market with an immense purchasing power. Our products are just beginning to conquer China, Chinese consumers do not know them well yet. Therefore, through such means as diverse promotional and informative activities, we support the building of awareness of the Polish brand on this market. This brand represents, above all, high quality, affordable products, as well as excellent taste advantages resulting from the naturalness of the recipe.

Our balance of trade in agri-food products with China is negative.

The value of exports to China in 2017 amounted to EUR 101.4 and remained at a similar level as in 2016. The sales share of agri-food products from Poland to the Chinese market in the entire Polish agri-food exports in 2017 was 0.4%. However, one should pay attention to the increase in the value of the dairy product exports (whey, milk and cream) a total of 50% compared with 2016.

The goods which enjoyed great interest on the part of the Chinese were Polish dairy products, poultry meat and offal, cereal and flour preparations, confectionery products, fruit and fruit preparations, live poultry, and sugar syrups.

In the previous year, the most popular products with our partners in China were whey, the share of which in the structure of exports was approx. 26%, non-condensed milk and cream – a share of 11%; condensed milk and cream (mainly powdered) – a share of 9%, as well as malt extract and flour preparations – shares exceeding 9%. Moreover, feathers and fluff had a 4% share in the structure of exports.

A high interest in the purchase of Polish poultry meat as well as chicken pinions and feet on the part of Chinese companies has been noticed recently. Currently, only a handful of Polish companies can export these goods, but efforts towards the approval of other poultry meat producers by the Chinese party are under way, which should lead to an increase in exports of these products to the Chinese market. It is worth noting that Poland is the sole EU country able to export po-

54

ultry meat to China. Polish apples, having entered the Chinese market in 2016, have a high export potential as well.

The greatest difficulties in the development of mutual trade cooperation are posed by the geographical distance between both countries, as well as mental barriers resulting from cultural and linguistic differences or the different demands of Chinese trade partners. The development of Polish food exports to China is also hindered by phytosanitary and veterinary barriers imposed by the Chinese party, especially in the export of Polish pork and beef. Another problem for exporters can be the complex administrative and customs procedures connected with the introduction of products into the Chinese market; the failure to complete these procedures results in detention of the goods at the border.

For many years, Poland has been pursuing an active negotiation policy concerning the removal of trade barriers, as well as conducting promotional activities of Polish agri-food products on the Chinese market. We support informative and promotional activities implemented by industry organizations within the framework of the current systemic solutions, thanks to which, the organizations can acquire considerable financial resources to promote agri-food products, allowing them to compete successfully on the global market.

We conduct promotional activities supporting trade exchange with China, in the form of economic missions for Polish entrepreneurs, combined with participation in China’s greatest fair events, as well as other activities promoting Polish food on the Chinese market. We also have wide opportunities for the development of scientific and technical cooperation in the area of agriculture.

We expect further successful development of trade cooperation between Poland and China, particularly in the area of agri-food products. The Chinese look for safe, high-quality and tasty food, and all these conditions are met by Polish products. We are convinced that when Chinese consumers know our food better, they will get to like it even more.

to the Western trends in fashion as well as in

it comes to marketing, picture content and

wangluò xìnxī zhōngxīn) presented a report

food sector. However, their expectations and

short advertisement videos begin to play an

on the development of the Internet in Chi-

tastes still differ from those of western consu-

increasingly important role. In the busy daily

na. According to these information, by June

mers. Above all, they value the brand’s history

life, people rarely have time to read long le-

2016, the number of Internet users in China

and the country of its origin. The longer the

aflets or text-filled advertisements. The Chi-

was 710 million, and the number of mobi-

company’s history is and the brighter it can

nese consumers value quick and convenient

le internet users 656 million. At the same

highlight this information- the better. Another

shopping. As we can observe on the streets,

time, it was noted that up to 92.5% of the

important feature is the requirement for the

people are mostly starring at their smartpho-

total number of Internet users in the PRC use

highest quality of products. The Chinese are

nes, which is why it is worth to focus on social

the Internet via mobile phones. As a result of

more likely to buy certified products as well

media offering an ever wider range of services

the continuous development of the Internet,

as products which are recognized at the Eu-

when planning a marketing strategy.

which is an inherent element of many areas of

ropean market. Particularly valued are the

In July 2016, CNNIC- China Internet Ne-

products with German certification. When

twork Information Center (Zhōngguó hùlián

modern human life, these numbers are constantly growing.

CHINESE MARKET

China is currently the largest and fastest growing online retail market. Before buying a given product, consumers in China often compare prices on different types of websites, look for information and opinions of other people. Due to the extremely wide range of products available in China, Western brands must distinguish themselves with something special to attract the attention of their potential customers. Chinese people appreciate reasonable prices and promotions, as well as originality of the product and the highest quality. One of the most decent products on the market are gift products that attract more

Patrycja Prończuk Export Manager DEGA S.A. As is the case of many Polish production companies, export is very important development paths for us. All the products available on Polish market, can also be found abroud under the brand name Dega and under our clients brand as well.

We are constantly working on the development of export sales, working on new products offered to our partners and participating in some of trade fairs. We carefully observe the trends emerging in Europe and worldwide, and we expand our product offer in accordance with the demands and expectations of our customers.

For several years, we have been putting an emphasis on the development of exports, we wish to continue our expansion to new markets. In order to achieve this goal, we care for the development of cooperation with the current partners, continuously looking for new contractors at the same time. As the consumers are becoming increasingly more demanding, this is quite a serious challenge.

and more buyers.

POLISH TRADE AND INVESTMENT AGENCY

Polish Trade and Investment Agency’s office

ket, which is often not taken into account in

in Shanghai reaches reliable sources to provi-

the export plans due to the existing risks and

The Polish Trade and Investment Agency

de verified information which are necessary

costs. All activities undertaken by the pro-

(PAIH) supports Polish entrepreneurs in un-

to make an investment decision. Through

gram are supported by the Polish Economy

derstanding the specifics of doing business in

the GoChina program, they support entre-

Brand, in order to strengthen its position on

China. Thanks to a comprehensive approach,

preneurs planning to enter the Chinese mar-

the Chinese market.

advertisement

55

CHINESE MARKET

CHINA – MARKET FOR DAIRY PRODUCTS China is the world’s greatest food and beverage market. According to the Euromonitor data, China has the world’s greatest catering services sector. This is one of the most prospective markets for European dairy exports. Over the recent years, dairy exports to China from the EU have increased by 174.2%. appropriate combination of product and price, known as the price-product mix.

Agnieszka Maliszewska, Director Polish Chamber of Milk

The new Research and Markets report indicates that the lifestyle of the Chinese

The main driving force behind the deve-

ning which dairy products are

increase in average household income, re-

sought after. Analysts claim that the increase

consumption of milk and dairy products has

sulting in the emergence of the middle class.

in the volume of sales in dairy products will

significantly increased since 2000, yet it is

Moreover, the number of inhabitants has in-

accelerate further over the next five years.

distributed unevenly. Inhabitants of the so-

creased in recent years. It is predicted that

Importantly, almost 25% of all dairy products

-called urbanized parts of China consumed

the number of inhabitants in urban areas will

are chosen due to their price. A special gro-

approx. 70% of milk and dairy products. The

reach 822 million by 2025. The major cities

up of dairy product recipients is comprised

rest, from the so-called non-urbanized parts

will contnue to constitute the leading con-

by consumers aged 55 years or older. This

of China, accounted for the remaining 30%.

sumption centres.

group purchases more than 20% of all dairy

Milk consumption per capita in the urbani-

products. It is believed that this age group will

zed part of China amounted to approx. 29

be gaining importance in the future.

kg, while in the non-urbanized part, it was

Due to the large population, the total consumption of liquid milk in China has reached 27,982 thousand tons, but it is only 20.3 kg

Along with improvement in the standard of

approx. 8.5 kg. The research also showed

per capita. On the other hand, the total con-

living, China has seen a significant change in

a distinct relation between the level of con-

sumption of butter is approx. 150 thousand

food consumption patterns. Chinese consu-

sumption and the income of inhabitants as

tons, while only 100 thousand tons has been

mers are becoming increasingly demanding

well as the prices of dairy products. Along

recorded for cheese, which is approx. 0.1 kg

and they increasingly pay attention to fre-

with the increase of purchasing power, the

per capita. This means very low consumption

shness and nutritional value. Moreover, the

Chinese reveal higher demand for dairy pro-

of the two main dairy products, which in

certainty of food safety and the reliability of

ducts imported from abroad.

many European countries, reaches nearly 20

ingredients, as well as high product quality,

The demand for consumption products

kg per capita in the case of cheese and ap-

are the main reasons why the Chinese pur-

on the Chinese market is predicted to exce-

prox. 3-4 kg in the case of butter.

chase imported dairy products.

ed the production. However, average con-

Chinese consumers pay attention to the

56

plays a vital role in determi-

lopment of the Chinese economy is the rapid

The conducted research showed that

sumption of liquid milk per capita in China

CHINESE MARKET

is New Zealand, accounting for 52.9% of total

Main exporters of assorted products to China in 2013 Product

1st largest supplier in terms of quantity (%)

2nd largest supplier in terms of quantity (%)

3rd largest supplier in terms of quantity (%)

Chinese imports. The European Union comes second, and the USA third. If we look at the

Milk and cream

Germany

New Zealand

France

imports of EU products, the main suppliers

Condensed milk and cream

New Zealand

USA

Australia

include France and the Netherlands. Today,

Yoghurt

New Zealand

Spain

Australia

the Middle Kingdom predominantly imports

Whey

USA

France

Netherlands

semi-finished products for further proces-

Butter

New Zealand

France

Australia

sing – full powdered milk (mostly from New

Cheese and curd

New Zealand

Australia

USA

Zealand) and whey (mostly from Europe and

Ice cream

France

USA

South Korea

the USA). However, there is an increase in im-

Products for infants

Netherlands

New Zealand

Singapore

ports of butter and ripened cheeses.

According to the data of the UN Comtra-

Source: EUSME Centre – Importing Dairy Products into China.

de, dairy products imported by China from

The export value of assorted Polish dairy products to China in EUR, 2014-2016 Product/Year

2014

2015

2016

Growth rate (2016/2014) %

Liquid milk and cream (0401)

4 258 702

7 578 663

8 300 603

+94.91%

Powdered or condensed milk (0402)

23 045 698

7 237 530

5 393 463

-76.6%

Buttermilk, curdled milk, yoghurt, kefir (0403)

184 289

316 643

452 749

+145.67%

Whey (0404)

17 770 266

25 971 487

16 959 598

-4.56%

Cheese and curd (0406)

349 486

659 470

512 036

+46.51%

Source: Own study of the Polish Chamber of Milk, based on EC data (http://madb.europa.eu).

58

Poland in 2016 had the value of approx. USD 45 million. The list of producers approved by the Chinese authorities currently includes more than 80 milk-processing establishments, but just a small portion of them have actually exported dairy products to China.

Exporting to China, one should keep in mind that there is no such thing as a uniform Chinese market, since each region (province) has its own separate, specific nature. When planning expansion, each region should be

is only approx. 18.8 kg. This is a much lower

to do this. Despite the difficulties and chal-

regarded separately. With few exceptions,

value than in Europe, the USA, Japan or In-

lenges, the potential of this country is immen-

the operations of importers and distributors

dia. A great opportunity for Polish exporters

se and there appears to be no alternative to

only cover a part of the country; usually,

to China is the fact that the Chinese still do

companies wishing to develop new markets.

the province where their principal office is

not trust local dairy products due to concerns

No country is developing so fast and plans to

located. When developing ones strategy of

about their quality, which encourages the ap-

import as many products as China.

operation on the Chinese market, it is vital

plication of non-tariff barriers encompassing

A significant problem for Polish exporters is

stringent sanitary requirements intended to

the very high competition on this vast market

protect local production.

to avoid cooperation with one partner on an exclusive basis.

where Polish exporters have functioned for

Experts agree that the Chinese market, de-

Entering the Chinese market is a very tedio-

a relatively short time, while global tycoons

spite very high competition, still remains very

us task. A company has to invest heavily and

have managed to build and reinforce their

attractive to Polish dairy enterprises. Changes

gain market experience, yet many companies

position for many years. Taking into account

in consumer trends provide new opportu-

are unable or, for unknown reasons, unwilling

all dairy products, the main exporter to China

nities worth taking.

CHINESE MARKET

SWEETNESS OF POLAND Between 2012 and 2016, the export of Polish confectionery increased by nearly 79.5%. Currently, the value of Polish export is approx. PLN 6 billion. As estimated by independent sources, Poland is the world’s eighth largest exporter of confectionery, with a share at the level of 4.8 per cent in 2016.

Marek PrzeĹşdziak President of the Management Board POLBISCO Association of Polish Manufacturers

which is a great challenge in the case of food.

tutional support from the State. In our opinion,

Moreover, creation of a recognizable brand

a comprehensive approach to the promotion

in the confectionery segment is an immense

of Polish foods, particularly of processed ones,

investment. Another strong barrier for Polish

is necessary. It is exports of highly-processed

(European) producers is in the raw material

goods that generate high profits.

The Chinese market is vast, our confec-

price differences. Sugar is cheaper in third

In other EU countries, entire staff of people

tionery enjoys increasing recognition there,

countries, underlying their competitive ad-

in offices and embassies are occupied with

as in the entire Asia. Unfortunately, China is

vantage. We hope that the abolition of sugar

the promotion and establishment of trade

no easy market. Polish exporters are active

quotas in 2017 will significantly contribute to

contacts; in our country, this work is done

there. However, generally speaking, the val-

the improvement of competitiveness in our

by individuals from different institutions. We

ue of confectionery exports to China is still

industry, also on non-European markets.

hope there will be significant progress in this

quite low. Wishing to export to China, one

In China, chocolate as well as various choc-

should overcome high logistic difficulties,

olate products and pastries enjoy much pop-

phytosanitary barriers, certificates, cultural

ularity. There is also a noticeable increased

barriers. Another challenge is the distribution

interest in non-chocolate confectionery.

regard and promotional actions for Polish food will be intensified.

We raise all these issues at ministerial levels. We also actively observe the ongoing bi-

of goods. In order to compete successfully, it

There is much room to manoeuvre for our

lateral negotiations between the EU and third

is necessary to have uninterrupted access to

Government here. As an Association, we know

countries concerning the removal of tariff bar-

the offered product in very large quantities,

that exports are in need of much greater insti-

riers in trade.

advertisement

59

PRIVATE LABEL

CHALLENGES AND OPPORTUNITIES FACING PRIVATE LABEL The popularity of private label keeps growing across Europe. The latest Nielsen data shows that market share for retailer brands has climbed to all-time highs in 9 European countries and for the first time stands at 30% or above in 15 of the 20 countries tracked for PLMA’s International Private Label Yearbook.

The 2017 Yearbook statistics reveal that private label’s market share reached all-time highs in Germany, Italy, The Netherlands, Belgium, Poland, Austria, Sweden, Norway and Denmark.

photo: PLMA Photo Gallery (“World of Private Label”)

The biggest market share increases were posted in Austria, up 2.8 points to 43%, fol-

- Denmark, Norway and Sweden - posted in-

hypermarkets. Wine sales in supermarkets,

lowed by Germany, up 2.1 points to 45%

creases. For the first time, private label pen-

hypermarkets and discounters in Europe have

and Poland, up 1.4 points to 30%. Seven

etration for all of the Scandinavian countries

climbed over 90 billion euros and, in markets

countries now have market shares of 40% or

stands at 30% or above.

like France, Germany, Spain and the UK, it rep-

higher: United Kingdom, Germany, Austria, Belgium, Switzerland, Spain and Portugal.

Poland led the way among the Central and Eastern European countries, climbing more

Retailers’ private label wines have been

Brian Sharoff, President of PLMA, says, “The

than one point to cross over the 30% market

gaining momentum and now has morphed

latest Nielsen statistics reveal clearly that 2016

share mark. Hungary stayed steady at 34%,

into a sophisticated assortment of reds,

was another good year for retailer brands in Eu-

while Czech Republic and Slovakia remained

whites, roses and sparkling wines at almost

rope. This continues a long-term trend which

over 30%.

every major retailer. Aldi and Lidl have super-

shows that private label’s success isn’t tied to

Among the Mediterranean countries, mar-

economic cycles but reflects the growing confi-

ket share in Italy climbed for the fifth consec-

dence shoppers have in retailer brands.”

utive year, posting its biggest increase since

The high quality of private label wines will

charged the category by offering award-winning quality at low, discounter- prices.

Market share in the United Kingdom

2012. Private label penetration is expected

be in the spotlight in 2018 when the Private

stayed above 45% and appears ready to re-

to increase as Aldi enters the market and Lidl

Label Manufacturers Association’s Interna-

sume growth as supermarkets expand their

looks to add more stores there. Greece and

tional Salute to Excellence Wine Awards

private label programmes to combat the

Turkey stayed above 20%.

takes place in Amsterdam. Nominations have

competitive challenge from discounters. In France, private label penetration remained over 30% for the thirteenth consecutive year.

In the northern countries, both Belgium

62

resents 60% or more of all wines purchased.

now gone out to retailers around the world.

PRIVATE LABEL WINE BUILDING A FOLLOWING AT WORLD’S SUPERMARKETS

Two panels of industry experts including Masters of Wine, sommeliers, wine professionals and journalists will convene in Am-

and the Netherlands reached new market

More shoppers than ever are finding the

sterdam in April to evaluate the wines one-

share highs. All of the Scandinavian countries

best wines to buy at their supermarkets and

by-one. Wines will be judged on the basis

PRIVATE LABEL

FINDINGS OF THE PLMA AMSTERDAM 2017 SURVEY Optimism for overall private label growth is high

OPTIMISTIC VERY PESSIMISTIC

1%

PESSIMISTIC

6%

VERY OPTIMISTIC

73%

NO OPINION

15%

5%

30%

VERY IMPORTANT

DIFFERENT ANSWER

58% 12%

NO

YES

25% DON’T KNOW

How important do manufacturers believe product innovation is to the success of their company?

IMPORTANT

Do you believe your product category receives fair treamtment from retailers when it is marketed in stores?

51% 24%

How important do manufacturers believe product innovation is to the consumers?

IMPORTANT

42%

DIFFERENT ANSWER

VERY IMPORTANT

32%

26%

Source: PLMA’s International Private Label Yearbook

of traditional criteria such as color, nose and taste. Wines selected for the judging were either submitted by retailers or purchased off the shelves at stores. At PLMA’s 2017 Salute to Excellence Wine Awards there were 48 Award winning wines from 13 countries covering 22 red and white categories.

Brian Sharoff, President of PLMA, said: “The trend toward private label wines is extremely strong. Retailers like Tesco, Carrefour, Aldi and Lidl have set a high standard of award-winning quality at low prices. And the public is responding. The penetration of private label wines around the world has climbed rapidly in recent years and with e-commerce growing, the trend is additional expansion.”

The wine panels are part of PLMA’s International Salute to Excellence Awards, in which retailers submit new and innovative private label products for industry recognition. Last year food, wine, home and health products from 83 retailers in 28 countries

WAN-VIT The expansion of retail chains and large-format stores encourages producers to establish business cooperation with such corporate clientele under private labels.

Our company also fits into this type of synergy.

Our nut creams are also produced under different brands. Thus, they are present on many European markets. We value our cooperation with our business partners because thanks to this cooperation we gain experience and awareness of the size and demand of a particular geographical area for the products we manufacture. We also know from the regularity and rotation of orders that they are appreciated, not only on account of the flavour, but also regarding the quality of the ingredients and raw materials used. In terms of sensory experiences and image, we always exert great care and effort in following the instructions given to us by the client. We do so because we trust the market knowledge and experience that our client has of the tastes and flavours which his customers favour.

The adaptability of our activities is helpful in acquiring new partners in distribution and the sale of our products. They are also aware that we use the highest quality nuts - the main ingredient - in the production process of our creams. Our offer also consists of 100% natural nut creams, i.e. without added sugar, salt and palm oil, and those sweetened with natural sweeteners, as well as those salted upon the customer’s explicit request.

We are open to new ideas and are constantly modifying and improving our products, as well as expanding our range. We have recently started production of natural pumpkin seed, sesame seed and sunflower seed syrups, in addition to protein corn and rice balls. We look forward to working with you.

were considered for awards.

63

PRIVATE LABEL

HOW WERE PRIVATE LABELS PROMOTED IN COMMERCIAL BROCHURES? Private labels, i.e. brands of goods manufactured on commission from retail chains, still have dual associations for consumers.

There is no doubt that a low price and attractive promotions are bonuses which attract and arouse keen interest in customers.

On the other hand, private label goods tend to be stereotypically associated with inferior quality and less prestige. Products sold under a private label initially functioned only as cheaper substitutes for branded goods, but now they are becoming more and more competitive. Retail chains are making increasing efforts for their brands to be associated with values such as high quality and

Agnieszka Smarzewska FOCUS Research International

The most often promoted food categories in 2017 per SKU Number of promotions 6 000

5 363

5 327

5 000

4 729 4 165

4 000

3 974

3 667

3 000 2 000 1 000

awareness of these brands in the minds of consumers is advertising in promotional brochures. The international research com-

64

m Cr ea Ice

Bi sc

ui

ts

/C oo

kie

s

Pa st a

n

ge sa Sa u

in

D el ica te ss e

keting activities. One of the tools to build

es

commodity, but also with appropriate mar-

Ve ge ta bl

proach to the production standards of the

tin s

trust. This is connected with a rigorous ap-

The research pertanined to following countries: Bulgaria, Croatia, Montenegro, Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania, Slovakia, Slovenia, Ukraine, Hungary Source: FOCUS Research International

pany FOCUS Research International, which

materials took into consideration hypermar-

consumers to choose their private labels. It

deals with price and promotion monitoring

kets and supermarkets, discount stores and

should be remembered, however, that cost

in over 30 countries, looked at the offers of

convenience stores, as well as wholesale

reduction is not the only marketing strata-

private label food products in commercial

and cash & carry stores. In total, the largest

gem, and the image of a brand can be built

brochures on the Central and Eastern Euro-

number of promotions of private label prod-

and consolidated by its mere presence in

pean markets in 2017. Particular attention

ucts was recorded in brochures of countries

a commercial brochure. It is worth men-

was paid to the neighbouring countries of

such as Poland, the Czech Republic and

tioning that the lowest number of promo-

Poland, the Baltic States and new EU Mem-

Romania. Many promotions of private label

tions of private label products was recorded

ber States such as Bulgaria and Romania.

products were also featured in brochures in

in brochures in Montenegro, where they

The study measured the number of pro-

Croatia, Hungary and Lithuania. It seems

constituted a very small percentage of all

motions of private label products in food

that especially in these countries, through

offers. This may indicate strong consumer

categories in commercial brochures. The

low prices, retail chains wish to convince

attachment to proven and popular producer

PRIVATE LABEL

brands, which is often combined with the perception of private labels as less well-

Number of promotions per SKU Quantity of promotion counted per SKU

known and less prestigious.

The results look interesting, of the comparison of categories in which private label products in commercial brochures in individual European countries were most prominent. It would seem that private labels have proven themselves mainly in the case of

Commodity Group

Brand type Producer’s Brand

Private Label

Poland

723 966

39 285

Czech Republic

517 146

30 215

Hungary

155 735

20 155

Croatia

132 934

19 195

Slovakia

224 400

16 249

Romania

72 185

12 723

Slovenia

53 425

12 704

Lithuania

61 015

9 565

Bulgaria

131 867

8 230

have a long expiration date, which is why

Latvia

43 887

2 983

consumers often buy them in bulk. This

Ukraine

31 797

2 359

category was especially favoured by store

Estonia

29 526

2 064

chains from Poland, Bulgaria, the Czech

Montenegro

10 977

240

Republic and Slovakia. Pasta, sausages and

Final sum

2 188 860

175 967

long-life products. In total, in all countries, the largest number of promotions of private label products concerned the category of canned vegetables. These are products that

biscuits/cookies turned out to be equally

Source: FOCUS Research International

popular categories. Most promotions of private label products in these product groups

offers of branded goods, stores attach great

store and helps to build the image of a stron-

were recorded particularly in Polish, Czech,

importance to marketing activities to pro-

ger player on the market. It is evident that

Croatian and Romanian brochures. It is also

mote private labels, especially products with

there is no doubt retail chains focus not only

worthy of mention that the category of ice

a long expiration date. Store chains invest in

on the high quality of their products, but

cream, which in terms of the number of pro-

private labels because the very fact of hav-

also on strong branding, based on numerous

motions of private label products, stood out

ing them increases the attractiveness of the

promotions in commercial brochures.

in countries such as Croatia, Slovenia and Hungary. Could it be that geographical location is the reason for this?

Interestingly enough, in the Baltic States, as well as in Ukraine, private labels clearly lead the way when it comes to delicatessen products; that is, ready-made meals sold loose, such as salads, fish dishes and dumplings. For example, in brochures in Lithuania, almost all promotions (over 98%) of ready-made salads sold loose concerned those offered under a private label. Delicatessen products produced under a private label is a popular solution. Ready-made meals labeled with the brand of the chain may be associated with locality and freshness. This is especially true when the consumer’s trust in the brand of the commercial chain translates automatically into trust in its private labels.

The analysis shows that although there are fewer promotions of private label products

MILLANO G ROUP The Millano company has been on the market for 35 years. Such a long period of time has allowed the company to gain wide production experience and to achieve perfection in combining ingredients into unique chocolate flavour compositions. The production process is closely monitored and takes place continuously, on fully automated and electronically controlled closed devices.

In order to meet the expectations and needs of clients, in 1999 Millano Group launched production of private labels, i.e. chocolate products for the needs of trading partners. Endowed with the trust of our clients, we have become the largest producer and supplier of products bearing the logos of such retail chains as: Biedronka, Intermarche, Aldi, E.Leclerc, Auchan, Metro and Netto. The products of these brands are sold not only on the domestic market, but also beyond the borders of Poland, including top distributors on the American, Asian and European markets. Thanks to three production plants and independent, state-of-the-art technological lines, we are able to offer tremendous production possibilities to our trading partners.

With the introduction of private labels, Millano Group has been able to rapidly develop technologies, production processes and gain extensive experience in the field of packaging. As a result, we are the leader in the production of chocolate products under private labels; and we are also the forerunner in the fields of packaging and product innovation. We strive to continue developing in the years to come, placing ever more focus on modernising and expanding our production capabilities.

in brochures in general, as compared with

65

PRIVATE LABEL

Michał Gontarz Buying Director Biedronka The popularity of private labels is still on the rise around Europe. In 2017, market shares of private label products in many countries achieved record-breaking levels. Poland was no exception; this was the first time when the share exceeded 30 per cent (data

by Nielsen). Private labels also constitute the cornerstone of development at the Biedronka store chain in Poland. They give us the opportunity to build a unique offer, increasing the loyalty of our customers even more.

It is important to note that private labels are legitimate market participants today, and they have even started setting market trends; they create new categories and respond to the nutritional needs of the increasingly demanding customers. Most of them are developed in cooperation with domestic producers and are characterized by a unique combination of high quality and an attractive price. To make this combination achievable, we require our strategic partners to provide top-level development outlays, creativity, new ideas, quick implementation, and exclusivity.

In Biedronka, private labels are present in all product categories and many of them have already become or will soon become market leaders. Due to the profile of our chain’s activities, most private label goods are found among food articles, however, they are also present in the manufactured assortment, complementing the main offer. Examples of private labels available in our offer include: Mleczna Dolina, Światowid, FruVita (dairy products), Kraina Wędlin and Kraina Mięsa (cured meats and meat), Marinero (fish), Polaris (mineral water), Vital Fresh (juices and salads), Pastani (pasta), as well as Queen (hygiene products), DADA (diapers and children’s cosmetics) and BeBeauty (cosmetics).

In 2017 alone, we introduced 190 new private label products into the offer of the Biedronka chain. These are articles responding to the needs of the increasingly demanding Polish customers and reflecting the current consumer trends. They include approx.

20 food articles under the new goBio brand. All of them bear the EU ecological farming logo certifying that the marked foodstuffs have been produced pursuant to the strict EU regulations concerning environmental protection and animal welfare, and are inspected on a regular basis in this regard.

A spectacular

66

success we have recently achieved is the marketing of the SKYR type yoghurt under the FruVita brand. Just a few months ago, if we asked Poles what it was, what it was for and how it should be eaten, more than 99% would give no answer. Considering the nutritional value of this yoghurt, i.e. the tripled content of protein and 0 per cent fat, we introduced it to the market, investing in communication, thanks to which, our offer includes a differentiator that has conquered the mouths of Polish consumers within several months from its debut.

The SKYR yoghurt was developed in cooperation with our long-time trade partner – Piątnica, a leading Polish dairy producer. The excellent cooperation between a reputable producer and a leading trade chain is the foundation of this success.

Last year, in cooperation with our trade partners, we also rebranded 17 private labels, introducing changes in their appearance and functionality of their packaging. Thanks to the application of the best materials, effective design and attention to detail, the private label products we offer have become even more attractive to customers.

Moreover, thanks to the support from Biedronka, Polish products reach the shelves of shops owned by the Jeronimo Martins Group in Portugal and Colombia. We can also boast some private label products which have debuted in Poland and Portugal simultaneously – namely, BeBeauty cosmetics and goBio food products.

We will continue developing the offer of private label products based on the needs identified by customers. These needs are reflected in the introduction of new products and changes to the existing ones.

PRIVATE LABEL

PRIVATE LABEL IS SIMPLY PROFITABLE Maria Andrzej Faliński Expert

With a good deal of success, there has been steady development of the business model of custom-made products manufactured under the brand of another company. This is a worldwide occurrence and Asian economies, which are celebrating triumphs today, have built their power base on this strategy to a significant degree – and are still building (producing for, among others, Polish companies). This model, especially in the export-import system, has undeniable advantages.

Mainly, it allows you to enter the difficult,

ditionally, given our economic environment,

when cooperating with producers or whole-

costly and legally protected markets where

the food industry in particular (for the ex-

salers who implement so-called sourcing in

the commissioning party already has a pre-

ception of large companies), is not managing

other countries. Let us consider an example

sence. Herein also probably lies the answer

very well when it comes to cooperating on

in the industrial sphere, of the correlation

to the paradoxical question: Why is it that

concepts and organisation (Polish domestic

between Polish and German production,

approximately 80 percent of food exports are

competition-Polish competition abroad) – but

relative to Polish-Czech cooperation, which

processed products, and the business com-

this is a separate subject. The aforementio-

is fuelled by wholesale trade on both sides

munity is constantly talking about the need to

ned disadvantages do not merely lead to a

of the border. But, let us leave the industry

create brand names, branded products and

significant delay in, or the elimination of the

for another occasion. Trade has a very signi-

national brands? Poland has been investing

possibility of building a brand, but they also

ficant and often overlooked role in exports.

in the modernisation of the processing indu-

enhance the risk of being ‘replaced’ by a che-

Exports in trade chains can be estimated at

stry for the last 25 years, providing good and

aper competitor who is offering the same, or

around PLN 10 billion, of which 80 percent

increasingly better quality food products and other products. Poland, however, also offers a lower competitive price, which is the result of both lower average wages and the family nature of, in most cases, fragmented areas of agriculture and a large part of the processing industry. Nevertheless, this is also the cause of

PRODUCTION ‘FOR EXPORT’ THAT IS OUTSIDE OF THE BRAND, SO TO SPEAK, IS SIMPLY PROFITABLE. IT FITS WELL INTO ADVANTAGEOUS VALUE-FOR-MONEY RELATIONSHIPS BETWEEN THE POLISH MARKET AND EXPORT MARKETS.

a number of weaknesses, including negotia-

more. This also contributes to the experien-

is food, including 80 percent of private label

ting power and marketing.

cing of various contractual pathologies, the

products. This is a considerable amount and

Production ‘for export’ that is outside of

exploitation of companies and certain per-

– importantly – concerns not only exports to

the brand, so to speak, is simply profitable.

sons, which in Europe (and therefore in Po-

Great Britain or Germany, i.e. the two coun-

It fits well into advantageous value-for-mo-

land) has been significantly reduced. Despite

tries that dominate in importing Polish food.

ney relationships between the Polish market

the risk, this model opens up the prospect of

As I have mentioned, the advantage is the qu-

and export markets, and also achieves market

anchoring a business in attractive markets and

ality and favourable relation (including costs)

presence without high entry and retention

expanding businesses to such an extent that

to the prices present on the export markets.

costs on a given foreign market. They are in-

some of them will be able to easily and safely

Operators of transnational chains recognise

comparably lower than in the case of ‘regular’

launch with their own brand, and not that of

this condition. One of them has developed

exports under your own name. And this mo-

the retailer or wholesaler.

approximately 100 of the so-called private

del – despite its shortcomings, which will be

This process, described above,‘thrives’ par-

labels, mainly umbrella ones. Their favoura-

mentioned later – will continue to develop,

ticularly well in cooperation with commercial

ble financial reckoning and relatively high

because it is an opportunity to make good

chains that are present in many countries.

positioning in many markets (the company

earnings (for both parties in the ‘deal’). Ad-

This does not mean that it is not present

in question is present in 24 or so European

67

PRIVATE LABEL

Such private labels are usually not worse than brands, and certainly, at a comparable positioning – cheaper. In Poland, there is also a certain socially oriented type of policy towards the distribution sector – this can be seen even in the Sunday trading ban. The deflationary trend, inevitable in such a situation, limits the sales potential of the modern forms of business, and gives rise to situations whereby companies have to intensify their search for markets. Companies have already begun to compete for customer loyalty, aiming to attract the client with advantageous prices that surpass the competition. This translates to elevated costs and the need to offset said costs, which means that better financial

68

markets and not only), allow for the export of

terms of positioning by product class) and less

conditions of sales on export markets are

Polish products ‘cloaked’ in their names to 18

expensive. Therefore, we are forced to deal

most certainly hidden ‘in the price’. This con-

countries. The values, which fluctuate from

with protectionist measures – in regulations,

dition also places pressure on private labels

PLN 1.5 billion to nearly PLN 3.0 billion, are

administrative practices and in the media. It is

to export. Therefore, export of private labels

also significant and depend on local business

not my wish to be accusatory, but it is my be-

is a kind of light in the tunnel, i.e. a paradoxi-

conditions and competitive, executive offers

lief that our industry circles are far too latent

cal, but justified ‘boom in the downturn’. Of

from other countries. Another such compa-

in combating this phenomenon, and likewise

course, no two brands are the same – umbre-

ny organises its export and cooperates with

the relevant ministries – at the very least, both

lla brands and close to premium brands with

other exporting companies to Great Britain

the Ministry of Agriculture and Rural Deve-

their numerous representatives of the trade-

and several other countries, which together

lopment, as well as the Ministry of Foreign Af-

mark behave differently, and so will private

generate estimates even at the level of PLN

fairs should recognise this phenomenon and

labels of the so-called economy price. These

4.0 – 4.5 billion. Here, private labels have a

make suggestions to combat it. All the more

are two different strategies of a commercial

lot of clout, because both the scale of exports

so that in light of the recent Dentons report

company that can be realised in tandem, and

and the differences in the cost of manufac-

commissioned by The Polish Federation of

simultaneously. In general terms, however, the

turing are so significant that the business is

the Food Industry Union of Employers, there

downturn and the limitation in working hours

extremely profitable. Add to this a special

is no doubt as to the direction of the situation.

(not to speak of other restrictions in general

‘bonus’ resulting from price relations counted

The anti-measure may be a call for ‘revenge’

circulation, for example, the musings of the

by indicators known as the so-called terms of

because, as the main producer in the region,

authorities to introduce a retail tax) will trigger

trade, and we are dealing with the opportuni-

we have more to lose; and Poland is the only

deflationary tendencies. (As is evident, a re-

ty to generate price margins that guarantee si-

country in the region that has a visible over-

turn to inflation indicators of 1.3% and 1.4%

gnificant benefits that are mutually beneficial.

production of good food. For the time being,

is not a coincidence.) Companies of a certain

Interesting phenomena are also happening in

the current economic situation mitigates the

size that have cheap, attractive commodities

the field of wholesale trade. On the Polish EU

effects of a regrowth of protectionism, but it

will be able to ride out the storm. The more

borders, but not exclusively (a separate, very

– like everything else – has its end, and then

profitably sold, the better; and what sells best

promising segment is wholesale companies

what?

is export – at least in Poland and at least in

that organise export of consumer goods to

Given that we are already on the subject

the area of trade in food that is well and at-

Asia), umbrella brands are being established

of the economic situation, especially in the

tractively processed. Thus, both on the side of

specifically to target export markets, using

context of private labels – the current econo-

the demand (trade) and the supply (industry),

tried and tested recipes and packaging that

mic downturn favours these products, as con-

a strong tendency to seek solutions for export

have been commissioned (and obviously, also

sumers want to maintain their consumption

is created. Let us then, look after our private

suggested). This often results in hostile reac-

levels, albeit by spending less money. This is

labels – in particular, those for export. Defla-

tions from ‘the competition’, because our (Po-

an ideal situation for private labels, of which

tion is no piece of cake, especially when it

lish) products are usually better in quality (in

we have evidence from 2008 and 2009.

comes to producers.

t u o b a e k i l W hat I

? s t c u d o r p Polis h Santeri Eriksson, Embassy of Finland in Poland

Yang Xi, Embassy of People’s Republic of China in Poland

What are your favorite Polish products?

What are your favorite Polish products?

There are plenty of tasty soups in the Polish cuisine. I especially like

There is a lot of Polish products which I like. I live in Poland for

the cold soups for the summertime like chlodnik [cold soup].

10 years now and I had lots of opportunities to try Polish cuisine.

I endorse Polish dairy products and sweets. I think they are simply the

What are the main differences between Polish and Finnish

best. I would recommend them to my Chinese friends.

food products?

There are many similarities between Polish and Finnish food prod-

What are the main differences between Polish and Chinese

ucts. Overall, Finns tend to eat more fish. Finnish cuisine puts a great

food products?

importance on nutrition-rich cereals such as oats, barley and rye. Also

Polish food is completely different than Chinese, so it is difficult to

wild berries are widely used.

compare them. Polish food products have unique taste.

What do you like about Polish cuisine?

What do you like about Polish cuisine?

I especially like the different varieties of Polish dumplings. The con-

I adore dumplings and roast duck stuffed with apples – knuckle is

cept of a dumplings’ restaurants is great idea and I wish we would

also great. Cabbage stew has very interesting taste and I enjoy it very

have something similar in Finland. I have also enjoyed tasting the

much.

many different varieties of Polish sausages.

Which Polish products are the most desired by Chinese Which Polish products are the most desired by Finnish

consumers?

consumers?

The most popular are dairy product and juices. Sweets are also very

I think the Polish apples are the best known in Finland, yet there are a lot of Polish food in Finnish supermarkets that is not branded as

popular. I know that on Chinese market there are also some great Polish meats and sausages.

Polish, and people don’t know they are actually from Poland. So there is definitely place to bring Polish food to Finnish attention.

Which advices will you give to Polish food producers who want to be part of immense Chinese market?

Which advices will you give to Polish food producers who

It is difficult question, but I think the biggest value is being origi-

want to be part of Finnish market?

nal and keeping Polish character. Chinese people are keen on having

Finns value highly clean, pure, natural and high-quality ingredients.

many options.

Thank you

Thank you

69

CONTACT POLISH COMPANIES

The history of 3 Topole company leads that nothing is impossible all the more that the business is leaded by the family.

3 Topole Sp. z o.o. Sp.k.

2 Czerwonego Kapturka Street 05-092 Dziekanów Leśny, Poland Phone: +48 22 751 88 43 Fax: +48 22 751 51 31 Plant in Legionowo 49 Olszankowa Street 05-120 Legionowo, Poland biuro@3topole.pl www.3topole.pl

Now it is the second generation. We started chastely in 1984, now we dispose of two factories, which mainly produces jellybeans, jellies, candies and other sweets in chocolate. We have our own production line of Figle Migle, and the brand Figle Migle Premium Candybar. We are elastic and creative in our cooperation. We create recipes and the sweets for the special wish of our client, also under private label brand. Lastly, we specialized in producing very small jellybeans and jellies, such called “inclusions”, which are great additives to chocolates, bars, ice creams, cookies and yoghurts. Our offer includes tens of products with original shape and taste. We produces our products using pork and beef gelatin, but we use also agar-agr and pectin. For the special wish of our client we create unique and unrepeatable recipes provided health, taste and dietetic needs. In our offer You can also find Eco and Vege products. We use only natural ingredients with very high quality. Thanks that, we are sure that out sweets satisfy even the most demanding taste. Our products are available all over the world. We are the company which develops dynamically and we are appreciated on the market. Our prizes and emphasizes tell of that. Since 2008 we have had the BRC and UTZ certificate.

AQUA VIVRE is the producer of ID’EAU, natural, functional mineral water.

Water flows from the natural spring in Borucin in Poland, in the ecologically clean the region of Nizina

Aqua Vivre Sp. z o.o.

Produkcja Sp. K. 8 Karola Darwina Street 43-190 Mikołów, Poland Phone: +48 32 428 10 00 bok@ideau.pl www.ideau.pl

Śląska. The deposit is located at the depth of 60 m, that is below filtration layers, which guarantees its best cleanness.

After flowing from the spring, the water this aerated. In special, sterile conditions, with specific pressure and temperature, the flow of natural mineral water is subjected to air, which causes intense gas exchange. The result is the ID’EAU water with high content of oxygen and nitrogen, low content of carbon dioxide, alkaline pH, and extremely rare specific molecular structure.

Inspiration came from the nature. The basic factor in the pursuit to obtain the ID’EAU water was the observation of waters that are worldwide recognised as unique in terms of the effect on the human body. Conviction that we can produce water imitating its natural behaviour came from the extensive experience in production of water for daily consumption.

Bifix W. Piasecki Sp.J Górki Małe 33 Dworska Street 95-080 Tuszyn ,Poland Phone: +48 42 614 40 88 Fax: +48 42 614 41 20 bifix@bifix.pl www.bifix.pl www.zdroweherbaty.com.pl

Bogutti Sp. z o. o.

Henryków-Urocze 48 Gromadzka Street 05-504 Złotokłos, Poland

Polish producer of fruit and herbal teas and jams.

Bifix is a family company producing fruit and herbal teas from its own plantations for 25 years. The company has the largest offer on the market selling black, green, red and white tea as well. From 2010 Bifix opened a laboratory, so the quality and taste are under constant research.

Company offers all possibilities of tea packaging as well as own products. Bifix produce brands for the largest suppliers in the world. Since two years the company has expanded, being also a producer of jams and concentrates. In addition, Bifix’s offer includes fruit raw materials, ready-to-mix fruit and dried fruit.

The BOGUTTI company specializes in production of high quality, rich cookies, baked according to the best Italian technologies. Cream fudge is something for the Polish to be proud of... Cream fudges are still the most recognisable Polish export product. Bogutti is also a producer of the traditional Polish

Phone: +48 783 956 466

cream fudge recognisable on the international market. We offer three types of cream fudge: MILK,

Fax: +48 22 266 01 19 export@bogutti.com www.bogutti.com

CHOCOLATE and BUTTER. The secret of Bogutti’s cream fudge is its exceptional taste. We would like to invite you to try our products at the ISM Fairs.

Brand Distribution Group is an international company with 25 years of experience, located in Poland,

Brand Distribution Group 18 Niepodleglosci Avenue 02-653 Warsaw, Poland export@bd24.eu www.bdgroup.eu www.bd24.eu

Germany, UK and Spain. The success of Brand Distribution Group company is based on modern infrastructure and thoughtful organizational and technical solutions. We are a natural choice for the customers, who are looking for the highest level of services and the best quality of products. We offer “A” brand products and strong local brands to customers from more than 50 countries. We are a valuable partner for producers who plan to grow their business and enter new markets without having the necessity to invest in sales force or merchandising and marketing resources. We provide a specialist solution to match customer’s international goals and help to increase market penetration, build brand awareness, drive revenues and realise business efficiencies. Passionate about brands, Brand Distribution Group drives strategies to build long-term, sustainable brand equity. Work with us!

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CONTACT POLISH COMPANIES

Dega Spółka Akcyjna has been in business since 1992. The company specialises in the production of mayonnaise salads, fried fish in Greek sauce, sterilised canned products and sandwich spreads.

Delicate and unique flavour combined with high quality is a considerable asset in shaping the culinary preferences of consumers.

The company has an implemented, maintained and certified integrated Quality Management System for compliance with the requirements of IFS and BRC, the proper operation of which is determined by i.a.: implementation of HACCP product health safety.

During the 20 years of operation company has been awarded numerous prizes, awards and certificates. The most important of them include: “Teraz Polska” (Now Poland) promotional logo,

Dega S.A.

Karnieszewice 5 76-004 Sianów, Poland Phone: +48 94 36 15 100 Fax: +48 94 36 15 105 export@dega.pl www.dega.pl

which is under the patronage of the President of Poland and “Poznaj Dobrą Żywność” (Try Fine Food).

Herbapol-Lublin S.A. was founded 69 years ago. It is currently a leader on Polish market in fruit syrups category, as well as in herbal, green, red, functional and fruit tea categories.

Drawing upon what is best in nature, it produces exceptional products bringing positive emotions and moments of pleasure to its consumers.

Company’s portfolio includes several brands, such as the Herbapol and Big-Active, both known for exquisite products and highest quality.

In 2017, the company debuted in on-trade sector.

Things have changed in the last several decades. However, Herbapol-Lublin S.A. continues to use the best and natural ingredients for unique tasting experiences and seek innovative solutions to

“Herbapol – Lublin” S. A. 25 Diamentowa Street 20-471 Lublin, Poland Phone: +48 81 74 88 304 fax: +48 81 74 39 670 lublin@herbapol.com.pl www.herbapol.com.pl

maintain its position.

Krajowa Rada Drobiarstwa – Izba Gospodarcza (The National Poultry Council – Chamber of Commerce), established in 1998, aims at developing and modernizing the Polish poultry industry, at protecting the interests of poultry producers and processors as well as at representing the Polish poultry industry before national and international organizations.

Currently KRD-IG has nearly 70 members from such fields as: farming, breeding, hatching, poultry and egg production, poultry meat and egg processing, trade, and poultry feed production, agricultural universities, and associations of poultry farmers. KRD-IG’s members are responsible for approximately 70% of the total slaughter volume and 90% in poultry exports.

KRD-IG is a member of key international poultry organizations: a. v. e. c. – the European Producers’ Association, Importers and Exporters of the Chicken Meat; CLITRAVI – the Liaison Center for the Meat Processing Industry in the European Union, ELPHA – the European Live Poultry and Poultry Hatching Egg Association and WPSA – the World’s Poultry Science Association.

Krajowa Rada Drobiarstwa – Izba Gospodarcza (The National Poultry Council – Chamber of Commerce) 3/5 Czackiego Street 00-043 Warsaw, Poland Phone/Fax: +48 22 828 23 89 krd-ig@krd-ig.com.pl www.krd-ig.com.pl

KRD IG

Majami was founded in 1989, starting its business by producing chocolate products. In 1996 Majami merged with Milko Confectionery.From its very beginnings, Milko Confectionery Factory had been producing fudge sweets using old recipes and methods. Majami gave customers what they were interested in by making traditional fudge its leading product, both hand- and machine-made. The exceptional flavour of Majami’s fudge has led to it being appreciated in Poland and other European markets as well as in Arab countries. While Canadian customers love produced by Majami sesame slices. Our business profile is not only based on our own brand, for years we have specialized in producing for private labels both in Poland and abroad. At present the Company focuses on producing fudge and chocolate coated marshmallow, striving to combine the traditional nature of

Majami Sp. z o.o. Sp.K. 8 St. Albert Chmielowski Street 97-400 Bełchatów, Poland Phone: +48 44 634 83 31 Fax: +48 44 634 84 66 majami@majami.pl www.majami.pl

the products with the business dynamics demanded by the market. The range also includes other types of products, such as toffee-type sweets.

“Makarony Polskie SA is one of the biggest, dynamically changing pasta producers in Poland.

It is a company with rich traditions, many years of experience and thriving factories in Rzeszow and Czestochowa. Making our best to satisfy our Customers’ expectations, we offer a wide variety and shapes of pasta, pressed and laminated, manufactured with or without eggs, from finest durum and standard wheat. Our products are sold under two main brands: Makarony Polskie and Sorenti. Our activity includes also production services, we produce pasta and processed products for brands of the biggest chain stores. Manufacturing processes are conducted on the basis of modern production lines, and implemented standards guarantee the highest quality and microbiological purity of our

Makarony Polskie S.A. 15a Podkarpacka Street 35-082 Rzeszów, Poland Phone: +48 17 875 30 10 Fax: +48 17 875 30 20 sprzedaz@makarony.pl www.makarony.pl

products. Out of concern about quality and taste, both raw materials and finished products are thoroughly examined by skilled Quality Control Teams.”

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CONTACT POLISH COMPANIES

PPH MAXPOL Sp. z o.o.

479 Puławska Street 02-844 Warsaw, Poland Phone: +48 22 628 06 21 +48 22 625 14 08 +48 22 629 96 21

Fax: +48 22 621 03 73 maxpol@maxpol-targi.com.pl www.maxpol-targi.com.pl

PPH MAXPOL offers: •

Designing stands for individual exhibitors as well as for national groups;

•

Preparing and assembling the individual stands, stands arrangements;

•

Forwarding and customs clearances of company’s products with the delivery directly to the stand;

•

Professional services for fair participants as: flights, accommodation, local transfers in the city of the fair.

Modern- Expo Group is an international supplier of retail solutions to customers across different retail formats in more than 60 countries and is the market leader in Central and Eastern Europe.

In 25 years, the company has managed to grow into the international group with employing more than 2,500 people. The team is highly-skilled professionals who are not afraid of challenges

Modern-Expo S.A. 3 L. Spiessa Street

20-270 Lublin, Poland biurohandlowe@modern-expo.pl www.modern-expo.pl

on the way to an excellent result.

The key to Modern-Expo success so far has been common vision, backed up with hard work and a strong desire to become one of the best equipment suppliers in the market.

Company achieved quality, which is confirmed by international audits and trust by the world famous brands. Modern-Expo’s partners are well-known international companies such as Nestle, Groupe Auchan, PepsiCo, Metro AG, British American Tobacco, Carrefour, Mondelez, Rewe Combine, Henkel, X5 Retail Group and others.

With its highly efficient and modern production facilities and business model, Modern-Expo is in a prime position to deliver the best value for further business success.

Modern-Expo creates the retail new!

Roleski is one of the biggest Polish manufacturers of ketchup, mustard, mayonnaise, sauces and

Roleski Sp. J.

181a Spacerowa, Zbylitowska Góra 33-113 Zgłobice , Poland Phone: +48 14 631 35 00 Fax: +48 14 631 35 00 export@roleski.pl www.roleski.pl

dressings. The company was founded in 1972 and ever since has remained a fully family-owned Polish enterprise that currently employs almost 350 persons. Apart from manufacturing goods under ROLESKI brand perfectly recognised all over the world (especially in Poland, where Roleski is the key market player), we have also proven to be an extremely valuable partner for various companies looking for a reliable producer of private label goods. The combination of invaluable experience, flexibility and focus on quality allows us to work both with small, local wholesalers, as well as the biggest multinational consumer goods companies. What is more, Roleski is also keen on promoting family entrepreneurship, sustainability and corporate social responsibility. Our four pillars are: experience, responsibility, reliability and quality.

The company SERTOP is one of the leading manufacturers of processed cheese on the Polish market.

Sertop Sp. z o.o.

58 Przemysłowa Street 43-100 Tychy Phone: +48 32 217 08 38 +48 32 326 46 41 export-info@sertop.com.pl www.sertop.com.pl

The company has more than fifty-year tradition of producing high quality products based on proven recipes while maintaining strict quality control. For the production are used only natural ingredients, it does not apply any preservatives and colorings.

SERTOP offer includes more than 20 flavors of processed cheese in a variety of formats, such: round boxes 140 g and 280 g, cubes 100 g and 30 g, blocks 100 g and 100 g sausages.

SERTOP company meets all the requirements for the sale of processed cheese on the Polish and foreign markets. SERTOP sells its products to the Polish market and the markets of the European Union and the United States, Canada, countries of the Middle East, South Korea.

The company is certified BRC Global Standard Certificate and IFS (International Food Standard).

Terravita company has started its sweet mission 30 years ago by entering the market with positive energy and clever ideas. Years of experience have caused that chocolate branch does not have secrets

Terravita Sp. z o.o.

48 Szarych Szeregów Street 60-462 Poznań, Poland Phone: +48 61 66 88 300 www.terravita.pl

for us. We accept new challenges to produce with passion new chocolate sweets. We manage few brands in the most important categories by meeting the requirements of the Customers and by adapting to market trends. Nowadays You can meet our Customers all over the world.

The most important category are chocolate tablets under Terravita, Cocoacara and Alpinella brands.

Besides chocolate tablets we offer also: Choco Sticks – small chocolate bars in convenient form and Happy Trio – pralines for those who are fans of the pleasure. In culinary category we offer sauces for ice creams and desserts and excellent quality spreads for breads and cakes. We have a big experience in seasonal offers for Christmas, Valentine’s Day and Easter.

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CONTACT POLISH COMPANIES

For many years WAN-VIT company has taken care of its customers tastes.

As one of the leaders of food industry in Poland, we can ensure, our products are made from traditional recipes and the highest quality raw materials.

Putting on the dynamic development of our company, we created a new products line 4proActive.

4proActive products were created thinking about everyone who puts his attention to healthy and active lifestyle, take care of slim silhouette and good mood as well as those being on low sugar and gluten-free diet.

Wawel SA is one of the most renowned Polish confectionery producers. It offers a wide portfolio of chocolate tablets, chocolate bars and pralines, candies, caramels and fruity jellies. Wawel owes its success to over a century of experience along with continuous development and a modern production process. Permanent care for high quality and global standards resulted in an exceptional growth and development. Today Wawel’s products are available in about 50 countries worldwide and the number of loyal consumers is constantly growing.

We believe that pleasure originated by our products, based on Good Ingredients, can initiate small, good deeds, following our brand claim – feeling better, doing better!

Zbyszko Company S.A. is family-owned business founded in 1993. Zbyszko Company specialises in manufacturing carbonated and non-carbonated soft drinks, flavoured and mineral water. We deliver our brand name products and private label goods. Our two modern factories are equipped with the latest technologies currently available to the FMCG industry, e.g. aseptic technology. With 6 production lines, the company is able to produce about 140 000 bottles per hour. The high quality and safety has been guaranteed by the implementation of HACCP system, as well as BRC and FDA standards

The aim of the Food Export Congress is to provide a platform for the Polish food manufacturers to acquire or renew export business contacts. The event is also a unique opportunity to gain professional and valuable knowledge about the export market, prospective export directions and dangers connected with foreign trade. The event is made for the companies which successfully export goods, as well as for those agri-food sector manufacturers, who intend to present their offer to foreign contractors. Panel discussions, speeches from experts, business meetings or presentation of export products – these are only a part of what is planned for this year’s Food Export Congress.

HURT & DETAL (Wholesale & Retail) is a Polish-language nationwide monthly issued Magazine focusing on FMCG market in Poland. Circulation stands at 70 000 copies per month, closed trade distribution in the area of Poland. Publishing House guarantees optimum attainment with the information to merchants on four levels: print advertorials, social media contact, website commercials and banners & effective mailing (20 000 trade emails) – full marketing campaign.

HURT & DETAL is a host of annual “Złoty Paragon” (Golden Recipe) Awards Ceremony, where votes on best products are collected directly from retailers and “Złoty Paragon Innowacja” (Golden Recipe – Innovation) – consumer award contest.

Z.P.H.U. WAN-VIT

11a 3 Maja Street 88-430 Janowiec Wlkp., Poland Phone: +48 601 831 863 www.4proactive.eu www.wan-vit.pl

Wawel S.A.

14 Władysława Warneńczyka Street 30-520 Cracow, Poland Phone: +48 12 254 21 10 Fax: +48 12 254 21 47 export@wawel.compl www.wawel.com.pl

ZBYSZKO COMPANY S.A. 239 Warszawska Street 26-600 Radom, Poland Phone: +48 48 383 11 00 export@zbyszko.com.pl www.zbyszko.com.pl

FOOD EXPORT CONGRESS 2018

2/218 Bagno Street 00-112 Warsaw, Poland Phone: +48 22 404 14 58 k.paciorek@foodfrompoland.pl m.kudosz@foodfrompoland.pl www.exportcongress.com

FOOD EXPORT CONGRESS

25 September 2018 Warsaw, Marriott Hotel

HURT&DETAL MAGAZINE

2/218 Bagno Street 00-112 Warsaw, Poland Phone: +48 22 847 93 67 press@hurtidetal.pl www.hurtidetal.pl

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Wan-Vit is a family company with 25 years of tradition. We are one of Poland’s largest manufacturers of “warm ice cream” dessert. Thanks to the high quality of our products, we have earned the trust of our customers. Focusing on dynamic development, we have created the 4proactive product line for you. The main ingredients of the 4proactive creams are nuts. Our offer includes peanut butter as well as hazelnut, walnut, pistachio, cashew, almond and coconut creams, with many flavours and additives. Chocofita and Coffeefita Premium are alternatives to other creams and butters with high sugar content and other additives. They are 100% natural. Pumpkin, sunflower and sesame seed syrups will be a market hit. BITES and DUO STICKS natural grain snacks with a unique taste are an interesting supplement to our creams. Our products do not contain any preservatives, palm oil, salt and sugar additives.

We offer protein snacks, creams and bars to active people. They enjoy recognition not only among athletes but among all those who appreciate a healthy lifestyle. We manufacture nut creams and high-protein creams for many reputed brands on the European market.

The full range of our products is available at www.4proactive.eu Currently, 55% of our production is directed to foreign markets under other brands. They can also be found in many Polish supermarkets.

Chocofita and Coffeefita Premium enjoy the most popularity regardless of the export direction. As for the nut creams, it is a well-known fact that the most absorptive markets for peanut butter are the USA and the Netherlands. Fortunately, our society is going off the beaten track, increasingly supplementing their diet with nut- and grain-based products of our manufacture.

Participation in international trade fairs is intended to serve expansion to new markets, rather than being limited to domestic and European ones. We hope this is the way to show our potential business partners that we are trustworthy and that it is worth establishing cooperation with us.

We believe in the success of our products, knowing they are of top quality, which is a leading factor in comparison with our competitors. Our goal is to expand the assortment in line with the trends and expectations of our customers, as well as the development of exports under our 4proactive brand; however, we do not rule out production for other brands and the general development of our company, especially in the area of new investments.

We can produce for

DISCOVER POLISH PRODUCTS

Jelly beans Jelly beans – are very colorful beans. From the outside, they are surrounded by a harder sugar shell in all the colors of the rainbow, in the middle you will find a soft candy with an intense taste such as blueberry. You can eat them whole handfuls, enjoy the eye and give joy, because they are extremely nice, colorful and sweet. Children are simply missing them. You can buy them in 100g bags. www.3TOPOLE.pl

Wild Strawberry Wild Strawberry – this is one of our best selling product. 2 colors pink and purple. A small jelly sprinkled with pink or purple sprinkles, which in itself is a real attraction especially for

Big Bomb

children who love to “take it” from the jelly.

Big Bomb – our large pectin jelly coated in

forest wild strawberries. Not only the eye is

very fine sugar, in five colours and five flavors,

happy. It can be bought in 80 gram bags.

among others pineapple, grape and kiwi. One

www.3TOPOLE.pl

Sweetness with the taste and aroma of fresh

jelly Bomb delivers sweets for the whole day.

Very healthy, liked by everyone. They come in trayes of 2 kg. www.3TOPOLE.pl

Coco threesome Exceptional coconut team.

Do you want to stay fit and healthy? Try out our unique, finest and premium quality sweetmeats. They are healthy and delicious with a coconut flavor. Only with natural ingredients. www.4PROACTIVE.eu

Offer of BOGUTTI COMPANY! FREE – No added sugar Cookies. There is absolutely no added sugar in Free Cookies.

Really good and simple cookies, inspired by family traditional home recipe. They are a great alternative for breakfast, can be also serve as a snack at school or work. You can choose from the following flavours, Butter Cookies with 20% Butter, Cookies with 20% Chocolate, Chocolate & Cranberry or Chocolate & Hazelnut. Cookies are manufactured from the natural ingredients: 0 Sugar, 0 Trans Fat, No Preservatives. Cookies look nice and attractive with 12 months Shelf-life. Net weight 135g www.BOGUTTI.com

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DISCOVER POLISH PRODUCTS

Full flavour with no added sugar!

It is a unique line of delicious sweets without sugar. They contain maltitol, a sweetener of natural origin, so they can also be consumed by diabetics. The Wawel No-Added-Sugar sweets line consists of 100-g chocolates (Milk Chocolate, Milk Chocolate with coconut, Dark Chocolate 70% cocoa and Dark Chocolate 70% cocoa with pieces of orange) and the 110-g crispy and delicate Wafers with fillings (vanilla flavoured and cocoa flavoured). All these products have one feature in common – full flavour with no added sugar! www.WAWEL.pl

Wawel with a new variety for special occasions!

With the enthusiasts of filled chocolates in mind, Wawel presents large chocolate bars in large sizes and grammages - simply perfect as a gift - with high amount of delicious filling. They are served in elegant packaging and have original shape of kisses. The package includes exquisite chocolate bars, full of sensual, double-layer fillings – Tiramisu (Dark chocolate with tiramisu flavoured filling 290-g), Cream Fudge Chocolate (Milk chocolate with caramel and milk filling 300-g), Crunchy Coco (Milk chocolate with coconut filling with added rice crips 278-g), Strawberry (Dark chocolate with strawberry-yoghurt filling 300-g) – all without unnecessary additives, food colorings, artificial flavours or preservatives – just a simple list of high quality ingredients. www.WAWEL.pl

Terravita 225g chocolate tablets Chocolate tablets 225g Terravita it is proposal for sweet gift for special occasions.

High quality of the chocolate and elegant artwork give special – gift character for Terravita 225g chocolate tablets.

In our offer we have chocolate tablets in few flavours: Milk chocolate, Milk chocolate with hazelnuts, Milk chocolate with peanuts and raisins, Caffe latte milk chocolate with cookies, Dark chocolate with cherry and cranberry. www.TERRAVITA.pl

Terravita Choco Sticks Choco stick is the best proof that chocolate does not have to be boring.

Convenient and elegant form makes sticks excellent snack for short break during work, learning and travelling.

It is also excellent as positive dose of energy during physical activity.

Choco sticks 31g are available in 4 flavours made from the highest quality of chocolate: milk chocolate 35% cocoa and 25% of milk: solid milk chocolate, milk chocolate with yoghurt-raspberry filling; and dark chocolate with 70% cocoa content: solid dark chocolate, dark chocolate with peppermint filling. www.TERRAVITA.pl

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DISCOVER POLISH PRODUCTS

Trout pate for junior

Fish spread with rice

A new product line in the offer – for children

Product that connects generations. The

and not only. Sterilized pate based on smoked

combination of rice, meat, fish, tomato,

trout. The product does not contain flavor

onion and spices – they create a delicious

enhancers, preservatives and dyes.

product in pate form. This product can be

Pate with trout 125g – has been selected by

consumed with bread or can be the ideal

PLMA committee for New Product Expo –

base for other dishes. The winner of XXII

and will be displayed during the trade show

edition of “Now Poland Contest” (Teraz Polska)

in Idea Supermarket area.

and awarded “Try Good Food” (Poznaj Dobrą

www.DEGA.pl

Żywność) quality label by the Minister of Agriculture and Rural Development. The product entered into “The List of Traditional Products” (Lista Produktów Tradycyjnych) kept by the Minister for Agriculture and Rural Development. The winner of “Golden Receipt 2017” (Złoty paragon 2017) as the sale leader in the category of fish and fish products. www.DEGA.pl

ID’EAU – natural, functional mineral water EXCELLENTLY HYDRATING – the unique molecular structure of ID’EAU facilitates solving it. STIMULATING METABOLISM – ID’EAU contains as much as twice more oxygen than most of mineral waters. SUPPORTS MAINTENANCE OF ACID AND BASE BALANCE – alkaline pH of ID’EAU is conducive to the acid and base balance proper for our body. INCREASES ENDURANCE – the studies conducted in professional sportsmen proved significant effect on the rate of regeneration of the body and its resistance to long-term effort. www.IDEAU.pl

Polish poultry meat Polish poultry meat can successfully compete with the offer of world leaders by: √ competitive pricing – which you can expect from Polish producers and which becomes the key factor, when the product is of impeccable quality in relation to the price; √ exceptional quality and taste, resulting from full control of the production process “from farm to fork”; √ wide selection of poultry products: chickens, turkeys, geese, ducks and other types of poultry, offered as fresh meat: carcasses and different cuts (available also as frozen meat) and offal and preparations. www.KRD-IG.com.pl

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DISCOVER POLISH PRODUCTS

Forest fruit

Fruit Pantry Raspberry Syrup

Fruit and herbal tea with forest fruit flavor

Raspberry-flavoured syrup

Our teas from the Tea Garden range are made from 100%

Herbapol fruit syrup a tasty option rich in

natural ingredients. Carefully selected and picked fruit are

fruit, perfect for both hot days and cold

subject to a thorough inspection and then packed by hand

evenings. It is easy to prepare and can be

to protect their natural essence. Large pieces of fruit that

added to both hot and cold water. Our

you can see through transparent teabags make the beverage

syrups are also a perfect addition to teas,

outstandingly tasty and

drinks, cocktails and desserts!

aromatic.

Preservative and artificial colour-free, the

Our fruit tea does not contain

appealing composition of flavours contains

any theine and can therefore be

concentrated fruit juices. Thanks to a high

served to children. The variety of

quality and efficiency, our syrups have reigned

flavours within the Tea Garden

in Polish households for generations.

range makes it a perfect beverage

Fruit Pantry is invaluable in every kitchen, on

for all family members and

a trip or on a picnic among friends. Perfect for

a natural and tasty alternative

any occasion and any season of the year.

to soft drinks. It is suitable for

www.HERBAPOL.pl

drinking both hot and cold. www.HERBAPOL.pl

Veroni active Natural Energy Drink

Veroni active Natural Isotonic

The Veroni active portfolio is enlarged by Natural Energy Drink

Veroni active Natural Isotonic is an isotonic drink

– an energy drink with a completely natural composition. The

based on 100% natural product recipe that includes only 4 ingredients: water,

product contains 140mg of natural caffeine obtained from

highest quality NFC juice, cane sugar and salt. Due to the osmolality of 300

guarana and green coffee beans, which instantly adds energy to

mOsm / kg it perfectly hydrates the organism during the physical activity.

the action. The aromas and juices it contains give it an intensely

Additional benefits of Veroni active Natural Isotonic are: a handy, functional

fruity flavor. Veroni active Natural Drink is sold in a handy and

bottle with a volume of 700ml which is perfectly suited to bicycle handles

functional 400ml bottle. The label of the drink combines the

and a sport cap enabling easy drinking while sports activities. Veroni active

natural origin of the product with its energy function.

Natural Isotonic is available in three attractive flavours: aronia & lemon, apple

www.ZBYSZKO.com.pl

& lemon, orange & lemon.

The product’s label is kept in the colour scheme of the carton combined with shades of green, which emphasizes the natural origin of the product while images of athletes accentuate the purpose of the drink. The product is manufactured using aseptic technology. www.ZBYSZKO.com.pl

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DISCOVER POLISH PRODUCTS

Mint tea Mint contains essential oils, which includes free alcohols (especially menthol), as well as tannins and flavonoids. The tea is used to reduce gastrointestinal discomfort from increased gastric acid secretion; to decrease the risk of liver and biliary tract diseases; in the case of colds and inflammations of the mouth, can also be used in inhalation treatments. www.BIFIX.pl

Raspberry tea Raspberry fruits are a natural source of vitamins C, A, B2, PP, trace elements and minerals. It is an excellent supplement in the prevention and treatment of colds.

Raspberries contain substances that exhibit antipyretic and cleansing properties. In drinking this tea you are supplying your body with vital substances, and in doing so you are supporting your body’s natural immune system. www.BIFIX.pl

Table Mustard 175 g Multi purpose, mild mustard with a

Mild Ketchup 450 g

smooth, creamy texture in a classic

A unique combination of aromatic

glass jar with a capacity of 180ml.

tomatoes with a delicate hint of

Its delicate and harmonious flavour

spices. No “E” additives (including

makes it widely used. It contains no

starch), simple and clean

preservatives, artificial colors or flavor

label, short ingredients list. No

enhancers. Gluten-free. Perfect for hot

preservatives. Gluten-free.

and cold meats, cheeses, dips.

www.ROLESKI.pl

www.ROLESKI.pl

Our wholegrain pasta is a perfect proposition for people who care about their daily diet.

For all our customers we offer spelt, buckwheat and rye pasta. www.MAKARONY.pl

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DISCOVER POLISH PRODUCTS

Processed cheese MIX “Your... favourite” – 140g round box

Processed product MAZURSKI – 280g round box www.SERTOP.com.pl

www.SERTOP.com.pl

Luxury Cream Fudge Traditional recipe was developed in the family atmosphere of experimenting with tastes and flavours. This is how our cream fudge was invented. The recipes goes back to the 50’. Unforgeable taste and original flavor supported with modern technologies and innovative methods guarantee unique flavor and highest quality. Diversity of packaging’s and flexibility will satisfy every customer. www.MAJAMI.pl

Sesame snaps Crunchy and sweet combination of sesame seed is a childhood taste.. Tasty crispy snack is perfect solution when we want to eat something sweet.

Perfect for children and adults, traditional or with fruits or seeds will surely meet expectations of all gourmets. www.MAJAMI.pl

Fresh Box Fresh Box – automated terminal, which works on the same principle as the Parcel Terminals, but additionally allows to adjust temperature in the storage cells.

Fresh Box allows clients to store their belongings and products at a certain temperature range (+2°C, +8°C), choose the time of storage, transfer them to other people. Thanks to Fresh Box we are able to store and transfer even products such as milk, meat and fish, frozen foods.

Advantages: Ability to deliver chilled food; Receiving and issuing orders near the customer’s house or on his way to work; Additional advertising space in public places; Additional services (Parcel Terminals and Fresh-Boxes can be equipped with online payments terminal); To provide a platform for the vending sales; Individual, recognizable and unique design. www.MODERN-EXPO.pl

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perfect hydration

high oxygen content

increases endurance

restoration of acid-base balance