CYPRIOT SUCCESS TAKES HALLOUMI TO NEW HEIGHTS

N. Th. Kouroushis Ltd was founded in 1959 in Cyprus by John Kouroushis. A traditional family business, it produced and supplied dairy products. Over the ensuing decades, Kouroushis has grown and evolved, but it remains committed to the same core values. Nikos Stavropoulos, UK Commercial Director, explained more to Hannah Barnett.

INNovember 2022, Greek dairy giant Hellenic Dairies acquired a 49% stake in Kouroushis. With the ink barely dry on the contract, the latter company has been engaged in plenty of constructive activity ever since.

U K Commercial Director Nikos Stavropoulos echoed this observation. “The acquisition is a significant step forward that will improve our financial strength and create commercial synergies,” he said. “Being part of the robust and financially healthy group of

Hellenic Dairies allows our company to implement its strategic plan of growth and increased productivity.”

Acquisition and growth

Indeed, even before the acquisition, Kouroushis was enjoying a period of strong progress: the company recorded a €6.5M turnover for 2022, a 23% increase on the previous year. The split between domestic sales and exports was 34% and 66% respectively, as the overseas market continued to expand too.

Kouroushis has now gained direct access to markets where it previously did not have a commercial presence. This is because Hellenic Dairies exports to more than 54 countries and has established 13 commercial entities in several key locations where halloumi cheese is a popular and established product, such as Germany, Italy, Sweden and the UK.

Since the acquisition, developments have been made to increase production capacity at the Kouroushis factory. “We made an immediate investment of €600,000 to improve and increase our production capabilities at the existing site. We managed to double the capacity of halloumi cheese from 1,000 tonnes to 2,000 tonnes by investing in upgrading the infrastructure. These improvements were successfully certified through a BRC audit during February 2022,” explained Mr Stavropoulos.

Alongside the renovation, construction work to build a brand-new Kouroushis halloumi factory in Nicosia is underway. The facility will be the most sophisticated dairy plant in Cyprus, with high production capacities and state-ofthe-art equipment.

“The new factory is a greenfield investment of more than €44 million,” Mr Stavropoulos said. “It marks our strong commitment to being one of the most reliable suppliers of halloumi worldwide, with an initial capacity at 9,000 tonnes. It is expected to be fully operational by early 2024 when all the production operations of Kouroushis will be transferred there .”

The rise of halloumi

The company offers a range of Cypriot dairy items, such as halloumi cheese, sheep yoghurt and kefir drinks, and adheres to strict quality standards and controls in its production process. “I like to quote our CEO, Costakis Theophilou,” said Mr Stavropoulos. “He stated ‘quality is our identity.’ This is the foundation our brand is built upon, and it is comprised of two key areas: product safety and the best possible taste we can deliver to our customers.”

By far the most popular product in the Kouroushis’ roster is halloumi cheese.

These days, halloumi is becoming increasingly well-known, enjoying a huge surge in popularity. Worldwide, exports of the cheese increased fourfold between 2012 and 2021, reaching 38,717 tonnes in a market worth €262.2 million in 2021.

This upward trajectory shows little sign of slowing down. According to Cypriot Ministry of Commerce data, halloumi pro ducers exported 32,000 tonnes of halloumi worth €227 million in the first nine months of 2022. It is an increase of 23% on 2020, which was the most plentiful year up to this point.

“Halloumi has gained so much popularity because it is a versatile cheese that can be used in a variety of ways. It can be eaten raw, but it is truly delicious when you grill or fry it,” said Mr Stavropoulos.

As of October 2021, halloumi is also a Protected Designation of Origin product. This safeguards the name against imitation and misuse. It also means halloumi can only be produced in Cyprus. Additionally, under PDO regulations, 25% of the milk in the cheese must come from sheep and goat’s milk. This will rise to 51% in upcoming years, with the remainder to be from cow’s milk.

For Kouroushis, the PDO certification also entails taking the needs of its supply chain into account. “Our biggest challenge is to help and support our cow, sheep and goat farmers,” Mr Stavropoulos explained, “both technically and financially , to grow and increase their capacity. This will help us meet the international, everincreasing appetite for halloumi, and our goals for boosting production.”

Sustainability and longevity

Kouroushis clearly values its supply chain. The company is originally a family business, after all, as is the Hellenic Dairies Group. What is also evident is that these roots impact all the company’s business partnerships.

“We share the same values as Hellenic, ” Mr Stavropoulos said. “Like them, we grew alongside our suppliers, to become partners and create trustworthy relation ships. We are here to help them overcome any challenges they may face. It is a win -win relationship.”

As important as a solid and sustainable supply chain is, so too is solid and sustainable infrastructure. The new Kouroushis factory will not only be the largest and most modern factory in Cyprus, but it is also designed to uphold the strictest green standards, minimising the company’s environmental footprint.

“Sustainability is always high on our agenda,” Mr Stavropoulos said. “We are installing a biogas facility, which aims at the efficient treatment of all liquid waste from production activities, at the same time as generating electricity. We are also installing a 3.2MW PV plant and are hoping to become carbon neutral that way. Additionally, we are committed to protecting and preserving natural resources and are installing a water treatment facility to reuse the water in our factory.”

The sky is the limit for Kouroushis, as the company maintains its period of growth. Mr Stavropoulos was reflective about the challenges that emerge dayto-day in this line of work. “The food and drink industry is demanding, but there is no better reward than working towards a common goal,” he concluded. “I like to feel that I am contributing to the growth of the company, at the same time as providing safe and quality products to our customers.”