FROM EASTERN EUROPE TO EAST LONDON
Lituanica UK is the largest importer and distributor of Eastern and North-eastern European food in the UK and Ireland. Operating three divisions; cash and carry, wholesale delivery and retail, it has been thriving for two decades. The company celebrates its twentieth birthday in 2023. Hannah Barnett spoke to Managing Director Rasa Apostol, Head of Operations Peter Dodd and Head of Sales and Marketing Stasys Mitchell about the significance of this milestone.
When Lituanica began operations in 2003, there was, according to Managing Director Rasa Apostol; ‘not much of a market’ for Eastern European food products in the UK or Ireland. In 2004, eight countries from Eastern Europe joined the EU, meaning that as migration possibilities expanded, so too did demand for food that tasted of home. And Lituanica was there.
“We jumped in early,” said Ms Apostol, “when there were no products available.”
Strength-to-strength
Lituanica is a family-run business, which started in Ireland before expanding to the UK. Ms Apostol explained that her sister and brother-in-law founded it together after spotting the gap in the market.
“And we worked hard,” she recalled, “expanding the customer base and building operations. In 2007, we bought our first warehouse in Barking, where we opened the cash and carry which still operates today. In 2015, we bought the large
warehouse and invested £3 million into fitting the facilities. We grew rapidly over the years, by 10, 15, 20%. We really chased that growth.”
The hard work paid dividends: Lituanica reported a turnover of over £36 million in 2022. It also placed the company in good stead for the ample facilities it enjoys today. That includes the large 10,000 square metre warehouse and a fleet of 20 vehicles of various sizes, from Sprinter vans to HGVs, offering next-day-delivery around the UK.
“Our primary customers are independent business owners and retailers,” said Peter Dodd, Head of Operations; “Plus, a small number of mainstream operators. So, we do national distribution, cash and carry, and then the third tier is our own retail .”
Lituanica now operates eight retail sites, mainly in London and the southeast, although they also have a branch in Birmingham and another in Ipswich. There is also a Lituanica restaurant, based out of its flagship store in Beckton, East London.
“We are a one-stop-shop,” Ms Apostol said. “If you are looking for something specific from a certain country, especially from Eastern Europe, then we probably have it. Though there are a lot of good players in the market these days, many of them are more specialist, so that comes with less variety of products.”
Built-to-last
For a business like Lituanica, where a portion of its trade comes from its nationwide delivery service to smaller retailers, it’s
important to get the logistics right. With a 98% fill rate, the company is certainly doing well meeting orders; but managing a large-scale distribution network is a substantial operation, nonetheless.
“We've got about 300 suppliers,” explained Head of Sales and Marketing Stasys Mitchell. “And around 4,000 SKUs from 15 different countries, predominantly eastern Europe. We’re always looking at expanding, keeping an eye on customer demands and outstanding products.
“Since Brexit, there have been challenges as far as importing goes. So, we try to make sure that the products – especially the frozen and chilled ones – are tracked from when they leave the manufacturers all the way through to when they get to the customer’s store. I think that really sets us apart: the quality and guarantee that the product is getting to you in the right way, especially the more sensitive items.”
It is clear that a strong relationship with suppliers is a priority when it comes to the
running of Lituanica. Most partners are eastern Europe-based and have a long, profitable, working relationship with the company according to Ms Apostol.
“We have been working with some of these suppliers for as long as we have been around, 20 years plus,” she said.
“Some of the biggest are the meat suppliers; Sokołów, Smithfield Foods and Rolnik. But there are lots more. We have a long list of businesses we have worked with for the last 20 years, and a good
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It is not just strong relationships with its partners that keeps the company running, though: as Ms Apostol said, in-house staff are crucial, too.
“Our team is the most important thing about Lituanica,” she stressed. “We have 170 people working together. Out of 20 or so managers many of them have up to 20 years of experience, where they’ve stayed with us; we have new people joining as well. We have employees from 18 different nationalities. Our workforce is very diverse in the same way that we are diverse with our products and customer base.”
Grow-to-learn
Lituanica is not likely to rest on its laurels twenty years down the line. Growth is always a major topic. The company
is investigating the possibilities of B2C expansion online and intends to grow more widely offline too.
“We have a few development plans, as well as some operational procedures that need to be reviewed,” Ms Apostol explained. “But expansion is our main one. We are still mainly based around our London warehouses. So, we are looking into national expansion. We will celebrate 20 years this year and refine our strategic plan.”
“Our goal over the last 20 years has always been to bring eastern european cuisine over here,” Mr Mitchell added, “and make it more acceptable to people
who aren't used to that type of food, and more accessible to people who are. The challenges that come with that can be vast, but as a result, we have a lot of business knowledge that we didn't have 20 years ago. There is real motivation to grow and learn.” Ms Apostol, Mr Mitchell and Mr Dodd all agreed; how it is the challenges of working at the company that keep the job interesting.
“I get a lot from the learning and improving process,” Ms Apostol concluded. “It is better working hard and achieving some thing than relaxing and achieving nothing Somebody recently asked me why I do what I do. The answer is: ‘why not’? ” n
