Interviews

Krzysztof Koszela, Director of International Markets, Jutrzenka Colian

Tuesday, 24 February, 2015
On the qualities of Jutrzenka's products, development of export sales, forecasts for the private label market and the quality systems implemented at Jutrzenka plants – with Krzysztof Koszela, Director of International Markets at Jutrzenka Colian.
Colian, which includes Jutrzenka Colian – is an organization that meets the "tastiest" dreams of the consumers. Where does such a great deal of passion in creating the highest quality food products come from?

Fulfilling the "tasty" dreams of our consumers is our priority! Passion and commitment to creating products combined with tradition, are the Colian Group’s highest values. Brands belonging to the portfolio of our company have been present on the Polish market for many years. The products of Jutrzenka, Goplana, Solidarność and Grześki are not only recognizable among consumers, but most of all have earned their recognition. Colian attaches enormous importance to the traditional way of manufacturing products and creating original combinations of flavours. Appreciating the value of traditional recipes used in the company's plants, we do not forget about the consistent implementation of modern technology. However, the uniqueness of the products offered by Colian Group should be seen, not only in the traditional recipes and modern technological solutions, but also in their natural and homemade taste. All of these features contribute towards the positive perception of Polish products on overseas markets.

What percentage of the production volume goes to overseas markets and which product range is available for overseas consumers?

Export, which accounts for more than 12% of our domestic sales, features a very important part of the company’s activity. Our strategy is, among other things, about achieving sales growth in mature markets – by increasing both the weighted and numeric distribution. Step by step we are also entering new markets, where we introduce brands equivalent to the Polish ones with an established market position – under brand names of a global nature and packaging tailored to the requirements of individual markets. We very often adjust our offer to the consumer habits prevailing in a particular country. An example of this is our blend of spices, dedicated to the Russian or Mongolian market. We remain committed to the high availability of our products at the points of sale. That is why we enter into direct cooperation with both large retail chains as well as some selected distributors.  

Colian's assortment is available in over 30 countries around the world. The export offer of sweets, spices or drinks goes to markets in Europe, Asia, the United States, Canada and the Middle East. Such products as Mella jelly, Family`s wafer biscuits (equivalent to Polish Familijne wafer biscuits), Goplana chocolate (export brand of Chopin chocolates), Jeżyki cakes, Alibi bars – are very popular among overseas consumers and are gradually gaining new markets. Currently, we are actively developing distribution to the markets of Central and Eastern Europe (Uzbekistan, Kazakhstan), United Kingdom, USA, Israel, Lithuania, Latvia, Russia and Mongolia. Colian is also present in the Arab countries, in Korea and in China.  

How important is, to you at Jutrzenka Colian, the export market of private label products?

Our strategy is to primarily build our market position on the basis of branded products. However, we also participate in the production of private label products. The share of private labels in our export isn’t that large and accounts for only 8% of the total overseas business. Certainly, over time this performance may improve, but now, due to the growing export of our branded products, private label shares remain at a similar level.

What is the outlook on the growth of branded and private label products for Jutrzenka Colian?

A very good, but a the same time a difficult question. Currently, we are quite optimistic about the development of exports in our company. We believe that the export of branded products will develop with a double-digit dynamics. As for the development of private label products, I believe that also this market segment will grow, but looking at the results in Europe – it will not be a development featuring high growth, mainly due to the maturity of this market segment. Retailers will therefore concentrate on proven and reliable suppliers who will be able to meet the growing expectations of the private label market.  

Will we see, in 2014, Jutrzenka Colian entering new markets (also with private label products) or perhaps an expansion of your export activity on you current markets?

Our company has a huge potential for growth, and therefore a continuous extension of the offer and acquisition of new markets is very important to us. We constantly build a positive image of the company as a reliable partner, offering product ranges of high quality, and this makes our export sales of food products grow all the time. The main motivation for entering new markets and expanding the export offer is to increase the revenues and scale of operations, as well as expanding – an already quite large – customer portfolio. Through expansion we shall be able to permanently strengthen the strong positions of our product brands and further develop the extremely competitive segment of private label products.

Are there any geographical barriers in the context of export activity for Jutrzenka Colian?  

Quite the opposite, geographical barriers do not exist for us whatsoever. We can boast of a really wide field of activity in terms of export sales, although, in contrast to our major competitors, we do not have production facilities outside our country. This fact motivates us to be even more determined and hard working.

So there are other obstacles that make it difficult for you to develop your export activities...

I am afraid so. The first obstacle includes the formal and legal aspects and those associated with custom policy. For there are markets less friendly to foreign manufacturers. One of them is the Ukrainian market, which, in my opinion, always bore the mark of high political risks, similar to the unpredictable Russian market.  This is an extremely important aspect, which should be paid attention to when considering investment in the long term.

The second aspect, which can also be an obstacle to export activities, includes social and cultural considerations. For that reason the portfolio of products must be adapted to the needs and preferences of the consumer. We must therefore know what they like, what form of products they prefer - before we choose to engage in any export activity.

What are your criteria for the pricing policy in Poland and how would they differ in the case of your overseas markets?

In Poland, the products with the logo of Jutrzenka Colian, Solidarność are sold in the Mainstream Plus segment. This is possible due to the high quality of our products, attractive packaging and consumer knowledge of the brands offered.
In the case of overseas markets, the pricing policy must be consistent and relevant to individual areas of sales, as well as individually tailored to each market. For example, in Mongolia, where our products have now been known for years, our product range is located on the premium shelf – price-wise.  Special recognition in Mongolia is enjoyed by the Vigor and Siesta brands, which are heavily promoted in printed media and on television. We have also expanded the number of points of sale, we are constantly improving exposure, we are introducing consumer promotions and tasting of products. All of these activities have contributed to the increase in sales and building consumer loyalty of the Mongolian consumer towards our brand. Another example could be the UK, where we work directly with both large networks and distributors. The UK market is highly competitive and the high quality of products are particularly important and is as well our priority. Exported products are also strongly supported by marketing activities and as such they are well promoted, with growing sales.  

For a company operating on overseas markets, to hold a strong position it must have a strong brand. What would be the activities that Jutrzenka Colian undertakes in terms of education of its brand beyond Polish borders?  

Certainly, a strong brand no doubt helps establish a position on an overseas market. Nonetheless, without such a brand, one can still strengthen its position through the smart use of the so-called marketing mix.  The ability to find a competitive advantage is of greatest importance, and we at Jutrzenka Colian build such an advantage on the basis of innovative product offer. Good positioning of the offer is also of key importance. Depending on the market we shall expose such attributes as quality, taste, form of presentation or the brand itself. We also invest in marketing and advertising through building brand awareness, which is known in Mongolia, Lithuania, Latvia, Russia, USA, the UK or Israel. In contrast, the branding strategy itself is based on our product portfolio. For example, in Poland, we make our appearance under the brand name of “familijne", overseas that brand is "family's", in Poland we offer "jeżyki", overaes we sell the same product under the brand name of "clue". Our portfolio also includes such brands as "Akuku", Goplana, Appetita and Vigor spices, which in our opinion are international and universal. We are also refraining from increasing our range of products, on the contrary – we try to reduce our portfolio, since the more branded products in the portfolio, the harder it is to manage them.

What is your way of highlighting the origin of Jutrzenka Colian products and their qualities when engaging in cooperation with overseas partners?

It is very important to have a business partner pleased to be working with the company, which is why we do care about the good image of Colian Group. As mentioned earlier, we focus on the tradition, naturalness and home taste of our products. These are no doubt the most important qualities that have an impact on the positive perception of ours Group portfolio. As a manufacturer, we inform about the origin of our products, making it clear that the product was either packed in Poland or made in Poland. This applies to each category: culinary, confectionary and beverages products. And so, the motto of the Appetita brand: “Seduces with aroma", highlights what is natural and best about Appetita spices: the aroma, freshness and rich flavour. On the other hand, the phrase: "Siesta is nature's finest delicacy!" – emphasizes the full flavour and nutritional value of Siesta delicacies made of selected fruits, dried in their natural climate. While the words "Jutrzenka, the sweetest for years" – confirm that this is a brand that has for years guaranteed the highest quality products through a combination of traditional recipes and modern technology. I really could talk about the qualities of Colian Group products without end…  

Cooperating with overseas partners prompts the implementation of safety and quality assurance systems as well as obtaining relevant certificates...

Colian implemented relevant quality systems and obtained a number of certificates, which confirm the reliability of the company and concern for the safety of consumer products.  
Our production plants feature the HACCP system of hazard analysis and critical control points, which eliminates the risks associated with biological, chemical and physical hazards of the food we manufacture. The objective is to identify and assess the scale of food safety hazards during all of the stages of production and distribution. The HACCP system gives the certainty that the company has done everything possible for the safety of the product and the consumer in respect of legal provisions, principles of good manufacturing practice and the needs of customers. We also have the ISO 9001:2000 quality management system, which is used as a powerful tool for continuous improvement of product quality and efficiency of the company. In addition, Jutrzenka Colian has implemented the ISO 14001 environmental management system, guaranteeing the company’s care to protect the environment and the appropriate level of occupational health and safety. Since we export our products to the European Union, we have also implemented the International Food Standard – the standard of quality required by German retailers, as well as the British Retail Consortium – a standard of quality required by British chains. We have also obtained certificates of conformity with standards, i.e. documents releasing our products for sale on Ukrainian, Belarusian and Russian markets. Relevant health authorities visit the company, review our production processes and examine quality issues. On this basis, we have obtained a certificate releasing our products for sale on eastern markets.   

Thank you for your time
Tomasz Pańczyk


tagi: Krzysztof Koszela , Director of International Markets , Jutrzenka Colian ,