Interviews

An interview with Rafał Załubka, Sales Executive at Hoop Polska about the bootled water market and trends of modern trade.

Wednesday, 17 June, 2015
Water and functional beverages is a category with good growth prospects. Please tell us about innovation and new products (relaunch of Arctic brand).The bottled water market has good prospects too.
We have conducted consumer research that indicated Arctic is one of the most recognizable brands in the prompted awareness on the market. For us it was a clear signal of the potential still lurking in Arctic and therefore in 2014, we started to watch possibilities to refresh the image of the brand and potential new target groups. Water is the second largest category of non-alcoholic beverages on the market in Poland worth over 2.8 billion zl, just behind the carbonated beverages. In our opinion, there are still great opportunities for development, because the Poles are still below the average water consumption per capita in comparison with other European countries. We started the sale of ARCTIC mineral water with the new labels by the end of February 2015. The portfolio includes still, carbonated and flavored options, which we had so far in our offer. In the middle of 2005, also functional variants of Arctic water will join the mineral waters.

What percentage of the production is exported to foreign markets and what products are available for foreign consumers?

The share of exports in the sales structure is not large, but we operate actively to consistently increase this percentage. We see our strength in the flexibility of production options we can offer our consumer, both in soft drinks and syrups. It is syrups that have the largest share in both quantity and value of export of Hoop Polska, both those produced under the brand Paola and under customer private label. Besides, Hoop Polska has been exporting products from each beverage category, in which it is a manufacturer: Arctic mineral water, soft drinks Hoop Cola, orangeade, drinks for children Jupik and Jupik Aqua and Paola syrups, for many years. The product of a private label – Syrop Domowy (Homemade syrup) with a capacity of 0,43l and 0,97l we can consider export hit to North America.
We are always up to date with market trends, analyze the latest trends and are eager to share our knowledge with customers.

Important markets and major customers are...

The quality of our products is appreciated by customers in the United States and Canada, who are provided mainly with syrups, and in Europe, where Romania and Lithuania are the biggest consumers of our syrups and soft drinks. From the circle our partners, a Canadian company is the largest distributor buying our products.

Sale of products under the brands of networks is one of the most important trends of modern trade. As this trend fit Hoop brand?

Hoop Polska has been diversifying its activities for many years by producing beverages under own well-known brands like: Hoop Cola, Jupik, Paola syrups, as well as working with retail chains in the production of beverages under their private labels. This long-term collaboration allows us to create more cooperation planes to introduce to discount shops our own brands in in/out actions and regular listings.

What is the share of private label in the export?

Today, the share of private labels in total export of Hoop Polska varies to 15-20%, with growing trend.

What are the forecasts for the development of export of the products and own brands?

As a company, we always want to actively respond to the needs of customers and to adapt to their needs as much as possible. Today, the growing interest in our products that we see among our foreign contractors, allows us to predict further increases in export of private brands. Today, it is estimated at 10% in about two years range.

Are you going to expand the range of our export activity in the near future?

We are constantly looking for new export markets and partners for cooperation. We are in talks with companies from China, Latvia, Sweden. We are always open to each direction of export. We only have to develop favorable conditions for cooperation for both parties.

Is the entry to private label market difficult (price wars between networks, pricing policy)?

Entry into private label segment is a conscious choice associated with the strategy of each manufacturer. Compared to Western Europe, where private labels are up to 60 percent of the market, there is still some place for their development in Poland. The chains are very highly demanding towards their suppliers in terms of quality, so the manufacturers are improving their processes, and thus become more competitive. The issue of pricing policy always results from relations between the two sides. Hoop, when working with large networks, always tries to offer something more out of the regular products of the offer. That includes, among others, innovative products and recipes, in line with European trends, which we can offer our contractors.

What barriers can be encountered in the development of export activity (also within the private label)?

I would not call them barriers, but rather opportunities to demonstrate flexibility and negotiating skills that will be a good opening for future cooperation. Production minimums held by any company can be a difficulty for ordering by the beverage production services. Nonetheless, out of respect for the potential client, we always try to find a solution for such situations as well.
Another problem may be the time needed to develop labels for new products. This applies both for branded products and private labels. This process usually takes from 1 to 2 months, extending the time needed for the execution of the order.

Private label – facts and myths – knowledge/education of consumers on Polish and foreign markets.

Today, private labels are no longer cheap, low-quality products, but strong brands, marketing-supported by networks, resulting in their division slowly blurring in the mind of consumer. This process leads to a situation where only a brand remains, regardless of whether it belongs to manufacturer or to network.

What quality systems do you have in production plants?

Hoop Polska attaches the utmost importance to the maintenance of high quality of its products. Our plants meet the highest standards, as evidenced by quality systems owned e.g.: IFS and ISO9001.

Thank you for an interview.



tagi: Rafał Załubka , Hoop Polska , water market , export ,