Food from Poland ISM Edition 2020 by HURT & DETAL

STATISTICS Promoting Polish food in 2019 p. 14

STATISTICS Food Export 3Q 2019 p. 40

LIST OF POLISH COMPANIES p. 86

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FoodfromPoland Polish Magazine for Professionals

EDITORIAL

CONTENTS MARKET NEWS ............................ 8 POLAND TASTES GOOD

Promoting Polish food in 2019 ................ 14

STATISTICS

Polish agri-food exports in 2019 ............. 16

INTERVIEW

Robert Okoński, Wawel . ............................ 20 Maciej Herman, Lotte Wedel .................... 24 Sara Wójcik, ZPC Śnieżka .......................... 25 Marek Maciejewski, Sertop ............................. 28 Małgorzata Cebelińska, Mlekpol .............. 30 Wiktor Sawosz, Brand Distribution Group .......................... 34 Julita Sipa, Brześć ........................................ 38

Tomasz Pańczyk Editor-In-Chief

Dear Readers,

STATISTICS

Food exports Q1 to Q3 2019 .................. 40

Welcome to the first issue of Food from Poland Magazine in 2020 in which you can read about Polish companies and the excellent traditional Polish food products. Foreigners are delighted with the natural and healthy foodstuff of the Polish cuisine as well as amazing taste of Polish food products. Our products are associated with traditional recipes and high quality, therefore they have been gaining popularity around the world. Polish traditional products as sausages, cold meats, dairy produce, Polish vodka and sweets are sought and purchased by foreign customers. We are proud of it! Our Magazine is available at the following international food fairs: ISM Cologne, BIOFACH Nuremberg, GULFOOD Dubai, FOOD & HOTEL ASIA Singapore and ANUFOOD CHINA Shenzen. Enjoy reading!

COMMENTARY

Influencer campaigns .................................. 42

MARKETS

Children’s snack bars .................................. 46 Mintel’s global food and drink trends 2030 .. 47 The sweet part of the Polish market ....... 48 Internationalization of the food market . 52 Organic and traditional foods ................... 55 Transformation of Polish market .............. 58 Quality wine products.................................. 60 The demand for Polish wines..................... 61 Non-EU markets missed opportunity....... 64 Exports to non-EU grows........................... 65

STATISTICS

Global players and brands with a history.... 66

SUMMARY

What was the year of 2019 like ............... 70

INTERVIEW

Wojciech Ryttel, Maxpol ............................ 78

STORY

ISRAFOOD 2019 ........................................ 82 ANUGA 2019 . ............................................. 84

LIST OF POLISH COMPANIES................................. 86

• Editor-In-Chief - Tomasz Pańczyk

Editorial Office

Advertisement Office

• Managing Editor - Monika Górka

Bagno Street 2/218 00-112 Warsaw, Poland

Phone/Fax: +48 22 847 93 67 +48 22 828 93 66

t.panczyk@foodfrompoland.pl m.gorka@foodfrompoland.pl

• Editor - Michał Pańczyk

m.panczyk@foodfrompoland.pl

• Sales & Marketing Departmet Katarzyna Paciorek k.paciorek@foodfrompoland.pl

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Phone/Fax: +48 22 847 93 67 +48 22 828 93 66 +48 22 847 93 68 redakcja@foodfrompoland.pl www.foodfrompoland.pl

Graphics studio

Paweł Pańczyk, Maja Bulwarska

Printing house: ArtDruk Kobyłka www.artdruk.com

Fischer Trading Group Ltd. Bagno Street 2/218, 00-112 Warsaw Phone/Fax: +48 22 847 93 67, +48 22 847 93 68 t.panczyk@ftgroup.pl www.hurtidetal.pl CEO: Tomasz Pańczyk

In our publication we use adobestock photos

DISCOVER POLISH PRODUCTS................................... 90

MARKET NEWS

Terravita “to go” and small format products are on the rise

A delicious round pleasure in Wawel’s portfolio The Wawel brand’s product portfolio has expanded with its new addition of chocolate coated jellies that come in two delicious flavours: raspberry and orange. Both novelties come in a round pastille form, covered with a delicate Wawel dessert chocolate that melts in the mouth. The orange jellies are distinguished by their unique, refreshing taste of juicy orange fruit. On the other hand, the raspberry jellies are a delicious combination of juicy raspberries with a subtle taste of the best chocolate. All jellies contain only Good Ingredients - they do not contain any colourings or artificial flavours - they are filled with fruit juices. Other items that are coated with Wawel dessert chocolate are also worth trying, including Chocolate Mints- a subtle composition with a refreshing mint filling.

Yummity organic range and inovations The Yummity products line was created in response to the latest nutritonal trends: the quest for clean supreme label products tailored to needs of modern Vegan, Gluten Free and Flexitarian consumers. The actual range of Yummity contains ready-to-use mixes- gluten-free meals and bakery. Our R&D department is constantly developing new recipes. In Q2, the company plans to present innovations from the conventional line, and a whole range of products in the BIO line. We are also working on an offer for private label brands.

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The continuous rise in the pace of life of consumers also affects the chocolate market. It is especially easy to see in the “to go” and small format product segment, which see growth each year and are becoming a major part of the market. Equally importantly, consumers who eat chocolate on the run do not want to compromise on quality and are very demanding. A small bar of chocolate is seen as a gift to yourself, one that not only gives you energy, but also pleasure, and nobody likes low quality gifts. To meet this need, Terravita is offering several variations of 31g Choco sticks, as well as 50g chocolate bars for adults and children, which perfectly encapsulate the “gift for yourself” idea. The basis for all these products is chocolate of the highest quality, and precisely chosen well-made additives.

Pryncy Teka - the new confectionery power on the wafer and cakes market comes to the market with a bang

At Pryncy Teka, we are distinguished by an unconventional approach to biscuits and the desire to offer our customers the best quality raw materials, which gives us an advantage over Western corporations. Pryncy Teka Sp. z o.o. has long traditions on the Polish confectionary market. The owner, Mr. Gerard Kolanowski in the 90s founded the company Lider SKG and successfully sold cakes under the brand Dr. Gerard , which he sold. Now it’s time for Pryncy Teka! Introducing to the market A market entry strategy has been defined for to the portfolio that will gradually develop over the next months. They will be various products, in different forms of application, but also total innovations. The company is building sales structures, the first trade talks with major customers have already taken place - both commercial networks, distributors and local networks. Export sales is growing steadily. Our products are very popular and customers duplicate their orders. Pryncy Teka exhibits at industry fairs, participates in local customer events, and we simultaneously open the markets of southern and western Europe and the Middle East. Pryncy Teka develops cooperation with both the wholesale and so-called Traditional market as well as with modern networks. Our products will be available for purchase in both small local stores and large area stores. The offer includes waffle products with cocoa cream and covered with real chocolate. Flavor variants in various sales formats are already under development. This year, we have produced one of the favorite and hole-bought shortbread biscuits in two flavors: butter and cocoa. Ultimately, there will also be variants with different types of decoration, chocolate, sugar, coconut. Consequently, Pryncy Teka is working on launching subsequent production lines, where a product unprecedented on the market is under preparation. It is a shortbread - moist cake with a gel filled filling covered with an additional layer of dough with various patterns, reminiscent of crumble. Next, our portfolio will expand with a chocolate product, inside of which we will find a combination of a fluffy sponge cake, postponed by a shiny jelly topped with cream. The company’s investments in a modern machine park offer numerous opportunities to achieve an innovative product, and the possibility of a fully controlled production process, and independence from intermediate intermediates gives an advantage in constructing the offer addressed to the recipient. A marketing support plan is prepared, which we launch successively with regard to both Pryncy Teka and individual products. Small steps Pryncy Teka creates its image on the market, brand recognition increases with each newly opened distribution point, and final consumers praise us for home-made taste and original product.

MARKET NEWS

MLEKOVITA with an all-time record

New campaign promoting consumption of European fruit in Europe Six agricultural cooperatives from Greece and Cyprus established cooperation to promote the consumption of European fruit on three markets – the Greek, German and Polish ones. The campaign advertises the most popular Greek and Cypriot fruits such as kiwi, grapes, cherries, peaches, apricots, oranges and mandoras under the motto „Eat more European fruit”. Why are European fruits worth picking out? Europe’s climate is very diverse, which makes it possible to grow a wide range of fruit on a large scale. For this reason, consumers can easily decide on their favorite fruit among European products. In addition, Greece and Cyprus, which are frequently referred to as the Mediterranean garden, are distinguished by their unique products. For example, Cyprus is known for the production of mandoras, which are a cross between the best features of an orange and mandarin. European fruits are also characterized by the highest quality. This is possible, among others, due to the high standards imposed by the European Union. These requirements are managed by the competent food safety authorities in both importing and exporting countries so that the production process is carried out with consideration for the environment, additionally the fruit is safe for health. For further information, please visit: www.europeanfruits.eu

MLEKOVITA generated over PLN 5 billion in revenue in 2019 – this is another record and historic result in the company’s over 90-year history. Consequently, MLEKOVITA strengthened its unquestioned position in the industry. Record revenues cannot be only credited to market observations and response to its needs. Mainly, it is the daily work of 5,000 qualified employees at over 180 production lines in 20 production plants where 8 million liters of the best milk delivered by 15,000 Polish farmers are processed. It is thanks to their daily efforts that over 1,000 dairy products produced in factories are known not only in Poland but also in 159 countries around the world. All this is held together by investments made in the development of the technical, technological and production base which the expenditures for only 2019 amounted to approx. PLN 120 million. There are many changes in various areas of the market environment. For the dairy industry, one of the most important is climate change, including droughts that are becoming increasingly problematic for Polish agriculture which contribute to the reduction in the amount of milk. With the expenditures devoted to the development as well as the capabilities of the production plants and growing needs of consumers, it will be one of the key tests to face the climate change. MLEKOVITA as an industry leader is also an export leader – it has already been licensed to sell to 159 countries around the world. Over 40% of the company’s revenues already come from exports which is why it invests in the expansion of the brand outside Poland.

Billions of expenses await the Polish packaging industry

PLN 2-4 billion will have to be allocated by packaging companies to adapt to regulatory changes related to promoting the circular economy, analysts Santander Bank Polska and SpotData estimate. According to the report

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they prepared, the total development of the industry until 2025 will require investments at a level of approx. PLN 20-25 billion... The packaging sector invests much more than most of the other industries, as the authors point out in their report “‚Packaging revolution’. Polish producers in the face of changes in regulations and consumer preferences”. The industry’s share in industrial investments reaches 5 percent and is much higher than its share in revenues or in total employment in manufacturing. This is the effect of both the rapid pace of development and technological and regulatory changes. Among the expenses of the packaging industry, the largest outlays will absorb replacement investments and investments in increasing production assets, i.e.

buildings or machines. They are associated with the natural development of the packaging sector. In recent years, Poland has become one of the leaders in their production. In the aforementioned report, the forecasted increase in supplies to the domestic market is to grow at a rate of 4.3% per year by 2025. High demand will also be reported abroad. Direct export of packaging is expected to grow by 6.5% y / y on average. Additional expenses will also force regulatory changes. The European Union aims to reduce waste generation and maximize material recycling in European economies, and is implementing specific guidelines and regulations to this end. Manufacturers of plastic and single-use goods will experience the most severe changes.

MARKET NEWS

New PepsiCo central warehouse in Mszczonów

Work is at full swing at the construction site of the central warehouse for PepsiCo in Mszczonów, where the world leader in the production of food and beverages decided to consolidate its logistics and warehouse processes in our country. Preparatory work is currently

underway for the operational launch of a huge logistics center which will employ approximately 240 employees. The opening was planned for the turn of the first and second quarter of 2020. The new warehouse in Mszczonów will cover an area of 58,000 m2 and will be the largest facility in Poland in the concern’s distribution network. PepsiCo entrusted ID Logistics with the management of one of the leading logistics service providers. PepsiCo has been cooperating with this operator since 2017 – currently ID Logistics already manages the distribution center in Grodzisk Mazowiec-

ki where domestic deliveries to trade networks and exports to Eastern European countries are carried out. A special project group composed of PepsiCo and ID Logistics experts is responsible for preparing the operational launch of the new central PepsiCo warehouse. Magdalena Dzikowska is the head of the project team on the PepsiCo side. The project group consists of 14 teams of over 50 people including experienced managers and specialists from the departments of warehouse and distribution operations, quality, IT, as well as human resources, legal and financial departments.

Poles taking more pride in Polish food

Outstanding Exporter of the Year 2019 The Board and the Main Council of the Association of Polish Exporters have honored the company P.P.H. Ewa Bis with the „Outstanding Exporter of the Year 2019” title and medal in recognition of their achievements in the development of Polish fruit export. Ewa Bis has been one of the leaders in the export of Polish fruit and vegetables for over 30 years now. The company is a part of the Ewa Bis Group, incorporating several independent buisnesses, including Grupa Owoce Natury. Every year Ewa Bis faces new market challenges and expectations. The company strives to provide better and tailored to customers needs offer. Their main goal is to keep developing export of Polish agricultural products all over the world as well as promotion of Poland as international class top quality producer. Recently Ewa Bis got involved not only in sales but also into production of organic fruit and vegetables. We wish you further success!

Over 2/3 of Poles declare that they are ready to pay more for domestic food produced in an ecological way while nearly 1/3 check if the product was made in Poland. This is what the results of the first report indicate which was included in the public opinion poll cycle in the POLISH OPINION MONITOR project – a joint initiative of PKO Bank Polski, the Foundation of the Institute for Market and Social Research (IBRiS) and the Sustainable Technology Forum. Polish goods are Increasingly becoming our hallmark in other countries as confirmed by recent data from the National Agricultural Support Center. According to the report, from the beginning of 2019 the upward trend in the export of agricultural and food commodities from Poland has continued. The value of agri-food product exports in the period from January-June 2019 amounted to EUR 15.4 billion and was over 8% higher than a year ago. At the same time, imports were at the level of EUR 10.4 billion,

about 5% higher. As a result, the positive exchange balance increased by around 17%, to EUR 5 billion. However, as we read on the official website of the Ministry of Agriculture and Rural Development, „Poland is a leader in the European Union in the production of poultry, fruit, and mushrooms.” The growing production and export of domestic products is the result of their high quality, which is also increasingly appreciated by Poles, although the price remains the main purchasing criterion as 58% respondents declare. In turn, respectively, 38% respondents believe that the determining factor for their purchase incentives is both the composition of the product and its expiry date. Consumer patriotism manifested in the choice of domestic products is declared by every third Pole (30% respondents). Less attention is more frequently paid to the quality certificates possessed (19%) and brand recognition (9%).

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MARKET NEWS

IGLOTEX is building a new production plant and distribution branch

Danone Factory in Bieruń receives the title ,Factory of the Year’ The Danone factory in Bieruń has been recognized for its comprehensive and effective operations. In the Factory of the Year competition, organized for the 8th time by the editors of Inżynieria & Utrzymanie Ruchu and Control Management magazine, the Silesian production plant obtained the award in the Food Industry category. The winners were announced during a gala held on December 4 in Warsaw. The Danone plant in Bieruń is one of the largest

Danone production plants in the world. After thorough modernization carried out in 20152017, the plant specializes in the production of drinking yoghurts with a capacity of over 100 g as well as products eaten with a spoon (including Danio cheese). Dairy products produced in Bieruń are delivered to 25 European countries, as well as to the American market (USA). It was this comprehensiveness of the activity that was particularly appreciated by the competition jury.

The food of the future will be made in Poland The investment thanks to which functional food will be produced in our country will be created in the heart of Podkarpacie region. The project worth over PLN 200 million is the result of the development of the Polish pharmaceutical company Olimp Labs which obtained as much as PLN 60 million for the implementation of the Future Foods 4.0 investment from European Funds from the Smart Growth Operational Programme supervised by the Ministry of Investment and Development. Functional food is the latest global trend – according to analysts the estimated value of the global market is over USD 11.5 billion. The company, thanks to the

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extension of the existing one, will be one of the most modern Research and Development Centers in Europe and will be able to compete with other products on global markets. The company’s impact on the Polish economy was recognized by the Chancellery of President Andrzej Duda through the nomination of Olimp Labs for the Economic Award of the President of the Republic of Poland in the category of International Success. The company is present on over 100 global markets and the expansion of the Research and Development Center aims to increase the company’s share in subsequent export categories.

Supervisory Board of IGLOTEX S.A. decided to build a new production plant and distribution branch in Skórcz. At the same time, the Pomeranian Special Economic Zone in Sopot issued a decision to provide support for IGLOTEX S.A., setting a new stage in the company’s development. The new production plant in Skórcz will implement state-of-the-art and top-quality automation, robotization, digitization and production safety systems. The plant will have a linear organization of production lines using modern modular systems including moulds enabling the company to give products various shapes. Control and measuring points in the production process instantly revealing deviations from the applied standards will guarantee high quality products. Systems for remote supervision of technological lines will also be implemented – which will allow access to real time data on the production process. This will increase the versatility and efficiency of production lines while maintaining the highest and repeatable quality of manufactured products. It will be possible to manage production precisely and flexibly at every stage and quickly introduce necessary changes. The zone structure of the plant (including dedicated energy, cleanliness, allergen zones with air flow control between the zones) and isolated fire zones, as well as the automation of the production process and increasing the ergonomics of work will guarantee the safety of production and plant employees.

MARKET NEWS

30 years of the SPECJAŁ Group

Strong position, development and innovation in Sokołów In the past year, full of challenges for the entire meat industry, Sokołów once again achieved satisfactory sales results and strengthened its position on the domestic and foreign markets. The confirmation of the dynamic development of the company is the increase of Sokołów Group’s revenue by 16.5% (year on year) and the increase of its operating profit by 19.4% (year on year). The results achieved were due to the systematic work and commitment of all employees. The implementation of the adopted strategy combined with flexible response to market changes was also of key importance. 2019 was a year full of challenges for the meat industry. The president of the Board Bogusław Miszczuk admits that one of the biggest chal-

lenges in 2019 was the unstable situation on the raw pork market and the dynamic increase in its prices. There was also an increase in production costs, which in turn reduced its profitability. The ASF virus is still spreading in Poland, which results in restrictions on the export of Polish pork and additional costs on production lines. Despite these objective difficulties, the Sokołów Group achieved a very good result. Planned investment projects were implemented which aims to further specialize its plants. Last year, the merger of the acquired Gzella companies was also completed – currently Gzella Osie is a production division of Sokołów S.A. in Osie. All these activities have greatly contributed to improving competitiveness on the domestic and foreign markets.

The POLOmarket Group invests in a third logistics center POLOmarket, the largest Polish supermarket chain is developing its logistics network and is investing in a new, third highbay warehouse. The 30.5 thousand square meter investment will contribute to optimizing the logistics grid and strengthening expansion in northern Poland. Unlike the previous two logistic centers, the network will lease space at the 7R Park Tczew logistics complex. The completion of the investment is planned for the fourth quarter of 2020. The new logistics center will be able to service up to 150 stores and will be the most modern network warehouse. – We have analyzed all logistic processes in our two current warehouses and designed the new LC in such a way that all processes are optimized, reduced to a minimum. This will allow us to work more effectively on all quality parame-

ters, as well as on productivity coefficients which ultimately will translate into the cost of logistics. We are preparing to open more stores, so the completion of the 3rd LC is for us a natural step in the development of the network – says Bartosz Pietruszka – operations director of POLOmarket. The investment will also include: an internal petrol station, a car wash for lorries, parking lots for lorries and cars for employees. The freezer and cold rooms of the new logistics center will be supplied with CO2 refrigeration units. The facility will be equipped with a 1 MW solar farm. The considerable advantage of the investment is its location by the A1 motorway, directly on the Swarożyn interchange and the intersection of national roads No. 91 and No. 22. This localization provides access to the main communication routes of northern Poland and optimizes the logistic networks of the POLOmarket network.

In 2020, the SPECJAŁ Capital Group celebrates its 30th anniversary on the market. SPECJAŁ is currently a leader in the FMCG industry – the largest distributor with Polish capital. The company ended 2019 with an approximate 30% increase in turnover. Activities in several market sectors, nearly 6,000 employees, 19 branches in the country, 20 thousand serviced stores, as many as 8603 (data as of October 31, 2019) franchise facilities associated in the following networks: NASZ SKLEP, RABAT DETAL, LIVIO and leading positions in independent Polish and foreign rankings. These numbers perfectly illustrate the success and high position of the SPECJAŁ Capital Group. Above all, they reflect 30 years of the group’s market activity. The activities of Specjał Capital Group are inspired by the established mission and vision of the Company which are focused on dynamic and consistent development. We are finishing this next year similarly to the last one with an increase of about 30% in turnover. We already have 19 branches in Poland which brings a promising prospect for the development – says Krzysztof Tokarz, President of the Management Board of Specjał Capital Group. The anniversary of the Specjał Capital Group is the time for assessments, reflections and outlook on new horizons. This is a story of building a company based on strong foundations and consistently achieving its goals. Today, the group with over 30 years of experience, operates in several industries: FMCG wholesale and retail, medical equipment wholesale and retail, personal and property protection as well as cleaning and financial services. As emphasized by Krzysztof Tokarz, „We are in the leading group of the fastest growing enterprises in Poland and in the group of entities with a strong position on the domestic market. Our goal for the future is dynamic development in the long run. Consistent effort for over 30 years of FMCG companies in Poland allows us to look optimistically into the future and thus plan further ambitious activities. As the President Tokarz announces, the company enters the coming years with greater motivation based on their achievements to date and optimistic future prospects believing that it is just the beginning for the Specjał Capital Group.

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POLAND TASTES GOOD

Official opening of the Polish national stand, Annapoorna ANUFOOD India, September 2019

Promoting Polish food in 2019

The entrepreneurs and institutions of the Polish agri-food sector have come to the end of another hardworking and fruitful year. We don’t yet have the full export data for 2019, but the data for the period from January to October 2019 show that the value of Polish agri-food exports amounted to 26.1 million euros, representing a growth of 6% compared to the same period in 2018.

Given the fact that 2018 was a record year in terms of the value of exported National Support agri-food products (29.7 Centre for Agriculture million euros), there is every chance that Poland will be able to celebrate another year of export success for 2019. The export performance is evidence of the growing popularity of Polish food, whose taste is winning hearts and palates all over the world. However, even the best products require the proper advertising and institutional support. In the case of Polish food, this is

KOWR

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the task of the National Support Centre for Agriculture (KOWR). KOWR, overseen by the Polish Ministry of Agriculture and Rural Development, is the main centre in Poland responsible for the promotion of Polish food domestically and abroad. For years (formerly as the Agricultural Market Agency) KOWR has been present at the major international food trade fairs, organising Polish national stands and official trips abroad for entrepreneurs. KOWR also carries out other promotional activities on a regular basis, such as festivals and tastings of Polish food, B2B

meetings, business trips to Poland for foreign importers of Polish food, and study visits for foreign journalists and media representatives. We carry out our activities all over the world under the slogan ’Poland tastes good’. KOWR’s activities are concentrated on the export destinations which require promotional support, chosen following analysis and consultations with sector representatives. In 2019 we focused mainly on the Asian, Middle Eastern and European markets, considered to have the greatest future potential for Polish agri-food products. The Polish national

POLAND TASTES GOOD

Food tasting at Food2China Expo 2019, September 2019

Vietnamese mission to Poland, June 2019

stands organised by KOWR drew crowds at the largest food expos in Berlin, Cologne and Amsterdam, as well as in Dubai, Tokyo, Ho Chi Minh City, Seoul, Bangkok, Hong Kong and Mumbai. We co-organised the promotion of Polish food at the third edition of the PolandSHIOK Festival in Singapore, the Poland Food Festival in Jakarta and Brussels, and during the 3rd May Constitution Day celebrations in Abu Dhabi and Tel Aviv, among other events. At KOWR’s invitation, food importers came to Poland from Indonesia, Singapore, Thailand, Taiwan and Vietnam, holding busi-

Polish entrepreneurs in Mexico, ANTAD & Alimentaria, March 2019

ness meetings with Polish entrepreneurs and visiting production plants, in order to see for themselves the modernity of the Polish agrifood sector and the reliability of the food production system in Poland. The slogan ’Poland tastes good‘ was also repeated many times in 2019 in the foreign media and on food blogs. We hosted media representatives who travelled to Poland from all over the world, including from Vietnamese and Senegalese television, as well as industry journalists from China, India, the UAE and South Africa. In December 2019 we also invit-

ed food bloggers from Singapore, Germany, the Czech Republic and the United Kingdom, who got to experience the diversity of Polish cuisine and savour our food. KOWR’s plans for promotion abroad in 2020 include activities in 21 countries. There have also been new export destinations introduced. You are most welcome to visit us at our national stand at ISM Cologne (hall 5.2, stand C 21 / D 28) and at other trade fairs, as well as to work with us. Author: Katarzyna Kwiecień, Director of the Export Support Department.

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STATISTICS

Polish agri-food exports in 2019

Since Poland’s entry to the European Union, each year has seen an increase in the value of Polish agrifood exports. Since then, Polish agri-food exports have increased more than fivefold – from 5.2 billion euros in 2004 to 29.7 billion euros in 2018. Polish food is finding customers all over the world.

Available preliminary data for Polish agri-food exports in 2019 indicates National Support that this was another Centre for Agriculture very good year for the Polish agri-food industry. According to the Polish Ministry of Finance, the value of agrifood exports from January to October 2019 amounted to 26.1 billion euros and was 1.4 billion euros greater compared to the same period in the previous year. If the awaited figures relating to exports in November and December 2019 confirm this positive trend, it will mean that the Polish agri-food export will celebrate another outstanding success. KOWR’s preliminary estimates for 2019, based on data from the Institute of Agricultural and Food Economics – National Research Institute (IERiGŻ-PIB), show that the past year has been a successful one for the poultry

KOWR

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industry, which recorded an increase in production volume, and an increase in export volume of over 130,000 tonnes. The forecasts of success also include the dairy sector: according to the IERiGŻ-PIB, the estimated increase in the value of milk and milk products in 2019, compared to 2018, amounted to approximately 4%. According to IERiGŻ-PIB forecasts, the processed vegetable sector may also see an increase in the value of exports. In this case, the expected increase is approximately 6%. There is also good news from the confectionery sector. According to data from the Ministry of Finance, in the period from January to October 2019 the value of exports in this industry amounted to approximately 1.68 billion euros, which means an increase of approximately 11% compared to the same period in the previous year. IERiGŻ-PIB forecasts indicate that at the end of 2019, the

value of exports may amount to approximately 2.07 billion euros. From January to October 2019 there was also an increase recorded in the export of spirits. According to data from the Ministry of Finance, the value of exports in this sector for the above period amounted to 225 million euros, i.e. approximately 8% more than in the same period in the previous year. IERiGŻ-PIB forecasts indicate that the value of alcohol exports in 2019 will amount to approx. 270 million euros, i.e. over 10% more than in 2018. A slight increase in the value of exports – by about 2% – is also forecast in the beer sector. National Support Centre for Agriculture (KOWR) Hall 5.2, stand C 21 / D 28 Ul. Karolkowa 30, 01-207 Warsaw +48 22 376 72 26 eksporter@kowr.gov.pl

INTERVIEW

Our company is constantly growing

„Today, Wawel is a beloved brand of the Polish people and one of the oldest confectionery companies in the country. It all began when Adam Piasecki opened his first small confectionery shop” – interview with Robert Okoński, Sales Director of Modern Trade and International Markets in the Wawel company. Please tell us about the quality and safety of manufactured products at the facilities in Dobczyce. We manufacture our sweets in ultramodern facilities in Dobczyce near Cracow. Ensuring the safety of manufactured products is crucial for us, which is why we use the latest technologies, thanks to which, we not only ensure the highest quality of our sweets, but also minimise the environmental impact of our business. Our facilities meet all standards required for food production, and the very process of production of chocolate products is based not only on proven, but also on innovative recipes. We are constantly improving our products, using the expertise and experience of employees and the achievements of science and technology. Nature is also very important to us, which is why our facilities are equipped with modern systems to protect the environment and have the highest quality securities to protect against uncontrolled release of pollutants into the environment. We also reduce noise emissions, and water and energy consumption, which makes our facilities more environmentally friendly.

How was 2019 for the chocolate industry and for Wawel in particular (also in terms of exports)?

It all began in 1898 with Adam Piasecki’s first small confectionery shop. Please tell me about the sweet history of Wawel. Wawel is a brand with over one hundred years of sweet tradition and rich experience, thanks to which it has a very good position on the confectionery market. Today, Wawel is a beloved brand of the Polish people and one of the oldest confectionery companies in the country. It all began when Adam Piasecki opened his first small confectionery shop. Then, due to the growing popularity of his products and his unique passion, already a well-known confectioner, he launched the first production facility in Cracow. Since 1898, we have been successfully combining the power of tradition with contemporary tastes; we are constantly developing and expanding our sweet portfolio. Currently, Wawel has 2 modern production facilities that meet all necessary standards. We constantly make every effort to ensure that our products are of the highest quality, only with “Good Ingredients”, and that these satisfy the tastes of even the most demanding consumers while, of course, fitting into market trends.

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For Wawel, 2019 was a very intense, and fruitful period. We were active in many sectors. We are constantly developing in terms of quality, continuing our pioneering programme: “Good Ingredients”, where we try to change stereotypical thinking, in which a sweet snack is associated with a whole list of unhealthy ingredients and incomprehensible names on the back of the packaging. Recently, there has been an increase in consumer awareness in the chocolate confectionery market, which is important for shaping new trends. We buy more and more consciously and we look for products with good and short ingredients list. Wawel, in trying to respond to the needs of consumers and changing market trends, offers the best quality products with only Good Ingredients – without colouring additives, artificial flavours or the E476 emulsifier. Last year, many new products, in line with the idea of the project, joined our portfolio, and their recipes were subjected to constant expert analysis. 2019 was also the period in which we obtained two important certificates: UTZ for the line of Premium Chocolate Bars, which means that the cocoa we use comes from sustainable crops, and obtaining raw material does not adversely affect the natural environment. In addition, we attach great importance to the origin of the oil used in the production of sweets and strive for sustainable production. Palm oil visible in the list of ingredients of some of our products is 100% certified with the RSPO mark.

INTERVIEW

Your export plans for the next year, and years to come, are…

The main sweet export hits of Wawel are…

Our company is constantly growing and developing, which is also associated with the launch of our second facility in 2017. We are obviously thinking about further investments and planning further increases in employment, and we can also supply the plant with further production lines, and the highest quality technologies and equipment. We will also continue to modernise the processes of preparing raw materials, packaging and sales. Thanks to one of the most modern facilities in Europe, we can combine tradition and development, improving our products in even better conditions. We now think not only about new products that have not been seen before, but also about entering new foreign markets. Of course, Europe is our main target, but we are also thinking about the Middle East, where transport possibilities are equally good. Indeed, we will also further develop markets in the Arab world, where we already have our loyal customers, delighted with our delicious Cream Fudge, for example. In addition, our new products will soon go to foreign markets, i.e. jelly covered with Wawel plain chocolate, enclosed in a round pastille available in two flavours: raspberry and orange. Our foreign consumers will soon have the opportunity to try 3 new chocolates: Raspberry Jelly, which is an amazing combination of dark

The great success is the sale of our wellknown and hand-made Cream Fudge in Arab countries, which thanks to its taste, boldly faces other renowned foreign products. Cream Fudge from Wawel in the Arab countries is a real bestseller, and the demand for this product is always high, so we strive to preserve the production technique that gives the product the right consistency and delicious taste. We do all this to provide consumers with only the best products. In addition to the already mentioned cream fudge, Dragon Gummies with four variants: fruity, sour, juicy and joghurt and Tofflairs fudge are also popular. These products are not chocolate-covered, so it is easier to sell them in warmer countries. In addition, they delight consumers with attractive packaging and – of course – taste.

In addition, our new products will soon go to foreign markets, i.e. jelly covered with Wawel plain chocolate, enclosed in a round pastille available in two flavours: raspberry and orange.

chocolate and jelly with raspberry flavour and Party Mix in two variants: Party Mix Milk – a delicate milk chocolate with a high content of peanuts, raisins and jellies, and Party Mix Dark 70% cocoa, which is a combination of 70% dark chocolate with a wealth of delicious additions. There is also our line – No Added Sugar – waiting to be discovered by consumers. It includes, among others, the following chocolates: No Added Sugar Dark Chocolate and No Added Sugar Milk Chocolate, as well as No Added Sugar cocoa flavoured wafers and No Added Sugar vanilla flavoured wafers.

Thank you

01/2020

FoodfromPoland

INTERVIEW

Be open for changes is element of our mission “Currently, export makes up 10% of the company’s turnover and Wedel’s products can be found in over 60 countries. We gear our products to specific clients’ needs – for example, in products dedicated to Arabic markets, we have totally eliminated alcohol as a conservant” – interview with Maciej Herman, CEO at Lotte Wedel. clients’ needs. For example, in products dedicated to Arabic markets, we eliminated alcohol from ingredients list. Our R&D department is working constantly to meet various customers and countries expectations and demands.

Does the foreign consumer like Ptasie Mleczko® – as each Pole? Please tell us about the export hits on different markets.

The Wedel company has developed the factory and increased export in recent years. Please tell us about this changes. Be open for changes is the key element of our mission (“We are constantly changing to make us and our clients happy”). Changes that happened in Wedel in the past years were multidimensional. The first dimension is the factory and production area. Thanks to the modernization, Wedel factory is highly automatized, and also more flexible to customers demands. The second area of the changes is organizational culture transformation. Last year we redefined our mission and vision, and also our organizational values. We began to build employee awareness in this area both at the level of the entire organization and at the individual level. The purpose of it is to increase Wedel’s competences that will give the company more and more innovative view and quick solutions that will help us and our customers achieve their goals both short and long-term. Third thing is our portfolio expansion. 2019 was the first year of our high quality premium ice cream offer introduction. When it comes to export – we are continually working on geographical expansion to deliver our products to other countries. Today we are present in 60 countries around the world. We are present in almost all EU countries, US, Canada, expanding our business fast also in Russia, middle east, Africa and far eastern Asia. We are adjusting our offer to specific

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We are exporting Wedel’s classic products mainly, which are becoming bestsellers in various countries and are already loved by local consumers. These include Ptasie Mleczko®, Torcik Wedlowski (Wedel premium wafer), Barrels (alcohol pralines) and dark chocolate tablets. Ptasie Mleczko® – product invented by Jan Wedel almost 100 years ago, number 1 chocolate SKU in Poland – is a top quality chocolate covered foam, due to historical reasons popular especially in Eastern Europe countries. However it gets more and more popular also in other regions.

Up-selling and consumption convenience are the most important sweet trends in recent years. Has foreign consumer similar requirements? Yes, definitely. A modern lifestyle is quite similar everywhere. We see similarities not only in the ways of shopping or consumption, but also in flavors preferences. For example, the most popular flavors worldwide are caramel, coconut and chili. Thus of course, Wedel has these kinds of chocolates in the portfolio. When it comes to caramel, we have preceded this trend, by introducing very innovative Wedel’s caramel chocolate (Karmellove). This is pure solid caramel chocolate, not filled one. As far as I know we are the only mass producer in the world producing this kind of chocolate. It started with our R&D experiment, market test, but very quickly became regular products’ line, ahead of global trends. Regarding to premiumization, people get richer in most countries, so they can afford more expensive products. In the mature and stable markets few percent increase per year largely comes from increased sales of premium sweets. That’s why we are also developing premium lines, which includes

sophisticated chocolate tablets, highest quality pralines and also premium ice cream.

The year 2019 was not easy for the trade. For which perspectives are you looking for the next years? 2019 was tough for Polish market. 2020 we expect not to be easier. There is a significant increase of operating costs, like energy, labor costs, taxes etc. On the other hand, we expect a stagnation of consumption and growth of inflation. We already noticed high price increases announced by various producers. Despite these difficulties, thanks to the good strategy and preparation, we are reaching our ambitious targets. We are achieving them thanks to the non-standard chocolate activities and developing completely new businesses. First we are expanding our business in new countries, second we entered into the ice cream category, which grows much faster than chocolate in a lot of countries. Potential world crisis should not be a big issue for us. We still remember year 2008, which showed that the consumption of sweets is very much linked with the improvement of humor in bad times.

The global challenges, which stands before each international company are…. There are many global problems that should be fixed. The most important thing is to find a way to grow in a sustainable way long term. Politicians but also business are the creators of the modern world and should actively respond to global problems related to environment and society. As Wedel, we are in the constant process of developing our CSR Strategy and activities. The pillars of it are strictly connected with global challenges that we want to answer: people (employees, local communities, business partners and consumers), innovation (including sustainable development) and the environment. The world around us is dynamically changing, new challenges appear almost every day – we want to respond to them, always being open for a safe interaction with the environment, to secure next generations future.

Thank you. It was nice talking with you.

INTERVIEW

Tradition Taste Modernity

Uninterrupted production for 80 years, one hundred per cent Polish capital, unchanging recipes and taste – these are some of the many assets of ZPC Śnieżka company, about which we will hear from Sara Wójcik, Marketing Director. ments of a consumer, creating new forms of serving known and loved flavors, adjusting these forms to the pace of life of today’s society. Almost 40% of Poles are impulsively reaching for a sweet treat – but the motivations in the context of choice – are very often strictly defined.

What challenges are there for producers of confectionery on the Polish market, and also on the international arena?

The company strategy – to stick to traditional recipes – do both Polish and foreign consumers see and appreciate it? Absolutely each consumer, both the Polish and foreign ones, appreciate it. Today, in the time of great competition, tradition is what a consumer is looking for, tradition and emotional connotations with a product and company. Of course this cannot be understood literally – customer needs are changing, the market is changing – the offer of producers is changing but the slogan which for years have marked the company’s approach to company policy, consumer, short and long-term planning is – tradition, taste, modernity. Everyone knows major global leaders, with mass production and availability of their products on every step, in each shop. However, an increasing number of clients are looking for something more, a value added in the form of ‘relation’ with a product or producer! Not so many companies can boast an uninterrupted production for almost 80 years, it is worth stressing that Śnieżka is a company with 100% Polish capital concentrated in the hands of one owner – this is really a totally different way of running a business. Tradition – unchanged recipes and flavors known for generations, taste – ‘unchanging, the same for years’, ‘exactly the same I remember from my childhood picking and eating Michałki® from a Christman tree’ – these are words of our clients. Modernity – meeting require-

New challenges come along as quickly as the market is developing and customer needs are rising. The confectionery market in Poland is steadily developing, in the period from August 2018 to July 2019 its value amounted to 12.69 bln zlotys. The trend connected with healthy eating and the increasingly developing Convenience trend which is consistent with the current society with a busy schedule – not only Polish. We want to eat healthy food, quicker, as one-portion, serving proposals must be ‘one off’, encouraging quick consumption on the street, at work, in a car. This trend is also characterized by the awareness of consumers in the context of product ingredients, packaging and production conditions. Probably the greatest challenge for each producer is to create a product which is absolutely exceptional in taste with a value added, which other products in a given segment do not have – and this is probably the greatest challenge for producers, both on the Polish market and on the international arena – so, not to seek a niche but to create it. We should bear in mind that almost 40% of people surveyed reach for confectionery several times a week , and 23% (every 4th person) consumes sweets every day. Within the coming two years a challenge for all producers of sweets will be the planned sugar tax implementation in 2022, this evokes concern in the context of hazards connected with the sale of products containing sugar.

What was 2019 like for the company? It was a very intensive year for the company – we introduced several new product proposals on the market and largely extended our occasional offer. Being faithful to our slogan ‘Tradition Taste Modernity’, we have rebranded our product series of

Michałki®. A big challenge for us which was widely reported on the market – with only positive opinions. The whole product series of the legendary Michałki®, all forms of serving gained a refreshed, modern, very elegant look. Packaging is often called a ‘silent seller’ – the content is one thing, but shaping the desired product identity is the second half of the apple – one without the other cannot guarantee success for the product. Looking at exports, the year 2019 went beyond our boldest expectations. Apart from participating in the ISM fair in Cologne, we presented the company and our products on the following fairs: Sial China in Shanghai and Summer Fancy Food in New York. This strong promotion of the company on the international arena translated directly into the export potential of our products.

The portfolio of ZPC Śnieżka includes first of all famous Michałki®, but not only… Śnieżka means Michałki®, and Michałki® is Śnieżka, true, known for generations, but it is worth remembering that our production lines bring also delicious truffle, Trufle Premium® –also in a milk version, jellies, bars and wafers – which are a continuation of the line of Michałki® and Michałki z Hanki®. Chocolate covered fruit – Śliwka Książęca® plums in chocolate is our product recognizable in the whole of Poland, and for some time also a segment of cookies which we are systematically extending. The speed of responding to the changing consumer needs and their increasing expectations is a driving force and the biggest motivation for us. You will also find a series of gluten-free products in our portfolio.

What investment, export, and product plans does the company have for the coming year? The company development strategy for the coming months is mainly to increase the present company potential by modernizing the production processes. Product wise – our portfolio, already at the beginning of this year, will be extended to include new forms of serving of Markizy Michałki®, a brand with the original filling of our cult Michałki® candies. Product plans are very wide, already the first quarter of 2020 will be full of novelties in our offer.

01/2020

FoodfromPoland

INTERVIEW

We marched into the new year in a positive mood We are talking with Marek Maciejewski, the Sales Department Manager of Sertop, about the beginnings of Sertop company, the product portfolio development and new sales markets. You are exporting to 21 countries. Apart from the EU, also to the USA and Israel. Please tell us about the biggest challenges for producers. Are you planning to expand into other markets?

Sertop presents over 50 years of processed cheese tradition in Poland. Please tell us about the beginnings of the company and its development. Sertop is a company with over a fifty-year-old tradition, and it is one of the biggest producers of processed cheese in Poland. The beginnings of Sertop go back to a small processing factory in ChorzĂłw, the next stage was a modern, as for those times, factory built as a greenfield project in Tychy. The period of ownership transformation at the beginning of the 1990s and the present time. The factory operates in Tychy and still produces processed cheese in different forms. Cheese of the Sertop brand, in over 21 flavor variants, are products of the highest quality guaranteed by proven production technology, traditional recipes and the best Polish raw materials. Products do not contain preservatives, they are rich in easily digestible protein, mineral salts, microelements and calcium.

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Our products are willingly bought in the European countries where the processed cheese consumption level has been high for years: The Czech Republic, Slovakia, Romania, the Balkan countries have already been a serious sales market for us for several years. At the same time we are selling our products to countries outside the EU. Traditionally our products are willingly bought in the USA and Canada by Polonia living there, but also Israel is a serious market where in cooperation with our customer we have created a product for clients from that region. We have adjusted our offer to concrete markets and continue working on maintaining a high level of our offer for our partners in different countries. At the same time, not being content with the current level, we have directed our interest towards the Middle East markets.

We have been developing and modifying our portfolio all the time in order to adjust our offer to the customer expectations. At present we are drawing up several new projects. In 2019 Sertop company introduced to its offer processed cheese in slices in three flavor versions. The product was very positively accepted on the domestic market. Currently, new products are being offered to export customers. There is a big interest in these products because of their modern and easy form of packaging.

What was 2019 like for Sertop company? We can positively sum up the year 2019. Sertop Sp. z o.o. is carrying out sales on the Polish market, and simultaneously on foreign markets. The domestic market is quite strongly saturated with products from various producers, still our market position and our share in the market is stable. The development of export sales allows us to continue to increase sales and development. At present, the export sales share in general sales volume constitutes over 40%. We are marching into the new year in a positive mood.

Which product characteristics are especially appreciated by foreign consumers, and why?

The most important plans and assumptions for the following years areâ&#x20AC;Ś

Sertop for many years prides itself on high, reproducible quality. The flavor and texture of our products are strictly adjusted to the requirements of concrete markets. Our products, recipes and flavors are worked out in close cooperation with our customers. We listen to their comments and advice. Assessment of samples constitute a guideline for us to work out which products are awaited and sought after on a concrete market.

To keep our position on the domestic market and on current export markets. To gain and stabilize our sales on the Middle East markets. But also to develop the brand, new products and develop dynamically. We are not resting on laurels, we are working on the constant improvement of our products and our offer. Thank you.

In 2019 quite a lot of novelties appeared in Sertop, what were these products and how have consumers reacted to them?

INTERVIEW

New chances and challenges Małgorzata Cebelińska, Commercial Director of Mlekpol Dairy Cooperative, speaks about trends in the dairy industry, foreign markets and export plans for the coming year.

region from which milk is sourced. Poland is a country which is still based on traditional and ecological approach to agricultural production. We want other countries of the world, mainly those to which we are exporting milk products, to associate Poland with very good quality and naturalness. The regions where our cows are pastured belong to the cleanest in Poland, and also in Europe. This is land with great natural richness belonging to the Green Lungs of Poland. We communicate this and build social awareness of our products so that Poland is identified with natural origin and very good quality production.

Favourable products of Mlekpol on individual EU markets are…

What trends are now in the dairy branch and how is the offer of Mlekpol following on ? Over 6 of almost 8 billion people all over the world drink milk and eat dairy products, and 81% of milk production in the world is cow milk. The majority of consumers of milk and its products live in the developing countries. Therefore, the product offer of Mlekpol must be adjusted to consumers and their expectations, that is why trends as well as their creation, are an important element of our trade and marketing policy. This subject refers to the entire food market because consumers are consciously building their diet and are looking for such products which allow them to eat healthy food. A very important trend is regionalism, i.e. a proven source of raw material, elimination of undesired ingredients (preservatives, glucose-fructose syrup, animal feed with GMO), ecological production or the care of animals and the environment. Making concrete food choices consumers more and more often take into account such elements as a sustainable development and social responsibility. The above trends drive demand for very high quality milk products which contain organic ingredients and come from domestic suppliers. Certain food preferences result from health tips or other beliefs, sometimes ideological, and they include the elimination of lactose from the diet, vegetarianism or increasing interest in the flexitarianism. Being supported by food experts, who speak about the beneficial effect of milk products on the human body, we view new chances and challenges in these trends.

We are very pleased with the increasing interest of Mlekpol goods on the EU markets which are made on the basis of the best Polish milk sourced from the cleanest regions of the country. Looking at the entire sale of Mlekpol products outside Poland we notice that the greatest interest is enjoyed by Łaciate milk, butter and creams; fermented products with the Milko and Mrągowska brands, and cheese with mozzarella in the lead, in different presentations and packaging variants.

How would you sum up the year 2019 export wise? Foreign trade constitutes ca. 30% of the whole turnover of Mlekpol. We have a large group of already stable trade partners but the interest in our products is still growing, and new markets are joining, unless turbulences or unpopular political decisions cause different developments. The main direction of the sale of our products are the European Countries, and because of the vicinity, of course Germany, the Baltic countries, the Czech Republic, Slovakia and Ukraine. However, we keep on developing our activity also in the southern countries of Europe and in the UK. By virtue of undertaken activities and the consistent fulfilment of set goals, we have observed for several years a regular sales increase of our products outside the EU countries. A very important and dynamically developing direction is the Asian market, such countries as China, Vietnam, Cambodia, Indonesia, Philippines or Korea are markets which are extremely hard to enter, but simultaneously after carrying out this difficult and arduous work, these are very absorptive markets and good directions for stable development.

What will the year 2020 bring – what are your export plans? What are the directions of development and goals for the following years? In the coming year we plan to further expand into the Asian, African and

How are Polish eggs and dairy products viewed on foreign UAE countries and extend the assortment of products dispatched abroad. An undoubted support for our export is the opening of the Production Famarkets? Consumers in the developed and developing countries want to eat healthy and natural products. The Internet allows us to obtain sufficient information about a product, which translates into concrete expectations towards producers. Quality is only one of choice factors followed by consumers. They pay more and more attention to the origin of products. Our biggest assets on foreign markets are determined by the natural conditions of the

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cility of Powdered Dairy Products in Mrągowo, which significantly extends Mlekpol’s product offer with more specialist milk-derived products and whey. An unchanging goal for us is to build recognizability of the Mlekpol brand on foreign markets and our mission is to keep our trade partners and consumers supplied with the broadest range of products of high quality. Thank you for the interview.

MLEKPOL Dairy Cooperative in Grajewo is the largest milk and dairy producer in Poland and one of the twenty largest milk processors in Europe. ICELAND

The mission of MLEKPOL is production and sale of high quality natural dairy products that meet the expectations of consumers.

NORWAY FINLAND SWEDEN NORTH SEA

DE NM AR K

LATVIA

BELARUS HE R

LA ND S

UNITED KINGDOM

BELGIUM

GERMANY

POLAND UKRAINE

CZECH REPUBLIC SLOVAKIA

AUSTRIA FRANCE

SWITZERLAND

VA DO OL M

HUNGARY

ROMANIA

EN SLOV

ITALY

CROATIA BOSNIA AND HERZEGOVINA

SERBIA

SPAIN

ALBANIA

BULGARIA

PORTUGAL

The cooperative owns many highly-valued brands such as: Łaciate, Milko, Mazurski Smak, Maślanka Mrągowska, Rolmlecz, Mleko Zambrowskie, Mlekpol, Białe, Milatte and Mleczarnia. All the products are manufactured in 12 modern and highly specialized production plants in Poland.

LITHUANIA

IRELAND

NE T

All MLEKPOL products are made of milk coming from farms from Podlasie, Warmia and Mazury - the cleanest regions of Poland. For their products MLEKPOL uses only milk from cows fed with GMO-free feed.

RUSSIA

ESTONIA

BALTIC SEA

A DONI MACE

GREECE

The most recognized MLEKPOL brand is Łaciate, which in Poland became a synonym of the word ‘milk’. Łaciate milk reaches customers worldwide. Łaciate products cover milk, cream, sour cream, butter and cream cheese. Consumers also appreciate other MLEKPOL products such as dutch and maasdam type cheese, mozzarella, butter and fermented products. The entire offer of MLEKPOL consists of over 400 products that are delivered to modern store chains, traditional shops, B2B channels and HoReCa. 30% of all Cooperative's production is being exported outside EU. Products of MLEKPOL are also known in China, the United States, Israel, Algeria, Indonesia and the Philippines. In 2019 MLEKPOL will complete the construction of the largest powder plant in Poland and one of the largest in Europe - the Production Plant of Powdered Dairy Products in Mrągowo. Following this investment MLEKPOL will expand its offer of dairy powder products with whey powder permeate, wpc, mpc, fat filled milk powders and instant milk. MLEKPOL consequently develops its product lines basing on market needs. Customers and consumers appreciate the quality of products and stability of cooperation provided by MLEKPOL Dairy Cooperative in Grajewo.

INTERVIEW

The market is changing, and so are we We talk to Wiktor Sawosz, owner of the Brand Distribution Group, about the beginnings of the company, its continuous development, innovative approach to change, and expansion into new markets. to help find the best solutions for them, using our experience, skills and knowledge. Such an attitude seems to be crucial for achieving longterm cooperation satisfying both parties.

Do you think innovation is one of the basic requirements to remain competitive on the FMCG market today?

The beginnings of the company date back to 1993; please tell us about the development of the Brand Distribution Group over the years. Since I set up the Brand Distribution Group in 1993, the company has undergone huge changes. At the beginning, the main people involved in the project were me and my wife Angelika. We could only dream of the possibilities and tools that we now have. The range of products we offered to our business partners was more limited than it is now. Our geographical scope was similar – initially we focused only on Poland and the countries of the former „Eastern Bloc”, which were only beginning to undergo economic transformation. However, we had ambition, perseverance and a very strong belief that if we work hard to provide our business partners with the highest level of service and with the highest quality of products, they will appreciate it. After 27 years, we still believe that these values are the foundations of the Brand Distribution Group. If it hadn’t been for this belief and all the members of our group who share it, I think we wouldn’t be now in our current situation – a strong group of companies exporting various FMCG products to more than 90 countries, with companies not only in Poland but also in Germany, Spain, Great Britain and, more recently, in Singapore. It

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is those values that make it possible to effectively support our business partners and we are one of the key suppliers of FMCG products on the international market, not only for distributors or wholesalers, but also for large retail chains.

The market is constantly changing, the expectations of business partners are growing. How can they be met on the international arena? Two issues seem to be crucial to me. The first one is the need to constantly develop and adapt to the changing market. A company that forgets about the need to grow can very quickly stop offering the solutions that its partners expect. We must not forget that the market is not sleeping and it is necessary to follow current trends, but also to anticipate the behavior of market by reading the silent signals that come from it. In international business, this is obviously more difficult because it requires monitoring the situation in many different markets and reacting dynamically to it. In response to the needs of our partners, we try to expand our product portfolio with further categories, e.g. beer, wine, oil, selective cosmetics. The second element that I would like to emphasize is the partnership attitude and treating contractors as business partners with whom we build something together, with whom we try

Definitely yes. The market is changing faster than ever before – new products, new sales formats, new trends are constantly appearing. The life cycle of products is shortened and consumers constantly need new products. Business partners also expect more and more from companies, because what was recently a market novelty is now a standard. Without efforts and investment in fostering innovation, it is now difficult to plan a business, not only in the FMCG industry. That is why we are so keen to continue to expand our portfolio with product and business solutions that meet the modern needs of the market and our partners. The market is changing, and so are we. I would also like to point out that nowadays, more than ever, we understand the great impact of human activity on the environment. The development of science and the availability of research and social campaigns are the reason people are also becoming more aware which food and hygiene products are good and which are harmful to them. As a Brand Distribution Group, we want to support those products that are beneficial to people and improve their quality of life. We also want to promote solutions that are good for the environment, because it is up to each one of us to decide which world we will leave for future generations. That is why we not only strive to continuously expand our portfolio with „eco” products, but also invest in such solutions within our other market brand. Recently, our German subsidiary has launched a TRIUMF laundry detergent, which is sold in innovative packaging called “bag in box” to reduce the plastic used in households.

A modern business model includes presence in the e-commerce channel. E-commerce is a constantly growing distribution

INTERVIEW

channel, which is gaining on importance year after year. I am convinced that in the coming years its growth will not slow down, but will accelerate additionally. We can observe that e-commerce contractors are becoming an increasingly large group of our customers. In addition, many of our regular partners who previously worked with consumers in direct retail have recently expanded their services to include online shopping. We are also trying to take advantage of the new opportunities offered by the e-commerce channel – among other things, we have been an active supplier on Alibaba for over 15 years.

Wide range of distribution is also an important asset of Brand Distribution Group. Actively operating on the market for many years, we have managed to develop and improve methods of working with various types of business partners. We work with large networks as well as with distribution companies, wholesalers and e-commerce companies. As we operate on a global scale, we also remember about the additional specifics of the FMCG industry in the single countries our partners come from. We provide each partner with an individual approach as well as with business and product solutions tailored to their needs. I am convinced that is the reason why the number of satisfied customers is constantly growing and the products we offer reach over 90 countries.

Complex commercial, marketing and logistics solutions in the FMCG industry would not be possible without a good, professional team. At Brand Distribution Group we realize how important a professional and committed team is. We are constantly trying to raise the level of our qualifications, that is why we invest in people and develop their potential – our employees are provided with attractive trainings and workshops, language courses and postgraduate studies. One of our priorities is that the business partners working with Brand Distribution Group should feel that they are working with real experts. Our sales departments consist of experienced managers who work in a linguistically and culturally diverse environment on a daily basis. Their in-depth knowledge and awareness of the supervised markets allow them to provide our partners with the highest quality of service and proactively support them in creating solutions to face market challenges. Knowing the specific business en-

vironment and requirements of a given market, they can advise on optimal actions, tailored to the expectations of a particular partner. We also conduct market analyses and satisfaction surveys among contractors, thanks to which we can constantly monitor the situation and improve our service and range of services offered. Working with business partners in so many countries, we try to offer a wide range of services, including issues related to customs and documents necessary for a given market. The experts working in our customs department will prepare the necessary certificates and documents for a given market, so that our partner receiving products from the Brand Distribution Group will also obtain all necessary certificates and permits. We want to make processes as easy as possible for the other party, we want to relieve our business partners of the burden as much as possible so that they can fully focus on the challenges they face in their target markets. When sending products to so many different countries, we want them to reach our partners in perfect condition. Our transport department offers comprehensive transport solutions and our experienced warehouse team is able to prepare and secure goods for shipment even to the most remote parts of the world. In our warehouses we are also able to offer services like wrapping goods with markings in the language of the destination country or repacking them according to customer expectations. Our warehouses are also a place where we consolidate products for order to our partners – very often products included in one order come from different countries and sources, as the width of the commercial offer we can present to our customers is important for us. However, every time, our partners can be sure that the products they receive from the Brand Distribution Group will be original, of the highest quality and in accordance with previous arrangements.

Please tell us about the most important achievements of the Group and the prizes won. Over the years, the joint efforts of the Brand Distribution Group’s employees have often been recognized and rewarded by independent Polish

and international industry institutions. The companies in our group have received such awards as Business Gazelles, for innovation and dynamic development or the prestigious Forbes Diamonds for their reliability as a proven business partner. We have also been awarded the European Medal as a company promoting the development of European trade and European products at the highest level. Each such award is for us an additional confirmation of our efforts. However, our greatest satisfaction and the most appreciated distinction would be satisfied partners who come back to us to develop cooperation.

What was the year 2019 like in the company and in the industry? The year 2019 was another year of growth and further development of the FMCG industry. We could enjoy and take full advantage of the stabilized situation on the global markets. It was an extremely busy period for the Brand Distribution Group – not only were we present at the most important industry events, but we also introduced a new organizational structure within our group. That will allow us to better optimize processes, achieve even better results and increase the satisfaction of our business partners. In many respects, we managed to develop and the 2019 summary showed that our decisions and solutions were the right ones.

Your plans for 2020 and beyond are… We will continue to develop the Brand Distribution Group. We are planning a dynamic expansion into other markets – North and South America, Asia, Australia and Oceania. Our position in Europe is very stable and we feel that it is time to intensify our activities in other areas. This will not be an easy task, of course, but all of us in the Brand Distribution Group have been preparing for it for a long time and 2020 will be a breakthrough year. We are, of course, planning to be on a winning streak, constantly expand our product range and improve all aspects of our business. However, we still want to continue what I started with my wife 27 years ago – a mission to provide our partners with the best possible business and product solutions in the FMCG industry. As we are committed to further development, all experienced salespeople and managers who would be interested in working for the Brand Distribution Group are welcome to contact me via LinkedIn. Thank you for the interview.

01/2020

FoodfromPoland

INTERVIEW

We have relied on traditional recipes since the very beginning Julita Sipa, Export Manager at Brześć company, talks about the development of the family business, important achievements in 2019, simplified product ingredients and promotion of export brands. giving compliments to our consumers but also a conscious response to market trends. Further, we successively developed our export activities, entering new markets with our Crispico Little Snacks brand, among others to Japan or South American countries. The biggest challenges with which we have dealt with in recent months are the increasing prices of raw materials and rising employee costs. As we are still a relatively small family business, the above-mentioned increases are felt much more by us than by market giants. This, however, does not discourage us from further development and investment. We are right now introducing a new product into our portfolio of choux pastry products e.g. Puffs to fill. They have a wide range of application in the kitchen – they may serve as an original additive to sweet and dry dishes.

Products available in your offer are mainly cookies, cakes and choux pastry products. What distinguishes your recipes? As I mentioned earlier, from the very beginning we bet on simple, traditional recipes. We want our clients to feel the taste of home-made baking when they reach for our products. Now, we even go further, by maximally simplifying the ingredients and getting rid of redundant elements. For example – our cult Snack Sticks [choux pastry straws] is currently only made from eggs, flour, rape oil, sugar and salt. We also remember to include in our offer products for lovers of dry flavors – thus we have such products as choux pastry balls, Snack Sticks with seeds, or Puffs to fill [choux buns] which are being introduced right now.

The company Brześć is a family owned business with a long, thirty-five-yearold tradition. Please tell us about the The product portfolio of Brześć company enjoyed such popbeginnings. The company’s idea since the very beginning ularity that in 2010 you decided to extend the sales market to was to produce goods based on traditional include European countries. Since that time almost 10 years home recipes. We were consciously building the have elapsed. Please tell us about export sales. brand which evokes positive, family associations. It is worth mentioning that in the first few years the operation of our factory looked quite different than today. Initially, our offer was directed mainly to the local market. Many stages of production included work carried out manually. Since then we have come a long way – now the confectionery and snacks of Brześć are ‘made’ in modern, fully automated production lines. They also reach a very wide group of consumers, both in Poland and in the world.

This is true, the export development and promotion of our export Crispico Little Snacks brand is one of our strategic business goals. We have been extending the group of foreign customers for years, mainly by participating in the most important, international branch events. Apart from the European market, our products reach the customers in both Americas, and recently we have concentrated a lot also on the Middle East countries, as well as South-East Asia. At present we are working on increasing the sales level for our current partners, and also on introducing the mentioned choux buns in our export.

How would you sum up the year 2019 in Brześć company? What were the greatest achievements, difficulties and triThe greatest export hits are… umphs? What will the next year look like? The last year was full of many important events in the company’s life. First – and we are proud of this the most – we improved and simplified even more of our flag products’ recipes from steamed dough. The main change is that we have resigned from palm fat and raising agents. This is of course

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Definitely our choux pastry goods – choux pastry straws in three variants, with sugar, cinnamon and seeds, and choux pastry balls. We also hope that Puffs to fill choux buns will join soon. Thank you. It was nice talking with you.

STATISTICS

Over the first three quarters of 2019, food exports1 amounted to EUR 12235.0 million, higher by 9.1% in comparison with the analogous period of the previous year. Growth in sales was recorded for all categories. Germany remained the greatest recipient of commodities, with the United Kingdom and the Netherlands maintaining the next positions.

Paweł Witkowski, Senior Specialist Department of Trade and Services Statistics Poland

Between January and September 2019, the growth of exports of foodstuff was higher by 3.1 percentage points than the total growth of commodity exports. In the category of cocoa and cocoa preparations, the growth of exports amounted to 13.3%. The main recipients of goods under this category included Germany (EUR 252.9 million, i.e. a growth by 7.7% compared with the previous year), the UK (EUR 195.4 million, i.e. a drop by 2.5%), and France (EUR 94.1 million i.e. an increase by 45.9%). Beverages, spirits and vinegar, with a 9.1% increase in exports, were predominantly sold to Germany (EUR 92.8 million, i.e. an increase

by 16.4%) and France (EUR 87.3 million, i.e. a drop by 4.1%). A similar increase in exports, i.e. by 8.6%, was recorded in the category of preparations of cereals, flour, starch or milk; pastrycooks’ products, as well as for miscellaneous edible preparations. The greatest importer of commodities from these categories was Germany, with purchases amounting to EUR 374.8 million and EUR 261.7 million, respectively. Exports of preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates was higher than the year before (by 5.4%); here, sales to the UK amounted to EUR 360.5 million (growth by 0.9%), and sales to Germany totalled EUR 286.4 million (growth by 1.8%). The exports in the category of preparations of vegetables, fruit, nuts or other parts of plants grew by 1.2%, compared with a 13.9% increase in the analogous period of the previous year.

After the previous year’s drop by 9.3%, the exports of sugars and sugar confectionery have increased (by 1.2%). Most commodities in this category were sold to Germany and Romania (for the amount of EUR 109.9 million and EUR 47.9 million, respectively). Among commodity items of greatest importance in the exports of food products, higher sales than the year before were recorded, among other items, for ice cream and other edible ice (by 20.6% to EUR 161.6 million); sugar confectionery (including white chocolate), not containing cocoa (by 16.2% to EUR 284.8 million, in comparison to a drop in sales a year ago); chocolate and other food preparations containing cocoa (by 13.8% to EUR 1198.0 million); waters, including mineral waters and aerated waters (by 9.1% to EUR 387.8 million); sauces and preparations thereof (by 7.3% to EUR 271.6 million); bread, pastry, cakes, biscuits and other bakers’ produce (by 6.6% to

Foodstuffs included products comprising Section IV of the Combined Nomenclature (CN), i.e. prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes.

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STATISTICS

EUR 1249.6 million); beer made from malt (by 6.6% to EUR 145.8 million). Drops in exports were recorded for such commodity items as cane or beet sugar and chemically pure sucrose, in solid form (by 17.4% to EUR 182.3 million), or vegetables prepared or preserved other than with vinegar or acetic acid, not frozen (by 0.9% to EUR 153.8 million). Trade with Polandâ&#x20AC;&#x2122;s top ten trade partners regarding exports of foodstuff comprised 65.9% (compared with 66.4% in the 1st to 3rd quarter of 2018). The share of Polish exports to such countries as the UK and the Czech Republic (by 0.3 pp. each) decreased in comparison with the previous year, while increases were recorded for France (by 0.5 pp.), Italy (by 0.2 pp.), and Romania (by 0.1 pp.)

Fig. 1. The largest importers of Polish foodstuffs in the 1st to 3rd quarter of 2019 2018

2019

Country

Value (m. EUR)

I-III quarter 2018 = 100

I-III quarter Structure %

Germany

2646.2

108.5

21.8

21.6

United Kingdom

1297.0

106.1

10.9

10.6

Netherlands

809.3

105.6

6.8

6.6

France

677.3

119.8

5.0

5.5

Italy

654.1

114.7

5.1

5.3

Czech Republic

556.9

101.0

4.9

4.6

Hungary

382.0

102.7

3.3

3.1

Romania

366.6

113.3

2.9

3.0

Belgium

340.5

105.4

2.9

2.8

Russia

333.8

107.0

2.8

2.7 Source: Statistics Poland

516.4

500

510.5

I-III quarter of 2019

775.8

711.4

1033.1

1020.5

1058.3

1234.5

901.2

1000

1089.2

1319.7

1252.5

1500

1526.9

1406.3

2000

I-III quarter of 2018

2008.6

1850.2

2500

2761.7

3000

2469.7

Fig. 2. Exports of commodities by category in Section IV of the CN classification (in EUR million)

0 Tobacco and manufactured tobacco substitutes

Preparations of cereals, flour, starch or milk; pastrycooksâ&#x20AC;&#x2122; products

Miscellaneous edible preparations

Preparations of meat of fish or crustaceans, molluscs or other aquatic invertebrates

Cocoa and cocoa preparations

Residues and waste from the food industries; prepared animal fodder

Preparations of vegetables, fruit, nuts or other parts of plants

Beverages, spirits and vinegars

Sugars and sugar confectionery

Source: Statistics Poland

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FoodfromPoland

INFLUENCER MARKETING

Influencer campaigns:

a modern whim or an absolute must-have?

In this article I do not wish to focus on the definition and deeply sociological aspect of social media. It is a certainty that countless scientists in the future will study them, categorize them, and perhaps even try to assign names of epochs such as ‚postfacebook’ or ‚pretiktok.’ I, on the other hand, would like to answer mainly the question of how contemporary social media can be used wisely, to fulfil the function of a channel of communication with consumers.

Andrzej Wierzchoń

Senior Business Development Manager TERRITORY INFLUENCE

My experience with Marketing started many years ago, when there was no Internet at our fingertips, but fortunately enough there were already printed newspapers. As a secondary school student, I would run to the mailbox to see if I could find a new copy of Business Week magazine, where large companies and their representatives placed much effort in creating their image as they shared their successes while discussing challenges and visions. I think that thanks to this experience, I have been inspired to work in the field of marketing and brand building for 20 years. Up until 10 years ago, I worked as a marketing manager in a large organization, whose character and product necessitated the use of modern media in marketing strategy. This was at the beginning of the Internet where these kinds of business strategies were implement-

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ed in a very intuitive manner. The world was then divided into users, administrators and webmasters. The advent of bloggers grew at a slow pace; PR specialists took the first, uncertain steps, and ordinary people started to learn how to use the Internet. Nobody even suspected what would be awaiting them in a few years’ time, and nobody had heard of the term ‘influencer’ either. Meanwhile, at an alarmingly fast pace, we’ve found ourselves in our time, where the ‘cell phone’ has lost its essential function of making calls and as a smartphone has gained a new face as the ‘centre of life’ - both private and business alike. We live in times of paradoxes, in which on the one hand, we look for individuality, self-definition of the individual, security (including data); and on the other hand, we continually share a whole mass of data with the world. We look into the lives of others, we comment, we give likes, we follow, we imitate - you can safely say that we basically live online. We increasingly do our shopping there, we seek out opinions, watch movies or listen to music. Thus, a picture of ‘interesting times’ begins to emerge, in which we have a chance to live with the immensity of opportunities brought about by this digital revolution. I consider this not to be the Internet and social media itself, but a change in ourselves in relation to access to knowledge and entertainment at practically anytime and essentially everywhere. In the first part of the article, I quoted the fashionable word ‘influencer,’ also widely known as a Content Creator. These are people who are currently generating the greatest changes; they can, through their realm of influence, change the way we think about a given product, the climate, even our very way of life. Who exactly are they? At present, I’ve been working for more than 5 years at the company TERRITORY Influence, which cooperates with influencers. My role is based, among other things, on tapping into their advantages and their influence on behalf of brands to build product and service awareness among their followers. From experience I can say that this is a group that still eludes a strict and unambiguous definition. I am convinced that each of us (sometimes even unconsciously) is an influencer, just as each of us is a consumer. We exchange information in regular conversations, e-mails, during casual meetings, over dinner or over morning coffee in the office. Our recommendations very often find their way into these conversations. Each of us has his/her preferred areas of knowledge that we enjoy sharing with others. For some people it might be running, for others it could be diets or fashion. We pass on our knowledge or opinion, our perspective and our personal expe-

324 Likes Let your product have influence. www.trnd.com/pl â&#x20AC;&#x201C; www.incircles.pl

INFLUENCER MARKETING

riences with the aim of helping to improve the image of the person we are engaging in conversation with; at times our intention may be to position ourselves as an expert or authority on a given subject. There are those among us who are less or more effective in collecting, generating and passing on messages. Social media favour the latter as people with a higher than standard number of friends, followers, a greater number of likes under their posts or photos, as well as an above-average number of shares of their published content. Nowadays, each post of an influencer is in fact a study in itself concerning the content published, or the quality of the photo and its aesthetics. Both in the past and today, the winner was/is the one who better responds to the needs of his/ her target group, who is more attractive to it, and whose message is deemed important by the recipient; in other words, who a person chooses to be, his/her originality, which can be understood as his/her own style. This translates into the level of attention he/she can attract from others. So we may ask, why is this happening? After all, we can now follow hundreds of profiles, thousands of channels, but some people attract more attention than others. This is a paradox of our era - the issue is of course: time. We simply cannot spare time for everyone, and so we will devote more of it to those of greater importance to us. Their message will reach us faster and we will remember it better.

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Here it is worthwhile to stop for a while and focus again on the influencers themselves and the weight of their message. Among our friends there are people with whom we have a certain emotional connection, people we may like for various reasons or who we value for what they do. It could be our family, our friends or our favourite athletes. All of these messages are of different importance; however, when any of the above mentioned tells us about a product - we intuitively know whether this particular product falls within the area (domain) of the person’s natural knowledge. A message created by a natural expert, e.g. our friend, who is also a parent, who talks about the experiences of her child through a personal post, which allows insight into a scene from the life of this woman and her child, will resonate with us as long as we know this mother and know that she wouldn’t give her child something untested to eat. We use her authority unconsciously. In yet another example, it could be our favourite football player who is wearing headphones before entering the stadium and who has found a spare moment to publish his photo along with greetings to his fans. We consider him to be an expert in sports, but his image is imprinted in our minds so much that we naturally perceive his choice as a premium option. The world of influencers is currently divided into two areas: paid influencers, who have built their popularity through a

‘self-generated concept’ or by simply monetising their popularity gained in another field; the second area is the domain of natural influencers (Everyday-, Micro-, Nano-Influencers, i.e. the average consumer). The differences between these two types result from the reach of their messages. Knowing these differences, we can try to answer the question of who to invite to cooperate, how to use his/her specific features and the area of operation that can be employed to help a specific brand or product? Unfortunately, there is no single key that allows you to universally match a specific type of an influencer to categories or product groups. It is important that the cooperating influencers reflect the brand in a natural way and fit into the profile of its consumers. It is crucial to understand the needs of the brand, its potential and the level of faith it enjoys among its customer base, as well as understanding the process of how to deal with influencers. Influencer Marketing support experts must have a deep understanding of the product and brand communication to properly advise and implement a campaign. From my own experience, I must say that the company TERRITORY Influence which operates in more than 14 markets, and which I represent, has implemented several thousand campaigns and provides a range of analytical possibilities - could not be positioned as it now is without the support of people with great potential, knowledge,

INFLUENCER MARKETING

imagination and experience gained in many fields of Marketing and Operations and Research. It is thanks to the team, our passions and commitment to our responsibilities that we can focus on work that delivers real results to our partners. When simplifying the models of operation with influencers we must remember about the division into types. The first group is ordinary consumers, i.e. the Everyday Influencers mentioned above, who can act in a very predictable way, on an extremely wide scale. Campaigns with them are very scalable. We invite from 50 to a few thousand people to participate in such campaigns. After an appropriate process of product knowledge education and the possibility of personal testing, they may turn out to be a perfect solution for a very successful embedding of a new product on the market by generating a product trial on a scale unknown in typical trade, acquainting a group of people around them through samples or tastings, and building consumer awareness. However, there is one aspect of this model that cannot be omitted and experience is key here - that is why large and small companies usually employ companies like the one I represent. What we have in mind here, is the ensuring of an almost perfect recruitment

process, i.e. choosing the right participants for the tasks at hand, but also about maintaining an open channel of communication and education during the period of activity and clearly defining the goals to be achieved. Such goals can be to generate content on their own social media channels, to invite colleagues at work to taste the product being tested, to share the knowledge gained from the campaign, or to write a personal, honest opinion on a specific e-commerce site to facilitate the choice of other consumers. It is also worth stressing that such consumer-driven activities may be intended for products which, for unknown reasons, have not gained, despite all signs and research, the expected popularity on the market by generating a strong impulse at the centre of the market, i.e. directly between the product and its targeted consumers. The second main group that I have chosen from among active content creators who exert great influence on their observers and sometimes followers, are paid influencers, i.e. those who monetise their potential reach. In this case I deliberately use the word â&#x20AC;&#x2DC;potentialâ&#x20AC;&#x2122; because the same mistake has been repeated many times in the context of conversations with some people in a position slightly further away

from marketing. The number of influencers is not a personâ&#x20AC;&#x2122;s on-line reach in the direct sense of the word. The number of people following a given sports star, for example, does not relate 1:1 to the reach that his/her output will generate online. There are several other parameters that examine the effectiveness of a given influencer; I will only mention here the level of involvement. Experience plays a huge role in this area, due to the fact that very often potential influencers with millions of followers actually facilitate fewer consumers than a person with fewer followers who is able to deliver excellent quality and compelling content. The issue of building an effective strategy and choosing the right people to facilitate your own activities is certainly very broad. However, I would like to encourage you to think about the potential of an Influencer Campaign based on the answer to one question. Do I believe in my product? This is enough to consider participating in a campaign. I would like to extend this wish to the readers of this article: that they be able to cultivate a spirit of innovation strong enough to build an open and honest channel to talk to consumers through an influence marketing strategy.

01/2020

FoodfromPoland

MARKETS

Children’s snack bars keep it clean and nutrient-dense Honorata Jarocka Senior Food and Drink Analyst, Mintel

LOW/NO/REDUCED ALLERGEN CLAIMS HOLD STRONG IN CHILDREN’S SNACK BARS: Naturalness and simplicity remain important pillars of innovation in children’s snack bars since parental concerns over their healthfulness are strong. For example, more than half of French and Spanish consumers who have children say that snack bars are too processed. One popular strategy to win consumer trust is to avoid ‘anything artificial’ and allergens such as wheat and dairy. Analysing global snack bar launches between September 2014 and August 2019, data from Mintel’s Global New Products Database shows that the share of global snack bar launches targeting children and which featured ‘no additives/preservatives’ claims increased from 26% to 43%, while gluten-free launches grew from 12% to 23%. To respond to a variety of consumer needs, free-from claims are increasingly being coupled with ‘real ingredients’, ‘clean labels’ and processing techniques with a ‘clean’ image. A good example is Macro Wholefoods Market Mighty Bites Cheeky Cocoa Crunch Flavoured Balls from Australia which are naturally sweetened with fruit and contain no added sugars, gluten, dairy, eggs, artificial colours, flavours or preservatives.

SUGAR IS ANOTHER INGREDIENT ON THE CLEAN LABEL CHOPPING BLOCK The war on sugar continues to intensify, impacting consumer appetite for sugary food and drinks. In the UK, for example, as many as 43% of parents of children aged 7-15 are concerned about their children having too much sugar in their diets. Therefore, consumers expect that children’s snack bars should better align with

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their own sugar reduction goals. Although brands have been adopting no added/low sugar claims, Mintel’s Global New Products Database reveals that the average sugar content in global snack bar launches targeting children only saw a slight decrease between September 2014 and August 2019.

ADDING VALUE WITH FORTIFIED/ FUNCTIONAL CLAIMS Beyond ‘cleaning up’ ingredient statements, kid-friendly snack bar brands are also embracing fortified/functional claims to connect with nutrition-minded parents. These, for example, have included ‘added calcium’ and ‘high/added protein’ positionings, as seen in the example of RXBAR Kids PB&J Protein Bars from the US. Each bar is made with two egg whites, eight peanuts, one date and ‘no bad stuff ’. . A brain health platform provides children’s snack bars with another window of opportunity. As illustrated by the Brainiac yogurt brand, there is specific potential to innovate with omega-3 DHA, omega-3 ALA and choline. A good example in the snack bar space is the SmartyGrow DHA Bar containing a combination of nuts, seeds, berries and puffed grains

with a hint of natural lemon flavour to create a tasty treat packed with the benefits of omega-3 fatty acids.

MINTEL RECOMMENDS To win more trust among health-minded parents, snack bars targeting children need to boost their innovation potential by avoiding unnatural and unnecessary ingredients, including common allergens. Reducing the total sugar content is another key area for action. Brands should also be encouraged to adopt a functional approach, paying special attention to opportunities in the brain health space.

ABOUT MINTEL Mintel is the expert in what consumers want and why. As the world’s leading market intelligence agency, our analysis of consumers, markets, new products and competitive landscapes provides a unique perspective on global and local economies. Since 1972, our predictive analytics and expert recommendations have enabled our clients to make better business decisions faster. Our purpose is to help businesses and people grow. To find out how we do that, visit mintel.com.

MARKETS

Mintel’s global food and drink trends 2030

Mintel, the experts in what consumers want and why, has announced three key trends that will shape the global food, drink, and foodservice industries over the next 10 years: Change, Incorporated: Successful companies will be those that improve the health of the planet and its population. Smart Diets: Technology will enable consumers to construct hyper-individualised approaches to physical and mental health. High-tech Harvests: Consumer trust in food science and technology will strengthen as these become vital tools to save the food supply. Expect to see consumers further prioritise plants in their diets, with the planet’s health in mind as much as their own. From beer made from rejected cereal pieces to containers made from organic mushroom waste, food waste will lead the way for more sustainable consumption and innovation. Consumers will gain a better understanding of what makes them unique using health testing services, artificial intelligence-enabled apps, and increased personal data collection. Meanwhile, with consumers expected to live longer, many will want to learn how their diet can benefit long-term cognitive health. Expect to see brands use science and technology to create new products, shorten production time, and confirm trustworthiness. Meanwhile, new ingredient growing regions, such as those in Africa and India, and agricultural innovations, including floating farms, will emerge to tackle global food insecurity.

Looking ahead, Alex Beckett, Associate Director, Mintel Food & Drink, discusses how issues of health, technology, and trust will inspire formulation, packaging, marketing, and more in the years to come.

CHANGE, INCORPORATED “In the next decade, consumers will be hungry for leadership and demonstrable change on environmental issues, ethical business practices, public health, and other important causes. Consumers will reward brands that take action and improve important societal issues. The companies that will win in the next 10 years will be those that fuel the new era of conscious consumption. Tomorrow’s conscious consumers will be looking for eco-friendly packaging and products, while also seeking guidance on how to make their diets more sustainable.”

SMART DIETS “Looking ahead, more consumers will be able to gain in-depth knowledge of their biology through personal health testing kits which will empower them to personalise their diet and health regimes. Analysis of these tools will inform consumers of the steps they need to take to address every aspect of their health, including brain and emotional wellbeing. As a result, in order to succeed over the next decade, brands will need to offer more personalised product offerings, develop smart home

solutions, and assist consumers in addressing mood and brain health.”

HIGH-TECH HARVESTS “Science will interlace with the food supply chain to boost yields and combat climate change. Celebrating the sustainable, health, and cost benefits of lab-grown food will be crucial in educating consumers about nature-identical alternatives. But the food and drink industry will be compelled to elevate the role of nature, and humans, in the storytelling of these new, modern solutions. Transparency of information is essential to building trust in a future where scientists play as integral a role as farmers. And championing the people behind the food—whether it is grown in a laboratory or a field—will remain a timeless way of building trust with consumers.”

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FoodfromPoland

MARKETS

The sweet part of the Polish market Chocolates, candy bars, wafers, cookies, jellies, caramels… It is impossible to list them all, and yet, new products are still appearing on the market, responding to the changing consumer needs. Moreover, the Poles have their favourite products accounting for the largest share of sales.

Monika Kociubińska Redaktor

Why do we love sweets? The answer can be only one – they are pure pleasure. It is confirmed by Nielsen research showing that as many as 79% of the surveyed predominantly reach for sweet snacks for their own pleasure. But this is not the only reason. Consumers find confectionery to be a perfect mood booster, as well as an antidote for so-called “bad days”.

SWEET PLEASURE Polish people are very eager to reach for sweet snacks, as evidenced by the growth in value of this market. As the consumers themselves admit in a survey conducted by SWResearch on request of ETi1, this is one of the most popular things they associate with pleasure, alongside relaxing in the daytime, meeting with friends or a coffee break. The respondents were also asked about the frequency of consumption of sweet snacks. Most of them – almost 41% – eat sweets several times a week. Almost every fourth person (23%) just cannot imagine a day without “something sweet”. This group is dominated by people aged 25-34, comprising the largest percentage (27%) of those surveyed who have a sweet snack every

day. Among the survey, 3% do not eat sweets at all, whereas 3% and 4% only reach for them once per month or even less frequently. Few people plan eating confectionery. When asked in what situations they reach for sweets, Polish people admit they usually do so on impulse, when they get a craving for something sweet (37%). A small snack also allows them to cheer up (31%) or cherish a moment just for themselves (12%). On the other hand, only every tenth person (11%) sees the purchased sweets as a dessert after dinner.

THE MARKET OF SWEETS According to Marek Przeździak, the President of the Association of Polish Chocolate and Confectionery Manufacturers (Polbisco), the Polish market of sweets and snacks is already worth PLN 17.3 billion and accounts for 13.3% of the turnover of the entire food basket in terms of value. Cookies are the largest category, comprising 13.6% of the turnover in terms of value. On the other hand, the production of chocolate and chocolate products between January and September 2019 rose by 0.1% compared with the analogous period of 2018, totalling 307,000 tons. The confectionery industry is a richness of tastes and sensations – including both typically chocolate-based categories, such as dragées, chocolate bars, candy bars, chocolate figurines and sets, pralines, but also those with less chocolate or with just an addition of chocolate: ready-to-eat cakes,

candies and lollipops, impulse wafers, sweet cookies, muesli bars, halva and sesame candies, as well as chewing gums. “Among them, the stable leading position has invariably been maintained for many years by the categories of cookies, chocolate bars and pralines. The other end includes halva and sesame seed candies as well as muesli bars, the smallest categories in terms of value for the entire sector. The greatest increases in sales in the annual period (October 2018 – September 2019) were recorded by the categories: muesli bars (+13.7%), wafers (+9.3%), and chocolate bars (+9.1%). The increases in sales resulted, among other things, from a wider offer and new products within the aforementioned categories. A significant part of the categories in the confectionery industry is subject to large seasonal fluctuations, with sales increases falling on two moments of crucial importance to the sector, i.e. Easter and Christmas. Their sales in pre-holiday periods can be doubled or even tripled in relation to average sales in the preceding months,” – says Magdalena Mucha, the Client Response Associate at Nielsen2. In that special period, the highest growth of seasonal sales is recorded by the category of chocolate figurines and sets – its sales grow three or even four times compared with average sales in the preceding months. Within this category, we distinguish marzipan products, Advent calendars, filled or unfilled figurines, praline mixes, as well as all kinds of figurines of different shapes, flavours

1 The data have been given on the basis of the results of a survey conducted by SWResearch for ETi. The survey was carried out on 8-13 May 2019 using the computer-assisted web interviewing method (CAWI) on the online SW Panel. The study included 1007 interviews with Polish people over 18 years of age.

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MARKETS

or dimensions. “The increase in sales also results from a wider assortment available at store level: the greatest diversity of products in this category can be found in large-format stores (hypermarkets, supermarkets, discount stores), but also in grocery stores (large, medium and small), despite much more limited sales area. The most crucial month for pre-holiday confectionery sales is December (accounting for 11.9% of annual sales in 2018),” explains Magdalena Mucha from Nielsen. In 2018, the amount of pre-holiday sales (November and December) comprised 21.2% of annual sales in terms of value – and, despite many gift occasions appearing throughout the year, it still remains the most tempting to manufacturers.

SALES IN SMALL-FORMAT STORES According to the CMR data, confectionery is among the products most frequently purchased in Polish small-format stores with an area of up to 300 square metres. Between October 2018 and March 2019, different sweets would appear on every seventh cash receipt, accounting for 4.5% of the total sales value. “The largest share in the confectionery sales value in that period comprised cookies, chocolates and chocolate bars – 18%, nearly 14% and 13% of the share respectively,” says Ewa Pikuła of CMR. It is hard to find a small-format store in Poland whose offer would not include at least several different sweets. “In the period under discussion, customers could choose from an average of 180 products at an establishment of this format, whereas most places on the shelves were occupied by cookies (above 40 variants), chocolate (almost 25 different bars), and candy bars (19 products). Between October 2018 and March 2019, cookies, chocolates and candy bars accounted for almost a half of the entire confectionery sales value, available in almost all small-format stores up to 300 square metres,” Ewa Pikuła admits. According to the CMR data, the leader in the category of cookies in the period under consideration was Mondelez whose products could be found in more than 90% of small-format stores. It was closely followed by Colian and Bahlsen with availability exceeding 80%. “Safe bets in the category of candy bars and wafers are the Snickers and Prince Polo brands; between October 2018 and March 2019, they could be found on shelves of 9 out of 10 small-format stores of up to 300 square metres. In that period, customers of a typical neighbourhood store could choose from an average of 19

candy bar variants and about 14 different wafers,” says Ewa Pikuła of CMR. On the other hand, the leader in the segment of impulse wafers is Mondelez (with the Prince Polo brand) which accounted for 1/3 of the value of sales in this category between October 2018 and March 2019. Its chief competitor is Colian (the manufacturer of Grześki), which achieved a share of nearly 24% in impulse wafer sales in the same period. Further places were occupied by I.D.C. Polonia with Góralki and Nestle with the Princessa brand. “The sales of chocolate are largely season-dependent, and the best months for this category are March as well as November and December. This category is essentially divided into milk, dark and white chocolates. Each variant may occur in an aerated version or feature such additives as milk or fruit filling, raisins and nuts, biscuits or cookies, as well as ingredients present in premium chocolates: salted caramel, spices, dried fruit, coffee seeds, and flower petals. Between October 2018 and March 2019, a customer in an average neighbourhood store could choose between more than 20 different variants of chocolate bars, of which 4/5 were comprised by milk products reaching nearly 80% of the total sales value of chocolate. The company holding 44% of the share in the sales value of chocolates is Mondelez, with Wedel as the runner-up holding a more than halved share. Most frequently, the customers chose 100-gram bars, accounting for more than 2/3 of the total number of transactions, whereas higher-weight variants comprised a small percentage of sales in this category. Chocolate under private labels of trade chains or distributors was offered by approx. 2/5 of small-format establishments at that time, accounting for more than 8.7% of all chocolate transactions,” Ewa Pikuła says.

LOCAL AND GLOBAL TRENDS Marek Przeździak, the President of the Association of Polish Chocolate and Confectionery Manufacturers, admits that, when analyzing key consumer trends, one can notice a general upward trend in the sector of snacks – healthy sweet or salty snacks are currently the focus of interest of the consumers. “As late as several years ago, consumers in Poland paid no attention to such issues as food waste, ecology, or clean label. The change of awareness and eating habits of Polish purchasers makes us follow those health-promoting and convenience-related trends,” Marek Przeździak explains. Moreover, recent research has shown that snacks are important to consumers as far as men-

tal or emotional wellbeing is concerned. A snack becomes not just food but a gift or a way to transfer rituals connected with cultural snacks to one’s closest relations. “The direction of development of the global food market in 2020 is surely set out by innovative trends. One of the most important things that should be promoted in products is clean label,” the President of POLBISCO says. The global category of chocolate confectionery actively responds to the needs of a modern consumer, with emphasis on the challenges connected with a combination of the pleasure aspect and with concerns over excessive sugar consumption. As explained by Honorata Jarocka, the Senior Food and Drink Analyst at Mintel, the position of chocolate seems unthreatened, despite the increased interest in healthy lifestyle. According to the consumer research conducted by Mintel, more than three fifths of respondents in Italy, Spain and Poland declare they allow themselves for occasional “weakness”. “When thinking about the possibilities in the context of product innovation, there are three areas worth pondering: premiumization, building of added value through functionalities – e.g. those connected with use of superfoods-type ingredients or probiotics – as well as experiments focused on unique flavours, textures, visual aspects and storage modes (e.g. chocolate confectionery for consumption after cooling). Another interesting area includes variants consistent with the vegan diet, whereas Mintel data show that the interest in vegan milk chocolate is reported by almost two fifths of respondents in France, Spain and Poland. These are consumers who have not tasted such innovations so far but would like to. This direction is currently illustrated by the decision of Mars to release a vegan line of chocolates in the UK under the Galaxy brand, indicating that the “plant niche” is not just the domain of small players anymore but has earned the interest of mass brands. Of course, it is worth mentioning that a considerable portion of the chocolate market, i.e. dark chocolates, has vegan attributes, even if packaging of many of them lacks vegan statements. Therefore, experiments in the area of plant-based alternatives for milk chocolate are both a challenge and a possibility of development,” Honorata Jarocka says. According to the data of Mintel’s GNPD (Global New Products Database), in the period of three years until October 2019, vegan statements were found on 4% of all global implementations in the category of chocolate confectionery, whereas this share is predicted to grow.

2 Source: Nielsen, Panel of Retail Trade, Markets: All Poland as a sum of the channels: Hypermarkets, Supermarkets, Discount Stores, Large, Medium and Small Grocery Stores, Kiosks, Fuel Stations, Wine and Confectionery Stores, cumulated periods: October 2017-September 2018 and October 2018-September 2019. Categories: Drageés, Chocolate Bars, Candy Bars, Chocolate Figurines and Sets, Pralines, Ready-to-Eat Cakes, Candies and Lollipops, Impulse Wafers, Sweet Cookies, Muesli Bars, Halva and Sesame Seed Candies, Chewing Gums.

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Internationalization of the Polish food market – aspects and perspectives Let us begin with an anecdotal example. Not long ago, in the past year, a country where store shelves give in under the weight of food products of all varieties, where the percentage of domestically produced food (with the EAN/GTIN code beginning with 590) reaches 80%, not counting products from outside the bar-code system (GS1 system), runs short of the trite and trivial products.

Andrzej Maria Faliński Expert

Such as certain vegetables and fruits. A climate and, probably, some negligences – fortunately temporary – were to blame. Over the span of a few days prices „went crazy”, it is suffice to recall parsley priced at PLN20, but gradually reversed definitely a few (well, a dozen or so) days later. To the umbrage and discontent of more foresighted suppliers who took care of the continuity of domestic supply, somewhat against the weather. What went right apart from cunningly taking care of production? Well, the beneficial effects of the participation of Polish food market in internationalization of commercial turnaround (in all the glory of the supply chain – from a farmer to retail network) activated. Import, external supply, barters and disbursements „to be offset” at a later date all activated. Our economy in this sector is,

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in all fairness, fragmented but it is present on numerous markets owing to the efficient systems of supply accumulation, stock arranging of offers as well as contracting and authentication. It should be duly credited to commercial companies which prevent breaks in the continuity of supply and retail. These companies are able to prevent stoppages because they posses financial and technical means and are intertwined with and incorporated into international division of work and exchange. Therefore, let this anecdotal example become an inducement for engaging in a slightly broader reflection concerning the role and structure of the process of internationalization of the Polish food market. With particular attention to indicating commerce as the ultimate but nevertheless extremely significant supply chain and retail network link active in organizing fragmented production. Commerce has more than once proven its role in compensating sudden ullage as a factor internationalizing (and internationalized) the food sector and the entirety of the economy. Food products are in this case a particularly illuminating example. It suffices to recall that apart

from the short-term vegetable market collapse commerce was , along with the processors, responsible for setting of nearly systemic import compensation of the pork market. Additionally, at the opportunity, it enforced new competitive mechanisms on this particular market e.g. concern for repeatability and uniformity of primary product qualities which is an important issue for processors operating on the domestic and export markets. It is significant in the process of internationalization because Polish export consists mainly (in approx. 80%) of the presence on developed markets – the European Union – and not only as a supplier of primary products. Approximately 80% of our export consists of highly processed products – meats, dairy, fruits and vegetables, confectionery. Internationalization of food trade (mind you, I do not restrict the process of internationalization to exchange, not by a longshot) has a positive character, it benefits national economy and interests of companies. All of this contrary to complaints of entities which deal poorly with competition and call for support of legal and political, par-

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don, protectionist in nature. How are we to name the supine and passive argument surrounding the not entirely successful legislation concerning Polish products and new ideas on how to „protect” the market from import? Which, notabene, are expressed in a country which has the largest percentage of domestic food commodities, those with EAN/GTIN code beginning with 590, on the market in the EU? And additionally it imports mainly raw products and after processing and selling them on the domestic market or exporting them it earns significant profit, exhibiting dynamics of food export and food retail market increase unprecedented in Europe (however, recently an inflationary increase to an increasing extent). The opinions concerning diversification of a turnaround structure are varied but it is worth remembering that we realize more than 80% of total export within the EU and to a similar degree in the case of food export. The geographical structure of import in the gross is similar although not as striking – approx. 60% of our import comes from the EU and 40% from outside of the European Union. Structure of surplus and deficits is major as presented by the chart compiled by W. Mroczek – it presents that the opportunity for import is still, although slightly less so, not to be sniffed at as frequently suggested by propagandist and promotional debates. As it is known the excess hurts – in case of import but in case of export as well (sometimes even more). Regarding foreign food trade proportions differ slightly, but not by much. In export proportions, the degrees of product processing and target destinations are similar but in the case of import they are noticeably different. We import mainly less processed products, chiefly fats and other products and semi-finished products such as meat, fruits and vegetables, fish (mainly sea fish) and, additionally, coffee, tea etc. What is important the majority of these products require further processing which we do with a significant profit. Slightly more than 70% of these products come from the EU. The EU also supplies us with majority of processed products (chocolate, cheese, cereal products and certain types of meat). All in all, import of food constitutes approx. 10% of total import compared to approx. 14% of food export of which processed products constitute more than 80% (e.g. 87.5% in the first half of 2019) whereas processed food constitutes approx. 70% of total food import. However, the degree of processing is priority and in the case of export it is decidedly higher which

(...) The transforming economy of Poland is becoming increasingly competitive and only such economies can become beneficially internationalized

translates into more beneficial added value indicators, greater profits, competitive position, reputation and other permanent advantages. What does this data say about the process of internationalization in the commercial turnaround on the product level? It turns out that it is a process based on concentrating activities in the geographical vicinity (the EU and neighbouring countries). It is the indicator of both deficit (predominance of import) and disproportions in extra-European relations. It is symbolically signified by the 12-to-1 surplus ratio of our import from China over our export to China and nearly 8-to-1 surplus ratio of Polish food export to Great Britain over food import from GB or the slightly smaller surplus in exchange with Germany. This situation is good in short-term – in the processes of internationalization we are located where we should be – on wealthy and affluent markets which gladly pay for and appreciate our products. It is also good that the products from these markets are available in our country and we can purchase them but... What could happen if the cooperation was to suddenly collapse for one reason or another? We will not be able to position ourselves on markets other than European. At least not immediately. This necessity will also painfully present itself when we stop making profit in the vicinity and thus we will be able to afford less.Therefore the bellicose political and economical declarations appear foolish rather than amusing when confronted with reality. Poland finds itself on an increasingly improving position in terms of global trade exchange: it has 1.6% of shares in global import and 2.4% of shares in global export (a rapid increase occurred – five years ago we held 1.6% of global export shares).Our share in the European Union export is nearly 6% and nearly 4% in import. However, it is to be understood as „only” rather than „as

much as”. We should keep this in mind and stop spinning „power status” strategies based on turning our country into autarchy through anti-integrating conceptions of foreign relations. The awakening can be painful, even more so because export will not supplant the domestic market, it simply cannot do so, particularly in case of a domestic market collapse (e.g. as a result of restrictive and social sectoral policy certain circles close to the authorities seem to favour). Stagflation originating in commerce (encumbrances and fixed costs vs inflation is not a favourable collation of factors) and spreading rapidly is not an impossibility. Furthermore, it is prudent to remember that success of transformation and significance in trans-national economical systems can be measured in more than one way. In the ranking of the degree of internationalization of European economies (prepared according to complex criteria) we are preceded by, in order, Austria, Hungary, Denmark, Spain, Germany, Czech Republic and France... And this is an evidence of flexibility measured with resistance to the shifting economical situation and supply/demand structures, also geographical. We are not prepared appropriately for everything – not in the region, not globally. An important criterion of internationalization is the process of flux of broadly understood investment means – financial capital, technologies, know how and qualifications/competences. Due to these the transforming economy of Poland is becoming increasingly competitive and only such economies can become beneficially internationalized. The point is that the investments from countries of higher level of economic and technological development requiring new competences and qualifications should act as systemic innovations resulting in a number of multiplier effects and mechanism of domestic business binding. Exactly this happens in Poland as indicated by e.g. level of added value contained in industrial export congenial with the European Union average (approx. 37% for the EU, 35% in Poland). It also includes added value of foreign food products re-exported after processing in Poland. The Polish transformation can be considered successful because our internationalization did not lead to the falling into unilateral dependencies – as for instance commercial outlet or a cheap reservoir of resources required by internationalized economies e.g. human resources. It is rather rarely mentioned in the „transformative” literature where we dream about and wish for new Central Industrial Regions.

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We may say that a phenomenon of „borrowing” development (Germany – approx. 20%, the USA – approx. 11%, France – approx. 11%) and branches of economy (industry – 32%, finance – 19%, commerce – 16%) occurred. Therefore, if today we may speak about approx. PLN750bln of FDI (foreign direct investments) in general across the span of the last 27 years we owe it to commerce and food trade in particular. Trade in an established domestic market in order to prevent excessive export from disturbing the balanced character of the process of development. Thus we should remember that – as written by J. Schumpeter – the power of economy and benefits of export are based on and backed by the firm domestic market. This classic representative of the so called „Austrian School” did not use the term internationalization but he appreciated the balancing and verifying role of the domestic market supporting quality with proper pricing therefore providing a chance to successfully compete with foreign markets. In Poland this particular role of domestic market is clearly visible – against the complaints of weaker market participants concerning strong internal competition „stimulated” by foreign companies. Present on the market and to a significant degree establishing our presence on the foreign markets. When considering the role of FDI in the commerce sector we may be tempted to apply journalistically approved „rougher” application of numbers. The role of those 16% of foreign investments „in commerce” is enormous. FDI in total amounts to approx. PLN750bln and 16% of it in the form of commerce translates into approx. PLN110bln, that is approx. Euro26bln, in this sector. Thus if food trade constitutes approx.

40% of retail (various data is available but 40 appears to be an accurate estimation) we can speak about approx. 10 to 11 billion Euros of Foreign Direct Investments in retail food trade in the past quarter of the century. In case of rapid rotation of product and currency the multiplier effects had to be majorly pro-developmental in export and market increase – as evidenced by their dynamics (obviously dependent on not only FDI). Owing to trade and commerce, export did not become a void sucking up Polish resources and added value and import did not become a peculiar „massa tabuletae” of cheap commodities for less affluent and wealthy consumer markets. Furthermore, if we recall that the food industry and the accompanying services amount to approx. 17-18 billion Euros in the period of transformation it proves that our presence in the processes of internationalization of food trade (domestic and foreign; in export and import – role of which should not be absolutised) has strong foundations; at the moment – and we should not squander these achievements. However, internationalization cannot be boiled down to one country’s companies and capital being present on the other country’s market. Nor can it be understood simply as presence of commodities on numerous markets. It is a much more complicated process, even if we analyze a singular sector or even a single company. Particularly when internationalization is accompanied by economical integration. It is so because multi-dimensional processes related with transfer of technology, competences, development of educational and training systems and, finally, the transformation of people as such occur. To put it simply, the culture of technology and social patterns of admin-

istering are changing and the communication and administering in all parties engaged in purely economical processes of internationalization of capital products and operation are being revolutionized. Friction on the domestic market and in the flow of economic factors between domestic markets and areas of integration outside the country occur. Suffice is to mention the internal aspect of this problem – the clash between modernized, highly competitive economic organizations with traditional non-competitive entities (which results in discriminating regulations and practices) – and the external aspects of these clashes – differences in division of modernization and internationalization profits between participating countries. This in turn leads to new frictions and tensions in commercial turnaround and cooperation. These „frictions” are clearly evident in relations between countries which are more slowly or rapidly reaching various development forefronts. Similar to tensions between newly established „new world” businesses and already existing companies. It arouses the „spirit” and practice of diverse „protectionism” and discrimination – even in integrated economic areas (e.g. the EU). A fact our country is an excellently illustrative example of. However, better ideas for development other than internationalization and joining global processes as well as multi-aspect external support of this development simply do not exist. The ideas for autarchization of increase are simply absurdities, even more explicit when made by leaders of transforming countries who deceive societies with 19th century models of sovereignty, social models based on theories of Bismarck and xenophobia masquerading as patriotism, so easily accepted in plebeian circles.

Fig. 1. Countries where Poland notes highest active and negative balance in commodities trade (1st half of 2019; billion Euros) 10 active balance

negative balance

China

Russia

Korea

Japan

Vietnam

Turkey

Bangladesh

Sweden

Hungary

Romania

France

Czech Republic

-10

United Kingdom

-5

Germany

-15 Source: Statistics Poland

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The future belongs to organic and traditional foods The sales of organic products in Poland has been growing by 20% every year. Experts foresee this will be the quickest-developing segment of foodstuffs, but so far we are still lagging behind Western Europe. Organic foods comprise 0.5% of the food market in Poland. In Western European countries, this percentage reaches 2-8%. Annually, a statistical Pole spends 7 euros on organic products, while expenditures of a German amounts to 100, and of a Dane – up to 200 euros annually. This is partially connected with the lower purchasing power of the Polish people. What can we do to accelerate this trend?

Renata Juszkiewicz The President Of The Polish Organization Of Commerce and Distribution (POHiD)

A BIT OF HISTORY In the West, the boom for organic products started as early as the 1960s. It was inspired by the views of Rudolf Steiner and fascination with biodynamic farming. The fad for regional products came much later, as a consequence of the EU policy regulating food overproduction in Europe and emphasizing quality of products. The EU extended its protection to high-quality products – both organic and traditional ones. That was the time when the first food quality systems would come into being: the Euro-leaf for organic foods, as well as traditional specialty guaranteed, protected geographic indication, and protected designation of origin for regional and traditional foods. Systemic solutions were a market-stimulating factor. In the 2000s, national food quality systems started developing in Poland, to later become notified in the EU and recognized by the Minister of Agriculture.

WHEN A TREND BECOMES A MASS PHENOMENON Trends are affected, on the one hand, by such factors as cultural aspirations, encompassing responsibility for the world, naturality and individuality, and on the other hand, by psychological needs of a human: pleasure, perfection and the need of belonging. Contacts between these points create cultural tensions which may be expressed as sustainability, authenticity and community. The ecological and regional trends are deeply rooted in these factors. This enables the offer of organic and regional

products, referencing both cultural aspirations and psychological needs of a consumer, to become a mass phenomenon of a lasting nature.

ORGANIC & REGIONAL PRODUCTS The citizens’ growing interest in health, healthy lifestyle and healthy nutrition can be observed in Poland in the recent years. The will to purchase organic products is currently declared by 40% of consumers. This percentage is higher in the subcategory of young people who pay more attention to the composition or origin of food, the type of packaging and the environmental impact of production. As many as 9% of Poles thoroughly read labels to check whether the list of ingredients is not overly extensive and whether it does not contain any undesirable items.

COMMERCE CHAINS Although the share of organic foods in the Polish food market stands at the level of just 0.5% (for comparison, the level in Switzerland is 7.1%), the organic food market is recording a dynamic double-digit increase – approx. 20% per annum. The Polish consumers’ spending on organic products still differs from the level of the EU countries. This seems to be caused by the low purchasing power of the Polish people, as well as by insufficient awareness in this regard. The role of an opinion leader educating the Polish society was consequently assumed by international trade chains aiming at dissemination of knowledge of organic and regional products – healthy, safe, natural and top-quality. In order to satisfy the consumer’s needs, it is necessary that trade chains cooperate with manufacturers. Cooperation with large international companies enables farmers to increase their scale of production, to distribute their products on the domestic and international markets, as well as to constantly

improve their production standards (responsible production) and product quality (standardization, certification). Trade chains actively support the transformation process of Polish agriculture and the transition from conventional methods of cultivation and animal husbandry to organic farming. As shown by the data from the Ministry of Agriculture, the number of organic food manufacturers has increased from 3,700 in 2004 to the imposing number of 24,000 last year. The value of exports of Polish products, including organic and regional ones, through foreign branches of the chains stands at the level of PLN 10 billion per annum.

CHALLENGES FACING THE TRADE If the market of organic and regional products is to keep developing dynamically, the trade sector has to face many challenges. Trade chains have to exercise exceptional thoroughness on a daily basis when selecting contractors and care for constant expansion of the offer, exclusively with top-quality, natural, safe products pursuant to the philosophy of sustainable development, as well as ensuring full traceability. Other challenges include: appropriate display of organic and regional products on dedicated store shelves, proper marking, ensuring wide availability of such products in all trade establishments and in online channels, ensuring an optimal price for customers, as well as efficient communication. An important task of international trade chains, as leaders of opinion, is to inspire the market and customers, constant improvement of the awareness of Polish consumers, education in the area of healthy lifestyle and nutrition, as well as formation of pro-ecological attitudes. Thanks to the actions taken by trade chains, the gap between us and the Western European countries could disappear in 1-2 years to come.

1 The article has been prepared on the basis of conclusions from the discussion panel “The Development of Local and Ecological Products”, held in Warsaw on 18 November 2019 as a part of the 1st edition of the Modern Distribution Congress, organized by the Polish Organization of Commerce and Distribution. Website of the event: https://dystrybucja.pl

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Polish market in the transformation stage Despite noting an increase in the commercial turnaround of FMCG products and an increase in both volume and retail sales in recent years the Polish market was characterized by a number of processes leading to its general restructuring.

Witold Nartowski Journalist

The formats of commercial establishments which dominated the market for nearly 20 years begun to matter less whereas other formats visibly strengthened their position. This phenomenon was accompanied by changes in ownership of numerous chains and the dropping out of entrepreneurs who were not able to adapt their operations to clearly changing consumer preferences from the market. As a result on one hand a tendency of shutting down numerous traditional commercial establishments (apart from those which became a part of a franchise chain) was maintained and on the other large-surface stores, primarily hypermarkets but also smaller supermarkets, lost their importance as the major market players they used to hold ten years prior. Only those who were able to meet expectations of clients were able to cope with the situation.

WHOLESALE TRADE: THE LEADER AND OTHERS, LAGGING FAR BEHIND... The current shape of the wholesale market in Poland was already formed a few years ago. The dominant position is, after takeover of the wholesale operations of the Emperia Group, being held by the Eurocash Group, a listed company established more than 20 years ago by its current Chief Executive Officer Luis Amaral. Through takeovers and organic development Eurocash seized approximately 20% of the market. As a wholesale entity (Eurocash also operates retail and franchise chains) it also conducts service sales as well as cash&carry-type sales. The former constitutes of servicing both their own retail establishments as well as external traders. The latter is realized through more than a hundred of Eurocash C&C wholesale stores where pri-

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marily small, independent entrepreneurs who were able to survive on an increasingly hostile market buy. Experts estimate that this form of retail client servicing will decrease in importance on the Polish market which can be partly confirmed by the fact that development of these wholesale dealers has recently visibly slowed down. The second volume sales entity in terms of size although lagging far behind the leader, is Grupa Kapitałowa Specjał from Rzeszów established and led by Krzysztof Tokarz. He admits that his company does not even aspire to „catch up with „ Eurocash which does not change the fact that Specjał, with commercial turnover of approximately PLN2bln, is, apart from its largest competitor, the sole nation-wide wholesale company. This has been enabled by significant acquisitions of other companies including a major wholesaler Rabat Serwis from the Pomerania region. Similarly to Eurocash, Specjał has access to enormous franchise backing other wholesalers cannot boast of. And the number of wholesalers is decreasing annually. It is prudent to stress here that during the first years of the Polish political transformation an estimation has been made indicating that more than 8 thousand general food wholesale entities emerged. Currently this number is significantly lower and companies which can claim a turnover of several hundred million zlotys are a dozen or so. Despite making attempts at reaching the status of nation-wide companies none of the wholesalers were able to achieve this and they still hold positions of regional enterprises. Among the largest of this type of wholesalers we should list, among others, Marol from Poznań, PPHU Gniezno, Bzomex and Frukt companies from the Lesser Poland region or Bać-Pol from Rzeszów, currently in the process of restructuring. Among the major entities there are also companies associated in the MPT Group (incl. Stanro, Polmars, Łakoć, Mathias) with a joint turnover of over PLN1bln and companies associated in PHS Unia which associates smaller

wholesale dealers such as Sim, Agawa, Lemonex, Delta and several others.

HURRAY FOR DISCOUNT STORES Retail sales have been for several years dominated by discount store chains. In this respect the Polish market is beginning to increasingly resemble markets of our western neighbours. Currently, there are four major discount store chains operating which jointly possess more than 4 thousand commercial establishments. The largest is the Biedronka chain which commands approximately 3 thousand stores. The second in terms of the number of commercial establishments is German Lidl followed by the Danish chain Netto. The relatively weakest discount store chain is Aldi albeit it announced major expansion in the coming years. If one takes into account experiences of this chain on its native German market this announcement is not to be underestimated. In recent years discount stores have reported the highest increase of sales in their commercial establishments. And despite not being the cheapest stores, regardless of what they communicate to the clients, their pricing and product range policy awarded them with enormous success on the Polish market. These are no longer stores where products are being sold in primitive conditions, directly from pallets. Owing to both the external and internal visualization of individual commercial establishments and expanding the range of products on offer with brand products they are closer to supermarkets. The times when discount stores offered consumers only house brand products, quality of which left a lot to be desired, are long gone. It is estimated that in the coming years the role of discount stores in food trade in Poland will continue to increase. Even more so due to the fact that discount stores are able to perfectly adapt to current consumer trends. Shelves containing so called „healthy products” or vegetarian and vegan products are expanding and the extra-trade services, particularly in the form of coffeehouses, are being introduced in an increasing number of stores.

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HYPERMARKETS IN RETREAT When giant hypermarket chains entered the Polish market 25 years ago they were able to rapidly take over more than 30% of retail in our country. There were a dozen or so of them and they quickly became owners of more than one hundred commercial establishments. However, times verified the capabilities of these operators and currently only several hypermarket chains remain from the past dozen or so. Such tycoons as Real owned by Metro Group, Geant owned by Casino, Hypernova owned by the Dutch group Ahold or Jumbo owned by the Portuguese group Jeronimo Martins (owner of the Biedronka chain) disappeared from the market. Currently, only few chains still operate: French chains Auchan, Carrefour, B1 and E. Leclerc, German Kaufland and British Tesco. Auchan and Kaufland operate in a manner akin to discount stores, although on a larger scale (large ratio of house brands and the lowest possible prices), Carrefour also commands a chain of franchise establishments which have significant influence on the financial results of the group, E. Leclerc is a group of large, independent stores which operate in a manner resembling a franchise and B1 is a chain established due to a necessity: when taking over the Real chain several years ago Auchan was forced by the Competition and Consumer Protection Office (Anti-monopoly Office) to resell several of its commercial establishments which were turned by Schiever company into the B1 retail chain. On the other hand, the financial standing of Tesco on the Polish market appears to be dire enough, it is expected that the British central office of the company will make a decision this year concerning retreating from the Polish market. The difficult standing of hypermarkets is a derivative of changes in the thinking of Polish consumers. Along with improvement of their financial status consumers are more concerned with the ability to do shopping fast and the proximity of stores. Usually hypermarkets simply do not meet these conditions. In turn, smaller stores located near the place of residence of a consumer became increasingly important.

SUPERMARKETS: PROS AND CONS For the reasons listed previously the standing of supermarkets on the Polish market varies significantly on a case to case basis. The smaller ones, located closer to the potential buyers are doing

Traditional retail is doing quite well. Of course, the number of such stores is clearly decreasing, but the number of stores operating under franchise networks is growing pretty well, excellent even, whereas the other ones are beginning to shut down. Such chains as Dino or Stokrotka, taken over from Emperia by Lithuanian Maxima Group, can boast about the rapid increase in the number of commercial establishments and pronounced increase in sales. Facilities described with the term proximity are not only located near the place of residence of customers but are also able to adapt their range of products to local demand. As a result the Dino chain of stores unexpectedly became one of the most dynamically developing trade companies in Poland further supported by a very successful stock exchange debut. Polomarket, one of the older domestic retail chains, also begun to prosper in a similar category of supermarkets. However, the number of supermarkets which repeat the sins of their older brothers, hypermarkets, and are unable to negotiate the market is significant. The most explicit example of this phenomenon is the fate of such a well known store chain Piotr i Paweł which is in fact dropping from the Polish market after prolonged agony, also judicial, and is ultimately being taken over by the SPAR Group from the Republic of South Africa. The entrance of this operator into Poland is also related with a dispute which erupted between the central office of SPAR located in the Netherlands and Polish co-partnership SPAR Polska owned by Bać-Pol which claims to be the sole SPAR licensee on our market. The courtroom battle in this case is ongoing and if Bać-Pol loses it the South African SPAR Group can soon become one of the most important retailers in Poland.

TRADITION MAINLY IN FRANCHISES Against all appearances traditional retail, sales realized in stores with a surface area below 300 square meters, is doing pretty well. Naturally the number of such stores is visibly decreasing but the number of stores operating as a part of franchise chains is increasing. All of them amount to approximately 35 thousand stores. In most cases franchise chains

are operated by the largest wholesale dealers. The chains managed by Eurocash (Lewiatan, Groszek, Euro Sklep, Gama) constitute of nearly 10 thousand establishments, Specjał supervises nearly 8 thousand stores (Nasz Sklep, Delikatesy Premium, Livio), other retailers such as Chata Polska supported by Marol, Sklep Polski supported by PPHU Gniezno or chains operated by wholesalers from PT and PHS Unia groups own several hundred stores each. Joint actions undertaken by medium sized wholesale traders and small retailers enabled a significant number of traditional commercial establishments to remain on the market. The chain of convenience stores operating under the Żabka label is a particular example of success. Currently it constitutes of approximately 6 thousand stores and the executive board of the company plans further expansion. All this without potent backing of wholesalers. Apart from Dino proximity supermarkets this success is the most spectacular achievement of Polish commerce in the recent period. The idea of a small and convenient store located as close to a customer as possible and offering range of products perfectly suiting expectations evidently worked out even despite rather high prices. Naturally it should be to a significant extent credited to the lack of competition and strong media support. However, this does not change the fact that this success is truly admirable.

EVEN MORE COMPETITORS The emergence of players less obvious until recently on the Polish market has considerable importance for the present day and the future of Polish FMCG trade. With the advent of the ban on trading on Sundays the stores located at petrol stations increased in significance. Owing to this fact the largest petrol station operators have high hopes related with the increased sales of FMCG products in their establishments. Stores located in Orlen, Shell or BP petrol stations are increasingly well supplied with not only alcohol or cigarettes but also with traditional groceries such as bakery products and cold meats. Also the internet food trading is beginning to take off. Naturally we are far from reaching the dynamics characterizing sales of industrial products but it will change in coming years, even more so due to the increasing skills and experience of internet store owners in this field. Therefore brick and mortar trading must take into account the emergence of new, previously little known, competitors on the market.

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FoodfromPoland

MARKETS

Quality wine products are a Polish export commodity As shown by the data of the Institute of Agricultural and Food Economics concerning the export of alcoholic products*, the value of wine beverages exported from Poland is significantly growing. According to the experts from the Association of Employers – The Polish Wine Council, this results from the higher quality of the exported goods. This situation reflects what is currently going on in the wine industry – cheap, low-quality products are becoming a thing of the past.

As late as the year 2000, the exports of wine products were very low, almost of token amount – less than 1 million litres. “The situation has considerably changed ever since,” says Magdalena Zielińska, the President of the Association of Employers – The Polish Wine Council. “The report shows that more than 27 million litres of wine products left Poland last year. Although we observed certain stagnation in terms of quantity in 2018, a great leap forward was made in terms of value, which increased by as much as 33% (to EUR 31 million). This situation reflects what is currently happening on the wine market – cheap, low-quality products are becoming a thing of the past,” Magdalena Zielińska comments. As for the first half of 2019, preliminary data evidenced an increase in volume by 12.6% (to 14.3 million litres) in relation to the analogous period of the previous year. What do we sell abroad? These goods are mainly high-quality products from the group of fermented wine beverages – including fruit wines, ciders or meads. To put it shortly – the core of Poland’s wine production. More than a dozen countries in the European Union, Chile, Australia, Canada, the USA – these are the export destinations of the products of Bartex. Grzegorz Bartol, the Vice-president of the company, says they mainly include apple wines, sparkling wines and BIO products. “The market of BIO wine products in Poland is just emerging but it will develop rapidly. The consciousness and wealth of our consumers is growing every year. Currently, our products with BIO certificates are mainly sold on foreign markets indeed,” Grzegorz Bartol says. Currently, approx. 10% of all Bartex revenues are comprised by products intended for export. “15 years ago, we were mostly selling sweet wines in elaborate bottles to

the neighbouring countries. Today, our customers look for better-quality wines in original packaging,” Grzegorz Bartol explains. This is confirmed by Anna Kalinowska, Production and Investment Director at Henkell Freixenet Polska Sp. z o.o., providing an entire list of countries to which her company exports vermouths and high-quality fruit wines: “These are countries of Eastern Europe, such as Russia, Ukraine, Latvia, Lithuania; Central Europe, e.g. the Czech Republic; and Western Europe – Germany, the UK, the Netherlands. We also export to Middle Eastern countries, such as Israel, and to the USA,” Anna Kalinowska says proudly. Another company betting on intense development of exports is the JNT Group. It has already been selling its products to more than 30 countries on five continents. “Our flagship export product is the Monte Santi brand whose international character allows it to quickly gain popularity in more countries,” says Jakub Nowak, the President of the Management Board of the JNT Group S.A. Sp. K. “Another important export product is the Grzaniec Galicyjski mulled wine, much missed by the Polish diaspora. Poles abroad are willing to reach for this drink. For two years, exports of the JNT Group have been growing in steps. “In 2018, we doubled its value, and we will reach high growth rates, this year as well. Currently, we are opening a lot of new directions, but it should be kept in mind that export processes can be very protracted. They usually last for between 3 and 12 months until the agreement is concluded,” Jakub Nowak explains. He admits that the company’s strategy assumes intense development on foreign markets, including opening of branch offices outside Poland. It is worth mentioning the interest in Polish grape wine and domestic vineyards. JF Hillebrand, a global logistic operator specialized in Intercontinental transportation of spirits, receives such inquiries from time to time, along with requests for samples of beverages from Polish vineyards. “Sometimes we order a bottle of a specific wine from a specific vineyard on individual request from British or German customers. But such amounts are still negligible,” says Izabela Dąbrowska from JF Hillebrand. “It would be a wonderful moment in the history of our company to pump wine from Polish vineyards into a large container – an ISO tank or a Flexi tank – and to carry it to another country of the world,” Izabela Dąbrowska concludes. Currently, virtually all of the grape wine leaving Poland does so as a part of reexport. Source: Newseria.pl

*Report “Foreign trade in agri-food products. Condition and prospects”, Analizy Rynkowe, issue 50, Institute of Agricultural and Food Economics – National Research Institute, Ministry of Agriculture and Rural Development

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MARKETS

The demand for Polish wines greatly exceeds the production capacities of vineyards They want to make it out of pears, currants and cherries. Wine production is developing in Poland, and wine enjoys increasing consumer recognition. Grape harvest from 400 Polish vineyards enables production of approx. 700 000 bottles, and the demand definitely exceeds the supply.

Robert Ogór President of AMBRA

Therefore, there are plans to reach for popular Polish fruit such as pears, currants or cherries, which have not been used in winemaking so far. They can be made into high-grade wine, provided that a stringent definition of this product appears in the law to prevent any shortcuts in the production process. This is what the recently established Zamość Vineyards Foundation (Fundacja Winiarnie Zamojskie) is supposed to endeavour to do; it will also support Polish winemakers and local vineyards. “The climate is changing, which has many disadvantages, but one advantage is the fact that the climate boundary of viticulture is moving north. Poland, with its rather unfavourable conditions for wine production, may now develop as a winemaking country,” Robert Ogór, the President of AMBRA, stressed in an interview for the Newseria Biznes information agency. “Polish winemaking is developing very well from the consumers’ viewpoint as well. The market is growing because the consumers are increasingly interested.” The wine market in Poland has been growing constantly for 10 years, at an average rate of 7% per annum, and is currently worth approx. PLN 2.1 billion [source verification needed]. The number of vineyards and local wine enthusiasts is growing as well. According to data from the National Support Centre for Agriculture, 230 wine producers and more than 400 vineyards were registered in Poland in 2019, with the total area cultivated exceeding 400 hectares. Grape harvest enables production of approx. 700,000 thousand bottles of Polish wines. This is much less than Polish consumers would like to buy.

“The demand today is much higher than the production capacities,” Robert Ogór says. “Polish wine is an expensive product, it is hard to find any below PLN 50. Nevertheless, the demand is so high that virtually all of it is sold. The vast majority of the quantities made in the small Polish vineyards reach restaurants or specialist stores, but there is not enough of them for super – or hypermarkets.” He stresses that wine can be made not just of grapes but of other fine fruit, such as pears, currants, or cherries. Poland has large plantations of these fruit, which have not been used in winemaking so far. “Fine white wine can be made of pear which has many interesting advantages. On the other hand, red fruit – redcurrant, blackcurrant or cherry – have an undiscovered potential for vinification as we know it from grape wines. The best discoveries in the area of the winemaking potential of Polish fruit are yet to come,” Robert Ogór says. “Fruit wines used to be produced on an industrial scale in the Communist era, but they had quite a poor reputation due to their quality. Today, we can speak of the rediscovery of Polish fruit in winemaking. This trend is to be promoted by the Zamość Vineyards Foundation we have established in the area of Roztocze, in the Zamość Region. The foundation supports local vineyards and development of high-level winemaking utilizing fine Polish fruit. The Zamość Vineyards Foundation is to act in favour of the development of Polish winemaking and to provide support to local vineyards and fruit-growers. Under the current legal system, they have to face bureaucracy, unclear tax and insurance regulations, as well as difficult access to trade chains. On the other hand, the foundation has been endeavouring to equalize the status of fruit wine with grape wine and to develop a stringent definition of this product to guarantee its quality. With appropriate promotion, wines made of fine fruit

could gain popularity matching that enjoyed by craft beers today. “Unlike winemakers, fruit-growers have no legal protection in the form of product definition for cider or fruit wine. Grape wine, on the other hand, has a very stringent legal definition. In order to produce and mark it as such, one has to comply with a wide range of prohibitions. You cannot add water to grape wine, you cannot perform fermentation on concentrates but on fresh fruit, you also cannot add sugar. This has enabled the creation of a sector strongly associated with farmers, in which they have advantage over big industries, this definition of a natural manner of production has essentially defended the entire wine sector against globalization. There is no such definition to protect wine made of other fruit,” Robert Ogór says. He stresses that the first step should be the introduction of a stringent definition of fruit wines, based on fresh raw material and prohibition of use of additives and concentrates. Such regulations would provide a basis for building awareness and the image of products which would be attractive to consumers and simultaneously important to agriculture. “Currently, the definition is too loose and allows too many actions that facilitate production and thus cheapen the product,” says the President of AMBRA. “Fine foodstuffs are the opposite of the strategy of cost competitiveness. In the case of such products as Spanish ham or French wines, production is legally made difficult, and consequently, more expensive. They do not compete with other foodstuffs through price but create the richness of their regions otherwise. Poland is lacking such strategies in the food sector in general and one of its greatest treasures, the Polish fruit, in particular. They can be processed into fine wines, provided that their definition directs the sector very clearly towards high-quality products and prevents any shortcuts. Source: Newseria.pl

01/2020

FoodfromPoland

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MARKETS

Poland still exports too little to non-EU markets. This is a major missed opportunity Most Polish exporters see such factors as considerable distance and the related high costs of transport, higher business risk or customs duties as the main barriers to entry to non-Community markets. These issues are beyond the control of companies or state authorities.

Janusz Chojna Head of the Foreign Trade Team at the Polish Economic Institute

However, experts claim that support from administration could significantly contribute to the establishment of business relations with partners on other continents. “There is still room for improvement of actions in this regard,” claims the head of the foreign trade team at the Polish Economic Institute. “We have successfully entered the European market, whereas the share of developing countries in our exports is lower today than 30 years ago when we were beginning our economic transformation. This is unquestionably a vast area to be developed, and a great opportunity to grasp at the same time,” says Janusz Chojna, the Head of the Foreign Trade Team at the Polish Economic Institute, in an interview for the Newseria Biznes information agency. “There is room for action to stimulate the activity of our exporters on such markets, but it is quite limited, since the main obstacles, as they perceive them today, are of objective nature.” According to companies involved in trade

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exchange with other countries, the principal obstacles in establishing cooperation with non-European partners include greater distance and the related costs of transport, fear of corruption and unreliability of local companies, as well as high custom duties. All of these factors are beyond the control of entrepreneurs themselves or the Polish authorities. However, more than a dozen percent of respondents of the Polish Economic Institute claim lack of information or lack of support from the state to be the most important barrier. “A Twofold approach is possible here: identification of prospective markets, which is already underway, since there are promotional programmes of the Go series: Go China, Go Africa, Go Arctic, as well as a map of certain markets deemed to have a priority, on which the state focuses in its export support policy. Generally speaking, these are selected African or Middle Eastern countries; one should not forget the vast Asian markets, such as India or China, but markets of Central Asian countries, including Kazakhstan, are attractive as well,” Janusz Chojna explains. “The other approach may involve letting the market and the exporters themselves decide. They will enter wherever they deem profitable, and the state should support them then.”

European countries still dominate the structure of the Polish exports, whereas Germany has been a leader since 1990, with a 27.7% share in the period between January and October 2019. The runner-up, the Czech Republic, receives 6.1% of Polish goods, and the third largest country, the United Kingdom, accounts for 6% of the exports. The top ten only includes two non-EU countries: Russia and the USA, reached in total by 6% of the value of exports of Polish commodities. However, the economic slowdown in Germany, the impending Brexit, the poor reputation of Polish food in the Czech Republic, the Russian embargo and the US customs duties should motivate domestic exporters to look for new recipients. “A potential area for expansion can be found on every continent. There are Latin American markets; even though this continent has recently been undergoing its own economic problems, it is still a vast, quickly developing area, underutilized by Polish exporters due to the distance and weak traditions of economic contacts,” claims the representative of the Polish Economic Institute. Source: Newseria.pl

MARKETS

Exports to non-EU markets are growing much faster than to the EU Tomasz Salomon Deputy Director of the Department of Trade and International Cooperation at the Ministry of Development

In 2019, Polish exports grew faster than imports thanks to which it returned to a positive foreign trade balance. Although Polish companies are flexible and despite the slowdown in the economy of their main trading partners, they are doing well abroad and the conditions are favorable for export, the government would prefer that target markets were more strongly diversified. According to the exporters, state institutions should promote our country abroad more actively. “The data show very high resistance of our economy to what is happening to our largest economic partner, i.e. the European Union. The not perfect position of Germany in the first half of 2019 did not have a significant impact on the situation of our economy, although it could have caused concern among Polish entrepreneurs” – says Tomasz Salomon, Deputy Director of the Department of Trade and International Cooperation at the Ministry of Development in an interview with Newseria Biznes news agency. “We see the strengths of our companies, i.e. the quick ability to adapt to dynamically changing situations responding to these changes, both in terms of the nature of the offer and the selection of markets. We can see that the dynamics of export to non-EU markets is three times higher than to EU ones.” After 10 months in 2019, the value of Polish exports in current prices amounted to PLN 845.4 billion and was 6.7 percent higher than in

the same period of 2018. Imports also increased, but the dynamics were clearly slower than in the case of exports, which resulted in a positive balance of PLN 4.6 billion. Meanwhile, a year ago it was negative and amounted to PLN – 13.8 billion. The European Union remains Poland’s largest export partner, but its share fell during the year from 80.6 percent. up to 79.9%. The share of developing countries in the receipt of Polish products remained unchanged at the level of 7.1% which indicates its nominal growth, exports to Central and Eastern Europe also increased. “Export opportunities are good. It seems that the dymanics we see now, should be kept at the same level. Our entrepreneurs have a craving for new, strong, growing markets e.g. Asian, Middle Eastern and Far Eastern, or North America” – remarks Tomasz Salomon. “This is also indicated by the dynamics of export growth to the United States, Canada, Japan, China and the United Arab Emirates. We have export growth of several dozen percent on these markets.” From the entrepreneurs’ point of view, there is a favorable export atmosphere in Poland and the state supports companies that want to develop exports. One of the manifestations of such support is the activity of foreign Trade Offices at the Polish Investment and Trade Agency which act as a go-between in arranging meetings with potential buyers and distributors as well as providing market information. They already operate in 64 countries on six continents. This does not mean that there is no potential for improving foreign trade conditions by governmental institutions. “The main barrier in increasing the internationalization of Polish enterprises is the low level of specialized knowledge regarding sales

techniques, methods of securing payments, and the formulation of contracts” – enumerates Andrzej Stefański, director of the LEGATO International Trade Enterprise. “It would be good if institutions supporting export, such as the Polish Investment and Trade Agency and other agencies organized trainings for Polish entrepreneurs who do not export yet to equip them with the knowledge necessary to operate abroad. This kind of activity is more difficult than in Poland because the following barriers appear: distance, different legal environment, business culture, different language.” Building a positive image of Poland in the countries to which entrepreneurs export, as well as providing information about Poland where it is scarce is of no less importance in helping with negotiations with foreign partners. The head of PHM LEGATO emphasizes the importance of a positive attitude of contractors at the initial stage of talks. An example of such a country is Kazakhstan where the company does business with good results. However, there are more markets worth paying attention to. “The largest market in the world for most goods is the United States, because it is the richest country, but if we measure the size of the market with population potential, it is China and India” – says Andrzej Stefański. “Poles are often perceived by their Western partners as those who are well acquainted with the markets of the former USSR. This is true. All the more so that many Polish entrepreneurs still know Russian and have experience in sales to the East. We are also very successful there as Poland, but it can always be better.” Source: Newseria.pl

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FoodfromPoland

STATISTICS

Global players and brands with a history Promotion of chocolate and bars in promotion leaflets of selected countries in Central and Eastern Europe. Chocolate and bars are products which are frequently advertised, both in the media and on shop shelves or promotional newsletters. It is not surprising – despite a strong trend of preferring healthy and dietetic food – sweet snacks act on the imagination of many consumers, promising them a moment of pleasure. Bars, as impulse goods, tempt clients at Agnieszka Smarzewska the shop cash FOCUS Research International desks. Chocolate is good as a small gift or souvenir from a journey. Therefore, this category of sweets received a lot of offers in commercial leaflets. FOCUS Research International exam-

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ined which companies and what brands were displayed the most in the newsletters of trade networks of selected European countries in 2019. There is no denying that in terms of quantity of promotions in commercial leaflets the highest results among producers were obtained by global concerns, such as Mondelez, Nestlé or Mars. Although on

each of the researched markets promoted are mainly local brands and products, in the majority they already do belong to global companies. Concern Mondelez, established as a result of the division of the company Kraft Foods in 2012, having in their portfolio such brands as Milka, Alpen Gold, Toblerone or Oreo, noted the greatest number of promotions in the news-

STATISTICS

Fig. 1. TOP 3 PRODUCERS – Promotions in commercial newspapers 01.01.2019 – 31.12.2019. Chocolate category. POLAND

CZECH REPUBLIC

SLOVAKIA

HUNGARY

ROMANIA

BULGARIA

LITHUANIA

LATVIA

ESTONIA

UKRAINE

Mondelez

Laima

Kalev

Millenium

Lotte Wedel

Nestlé

Heidi

Lindt

Ludwig Schokolade

Mondelez

Fazer

Mondelez

Wawel

Ferrero

Bonbonetti

Kandia

Roshen

Laima

Fazer

Mondelez

Roshen

Fig. 1. TOP 3 PRODUCERS – Promotions in commercial newspapers 01.01.2019 – 31.12.2019. Chocolate – bars category. POLAND

CZECH REPUBLIC

SLOVAKIA

HUNGARY

ROMANIA

BULGARIA

LITHUANIA

LATVIA

ESTONIA

UKRAINE

Nestlé

Mars

Nestlé

Mars

Kalev

Nestlé

Lotte Wedel

Mars

Mondelez

Nestlé

Mars

Ferrero

Cloetta

Mars

Storck

Ferrero

Cloetta

Laima

Nestlé

Roshen

letters of almost all examined markets in the Chocolate category. In the category of Bars the leaders were Nestlé and Mars. The Swiss company Nestlé is the owner of local brands such as Hungarian chocolate bars Balaton, and even famous in the Czech Republic and Slovakia long-term confectionery brands having their roots in the 19th century (Zora) or the 1920s (Orion). This is not the case for the American concern Mars, which in the category of Bars was mainly promoting its flag, international products present on each of the surveyed markets, such as Bounty, Mars, Snickers, Twix bars and its oldest bar – Milky Way. Similarly, the Italian company Ferrero, known also for products of other categories of sweets (Nutella cream and chocolate egg with a surprise – Kinder Surprise), in the categories of Chocolate and Bars bet on known brands such as Duplo, Nutella B-Ready or Kinder. Attention should be drawn to the promotional ranking in the newsletters of the Baltic countries, especially Latvia and Estonia. In the surveyed commercial leaflets, local companies occupied the highest places in terms of the number of offers. Both, the Latvian sweets brand Laima and Estonian brand Kalev – both with traditions going back to the 19th century – belong to the Norwegian concern

Orkla, however they maintained a strong position on the domestic market, and also in the neighboring countries (products of the brand Laima were often promoted also in the Lithuanian newsletters). Similarly, a strong brand in Poland is E. Wedel. This brand of sweets, established in 1851, was bought by a Japanese concern Lotte Group ten years ago. Though, at first there were critical opinions about the change of marketing communication strategy, currently the brand has come back to stressing its history in advertising material. In Poland chocolate of the E.Wedel brand enjoys great popularity, which is also visible looking at the number of offers in trade leaflets. A large number of promotions in leaflets was also noted by products of the Polish company Wawel whose brand can boast a long history, too. A relatively young company, however, is the Ukrainian company Millennium, existing since 1999, which noted the greatest number of promotions in the category of Chocolate in Ukrainian leaflets. Also domestic bars and chocolate of the Roshen brand proved to be popular in the Ukrainian newsletters, though they were outstripped in the ranking by global concerns. One should also mention a big number of offers of products from the category of Chocolate noted by local Ro-

manian companies: Heidi – a company belonging now to the Swiss company Läderach – as well as Kandia Dulce, which was acquired by an Austrian concern Julius Meinl. The market has its own laws. In all the examined promotional leaflets of trade networks in the selected European countries the greatest number of promotions were noted by international concerns. A huge number of offers pertained to products of global brands, known in the whole world, for instance Snickers, Kinder or Oreo. However, globalization led to the taking over of local companies and brands by huge concerns. Sometimes, concerns decide to carry out a rebranding of the existing brands. Often, however, with much greater benefit, they take care of local brands, being aware of the loyalty of consumers of a given market. Chocolate product brands are an exceptional case because many of them boast a long history and tradition, and the development of companies producing them often coincided with the time when national awareness was awakening in the citizens of the then Central and Eastern counties, i.e. in the second half of the 19th century or the first half of the 20th century. This is the case for the Polish brand E.Wedel, Latvian Laima or Estonian Kalev.

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FoodfromPoland

SUMMARY

What was the year of 2019 like in the FMCG sector? Prymat spices are present in virtually every Polish home, which motivates us constantly to monitor and respond to the consumer needs. Therefore, 2019 was another year of intense marketing and sales actions as well as further portfolio development of the Prymat company. Our major activities included a broad-based brand-support campaign under the slogan “Prymat… and you want more”. It included advertising spots and sponsorship billboards on television, outdoor and radio advertising, as well as press advertisement in both consumer and industry media. Additionally, the action was implemented through digital marketing activities, during events and in outlets through appropriate POSs or sales actions. Moreover, 2019 was a year of further development and optimization of our offer. New products have appeared to complement our portfolio and to respond to the current culinary trends. The interest in homogenous spices is still noteworthy, which is why we have expanded our Marta Klęka-Nowa offer with such products as: Ramsons, Himalayan salt in a grinder, XXL grained black pepper. We PR Manager are also developing the so-called sweet shelf by introducing the Prymat Coffee and Dessert Spice Prymat in a sachet and in a glass container with a dispenser. On the other hand, introduction of the Prymat Hummus Spice and Garam Masala Spice is our answer to the consumers’ interest in cuisines of the world. In parallel to the retail offer, we are developing operations in the area of catering through constant expansion of the portfolio, as well as of products for B2B, so as to remain the most desired business partner on both the Polish and the European market. 2019 was a year when the Polish people decidedly reached for high-end alcohol. According to data from the Nielsen report, consumers spent 6.1% more in liquor stores until the end of September than in the previous year, but this was not because they purchased more alcohol. We were buying more expensive spirits from the premium shelf. These data confirm a trend that has already been observed for some time. We are increasingly consuming vodka, gin, rum and whisky of top quality and high reputation. This trend pleases us very much, since Polish Vodka – a protected geographical indication – is, by definition, a high-quality product with a rich tradition of many centuries. Vodkas with the Polska Wódka/Polish Vodka marking on the label have to meet very stringent requirements concerning the quality and origin of the raw material: rye, wheat, barley, oats, triticale or potatoes, which has to be grown in our country, and the entire production process of Polish Vodka must take place in Poland Elzbieta Kwiecińska-Prysłopska as well. In the previous year, flavoured variants of whisky, gin or vodka also enjoyed much popularity General Director, among consumers. In the case of vodka, what we could usually find on shelves were products with Polish Vodka Association an alcohol content below 37.5%, commonly known as flavoured vodkas but not actually constituting vodka in the light of the binding regulations. For the spirit industry, 2019 was also a year of preparation for the announced 3% increase of excise tax for all alcohol and its unexpected increase to 10%. Introduction of the excise tax at such a rate will surely bring problems in the operation of the industry, including its export capabilities, and cause consolidation of the grey market.

FoodfromPoland

01/2020

SUMMARY One of the most important trends on the Polish market, affecting the food industry in recent years, is the health-promoting trend. Consumers look for “clean-label” goods as well as lactose-free products and those suitable for vegetarians. Our Dziugas brand meets all of these requirements. This is why it increasingly finds its way to the basket of a consumer counting on quality and unique taste. To meet the needs of our consumers, we introduced new products under the Dziugas brand in 2019 – an exclusive line of Dziugas Božena Stacevičiūtė cheeses ripening for 60, 100, and 120 months, availHead of Polish market able at connoisseur shops, as well as Dziugas 150 g Žemaitijos Pienas slices. Currently, Dziugas brand cheese is available on the Polish market in seven different ripening periods. We have also marketed products of such brands as PikNik, Magija, or Dobilas. Over the previous year, our products received new distinctions and awards, which strongly impacts the building of our brand’s strong image on the Polish market. In 2020, we wish to develop categories in which we have already been present, in order to become their leader. However, one of the most important challenges our company faces is the opening of the first “Dziugas House” in Poland, a house dedicated to the Dziugas cheese, but I still cannot reveal all the details. The year of 2019 was a very intense and fruitful period for the Wawel brand. We have been active in many segments, we have carried out many campaigns and interesting projects, and our portfolio has been expanded to include many new products, such as the Królewskie Mleczko Waniliowe, delicate and fluffy marshmallows with a natural and distinct taste of vanilla. Each marshmallow has an original circular shape, covered with unique Wawel chocolate and marked with the letter “W” representing its top Tadeusz Czarniecki quality. This year, we have also received many imMarketing Director, portant awards. In the “Golden Cash Receipt 2019” Wawel contest, as many as five of our products have been appreciated. We won the Golden Cash Receipt in the category of modern sales forms for the Wolność Wyboru (Freedom of Choice) concept, while Mieszanka Krakowska 280 g candy mix won in the category of packaged chocolate products. We have also received 3 distinctions: the jury appreciated the Czekolada Gorzka 70% Cocoa dark chocolate in the category of chocolate bars, Kasztanki 430 g in the category of pralines and chocolate boxes, and Żelki Jak SMOK Owocowe 100 g jellies in the category of impulse products. The food market trends in 2019 were still largely affected by the growth of consumer awareness. Increasingly more consumers searched the shelves for products with a good and short ingredient list. We strive to constantly respond to such needs by offering top-quality products, only with Good Ingredients – with no colourings, artificial aromas, E476 emulsifier. This year, as a part of the next stage of our pioneering “Good Ingredients” programme – pursuant to which we are constantly continuing the process of the improvement of products – we have obtained certification for a raw material crucial for production. We have received a UTZ certificate for the line of Premium Chocolates, guaranteeing that the cocoa used for their production comes from sustainable crops and the acquisition of the raw material has no adverse impact on the natural environment. In 2019, we also focused on strong communication of the unique Freedom of Choice sales modules we support under the largest advertising campaign in the history of the Wawel brand. We are the leader in sales of bulk products, so in order to combine this advantage with building a module distribution, we have also concluded an international contract for sales of such products at the Cinema City chain of cinemas. Confectionery available in the “Freedom of Choice” display units adapted to the needs of cinema bars are already present at all Cinema City venues in Poland. Since September 2019, the products have been also available for purchase at cinemas in Slovakia, the Czech Republic, Bulgaria, Romania and Hungary.The year of 2019 also means new cities on the map of Poland to have been visited by our innovative Wawel Truck, a mobile confectionery zone full of interactive applications inviting people to the world of the brand and presenting its strategy. Since the onset of the project, the truck has already visited almost 50 localities, directly reaching approx. 40,000 participants, and brand events have attracted almost a million people.

Jacek Wyrzykiewicz

PR & Marketing Services Manager Hochland Polska Since the very beginning, our objective has been to consistently build a stable, growing business that would operate and develop in accordance with expectations of all persons interested, including, above all, consumers and customers, owners and employees. And we have reached that objective. The brands offered by Hochland Polska are the best-known brands of the cheese market in Poland. Brand recognizability and awareness stands at the level of 83% for the Hochland brand, and 77% for Almette (Brand audit 2018, GFK Polonia). Consumers declare they associate the Hochland brand with the slogan “To jest pyszne!” [This is delicious!], with expertise in the cheese category, high quality and diversity of tastes. Consumers also associate Hochland with its products – processed cheese or sliced yellow cheese; probably, when saying “cheese”, they think “Hochland”! In the case of Almette cheese, on the other hand, consumers point out that the product is light, fluffy, delicious, delicate, natural, with a package unique on the market, which makes it efficiently stand out on the shelf. Consumers know they will never be disappointed when they reach for Hochland products. This is the number one brand in terms of the sales value, with a share of more than 10% on the cheese market in general. Our shares in the processed cheese segment exceed 50%, Almette – 66%, the share of Valbon blue cheese – 5%, and of Hochland hard cheese – 2.3% of the market (in terms of value, source: Nielsen). We are the leader in the cottage cheese category with our bestselling Almette brand. Hochland also comes first in the processed cheese category. We record an increase both in our market shares and the growth dynamics of the entire category. Our company enjoys the trust and respect of consumers, it provides an attractive offer to its customers and generates revenues on an economically difficult market, enabling investments necessary for a leader. We have a very efficient portfolio and we work on it, constantly searching for a response to the changing preferences of the Polish people. We know we will face profound and incredibly quick changes – we are getting ready and we look forward to the future. We wish to consolidate our position of a market leader who creates trends and constantly surprises the consumer with new products.

01/2020

FoodfromPoland

SUMMARY A new parliamentary term lies ahead, so many new ideas to improve the economy will surely emerge. We hope they will be introduced deliberately and slowly, so that entrepreneurs can have enough time to comply with the regulations. Sudden changes are unfavourable to the development of business, this hinders planning of investments. In the case of Sunday trade restrictions, the situation is dynamic, since the ban has still not come into effect in its entirety. Full assessment will only be possible in late 2020. Currently, the data reaching the Waldemar Nowakowski PCC show the following picture: shops with an area up President to approx. 100 square metres, which can operate on SunPolish Chamber of Commerce days under exemptions, do well despite the restrictions. Larger shops (usually above 100 square metres), which must stay closed on Sundays, achieve worse results than before the introduction of the restriction. On 1 November 2019, regulations establishing the electronic registry of theft perpetrators came into force. The Polish Chamber of Commerce has strived for this for many years – since as early as 2013. We hope this will become an effective tool to combat thieves who habitually steal goods with a value at which theft is not classified as a felony but as a misdemeanour. Unfortunately, the main problem is the threshold amount up to which theft remains just a misdemeanour. Such thresholds virtually mean the establishment of the profession of a thief. This is particularly onerous to small stores which cannot afford to hire professional security or install surveillance. August 2019 saw the passing of the parliamentary act on the prevention of food waste. Shops above 250 square metres are obliged to conclude an agreement with a community organization concerning free transfer of food which might otherwise be wasted. Problems are caused by the definition of stores included in the act, assuming it should apply to stores with an area exceeding 250 square metres. The Polish Chamber of Commerce called for increasing this threshold to 500 square metres, so that no additional burdens would be generated for small and medium enterprises. The parliament partially acceded to this motion, introducing a transitional period of 2 years during which stores up to 400 square metres would be exempt from this act. For the trade sector, the last year was dominated by the issue of the trade tax, the discussion on the Sunday trading ban, waste management, the food waste act and a wide range of other environment-related parliamentary acts. In May, the Court of Justice of the EU acceded to the Polish government’s position concerning the introduction of the trade tax, yet in late July, the European Commission lodged an appeal against the first-instance judgment of the CJEU. On 26 November, the Council of Ministers adopted a new draft amendment of the Renata Juszkiewicz act on the tax on retail sales, assuming suspension of President tax collection until 1 July of the present year. 2019 was Polish Organization of Commerce the year of the Sunday trading ban debate in which and Distribution the POCD is actively involved. In accordance with the current legal status, a total ban on Sunday trading is to come into effect from the next year – excluding 7 Sundays. The POCD has repeatedly raised the issue of amending the act which fails to fulfill its overarching purpose of employee protection and only intensifies competition – due to 32 exemptions from the act and unequal treatment. The package of ecology-related acts, imposing a range of new obligations on the industry, includes the Single Use Plastic Directive intended to limit the amount of plastic waste – through prohibition of marketing of certain products made of plastic materials, appropriate marking as well as achieving high recycling levels. The new waste management assumptions will be implemented in accordance with the definition of extended producer responsibility. EPR specifies the minimum level of financing of waste management by the implementing entities. The act on food waste prevention, having come into force on 18 September 2019, entails burdening food sellers with an obligation to conclude a contract with a non-governmental organization concerning free provision of food for social purposes. The act entails fines for traders and administrative burden, even though the trade sector only accounts for 5% of all wasted food and the largest trade chains have been cooperating with Food Banks and Caritas Poland on an everyday basis for many years.

FoodfromPoland

01/2020

Piotr Gąsiorowski Marketing Director PPL Koral

For the ice cream industry and the entire FMCG sector, 2019 was a surprising and demanding year. Each year, weather is crucial to ice cream manufacturers, and it was very erratic in the season. However, it turned out that Polish people do not only eat ice cream during hot weather and records were broken, as every year. In June, manufacturers would experience record-breaking sales results – PPL Koral sold almost 12.5 million litres of ice cream, which is the best result in 40 years of the company’s history. To ‚weather’ this situation and to maintain high level of sales, as well as the enthusiastic attitudes of sellers, we introduced additional non-standard special actions and promotions which largely compensated for the weather fluctuations. In total, the Polish people ate 114,564,631 liters of ice cream and although this was above 5.5 million litres less than the year before, the record of sales value was broken – more than PLN 1.6 billion (PLN 1,667,729,180). Why was it possible to break another record in sales by selling less litres of ice cream? This results from the growing popularity of the premium-segment ice cream which is slightly more expensive than the traditionally chosen products of the so-called mainstream segment. Significant growth in purchases in the premium segment has been observed for several years; currently, this kind of ice cream is characterized by relatively high trade dynamics. The Poles are becoming increasingly conscious consumers, they are more and more eager to choose higher-quality, slightly more expensive products. One of the trends and an important factor in shopping decisions of the Polish people is attention to the composition of the product and the brand behind the given ice cream. Consumers are also increasingly likely to pay attention to the packaging – its aesthetic, quality and practical aspect alike. Another important fact is that the season for ice cream in Poland is slowly but steadily “flattening out”. The Poles declare they are eager to choose and eat ice cream in autumn and winter as well. This happens, among other things, due to the increasing availability of ice cream in stores – not only chain ones – throughout the year. This is why, despite the end of the summer season, the company conducted intense actions in the autumn and winter period, until the end of the year, through development of sales, particularly of family-type ice cream.

SUMMARY 2019 was a difficult year for the sector and 2020 does not seem more promising. The increase in costs of business operations, comprised by such items as energy prices, labour costs or taxes, is perceptible. On the other hand, we expect a slowdown in the growth of consumption, as well as increased inflation, as heralded by the price increases already announced by other manufacturers. The growth of the chocolate category by 6.4% in terms of value in 2019 (the value of the category currently reaches almost PLN 7.4 billion*) compared with that in 2018 is an effect of higher product prices and the growing sales of brand and premium products. Apart from premiumization, another ongoing trend, not only in the chocolate category, is convenience – understood in the aspect of product formats, consumption and modes of shopping. The activities of industry representatives are also affected by higher awareness of buyers in Aleksandra Kusz vel Sobczuk the area of presence of specific ingredients and responsible production, as well as high expectations Corporate Communication Manager concerning the offer – the modern consumer is “adventurous” and looks for multisensory sensations in Wedel food. The health & wellness trend is not fading, even though, on the other hand, we can see development of so-called self-indulgence. Despite difficulties, thanks to good preparation of the entire organization, 2019 saw us rise up to the expected challenges and achieve major goals set by the owners. In the achievement of satisfactory results for the company, we are helped by such non-standard activities as presence in the ice cream category and intensification of presence on foreign markets. Aware of the obstacles, we calm down looking at an example from 2008, which has shown that consumption of confectionery has a favourable effect on mood improvement in bad periods. We also look at our operations from a broader perspective, which makes us feel partially responsible for global problems and challenges. We respond to them by developing our activities in the area of social responsibility and intensifying works on the CSR strategy. *LOTTE Wedel citing Nielsen – Panel of retail trade, all Poland (as a sum of markets: hypermarkets, supermarkets excluding discount stores, discount stores, grocery stores (large, medium, small), wine and confectionery stores, fuel stations, kiosks); sales in terms of value between October 2018 and September 2019.

The market of soft drinks comprises a significant share in the entire shopping basket of the FMCG sector. It accounts for nearly 10% of the overall value of sales of fast-moving goods. The beverage sector is constantly developing, thanks to the current consumer trends and the generally positive economic situation. Moreover, considering the seasonal nature of beverages, favourable weather also has considerable influence. For Zbyszko Company, the year of 2019 was a very important period in which we carried out a highly ranged campaign for products of the Zbyszko 3 Owoce series, under the slogan “Let’s share our joy!” Following the keynote, we have increased the capacity of our beverages without changing the selling price – by adding 250 ml FREE. The campaign and the increased capacity were received very well by our hitherto and new consumers. Moreover, in the passing year, we worked intensely on the development of the Veroni Mineral brand, approaching the market with attractive sales-enhancement Weronika Grzybowska-Janik solutions. Currently, our offer of natural mineral waters in carbonated and non-carbonated variants Brand Manager includes the capacities of 1.5 l and 750 ml. The Veroni Mineral beverage group has increased its market Zbyszko Company availability and consumer recognition, resulting in a significant increase of its sales. Another important aspect for Zbyszko Company is the beginning of the construction of the third production plant in Piła. On a plot of land with an area of 3.6 ha, a production and storage hall will be built, along with office and social facilities, with a total area of 16,000 square metres. The factory will be equipped with three state-of-the-art technological lines. Ultimately, the plant will produce 100,000 1.5-litre bottles per hour and employ more than 100 people. The first production will start in April, with a capacity of 50,000 1.5-litre bottles per hour. In 2020, we will consistently pursue the adopted strategy of development of both the aforementioned brands and the entire Zbyszko Company. The market of the alcohol sector is constantly changing – this is affected, above all, by higher awareness and openness of consumers who are constantly searching for new tastes and modes of consumption. The year 2019 on the market of spirits was unquestionably ruled by the trend of premiumization – consumers were increasingly eager to reach for spirits from a higher price segment. Of importance was not only the product quality itself but the package design. Examples include the Orkisz ultra-premium vodka from the Stock Polska portfolio, which, besides its unique production process, also stands out with an elegant bottle. In our offer, customers can also find the Stock Prestige premium vodka, now available in a limited designer edition inspired by motorsports. The search for new taste combinations is another trend highly affecting the consumers’ shopping decisions. This trend is addressed by a new product in the portfolio of Stock Polska: the Żołądkowa Kolonialna vodka in two flavours – with a Whiskey Note and Aleksandra Kacprzak with a Brandy Note – both variants enriched with an aroma of exotic spices. Furthermore, one should Trade Marketing Manager of not forget about the growing category of brown spirits – this is connected with the aforementioned Premium Brands, Stock Polska market premiumization. From this group of spirits in the offer of Stock Polska, one can mention Dubliner Irish Whiskey in two variants or the Scotch Auchentoshan, both of them enjoying much popularity. As a leading manufacturer, we follow the consumer needs and the changing market – we focus on new flavours, we develop our portfolio by including new proposals, and we introduce total revolutions to the market; this year, one of them was Lubelska Soda, a carbonated alcoholic beverage with a volume of 25%, available in two tastes – Lemon and Orange. We are constantly watching the dynamically changing market. One challenge the alcohol sector will have to face in 2020 is the announced increase of excise tax, which may translate into increased competition among alcohol producers.

01/2020

FoodfromPoland

SUMMARY We are helped by the trends of healthy nutrition and clean label, in which we actively participate through numerous educational campaigns. The products we have introduced, anticipating the needs of the market, are now dynamically gaining popularity. HELIO Natura dried fruit without preservatives are one of our hits; our offer also includes ECO products, and our masses are gluten-free, as emphasized by a certified mark, and do not contain palm oil commonly used by other producers. Leszek Wąsowicz The absence of palm oil is also a distinguishing feature President of the Management Board of our popcorn for microwave ovens. I would say our HELIO best new product of 2019 is the HELIO – Bakaliowe Kieszonkowe line, comprehensively responding to the consumer insight in the area of healthy snacks. Besides the product itself, providing a 100% answer to the essential need of a healthy snack – healthy, tasty, convenient and affordable – it also provides added value in the form of the well-known healthy brand of HELIO, an expert in dried fruit, as well as distinct and original packaging of stylish denim that gives a fashionable informality to the product. The passing year also meant significant investments in the production infrastructure. We see modern technology as well as the highest standards of quality and production safety as consistently built competitive advantages. It enables us to have one of the largest and most modern production plants in Europe today, thus making us a reliable manufacturer and a timely supplier. Unfortunately, apart from favourable consumption trends, we still have to take into account the key risks for the industry. In 2019, particular acute problems were the growing raw material prices, the difficult labour market, and the growing costs of transport and energy. Although the industry seems attractive and simple, I have seen many business disappointments through the years. Therefore, it is worth betting on proven partners with a transparent financial situation and stable ownership structure. Behind us is vast experience, know-how, production infrastructure, millions of zlotys’ worth of investments in the HELIO brand, and, since the onset of our operations – a stable Polish strategic owner and management board. These are the advantages we have worked out, putting ourselves in the role of a market leader and a reliable business partner. 2019 was a stable but difficult year for the dairy industry and it should be deemed worse than the preceding year of 2018. This has been affected by several factors. The main ones include constantly growing production costs and selling prices of fat products – butter and cream – being definitely lower than in 2018. This year’s drought was painful to the industry as well, having afflicted milk manufacturers. At many farms, it caused a slowdown in development or even a drop in milk production, as well as increased raw Andrzej Chomyszczak material production costs. Despite the unfavourable Vice-President for Trade and Marketing market trends, the District Cooperative Dairy Plant District Cooperative Dairy Plant in Łowic in Łowicz deems 2019 to be definitely a better year than 2018. This state of affairs should be credited with this year’s actions related to the assortment strategy and sales strategy. We have recorded a significant increase in the export sales of our products, resulting in the supply of our products to more than 50 countries worldwide. We are also steadily penetrating the markets on which we have managed to emerge. In 2019, exports comprised 27% of the cooperative’s entire sales revenue. This is a considerable increase in value of the export sales in relation to the previous year. The result is very good, especially that the value of exports in the dairy industry has slightly decreased in comparison with the analogous period of 2018. We have reduced the number of hitherto trade indexes and introduced market novelties fitting in with the current trends – Ser Księżak cheese in an envelope-type packaging, Jogurty z Mascarpone (mascarpone yoghurts) or Twarożek Domowy (Home Curd). In 2019, we also made a bold decision of launching a new brand “Bez Deka Mleka”, offering milk-free products to serve as a vegan alternative to traditional dairy. We have introduced 12 products under this brand; their quality and suitability for vegans are confirmed by the V-label certificate. Our boldness has been appreciated not only by thousands of consumers but by experts – we have received the Food Market Award 2019 in the Food Market Innovator category.

FoodfromPoland

01/2020

Tomasz Tarczyński Marketing Director Tarczyński

For the Tarczyński company, 2019 was a year of innovation and expansion of the offer in the sector of meat snacks. The company’s operations respond to the nutritional trends, changing behaviour, as well as growing requirements of conscious consumers. Another priority was consolidation of the position of key categories, which we have managed to attain. Throughout the last year, the sales of kabanos smoked sausages were maintained at a constant, double-digit level of growth, while the sales of wieners increased by several percentage points on the scale of the entire market in this category. The most important premiere of 2019 was the Naturalnie line, with products distinguished by a very short ingredients list and top-quality meat without preservatives. The line includes 100% ham wieners, ham and chicken kabanos sausages, as well as roasted ham without preservatives, which appeared on the market in October. Other new products include the Tarczyński Protein line featuring high-protein Beef Jerky and Strips, addressed to people leading an active lifestyle; these are the first functional products in the company’s offer – this sector is surely in for further development. The marketing of the new products was supported by non-standard promotional activities of the company, aimed at close relations with the customer and modern forms of product sampling. The Projekt Plaża (Beach Project) with a tour around seaside resorts and the Meatlovers Food Truck, serving hot dogs with Tarczyński Naturalnie 100% ham wieners, contributed to building a new customer experience quality. Not only could the attendees taste the new products under the brand but they could also spend their time actively and participate in different workshops as well as a relax zone. The strategy of Tarczyński S.A. for 2020 is based, among other things, on further expansion of new categories with new products and consolidation of the market position of key goods. Another important part of communication activities will be an active event presence, including the creation of own events and the adaptation thereof to individual product lines and their corresponding target groups. We can boldly say that the late-year slowdown is of no concern to us, since the first months of 2020 will bring new products and many non-standard actions.

SUMMARY The year of 2019 has been full of challenges for the meat sector. A major one was the lack of stability on the market of pork raw material and the dynamic increase in its prices. The unfavourable economic situation was also affected by the increase in production costs, connected with rising material prices as well as labour and energy costs. One should not forget the ASF virus still spreading in Poland, which significantly restricts the export of Polish pork. Despite numerous challenges, the Sokołów Group has achieved a very good result and improved its competitiveness, both on the Polish market and on foreign ones. Such good results were possible due to, above all, efficient management, hard work, knowledge and the involvement of our employees. Of much importance was also quick adaptation to the prevailing market conditions and utilization of our own production capacities. In 2019, we could observe dynamic changes in consumer trends. An increasingly larger share in sales is held by Bogusław Miszczuk President of the Management Board premium products with a so-called clean label. Following this trend, we have removed preservatives and additives from the Sokoliki children’s line of products. Another important new product this year Sokołów is the Stówki wieners – made of 100% pork ham meat, without preservatives, phosphates or sodium glutamate. Active lifestyles and lack of time for everyday cooking, on the other hand, entail the development of convenience products enabling easy and quick preparation of a balanced meal, which is why we are constantly working on the expansion of our offer of ready dishes. For those searching for tasty and nutritious snacks, we have created innovative Salami Chips CHRUP’US – crispy air-dried salami slices, the first such product on the Polish market. In the year to come, I predict the unfavourable situation in the industry to be maintained. However, I believe in the potential of our employees and our stable position will allow us to rise to all challenges and to achieve satisfactory results. We will continue our intense work on introduction of innovative products compliant with the market trends and consumer expectations. 2019 was another good year for the category of cookies which has recorded a sales value increase at the level of +6% and already reached the value of PLN 2.4 billion (Nielsen, MAT September 2019). It was also a very good year for the Dr Gerard company, recording an increase of sales by above 24% in terms of value and still remains a key nationwide producer of cookies. Our flagship product, Pryncypałki, reached a record-breaking share in sales in terms of value in the category of chocolate-covered wafers, amounting to 30% in September 2019! Both the result of Pryncypałki and the consolidating position of other cult-status chocolate-covered products (such as Delicje or Jeżyki) bear witness to the premiumization of the cookie market. This year, our key new products include delicious nut-flavoured Pryncypałka in milk

Magdalena Sztylkowska Marketing Manager Dr Gerard

chocolate as well as Mafijne Brownie – double sandwich cookies with delicate chocolate cream. Premium products are also featured in our holiday offer; consumers may discover a winter variant of Pasja with a cherry-and-rum flavour, as well as classic cherry Pasja in a gift box. Like the entire industry, we are about to face challenges related to price increases of raw materials and packaging, as well as difficulties connected with workforce shortage. We constantly care for the quality of our products and their invariably delicious taste – so I have no doubts that the Poles will be even more eager to reach for Dr Gerard cookies in 2020.

The number of small-format stores up to 300 square metres is steadily dropping, yet this channel still remains a very important part of the Polish trade. Along with the diminishing number of stores, the structure of the small format is slightly changing – those falling out of the market are usually the smallest and weakest establishments which have often served as a place of purchase of alcohol, beverages and cigarettes; on the other hand, the position of large grocery stores (with an area between 101 and 300 square metres) is consolidating, as they perfectly fit in with the needs of the modern customer who values time and convenience. Due to this, although there are less and less small-format stores yearto-year, the total number of transactions is not dropping, and the sales value is growing by several percent each year. In 2019, the average basket value in small-format establishments was approx. 7% higher than the year before, which was mainly affected by the increase in food prices, observed for Elżbieta Szarejko several weeks, and the customers’ growing inclination to reach for better-quality products and brands Analyst from higher price shelves. Among other things, premiumization can be seen in the category of beers CMR (the importance of cheap lagers is on the wane), ice cream (the demand for more expensive brands is growing) and many others. As shown by the CMR data, neither the importance of individual product categories nor the purposes for which customers visit local establishments have significantly changed over the last 12 months. Small-format stores up to 300 square metres still remain largely a place of supplementary, impulse or emergency shopping, and the three categories of crucial importance for this format, i.e. alcohol, beverages and tobacco products, invariably account for approx. 50% of the trade. However, as shown by the CMR data, customers are increasingly inclined to search small-format stores for convenient and easy-to-use products, as well as healthy snacks (fruit mousse perfectly fits in with this trend) or lighter substitutes for traditional stimulants (non-alcoholic beers or alternative tobacco products are causing quite a stir). Each year, small-format stores experience increasing availability – and, consequently, sales – of products suitable for vegetarians, such as vegetable sandwich spreads, soy pates, hummus, tofu or plant-based milk substitutes. There is also a dynamic increase in availability, and thus in sales, of products with the BIO certificate or of lactose-free ones. The share of these categories in the total turnover of stores is negligible, yet one can expect the interest in them to steadily rise in the years to come.

01/2020

FoodfromPoland

SUMMARY Over the first ten months of 2019, the beer market shrank by 0.3% in terms of volume and grew by 3.7% in terms of value. This is a result of the interesting offer and fine weather. The increase in value indicates the premiumization of the market but also reflects the increase in costs, e.g. of raw materials, incurred by beer manufacturers. Significant interest has been maintained in the segment of non-alcoholic beers, which has recorded a large increase in volume by 58% between January and October. This is a result of several factors: a rich Beata Ptaszyńska-Jedynak offer, a responsible approach and the active lifestyle Corporate Director of consumers. Among many projects implemented at Carlsberg Polska Carlsberg Polska in 2019, we devoted much attention to reinforcement of our offer of non-alcoholic beers – new variants and flavours of the Okocim brand and Okocim shandies as well as Somersby; we have also introduced our fridges to stores under the Refreshment Zone. We continued our support to premium beer brands, such as Grimbergen and Garage. A considerable venture was the refreshment of the Harnaś brand – the new packaging, the beer and a communication platform with a plot-based TV spot were positively received by consumers. In late 2019, the beer industry was greatly surprised by the government’s decision to increase the excise tax rate by 10% – instead of the previously-announced 3%. In 2020, our industry will have to face the effects of the excise tax increase, i.e. the response of the market and consumers. It may result in higher prices for consumers, a drop in sales, uncertain budget revenues, and become a factor blocking the development of the beer category and reducing the competitiveness of Polish beer. It is worth stressing that, apart from the higher excise tax, the brewing industry is simultaneously struggling against many other serious cost challenges – e.g. significantly higher costs of labour, raw materials, energy, etc. Another important topic in 2020 for many sectors, including the brewing industry, will be the work on implementing Extended Producer Responsibility. Beer is the only sector to utilize returnable bottles. The returnable bottle deposit system, created and fully financed by beer manufacturers, is efficient – we collect between 91% and 94% of packages back from the market. We hope the currently designed EPR model will take into account these solutions which exist and work well, and provide legislative support as well as incentives for use of returnable containers. Such solutions may prompt other industries and manufacturers to utilize reusable packages, also considering the anticipated increase of costs under the EPR system. 2019 was a successful year, both for the entire spirits sector and for our company. Year-on-year, the entire sales volume of vodka grew by slightly above 2%. This is a good result, considering that as late as several years ago, after the previous excise tax increase, the sector would record several-percent drops. We are glad that CEDC has achieved new successes on such a competitive market. We still remain an unquestionable leader on the vodka market. We also consolidate our position in the dynamically developing segments of wine, whisky Mariusz Chrobot and other imported spirits. Our major brands: Żubrówka General Director and Soplica among vodkas or Carlo Rossi, Grant’s, AperCEDC International ol and Jagermeister in the imported offer, have recorded record-breaking sales values. We are concerned and worried with the uncertain legislative and fiscal situation. In November 2019, our entire sector was taken by surprise by the government project to raise excise tax by 10%. For many months, the draft budget for 2020 assumed a 3% increase and that was the rate we have been anticipating as most probable. We are afraid this unexpected change and a considerably higher increase of the excise tax will bring more harm than good. The situation of retailers may deteriorate, especially in small-format trade in which sales of alcohol – both spirits and beer – comprise a large portion of the turnover. The probable drop on the alcohol market can make the manufacturers invest less in market development. Reduced sales also means restrictions in purchases of raw materials (spirit, cereals, fruit or sugar), which will directly affect farmers. The greatest risk is the rise of the grey market of alcohol, since it is hard to expect that manufacturers of illegal alcohol would miss such an opportunity. The health-promoting aspect of this increase, as referenced by the government, may prove counter-productive: the Polish people will still drink as much pure alcohol per capita as before the increase, yet the development of the grey market will result in significant deterioration of its quality.

FoodfromPoland

01/2020

Łukasz Piwowarczyk

Head of Reserve Poland DIAGEO The liquor market in Poland is developing in the right direction. Consumers reach for high-end products and are increasingly eager to choose whisky, gin, rum and liqueurs. Such trends were highly favourable to DIAGEO’s portfolio in 2019. This is why we have decided to introduce a range of new products in Poland, both in the premium and deluxe segments. Simultaneously with global premieres, we have presented three stages of cooperation with the creators of the “Game of Thrones” TV show. Those included collector editions of Johnnie Walker Scotch whisky: “The White Walker”, followed by “A Song of Fire” and “A Song of Ice” Johnnie Walker, as well as the “Game of Thrones” Single Malts Scotch Whisky Collection series of eight bottles. Baileys liqueur in the “Strawberry & Cream” summer series and the “Gingerbread Spiced” Captain Morgan rum could boast limited editions as well. In the vodka category, the luxury CÎROC brand introduced special series: “Watermelon”, “White Grape”, and the effect of cooperation with designer Jeremy Scott – CÎROC “Moschino”. Along with the European premiere, Poland also saw the debut of the new Villa Ascenti gin. As Polish consumers are exploring the world of alcohol, DIAGEO portfolio brands have appeared at different events, from those dedicated to specific product categories to mass events. Johnnie Walker with the House of Walkers zone attended summer-holiday music festivals, such as Orange Warsaw Festival, Open’er Festival, or Cracow Live Festival. In Poland, we also implement our own initiatives, such as the domestic edition of World Class, the most prestigious bartender competition worldwide. In 2019, for the fifth time in history, we chose the best bartender to represent our country at the world finale in Glasgow. Maciej Mazur attained the highest position ever held by a Pole in this contest and found himself among the world’s top fifteen bartending talents. Under the auspices of World Class, we organized the World Class Cocktail Festival, a nationwide feast of the cocktail culture, for the second time. With 15,000 guests, our festival became one of the greatest such events worldwide. Predictions for the market of spirits in Poland assume double-digit dynamics, allowing us to look forward with optimism to the future development of our portfolio.

INTERVIEW

Maxpol is celebrating its 30th anniversary With the growth of the company, we have focused on solid yet modern constructions, on better and more effective presentation of our customers products” – interview with Wojciech Ryttel – Marketing Director, Maxpol. How was the year 2019 for your company? Time is running really fast , and we are already starting to work on next years of business activity on the market. We organized 53 fairs in total in 16 different countries, and sold 3 200 square meters of exhibition space. We cannot forget that for those companies, we also build stand construction.

Which fair events would you consider especially important and prestigious? To this group I would mainly include fairs like ISM Cologne, IFE in London, PLMA Amsterdam, ANUGA in Cologne, SIAL Paris and Yummex in Dubai. Speaking of the fair in Cologne – the biggest world confectionery fair, they have had high reputability for many years, and each time they are more popular. Confectionery producers find this fair obligatory to participate. They need to see new products introduced to the market,

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trends from the biggest and most famous companies in the world. The second most prestigious event is IFE in London, organized every two years is the biggest food fair on the Great Britain. At the same time, the fair is held in conjunction with the packaging fair for the food industry. Of course, events not to be missed , such as PLMA Amsterdam – private label , which is becoming increasingly visited. The space for this event has to be booked year in advance. The biggest event , however, is the food fair ANUGA in Cologne, which takes place every two years, alternately with the SIAL trade fair in Paris. The exhibition space , is practically sold out on the previous edition. Fairs that prestige and popular got the queue of companies waiting to participate.

What about the trade fairs in the Middle and Far East?

We do organize fairs in those destinations. For example the trade fair show Yummex Middle East in Dubai, MENOPE Natural & Organic Product Expo and SIAL Middle East in Abu Dhabi. The fair market in the Middle East is growing well. While talking about the Far East , we have to mention China, which is the liable market for Polish companies to exhibit. In China I would recommend the SIAL China Show as a large and prestigious.

What fairs are you planning to organize in 2020 year? In addition to the events I already mentioned, we are planning our focus on Africa. We do see the big business opportunity for Polish exhibitors in this region. We have introduced to our schedule brand new destinations such as FOOD & BEVERAGE WEST AFRICA in Nigeria and FOODAGRO in Tanzania –

COMMENTARY

we warmly invite you to participate. We keep an eye on new markets, that is the reason we are trying to prepare venues where Polish producers will be able to present their products to a wider audience.

Why Maxpol should be considered as the organizer of foreign trade fairs for Polish exhibitors? Good question, but I think we should ask our exhibitors not ourselves. Our belief since the company established , was and will be the customer satisfaction. The steady increase in the number of exhibitors that trusted us and amount of long term business relationship we have, enabled us to obtain the recognition of professional institutions. Our success has been positively assessed and awarded the prestigious title of Trade Fair Service Leader of the years 2006,2007 and 2014. We also received recommendations from the Polish Chamber of Exhibition Industry of the years 2009,2012, 2015 and 2018. This indicates a high assessment of what we get from our exhibitors who entrust our work.

Almost like everyone, you have your competition, why Polish exhibitors are encouraged to select you? That is true, we do have competition but the market of organizing fair was always crowded and competitive. This phenomenon does not occur only in our country, the whole world is occurred. We are not afraid of competition. While working with us, the exhibitor decides , which services we should perform for them – we do not oblige our clients to take the whole range of our services. Although, our offer is very wide – starting from renting exhibition space, making the accreditation of the customer, sending the entry to the fair catalogue, the designing of the booth stand, till provide services such as electricity or water connection to the stand, ordering tickets, parking cards and badges to our customers. We also book an accommodation and plane tickets. We provide transport services to make deliveries to the fair destinations. W assist in arranging interpreters, hostesses and rental of conference rooms.

Finally I want to ask you about building the stands. How did the standards of construction and equipment

for stands changed? Why 2020 is so special to MAXPOL company? Our company is celebrating its thirtieth anniversary. With the growth of the company, we have focused on solid yet modern constructions, on better and more effective presentation of our customers products. In addition to our Octanorm System stands, we offer individual designed booth stands. These stands are build of best quality materials from wide range of MDF, glass, plexiglass etc. The trend of transparent and accessible to visitors stands makes design even more spacious and inviting. Our exhibitors are asking about such solutions frequently. Customer satisfac-

tion is a mainstay of our company and we stick to it. Having a chance to speak to you, I wanted to thank you and the whole crew and readership of your newspaper “Food from Poland” for successful cooperation trough the years. The thirtieth anniversary is also a great opportunity to thank our customers for trust and longterm business relations. MAXPOL wishes you all great development, new milestones and successes not only in fair market but also in all of your ventures for the next years to come. Thank you for interview and wishing you every success in the upcoming years for business activities at MAXPOL.

01/2020

FoodfromPoland

30 years of trade fairs without boundaries In 2020 Maxpol â&#x20AC;&#x201C; the organizer of participation of Polish producers in foreign trade fairs â&#x20AC;&#x201C; celebrates 30 years of its operation. Over those years, the company has sold hectares of space, covered millions of kilometers all around the world, its employees have spent thousands of hours building stands, hundreds of projects have been prepared, and immeasurable assistance in acquisition of foreign markets has been given to Polish entrepreneurs.

POLISH

FOOD EXPORT AWARDS

PPH MAXPOL Sp. z o.o. 479 PuÅ&#x201A;awska Street 02-844 Warsaw, Poland Phone: +48 22 628 06 21 +48 22 625 14 08 maxpol@maxpol-targi.com.pl www.maxpol-targi.com.pl

STORY

Polish products

at the ISRAFOOD fair Between 26 and 28 November, the 36th International Exhibition for Food and Beverage ISRAFOOD 2019 took place at the EXPO halls in Tel Aviv. Nearly 150 exhibitors participated in the fair. The halls were visited by more than 18,000 people. Polish companies were located at a joint national stand organized by the National Support Centre for Agriculture and the “Poland Tastes Good” programme. The Polish exhibitors promoting domestic export products included Maspex, Arsenal, LEI food & drinks, Primart, bluecorn, Greek Trade, as well as Pokój. Tomasz Pańczyk, Editor-in-Chief

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STORY

The 100th edition of the ANUGA fair More than 7,500 exhibitors from all around the world presented their latest food products during the jubilee 100th edition of the ANUGA international trade fair held in Cologne between 5 and 9 October. The event was attended by more than 160,000 visitors from 198 countries. The ANUGA fair takes place every two years, constituting the world’s most important business platform for the FMCG industry. 230 companies from Poland took part in the fair, and the latest issue of the Food From Poland magazine was traditionally available at our press stand. During this event, extremely important for the FMCG sector, the Polish food industry was represented by such enterprises as Bogutti,

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Brand Distribution Group, Cedrob, Colian, Dobrowolscy, Hortex, Indykpol, Kupiec, Makarony Polskie, Maspex, Lotte Wedel, KRD-IG (National Poultry Council – Chamber of Commerce), Mlekpol, Argo, Vobro, and Wan-Vit. Our observations suggest that the participation of Polish exporters at this German fair is constantly rising. This evidences the fact that our domestic products are constantly gaining on importance, and the international community

appreciates their high quality and attractive prices. This year’s edition has demonstrated another increase in interest in producers’ offers we publish on an ongoing basis in our English-language edition of the Food From Poland magazine. It is in the offer of Polish producers that traders from all around the world find products which make their way into trade chains worldwide allowing foreign consumers to savour the delicious Polish products.

STORY

01/2020

FoodfromPoland

CONTACT POLISH COMPANIES

Z.P.H. ARGO Sp. z.o.o. 16 Wiejska Street 37-100 Łańcut, Poland Phone: +48 17 247 13 51 Fax: +48 17 247 00 42 biuro@argo.net.pl www.argo.net.pl

Bogutti Sp. z o. o. Henryków-Urocze 48 Gromadzka Street 05-504 Złotokłos, Poland Phone: +48 783 956 466 Fax: +48 22 266 01 19 export@bogutti.com www.bogutti.com

Brand Distribution Group 18 Niepodleglosci Avenue 02-653 Warsaw, Poland Phone: +48 500 100 130 contact@bdgroup.eu www.bdgroup.eu

„Brześć” Sp. J. ZPC

19 Konarskiego Street 87-880 Brześć Kujawski, Poland Phone: +48 54 252 19 69 Fax: +48 54 252 27 31 julita@brzesc.pl www.brzesc.pl www.crispico.pl

Colian Sp. z o.o. 1 Zdrojowa Street 62-860, Opatówek, Poland Export Department: Phone: +48 62 590 33 08 export@colian.com www.colian.com

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ARGO is a Polish family owned business that have been producing tasty and healthy sweets for nearly a quarter of century. Company collaborates as well as creates Polish tradition of confectioner’s trade. The high quality of products is continuously being ensured since 1992. ARGO is currently improving product portfolio by adding more unique items in order to satisfy consumers needs. Sweet treats offer not only consists of traditional lollipops, juicy bubble gum lollipops, hard and filled caramels, but also handmade products, e.g. Easter lambs, Christmas tree icicles or Valentine’s lollipops “Hot Hearts”. Company does not forget of milk and chocolate connoisseurs. Therefore, especially for them, it has prepared a delicious collection of CHOCO Jello sweets. The high class of products is indicated by natural coloring and flavours, fruit juices, vitamins as well as lack of preservatives. ARGO produces over 5 million kg sweets per year including 100 million pieces of lollipops. •Products are available in the majority of European countries as well as outside the continent, e.g. USA, Canada, Uzbekistan, Libya, Mongolia, China, Kazakhstan, Azerbaijan and Israel. Conscious approach to food safety and innovation is recommended by the International Food Standard (IFS) certificate on higher level.

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 cream fudge recognisable on the international market. We offer three types of cream fudge: MILK, CHOCOLATE and BUTTER. The secret of Bogutti’s cream fudge is its exceptional taste.

Brand Distribution Group is an international group of companies with 27 years of experience, operating from offices located in Poland, Germany, UK, Spain and Singapore. The success of Brand Distribution Group is based on modern infrastructure and thoughtful organizational and technical solutions. The company is a natural choice for the customers who are looking for the highest level of services and the best quality of products. Brand Distribution Group offers “A” brand products and strong local brands to our business partners from 92 countries and is 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. It provides specialist solutions 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.

Brześć is a family company located in the very heart of an exceptionally picturesque region of Poland called Kujawy. It is here that since our beginning in 1984 we have made products of the highest quality and with a unique taste. The latest technology in conjunction with many years of tradition and tried and tested recipes all help to make company stand out. Brześć is BRC certified, which assures you that company’s food is produced in accordance with the very highest standards. Because of this, the amazing taste of products is enjoyed not just in Poland but in many other countries around Europe and the world. So, because of steadily growing group of fans, company has launched a special export line – Crispico Little Snack.

Colian is a group of confectionery products cooperating under: Jutrzenka, Goplana Solidarność and other brands. Aggregated experiences, technologies and production potentials let Colian achieve a position of one of the biggest confectionery producers on the Polish market. Company is constantly exploring client’s needs, keeping high quality, unique taste and nutrition values of offered products. Through participation in various development programs, effective creation of product categories and efficient service company wants to be perceived as an innovative and an effective partner for many years.

CONTACT POLISH COMPANIES

De Care is No. 1 in ethnic and Asian cuisine in Poland with House of Asia brand. Based on trends and in response to consumer needs, we also offer the brand Yummity, which combines three values: healthy, tasty and quick. As a manufacturer, we pay special attention to the highest quality of products. Our raw materials come from proven sources, in our factory we control production processes and provide quality certificates. We export our products to more than 10 countries, and in the future we plan to expand distribution to other global markets.

For almost 10 years, Grupa Owoce Natury has been exporting high quality fresh and processed agri-food products to over 50 countries around the world. We are at the forefront of Polish exporters of fresh fruit and vegetables. We work with over 60 producer groups and 100 individual farmers. The offer addressed to industry and retail includes standard and organic products from the range of: fresh, frozen, dried and powdered fruit and vegetables, NFC juices, concentrates, mousses and fruit and vegetable purees, processed cereal, meat and fish products, chocolate products, cookies, dairy products and milk powders, as well as dietary food, drinks and snacks.

Mlekpol Dairy Cooperative in Grajewo is the biggest producer of milk and dairy products in Poland and one of the twenty largest milk processors in Europe. The winner of many awards and the most recognizable brand of Mlekpol is Łaciate – in Poland this brand has become a synonym of milk. Łaciate products include milk, cream, butter and cream cheese. The entire offer of Mlekpol includes more than 400 products, which have found their customers in the majority of European countries, South America, Asia and the Far East countries. Foreign customers value the quality of the product and the stability of cooperation which is ensured by Mlekpol.

Prymat Company is the leading producer of spices in Poland, supplying products of the highest quality, and the quantity and quality leader in the single spice and spice mix segments, as well as the quantity leader in the overall powdered spice market in Poland, defined as seasonings, single spices and spice mixes. Prymat Company is also a producer of vegetables and fruit preserves. Prymat has been continuously investing in their plants, machine park, and new technologies and solutions in order to offer products which meet the highest standards. We care about the quality of our products so we work according to recognised quality standards – IFS, BRC, ISO 9001 and ISO 14001

Pryncy Teka is a new brand on the Polish confectionery market. Experienced company owner, well-coordinated team for a joint project and constant striving to launch new, innovative products on the FMCG market is a guarantee of success. Our unconventional approach to cookies, and striving to offer our customers the best quality of raw material gives us an advantage over Western corporations. In our offer you will find unique shortbread biscuits, gingerbreads, wafers with chocolate and without chocolate, pralines and sponge cake products. Come and trust us! you like it !

DE CARE GROUP Spółka z o.o. i wspólnicy Sp. Komandytowa Pieńków 147A, 05-152 Czosnów, Poland Phone: +48 22 380 44 00 decare@decare.pl www.decare.pl

Grupa Owoce Natury Ltd. 25 Serwituty Street, 02-233 Warsaw, Poland Phone: +48 605 517 013 +48 603 147 942 kamil.kowalski@owocenatury.eu agnieszka.rembisz@owocenatury.eu www.owocenatury.eu

MLEKPOL 13 Elewatorska Street 19-203 Grajewo Phone: +48 86 2730537 sekretariat.handel@mlekpol.com.pl www.mlekpol.com.pl

Prymat Sp. z o.o. 14 Chlebowa Street 44-337 Jastrzębie-Zdrój Poland Phone: +48 (32) 47 33 222 Fax: +48 (32) 47 33 833 prymat@prymat.pl https://prymatgroup.pl/pl/

Pryncy Teka Sp. z o.o. 67 Nadarzyńska Street 05-230 Kobyłka, Poland Phone: +48 698 648 332 info@pryncyteka.pl www.pryncyteka.pl

PANTONE 186C

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FoodfromPoland

CONTACT POLISH COMPANIES

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

TERRAVITA Sp. z o.o. Export Department Phone: +48 61 66 88 307, +48 61 66 88 348 export@terravita.pl www.terravita.pl

Our world revolves around chocolate. Terravita is a family business, and for the last 30 years has produced and sold its chocolate. Our team is an excellent blend of experience and enthusiasm – of people who know the company from the ground up and those that supply the freshest ideas. Our innovative approach and our experience help us constantly diversify our portfolio. We work in unison, and always place the product first. We are confident in its quality, because it is backed by our hard work. We know it’s delicious, because we find ourselves craving for it as well. We currently operate several brands of chocolate as well as confectionery, and our products are available worldwide. Try some, and see the world through our eyes.

VOBRO was established in 1986. The company employs over 400 people, most of them are long-term employees

ZPC VOBRO Sp. z o.o. Sp.k. 78 Podgorna Street 87-300 Brodnica, Poland Phone: +48 56 493 28 51 export@vobro.com.pl www.vobro.pl

who present vast experience, and have been associated with the production of sweets for many years. The VOBRO company is known primarily for its production of chocolate sweets – including chocolate pralines. FRUTTI DI MARE (seafood-shaped pralines), as well as CHERRY PASSION and LOVE&CHERRY (cherry pralines in chocolate) brands are products known to chocolate praline consumers in markets around the world. A large part of the company’s products are chocolate sweets and chocolate bars – including the very popular TRUFLA and JAMAJKA brands. For several years, the company has also been investing in other types of sweets: jellies – including filled FRUTINI and CHOCOLATE JELLIES, as well as health-promoting products – the VITALIO brand. The VOBRO brand is a leader in many markets in terms of the occasional product offers, i.e. products bought by consumers on calendar occasions (Women’s Day, Mother’s Day, Christmas, etc.)

Wawel SA 14 Władysława Warneńczyka Street 30-520 Cracow, Poland Phone: +48 (12) 252 72 79 Fax: +48 (12) 252 71 02 export@wawel.com.pl www.wawel.com.pl

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 exeptional growth and development. Today Wawel’s products are available in about 50 countries worldwide and the number od loyal consumers is constantly growing. We believe that pleasure originates by our products, based on Good Ingredients, can initiate small, good deeds, following our brand claim – feeling better, doing better!

E.Wedel brand means flavour and superior-quality chocolate with an intense, familiar taste. This recognisable, deep flavour is owed to the top quality cocoa from Ghana and carefully selected ingredients. To fulfill your

LOTTE Wedel 28/30 Zamoyskiego Street 03-801 Warsaw, Poland Phone: +48 22 670 7700 export@wedel.pl www.wedel.pl

expectations, we continue to expand our portfolio and launch novelties in new categories. Wedel is the oldest chocolate brand in Poland. Its products have been bringing pleasure to consumers for almost 170 years. Emil Wedel was an unwavering optimist, who infected others with his attitude. Sweets bearing E.Wedel’s name quickly won people’s hearts and the business went into the hands of subsequent generations, which perfected the art of making chocolate. E.Wedel products are gaining more and more fans abroad with perspectives to expand on new markets. Anticipating customer expectations, we continue to widen our portfolio, with international availability as one of the focus areas. We already export our products to over 70 countries worldwide, but USA, Canada and UK are currently key markets.

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CONTACT POLISH COMPANIES

The company ZPC Śnieżka S.A. has been operating on the Polish market for several decades as a manufacturer of sweets, wafers, bars and cookies. It is a reliable and experienced manufacturer with a wide range of sweets, whose quality is confirmed by ISO, IFS and BRC certificates. The strongest brand of the company for over 70 years, recognizable by the majority of Polish consumers, has been products under the name Michałki® and Michałki z Hanki®. ZPC Śnieżka S.A. has 28 trademarks registered in the Patent Office under the name Michałki®, of which it is the only legal owner. Currently, ZPC Śnieżka S.A. is a family company in which the managerial personnel are family members. This is a company with 100 percent Polish capital.

ZPC Śnieżka S.A.

H. Sienkiewicza 36 Street 58-160 Świebodzice Phone: +48 74 665 06 20 sekretariat@zpc-sniezka.pl www.zpc-sniezka.pl

Food from Poland Magazine in 2020 You may find us on the following events: 01/2020 Edition • ISM Cologne (2-5.02.2020) • BIOFACH Nuremberg (12-15.02.2020) • GULFOOD Dubai (16-20.02.2020) • FOOD & HOTEL ASIA Singapore (31.03-03.04.2020) • ANUFOOD CHINA Shenzen (15-17.04.2020) 02/2020 Edition Advertisement • SIAL China Shanghai (13-15.05.2020) spaces available! • SEOUL FOOD & HOTEL Seul (19-22.05.2020) • PLMA Amsterdam (26-27.05.2020) • THAIFEX Bangkok (26-30.05.2020) • FOOD Taipei Taiwan (17-20.06.2020) • SUMMER FANCY FOOD SHOW New York (28-30.06.2020) 03/2020 Edition • SIAL Paris (18-22.10.2020) • ISRAFOOD Tel Aviv (11.2020)

Advertisement Office k.paciorek@foodfrompoland.pl +48 506 777 459

Fischer Trading Group Sp. z o.o. Bagno 2/218, 00-112 Warsaw 89 Poland 01/2020 FoodfromPoland

DISCOVER POLISH PRODUCTS

No Added Sugar Milk Chocolate 100g

No Added Sugar Dark Chocolate 100g

Velvety and melting in the mouth milk chocolate which contains no palm oil, preservatives, colourings or flavours. Ideal chocolate flavour with no sugar added.

Chocolate with as much as 70% of cocoa from the best varieties of the African coast cocoa beans. The product contains no palm oil, colourings, preservatives or flavours. Ideal chocolate flavour with no sugar added.

www.WAWEL.com.pl

Dark Chocolate with Filling 100g

Choco squeeze

The unique Tiramisu chocolate for admirers of sweet desserts and culinary travels. Unique offer of POPULAR PREMIUM DESSERTS in different chocolate segments: tablets, pralines, chocolate bars:

• unique product • shelf stand-out • multiple usage possibilities (eating directly from the pouch, cooking, spreading, as an addtive to desserts e.g. ice cream) • convenient pouch format • cheerful design liked by children • no price comparison • always good – high temperature-resistant

• Tiramisu lures with coffee aroma and flavor of almonds • Panna Cotta - Italian desserts known around the world tempts with sweetness of cream and freshness of raspberry fruits • Crème brûlée - delicious French dessert enchants with hints of vanilla and caramel www.WEDEL.pl

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www.WEDEL.pl

CIRCULATION

70000

EACH MONTH

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DISCOVER POLISH PRODUCTS CHERRY PASSION from VOBRO

Vitalio Dates bars from VOBRO

Cherry Passion pralines with delicious cherries inside with a hint of dry alcohol are the sweets that can convey more than words. Express your love, gratitude or make a delicious pleasure without any occasion to a person who is special for you. Decorative gift boxes of chocolates hide sweet moments that you will want to share with your loved ones. The Prosecco variant is available from February 2020 and is ideal for fans of sparkling wine flavors.

The Vitalio Dates bars are delicious and nutritious and made from the best. The basis of these delicious snacks is dried dates, which provide the body with a dose of dietary fiber as well as necessary vitamins and minerals. It provides the most active and demanding persons with a portion of energy. The Vitalio Dates portfolio consists of seven bars forming two concepts, including one (packaging in gray shade) based on the lack of added sugar. www.VOBRO.pl

www.VOBRO.pl

LA GUSTOSA 17g

Crispico Puffs and Snack Sticks

Bogutti soon will offer feature La GUSTOSA cookies, individually packed with a weight of 17g. Inside every cookie you will discover a sweet surprise of liquid velvety chocolate or lemon cream. One-bit cookies are a handy snack while traveling, as a nice addition to breakfast, in coffee break time and it will always fit in your pocket and purse. Try our velvet flavors and melt with a 17g cookies offer in display 80 pieces.

Brześć company expands its offer of flagship choux pastry products. Their newest product, Crispico Puffs to Fill joined to the range of Snack Sticks and Pop Snacks. These crispy puffs are hollow inside so you can fill them with whatever takes your fancy and mood. It’s delicious either hot or cold, you can even have them sweet with whipped cream or savory with your favourite filling, the way you want it.

www.BOGUTTI.com

www.BRZESC.pl

Pro Vita Filled candies, 60 g The novelty in ARGO’s offer are filled candies – PRO VITA – Aloe +, Melissa+ and Salvia+. Herbal flavour achieved thanks of extracts, natural oils, natural flavourings, lack of gluten and allergens, natural colours are indisputable features, which have an effect of success of debut the products on polish as well as global market. Caramels are packed in 60 g bags. www.ARGO.net.pl

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PROFESSIONAL

FMCG

NEWS MAGAZINE

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DISCOVER POLISH PRODUCTS Śliwka Książęca® 160g – new form of a classic product Śliwka Książęca (Royal Plum) is a unique combination of high quality fruit and exquisite chocolate. The original recipe adds to the candy’s remarkable character. In 2019 we reintroduced the product in a new form – a 160g box, a modern and attractive iteration of a well-known product. As an added bonus, each fruit is packet in an airtight sachet, allowing it to stay fresh, aromatic and juicy. ®

Michałki® bars and wafers, Michałki z Hanki® ZPC Śnieżka is ceaselessly looking for new solutions based on traditional recipes and top quality ingredients. We offer only those products which stand out in terms of quality, modernity and taste! To satisfy our customers demands, we have broadened our product range with Michałki® and Michałki z Hanki® in the form of wafers and bars. www.ZPC-SNIEZKA.pl

www.ZPC-SNIEZKA.pl

waFELEK

MASKOTKI

We recommend waFELEK- wafer with a delicious cocoa cream with a unique opening system. Perfect as a snack for You and Your Kids! Available as a single snack, 3-pack, 5-pack or newest:

We are pleased to present our latest MASKOTKI product based on a proven, unique home recipe. Available in two flavors: cocoa and butter. Try our shortbread and delicate biscuits Maskotki.

BIG PAKA (16 pcs.).

www.PRYNCYTEKA.pl

Gluten-free brownie 275 g This gluten-free brownie is a ready-made mix for baking your own strong-flavored chocolate cake. It is an extremely nutritious dessert based on BIO coconut sugar, which has a lower glycemic index than the more commonly used white refined sugar, and on amaranth flour from Peru, which is distinguished by its subtle taste and aroma. • Gluten-free • With no added starch • Lactose free • Clean label www.DECARE.pl

Gluten-free quick meal with an Indian flavor 216 g A nutritious, gluten-free meal based on red lentils, dried and freezedried vegetables and plenty of aromatic spices, giving the dish a unique Indian twist. This dish can be eaten as a main course or prepared as a thick nutritious soup by adding tomato puree. It is an excellent alternative to meat. • Gluten-free • Plant based • Clean label • Suitable for vegans • Ready in 15 minutes www.DECARE.pl

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AND THATâ&#x20AC;&#x2122;S HOW YOU REACH

RETAILERS!

IN POLAND

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DISCOVER POLISH PRODUCTS Peanut Butter

Milk Choco Stick

A brand-new kind of milk chocolate – filled with universally loved peanut butter. It’s the ninth taste introduced in our line of milk chocolate wrapped in recyclable paper packaging. Our line has finally been joined by a taste cherished all over the world. Its delicate peanut filling and crunchy bits of nuts are the perfect match for our smooth milk chocolate.

The 31g Choco Stick is highest quality chocolate served in a convenient “to go” form, perfect for any bag, backpack or even pocket! The best choice to take to work, school, or the gym. A small charge of chocolate energy, enough to give you a boost wherever you are. The Choco Stick is for those who feel like some milk chocolate, but don’t want the hassle of buying a whole bar. www.TERRAVITA.pl

www.TERRAVITA.pl

Processed product MAZURSKI – 280g round box Processed cheese MIX “Your... favourite” – 140g round box www.SERTOP.com.pl

The Łaciate family extended with two lactose-free UHT milk Spółdzielnia Mleczarska Mlekpol in Grajewo introduced Łaciate lactose-free milk. For consumers who value traditional flavour and excellent milk quality, Mlekpol has prepared two products regarding Łaciate milk with a fat content of 1.5% and 3.2%. Łaciate lactose-free is wholesome milk, an excellent source of calcium and protein. Milk sugar contained in milk is decomposed, and the health-promoting properties of the product remain unchanged due to the use of lactase enzyme. The modern technology applied allows for preserving the natural colour of milk.Łaciate lactose-free milk is offered by Mlekpol in a 1 litre carton, whose colour designation is consistent with other lactose-free dairy products on the market. www.MLEKPOL.com.pl

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

FoodfromPoland

01/2020

DISCOVER POLISH PRODUCTS Grześki Chocolate Bar So bite into the world of Grześki and enjoy.

Owoce Natury - Fruktomania Owoce Natury - Kubek NFC

www.COLIAN.com

www.OWOCENATURY.eu

Kucharek Universal Seasoning

Polish cucumbers

Thanks to Kucharek’s Universal vegetable seasoning, preparing dishes has never been quicker or easier. It is the perfect base for many dishes and an irreplaceable supplement that emphasizes the taste of meals in the

In response to consumers’ needs

home.

each occasion and inspire us to be

www.PRYMATGROUP.pl

creative with our meals

the Smak brand offers a varied range of cucumbers. You can choose pickled mini cornichons or the bigger ones – pickled and sour cucumbers. You will find different tastes and sizes. They make excellent snacks for

www.PRYMATGROUP.pl

Washing liquid ECO-BOX Triumf Color 3 l

Washing gel Voll 1,5 l, 3 l

The innovative bag-in-box packaging system is a solution that is becoming more and more popular in the world. It is a combination of a barrier bag with a reusable valve and a cardboard box. This ecological and practical packaging uses 6 times less plastic (compared to 3 one-liter traditional bottles). In combination with the ecological formula of the detergent, the ECO-BOX Triumf Color washing liquid is a unique, highly concentrated product for all those who care about themselves and the environment. It has strong cleaning effect, effectively removes stains and dirt from fabrics, and at the same time retains intense colors for a long time. It does not contain phosphates or zeolites. The family packaging lasts up to 50 laundries.

Washing gel Voll Universal, Weiss and Color is an effective and safe laundry detergent for the whole family. It is suitable for washing in automatic washing machines as well as hand washing, at temperatures from 30°C to 60°C. Voll gel contains 6 enzymes and coconut soap that effectively remove stains and all kinds of dirt. Thanks to the gel consistency it dissolves perfectly in water and rinse out of the fabric. It leaves a pleasant, fresh smell on clothes for a long time. A 1.5-liter bottle is enough for 20 washes and 3-liter bottle for 40 washes.

www.BDGROUP.eu

FoodfromPoland

01/2020