From field to table Agrokor

FROM FIELD TO TABLE

As the largest privately owned company in Croatia, Agrokor Group has almost 60,000 employees and reported consolidated revenues reaching HRK 54 billion. With its business model linking agriculture and production, Agrokor ensures its customers enjoy a wide range of fresh domestic products. Through its strong distribution chain supplying a network of modern retail stores buyers are provided with an excellent service and budget-friendly grocery shopping.

The Agrokor Group’s core businesses are the production and distribution of food and beverages and retail. Corporate members include: Jamnica d.d., Croatia’s largest producer of mineral water; Ledo d.d., Croatia’s leading ice cream company; Zvijezda d.d., the biggest domestic producer of oil, margarine and mayonnaise; PIK Vrbovec d.d., Croatia’s leading agricultural and industrial company; and leading retail chains Konzum d.d. and Poslovni sistemi Mercator d.d.

The leading positions of Agrokor’s companies are reflected in their dominant market shares. Ledo dominates Croatia’s ice cream market. Zvijezda enjoys the biggest share of the margarine and edible oils market, while Jamnica fronts Croatia’s bottled water market. Konzum is Croatia’s biggest retail chain and PIK Vrbovec is the leading meat company in the region. Corporate values across the group

The Agrokor Group’s vision is to be an internationally recognised company setting new standards of excellence in all its areas of activity. These goals will be achieved by focusing on sustainable development to drive growth and staying committed to its key corporate values.

Agrokor is dedicated to vertical integration from agriculture to the manufacture of end products. It offers customers an extensive range of fresh and healthy domestic products. Furthermore, it is proud to offer a professional and friendly service, a pleasant shopping atmosphere and reasonable prices in its network of modern retail stores.

The success of the group’s corporate members is closely linked to fruitful partnerships with suppliers and customers, who share the common goal of increasing added value in a sustainable manner. Management systems and certificates

Agrokor has implemented a Quality Management System in accordance with multiple ISO standards and requirements, as well as internal control systems based on HACCP, guaranteeing its customers safety and traceability according to the Field-toTable concept.

For agricultural companies, the emphasis is on switching towards raw material monitoring and control through the Global G.A.P. standard that prescribes good agricultural practices and represents the key element in managing agricultural processes and processing.

An increasing demand for Halal and Kosher certificates incited a majority of Agrokor companies to expand certification to those segments. Now Belje, Dijamant, Ledo Čitluk and PIK Vrbovec are Halal certified and Jamnica, Ledo, PIK Vinkovci,

Solana, Sojara, Zvijezda, Belje, Irida and PIK Vrbovec are certified Kosher.

Agrokor’s Food Business Group is responsible for ensuring that all quality and health requirements are met, in order to guarantee a high level of consumer health safety. Continuous improvements are confirmed by successful recertification processes and audits showing that suitable corrective and significant preventive measures are being implemented. Educational processes in the field of food quality and safety have been continued on all business and operational levels, focusing on control, development and new technologies and active involvement in cooperation with Campden Association from England.

Integrated management

A systematic approach to quality planning, assessment and management is adopted across the Agrokor Group.

In 2012 the following systems were certified: VUPIK – the successful certification of a first QMS in 2012 according to Global Good Agricultural Practice standard in vegetable growing; Nova Sloga, Trstenik – a HACCP certificate awarded to the Mivela production line for the production of natural mineral water rich in magnesium; PIK Vinkovci – the construction of a new refrigeration facility for onion storage in accordance with European standards; the first successful certification of GG in cattle farming; Konzum BiH – initiated certification process according to the HACCP system (basic HACCP system requirements for 48 facilities of varied use); and Jamnica – continued cooperation with NATO through re-certification according to their standard. Environmental management system

Agrokor focuses on the implementation and maintenance of integrated management systems, in accordance with international standards and requirements (ISO 9001:2008, HACCP, ISO 22000:2005, OHSAS 18001:2007, Global GAP, etc.) including the EMS (environmental management systems) ISO 14001:2004. In 2012 the requirements of ISO 14001 were met by two new companies within Agrokor Group: Konzum d.o.o. in Bosnia and Herzegovina and IDEA d.o.o. in Serbia. With that certification, in addition to Croatia’s Konzum d.d., the two retail companies have become the only EMS-certified retail chains in their respective countries.

When investing in new technologies, Agrokor is particularly dedicated to product quality and safety, as well as the reduction of its environmental impact. There are currently 20 EMS Lead Auditors and about 220 EMS Internal Auditors in The Agrokor Group. Furthermore, EMS not only ensures a safe, sustainable and clean working environment for all employees, but also extends to consumers, business partners, suppliers and the entire social community.

All group companies continually optimise their technological processes, with the aim of optimising the use of natural resources and to achieve the rational use of raw materials. Recent examples of Agrokor’s work in the area of environmental management are the projects carried out by Ledo in Čitluk and Zvijezda. Systematic waste management has been upgraded at all locations. Overall, the volume of municipal solid waste has been reduced through the improved col-

lection of particular types of waste. Numerous new disposal units and containers have been put into service and new sites for more efficient and selective waste collection have been arranged.

Following the initial launch of Eco Corner (Eko-kutak) in Jamnica, Sarajevski kiseljak also formed its own Eco Corner as a special facility for the selective disposal of all kinds of waste. In PIK Vinkovci a special eco warehouse for hazardous waste was built at Lipovac. Projects for the improvement of technological wastewater quality are currently under way. At Agrolaguna’s Sirana site a new system for the purification of industrial wastewater was implemented. At Irida the reconstruction, expansion and equipping of a wastewater treatment plant has been put in train.

Agrokor-energija has worked intensively on activities related to the use and application of renewables. Gradec, located near Vrbovec, was the company’s first biogas plant; this represents the most eco-friendly method of transforming waste to energy and organic feedstock is transformed into three products: organic fertiliser, heat energy and electricity. Gradec was just the first in a line of biogas plant investment projects scheduled for implementation. In addition, after the success of the solar electricity system installed on the roof of the Konzum maxi shop in Sopot, six new PV Solar Systems are planned for installation.

Innovation and R&D

Innovation is very important for all companies within the Agrokor Group. It continually strengthens its R&D activities by developing new products or improving on existing processes. Focusing on innovation as an important part of business strategy brings a comparative advantage to the group’s companies in an increasingly demanding, highly competitive marketplace.

R&D activities within the Agrokor Group are organised through research and development centres within individual companies, according to specialised fields. This allows for the development of expertise within specific teams and allows them to stay abreast of consumer trends and new technology developments.

New product development strategies are based on recognising customer priorities. They are focused on improving ingredients and flavours, their health and functionality, as well as improving packaging for the purpose of extending product freshness, shelf life and convenience.

In early 2013 Agrokor signed a cooperation agreement with the company NineSigma, one of the pioneers in the open innovation concept. Through this agreement, Agrokor Group gained access to the largest worldwide network of innovators and a knowledge base spanning many different industries and technical disciplines. With this investment came the adoption of a new innovation strategy – open innovation – which will be continuously strengthened and applied across all business processes. Its aim is to strengthen R&D capacity to integrate new knowledge, expand the product portfolio and implement innovative solutions to successfully meet the challenges of the future. n