Shaping flavours Váhala

SHAPING FLAVOURS SHAPING FLAVOURS

Hams, sausages, smoked meats, roast products, aspics… all of the highest quality, with a high percentage of meat, and mostly gluten free. This is the product offering of the Czech family-run company Váhala, which developed from a small local meat processing plant into a recognised and trusted processed meat and meat specialities supplier to the central European region. Romana Moares spoke to company co-owner and managing director, Mr Ladislav Denk, to find out its recipe for success.

Váhala started as a one-man business and, over the years, has developed into a modern, successful European enterprise. Established in 1933 by the joining of two butcher shops, its founder, Robert Váhala, had a clear business concept: to provide high quality meat products to the region. The business grew rapidly and its reputation was spreading fast until the early 1950s when the company was nationalised. However, its founder never stopped working to get his business back and made sure that all of his five children were educated in food related subjects so that they could take over.

It was only in 1989, some 40 years later, that the meat-processing factory was returned to the family – Robert Váhala then decided to pass the business to his five children and in January 1991 operations were resumed under the name of Váhala and Co., Production and Sales of Meat and Delicatessen Products. “The name is perhaps a bit too long but the family wanted to express the core business in the title,” explains Mr Denk.

Production was quickly re-launched and Váhala’s reputation soon spread outside the region, first to the rest of the Czech Republic, then to Slovakia, Hungary, Germany and Austria. Today about 20 per cent of its output is exported. “The key market still remains the Czech Republic,” says the managing director, “However, we are proud that we have achieved success in the very demanding markets of Germany and Austria.”

A new structure

When he walked back into his old plant in 1988, Robert Váhala could still recognise the original machines he had installed over 40 years before. Hardly anything had been modernised and the whole operation was badly in need of complete refurbishment and extension. Several reconstructions followed until 1997 when further capacity expansion in the old plant (located within the town boundaries) was no longer possible. At this time, the strategic decision was taken to build a factory on a greenfield site which would meet the strictest of EU standards and offer potential for further growth.

The first stone of this new site was laid in 1997 and the plant was commissioned a year later. It was the company founder, Robert Váhala, who, at the age of 88, cut the tape to start the new factory.

“We did not want to build a huge operational unit but rather progress step by step and that is what happened. Several extensions were built and production capacity gradually increased in several stages to meet growing demand,” says Mr Denk.

Váhala has remained a family-run business up to the present day – in 2012 its ownership structure was given a new lease of life when several of Robert Váhala’s grandchildren took over. “The company now employs about 250 people in the two plants – the former factory has been transformed to house delicatessen production such as salads, spreads and aspics (about 10 per cent of total output) while the new factory makes a wide range of meat products such as smoked meats, hams, sausages and many more,” explains Mr Denk (the husband of one of Robert Váhala’s granddaughters).

Preferred by customers

Váhala’s meat products can be bought from most of the major retailers such as Ahold and Globus, but the company also operates its own retail network covering the whole of the Czech Republic. Its focus is on top quality raw materials, a high meat percentage, natural ingredients and spices and reduced levels of salt – all of which is exactly in line with current customer preferences. Most of its products are also gluten free.

The product range is updated on an ongoing basis. “Each year we introduce new or improved products and the best possible quality is always our priority. Right now we have several new products in the pipeline which are expected to increase sales significantly,” says Mr Denk, but refuses to reveal more at this stage. However, he points out that the company is aware of its social role as well: recently, for example, a new type of ham has been launched to support the reconstruction of a national monument, destroyed in fire. A certain percentage of sales from the ham, which bears the name of the national monument, will go to the reconstruction fund. Serious commitment

Reflecting on the company’s future development, Mr Denk says Váhala will continue to invest in new technologies to sustain the high quality of its products and to remain competitive. This year, it plans to invest in cooling, smoking technology and other new machines.

“We are committed to maintaining and further spreading the good name of the company and gaining a stronger foothold in the central European markets. We will continue to honour the dedication of Robert Váhala to the highest standards of quality. The feedback from customers indicates that we have, so far, succeeded in this goal and we intend to continue doing so in the future,” claims Mr Denk. n