Tradition and innovation

NOWEL Sp. z o. o. bakery in Legionowo near Warsaw is one of Poland’s market makers. In an interview, the owner family explains more about the market and the company.

Borchfeld: Please introduce your company, its history and its importance to the Polish market.

+ Elżbieta Zajezierska: NOWEL bakery is a family business with nearly 100 years of tradition. The history dates back to 1925, when my grandfather Antoni Nowakowski founded a small, artisanal bakery near Warsaw, where for decades we baked bread for the local community. A small plant was passed on from generation to generation and with time has turned into a family business. My personal contribution to the development of the company began in the 90s. I was inspired by the new European trends and took a chance to build a team of professionals –one of the first in Poland, to produce frozen bakery products. It was very interesting moment for Polish economy. It was the early beginnings of capitalism when the market was flourishing with new businesses. However, not all of them survived the test of time. My choice has proven to be the direction that the whole bakery industry was about to follow in the next years. In 2010, we have focused exclusively on the production of frozen bakery goods.

+ Borchfeld: Who owns the company?

+ Elżbieta Zajezierska: NOWEL is a family company that remains in our hands since the foundation of the first bakery in the 1920s. My children are already the fourth generation of bakers to continue the family tradition. My son Michał, Vice President of NOWEL’s Management Board, is responsible for strategic areas related to the development of the company, in particular: implementation of new products, development of production technologies and investment management in modern production lines. Whereas my daughter Karolina, as a Commercial Director, is responsible for domestic and foreign sales of pre-baked frozen bakery products, as well as developing and maintaining strong relationships with the company’s key clients.

+ Borchfeld: What kind of products are mainly produced?

+ Michał Zajezierski: We are the manufacturer of frozen bakery products. We offer a wide range of products such as kaiser rolls, mixed and tin bread, rolls, baguettes, and ciabattas. We have invested a lot of time and resources in developing premium range products to diversify our portfolio even more.

We follow recent trends and aim to address customers’ expectations as quickly as possible. Recently, we added to our offer BIO products as well as bread with chia seeds, amaranth and other superfoods. We also see the growing importance of convenience and to-go solutions in our category and that is why since summer 2018 our offer includes diverse hot-dog buns and other snacks.

+ Borchfeld: How many production plants do you have?

+ Michał Zajezierski: We have two production plants.

+ Borchfeld: What kind of equipment is in production?

+ Michał Zajezierski: The manufacturing plant in Legionowo near Warsaw, covering an area of 18,000 square metres, is one of the most modern facilities of this type in Europe. Since 2013, we have allocated PLN 160 million to the development of its machinery stock. At present, our company has four fully-automated manufacturing lines and one semi-automated manufacturing line and uses three-tonne robots working with half-millimetre accuracy. We choose the newest technology from best European brands such as Diosna, Mecatherm, Koenig, Rademaker and WP HATON. We choose the machinery that produce the best bakery goods so that every technological novelty is translated into customer benefits. Recently we started a new line for rolls (Kaisers, Wachauer, Rosenbrotschen etc.), which is able to manufacture 60.000 pieces and up to 6 tonnes of dough per hour, with the possibility to use our own sourdough and long proofing times for products.

+ Borchfeld: Do you produce only deep-frozen bakery products or also fresh bakery products?

+ Michał Zajezierski: Since 2010 we focused exclusively on frozen bakery goods.

+ Borchfeld: Are there special raw materials that you use?

+ Michał Zajezierski: All of raw materials used in our production processes have specific, predetermined qualities that are verified at each and every delivery. The unique taste and quality of NOWEL bakery products rely also on recipes that have remained unchanged for years, based on four natural ingredients: flour, water, sourdough and salt. What is more, NOWEL products have clean label which means that they are made only from natural ingredients, without any raising agents, flavour enhancers, and artificial preservatives and are GMO-free.

+ Borchfeld: How many employees does the bakery have?

+ Michał Zajezierski: We currently employ over 350 skilled workers in all areas of our company, i.e. production, logistics and sales. Every day, 7 days a week the company manufactures a total of 240 tonnes of bakery products per day.

+ Borchfeld: What is the specificity of the company's concept?

+ Michał Zajezierski: Our company’s specificity could be defined in two words – tradition and innovation. We respect our company’s history that derives from artisanal bakery techniques and seek to provide the highest quality of products based on traditional recipes. At the same time we invest in modern technology that enables us not only to expand the scale of production but also to export the products to distant markets.

+ Borchfeld: How are the products distributed?

+ Karolina Zajezierska: NOWEL products reach the shelves of the largest retail chains in Poland and Europe, as well as non-European markets. Our bread can be also found at petrol stations which continue to develop their non-petrol offer. In 2018 we have started cooperation with leading chain of convenience shops in Poland and deliver hot dog buns to thousands spots managed by the brand. At some markets, NOWEL products are available also in independent, ownership stores or at wholesaler’s.

+ Borchfeld: How large is the customer base in the region?

+ Karolina Zajezierska: NOWEL bakery products are currently exported to more than fifteen countries, also outside Europe. Export accounts for 30% of the company’s sales and its share is consistently increasing.

+ Borchfeld: In which areas do you want to grow?

+ Michał Zajezierski: We have consistently focused on company’s development in two areas portfolio and sales. Currently, we aim to expand our production capacity to reach 400 to 420 tons of baked goods per day, that we are able to achieve thanks to constant investments in machinery park. We are not only increasing our capacity but also improving our quality with each new investment. Furthermore, we are expanding our international sales.

+ Borchfeld: Do you have any competitors and if so, which ones?

+ Michał Zajezierski: We are one of the four leading manufacturers of frozen bakery products in Poland. However we don’t perceive other producers only as competitors but also as partners. Together with Aryzta Polska Sp. z o.o., La Lorraine Polska Sp. z o.o., and Lantmannen Unibake Poland Sp. z o.o., we founded Stowarzyszenie Producentów Pieczywa [the Bakery Product Manufacturers’ Association] which objective is to educate about bakery products and their positive influence on health, with a special focus placed on frozen bakery products.

+ Borchfeld: How was the 2018 business year, what were and are the challenges?

+ Karolina Zajezierska: The second half of the 2018 has been very challenging for the whole baking industry. Hot summer led to drought that has affected the grain prices not only in Europe but also on global markets. For bread manufacturers flour is a primary ingredient so any fluctuations are crucial. At the same time in 2018 we introduced new products to our portfolio (convenience and BIO) and gained new business partners. We are optimistically looking forward to new challenges coming in 2019.

+ Borchfeld: How do you assess the development of the industry and the baking market in Poland and Europe?

+ Karolina Zajezierska: The market is definitely very demanding – customers look for high-quality products and meticulously examine the labels. This pushes manufacturers to constantly improve their product offer. Recent researches show that consumption of frozen bakery goods is growing 15 % per year. People enjoy bread that is freshly baked in store, still warm and crispy and most importantly has clean label. Customers tend to buy bakery product as a snack during lunchtime to replace traditional meals. We believe that bakery market is constantly changing, quickly responding to customers’ expectations and still has solid grounds for growth.

+ Borchfeld: Thank you for the interview. +++