Food from Poland Magazine 38/2022 by HURT & DETAL

38/2022

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The Polish food exports are doing well in spite of the pandemic!

Spring 2022

CONTENTS

Tomasz Pańczyk, Editor-in-chef Food from Poland Magazine

Poland is a very strong player on the food export market. Despite the global crisis caused by the COVID-19 pandemic, Polish food has not declined in importance and still remains a key part of our foreign trade. 2020 – the first year of the pandemic – continued the upward trend in agri-food exports from Poland. Since 2004, their value has increased more than sixfold. In 2020, the sales of agri-food products abroad reached a previously unprecedented level of EUR 34 billion, which is more than EUR 2 billion higher than the year before (a 7% increase in comparison with 2019). The growth of exports was predominantly affected by the excellent results of foreign sales in the first quarter of 2020 and in the second half of 2020. The increase in exports was largely contributed by the exchange rates of the zloty in relation to the euro and US dollar, favourable to exporters, which fostered the price competitiveness of Polish agrifood products on the international market. At the same time, agri-food imports amounted to EUR 22.3 billion, reaching a 4.9% higher result than the year before. The growth dynamic of exports exceeded the growth rate of imports, due to which the positive trade exchange balance increased by 11.4% in comparison with 2019, reaching EUR 11.7 billion. In ten months of 2021, positive trends in Polish agrifood exports have been recorded as well and another

8 MARKET NEWS

increase in the value of exports of such products from Poland has taken place. Between January and October 2021, the sales of agri-food products abroad reached EUR 30.5 billion (PLN 138.8 billion), which was 6.7% more than in the previous year. The increase in exports resulted from the abolition of restrictions in international trade after the lockdown in the first half of the year, the growing economic activity of Polish entrepreneurs, the good preparation of domestic companies for functioning under the pandemic conditions, as well as the sustained demand for Polish products. The price competitiveness of Polish agri-food products was supported by the PLN/ EUR exchange rate, favourable to exporters. The good results of the exports also resulted from the economic recovery, particularly in countries comprising Poland’s major trade partners. The results of foreign sales, obtained by domestic exporters between January and October 2021, were also affected by high food prices on the global market, reflected in the growing value of the FAO monthly food price index. During the same period, the imports of agri-food products amounted to EUR 20 billion (PLN 90.9 billion), reaching a value of 5.7% higher than the year before. The positive balance of trade exchange increased by 8.8% in comparison with the period between January and October 2020, reaching EUR 10.5 billion. You will find more information about the Polish food market and the Polish products in this issue of Food from Poland. Enjoy your reading!

TRENDS

MARKET INSIGHT 16 Confectionery, Snacks and Polish Agri-food sector 57 The confectionery market situation and trends FOOD SECTOR 24 The food sector in the pandemic period 38 Consumer 2021

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76 Major zero-waste trends for 2022 TRADE FAIRS 79 We are optimistic about the future!

INTERVIEWS 30 Tetiana Gurnevych, International Sales Director at Wawel 44 Adam Mokrysz, the President of Mokate Group 54 Marek Moczulski, the President of the Board of Unitop 58 Małgorzata Cebelińska, Sales Director at SM Mlekpol 64 Armen Papazjan, Deputy Chairman of the Board and CEO of Brand Distribution Group 78 Arkadiusz Majchrzak, Export Manager at Terravita 80 Krzysztof Tokarz, the President of the Specjał Capital Group

Editor-In-Chief Tomasz Pańczyk t.panczyk@foodfrompoland.pl

60 Global innovation trends and consumer insights in chocolate confectionery

Graphics studio Paweł Pańczyk Printing house: ArtDruk Kobyłka www.artdruk.com

48 DISCOVER POLAND: THE MAP OF CHRISTMAS CUSTOMS 68 SUMMARY OF 2021 84 LIST OF POLISH COMPANIES 89 DISCOVER POLISH PRODUCTS

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#marketnews

SM Mlekpol – 2 billion litres of milk purchased in 2021

wiadomoscispozywcze.pl

The purchase of milk at SM Mlekpol has been regularly on the rise for many years. This trend has also been maintained in 2021; this is another record-breaking year. At the end of December 2021, the Mlekpol Cooperative reached the level of two billion litres of purchased milk.

This is great success and a beautiful gift at the very end of the year. Such an impressive result has been achieved through the hard work of nearly 9,000 farmers-suppliers. Edmund Borawski, President of the Mlekpol Dairy Cooperative

Every day, more than 5.5 million litres of milk reach 13 plants across Poland. One of the largest dairy producers in Poland processes the raw material into several dozen pro-

ducts. Top-quality, exclusively Polish milk guarantees the unique and natural taste. This is what such brands as Łaciate, Milko, Mazurski Smak, Rolmlecz, Maślanka Mrągowska, or Białe are highly appreciated for.

A record-breaking year The year of 2021 ends with great success for SM Mlekpol – a record level of raw material purchases, more than 2 billion litres of purchased milk, only from the company’s own raw material base, with a dynamic of 2.1% in relation to the previous year. This result is thanks to the unceasing development of the Cooperative, but above all, the hard, dependable work of its members.

Dino trade chain has grown by 1635% over 11 years wiadomoscispozywcze.pl

Dino is definitely accelerating its pace of development. This year, as many as 343 new stores have been established under the chain’s sign, i.e. almost 90 more stores than 2020. The Dino trade chain already has 1,815 stores with a total sales area exceeding 710,000 m2. In 2021 only, as many as 343 stores have been opened under the Dino sign. The pace of expansion has definitely accelerated at the end of the year. Over the first three quarters, the

Fast development In 2010, the chain only had 111 stores. Years later, at the end of 2021, there are as many as 1,815 locations. Apart from the considerable development of the number of stores, Dino Polska also records impressive growth in revenues. These have exceeded PLN 9 billion after three quarters in 2021. This is nearly 30% more than in the analogous period of 2020.

chain expanded by 234 new stores. This means that more than 100 new shops have been opened between October and the end of 2021. The number of Dino stores has exceeded 1,800. Only in 2021, 343 new stores were established.

Dino has real opportunities of catching up with Biedron-

Despite its dynamic development, Dino still has a lo-

ka. According to a survey conducted by Proxi.cloud and

wer share of visits than Biedronka. This conclusion may

UCE RESEARCH, almost 60% of Polish people shop in

motivate the Polish chain for a two-way action. The first

Biedronka, while Dino is already being chosen by more

option is to focus on opening stores in communes where

than 30%. However, it is the Polish chain that shows a

Biedronka currently has no outlets. The other one is direct

more dynamic pace of development, and its shops also

competition, or establishment of more new points in areas

record a higher dynamic of sales growth.

where Jeronimo Martins already has shops of its own.

Weronika Piekarska of Proxi.cloud

Mateusz Chołuj of Proxi.cloud

#marketnews

Four Polish plants approved to export flour to the Chinese market MRiRW

The Embassy of the Republic of Poland in Beijing has announced publication of a list of entities authorized to export flour to the Chinese market, as has been informed by the Ministry of Agriculture and Rural Development on 20 December. This means completion of the procedures approving this product for exports to China. The works on the admission of flour for export to the Chinese market began in 2016 and included many stages, such as work on the bilateral protocol and an audit conducted by Chinese services at the flour production sites. On 5 February 2021, the Minister of Agriculture and Rural Development and the Minister responsible for the General Administration of Customs of the PRC signed a protocol determining the detailed requirements for flour intended for the Chinese market. Export rights were granted to four Polish plants, including three owned by Polskie Młyny S.A. and one owned by Gdańskie Młyny.

Five crucial trends to dominate trade in 2022 Adyen

#2 “Thick as thieves”, or know your customer New payment methods, from virtual wallets through online payments to contactless card payments, accompany all kinds of shopping. Along with the maintenance and growth of this trend, retailers will have an ever-expanding amount of data about the habits of their customers. The crucial thing for traders is to identify the preferred payment methods of the buyers and to ensure that a whole range of them is offered, both online and offline.

#3 Green prosumers

New shopping habits that started developing in the spring of 2020 have visibly settled down in the landscape of the Polish retail trade. Concepts combining elements of traditional trade with e-commerce have taken the lead. Entrepreneurs have not turned their eyes away from high customer requirements and are looking for new ways to stand out among their competitors. What can and should they offer in the upcoming year?

#1 Artificial intelligence and machine learning in service of safety From traditional bank outlets that test automatic advisors rather than shutting down, through advanced profiling algorithms and creditworthiness-assessing ones, to systems analyzing potential cybercrime in payments – 2022 will see even broader use of intelligent technologies by companies from the finance and e-commerce sectors.

Conscious shopping and care for environmental issues are aspects continually gaining on importance among consumers, also in Poland. For 62% of customers, the seller’s ethics (e.g. contribution to the development of local communities, or concern or active action for the sake of the natural environment) is currently much more important than it had been before the pandemic. Every business might have room for pro-ecological solutions, yet the commerce sector has unique conditions in this regard.

#4 Growing demand for flawless digital experiences The companies that achieve the best results are those which consistently combine the physical world with the digital one. They allow their customers to smoothly move between many channels with no obstacles, using every opportunity to avoid “friction” in the shopping process.

#5 Apps and loyalty programmes There has never been a time more important to building customer relations. 73% of consumers claim they will continue to choose companies they could rely upon during the pandemic. Nowadays, customers require highly customized experiences and expect the brands to provide recommendations based on their former choices.

#marketnews

Food passportization to be introduced in Poland Newseria / wiadomoscispozywcze.pl

The National Support Centre for Agriculture (KOWR) and the Research and Academic Computer Network (NASK) have signed an agreement auguring a pilot project of food passportization in Poland. Initially, the system is to identify the agricultural history of potatoes, beef and pork.

Why is food passportization important? An increasing number of Polish people are paying more and more conscious attention to the food they buy. The consumers are concerned not just with the appearance and quality but with the product composition and origin as well. Passportization of products will enable access to information about the products at every stage of the supply chain. This is not just about the country of origin, which is already being marked on the packaging anyway.

We already know we are able to show, for instance, where and how a given bull was raised, whether or not it took any antibiotics, who treated it, how it was transported, if there was welfare, or if it has been humanely processed at a slaughterhouse. Michał Wiśniewski, Deputy General Director of the National Support Centre for Agriculture

Will the shopping mall industry rise after another lockdown? With looming new restrictions, announced by the Minister of Health last Monday, the Polish Council of Shopping Malls (PRCH) points out the consequences for the industry, brought about by the previous lockdowns. The four lockdowns, taking up a total of 145 days, have led the shopping mall industry to a serious disruption of its financial liquidity. This was true for both lessees and lessors – mall owners and administrators. PRCH notes that each subsequent limitation of operation on commercial premises will compound the hitherto multi-billion losses of the industry.

Polish exports will benefit from passportization This project is unique on a global scale. So far, similar practices have only been applied by the largest trade chains. Read here about a blockchain-based technology introduced by Carrefour this year. As stressed by Henryk Kowalczyk, Deputy Prime Minister, the Minister of Agriculture and Rural Development, Polish food exports will benefit from passportization. In 2020, the value of exports reached EUR 34 billion, which means a EUR 2 billion growth in relation to the previous year.

The lockdowns so far have taken more than 60% of the lessors’ annual revenue Shopping malls constitute the main distribution channel for goods of most Polish fashion, footwear, jewelry and electronic chains, as well as for thousands of local related businesses. The Polish Council of Shopping Malls stresses that stable, unrestricted operation of shopping malls is the linchpin for the maintenance of continuity of the functioning of trade in Poland. The PRCH calculates that the losses so far exceeded PLN 6 billion, more than 60% of the lessors’ annual revenue, caused by the statutory rental regulations.

The restrictions will limit PLN 1 billion worth of investments in shopping malls

The shopping mall industry has also a wide range of employees. It hires approx. 400,000 people. “Therefore, undisturbed operation of malls may save many workplaces,” the PRCH explains. A possibility of operation in compliance with the utmost safety standards, at a lower visiting rate than before the onset of the pandemic, is the only chance to survive for many entrepreneurs of the sector.

#marketnews

2021 was a challange for small retailers Elżbieta Szarejko, CMR

For small-sized stores, 2021 has been a time of learning how to operate under the new, uncertain conditions, struggle for the increasingly demanding customer, as well as facing the results of the increasing prices. How has the passing year looked like? In 2021, retailers running small-sized stores, in addition to getting used to the new, pandemic-related conditions, had to face the results of regulations concerning two categories of enormous importance for this format: alcohol and beverages.

The shopping structure has returned to normal The changes in the shopping structure, which could have been observed in the first weeks of the pandemic, i.e. in March and April of 2020, faded into obscurity quite quickly, and the significance of such product groups as cereals, spices and culinary additives, or fats, returned to the 2019 level. The key products for the turnover of small-sized stores are alcohol and tobacco.

Shopping: less frequent but slightly larger The first several months of this year saw restrictions connected with the third wave of the pandemic – customer limits and senior citizens’ hours in stores; closed schools, restaurants, cultural and sports venues; as well as the adaptation to remote work, drawn from the first wave. Limited mobility meant less opportunities for impulse shopping along the way, and customers would often choose supermarkets or discount stores for larger shopping, which is why early 2021 meant drops in sales for many small-sized stores, in comparison to both 2020 and the pre-pandemic times. The warm June and July brought an improvement in moods and slight sale increases, but they were followed by a cold and rainy August in which a large part of typically summer categories recorded large drops.

The shop turnover is down Between January and October 2021, the total turnover of small-sized stores up to 300 m2 has dropped by 2% in comparison with the analogous period of the previous year, and the number of transactions decreased by more than 4% over that time. The drop in the sales value in comparison with the previous year resulted from very high sales at the beginning of the pandemic – in March and April 2020, when customers had been stockpiling and visiting small-sized stores more often for their everyday shopping. The sales in small-format stores were also adversely affected by the weather, especially the cold and rainy August. In comparison with the similar pre-pandemic period, i.e. the first ten months of 2019, the total sales value in small-sized stores grew by 4.5% (largely due to growing prices), while the number of transactions dropped by as much as 15%.

The nutritional trends of 2022 at small-format stores Elżbieta Szarejko, CMR

At small-format stores, just like in larger outlets, new nutritional trends are noticeable, such as giving up on or limiting meat consumption, or the purchase of ecologic products free of lactose, gluten, or sugar. Products from these categories record larger or smaller growth (the value of sales of vegetable yoghurts has increased almost threefold in comparison with the previous year, customers have spent almost twice as much on vegetable cold cuts and dried sausages, and the sale of plant substitutes for milk grew by more than 20%), but they still comprise a small part of sales (e.g. one package of plant-based “milk” falls for approx. 100 packages of animal milk).

The upcoming year will bring a new share of challenges to be faced by retailers, such as inflation, increase of the excise tax for alcohol and tobacco products, or amendments to the Sunday trade regulations. It should be kept in mind that, despite difficult economic conditions, changing legal regulations, the shrinking number of shops, rising prices, and high competition from discount stores, small-sized stores remain a very important channel of food sales, as well as the main, or at least favourite, place for shopping for many customers, and will probably remain so for a long time.

#marketnews

Poland keeps exporting more and more food According to the data of the National Support Centre for Agriculture (KOWR), the value of exports of agri-food products from Poland between January and October 2021 increased by 6.7% in relation to 2020. Meat is the most frequently exported commodity, and Germany remains the main trade partner. „The increase in exports resulted from the abolition of restrictions in international trade after the lockdown in the first half of the year, the growing economic activity of Polish entrepreneurs, the good preparation of domestic companies for functioning under the pandemic conditions, as well as the sustained demand for Polish products,” the KOWR reported. Additionally, the price competitiveness of Polish agri-food products was supported by the PLN/EUR exchange rate, favourable to exporters. The good results were also caused by economic recovery in the countries of Poland’s major trade partners. Polish food predominantly reaches EU countries – over 72% of earnings from agri-food exports were obtained from sales to the Community countries. EUR 22 billion worth of goods were sold there (an 8% increase) in comparison with the analogous period of 2020.

MLEKOVITA – the leader of dairy products Once again, MLEKOVITA has emerged as the winner of the Platinum Five of the Largest Dairy Companies, a part of the Golden Hundred of Polish Agriculture. It has also received the Eagle of Polish Agriculture award in the Best Exporter category. As pointed out during the awards gala that took place on 6 December, not only did MLEKOVITA find itself on the podium of the Golden Hundred of Polish Agriculture ranking, and not only is it the largest Polish dairy company but also the largest Polish private agri-food enterprise. MLEKOVITA is also unrivalled in the area of exports, as recognized by the title of the Eagle of Polish Agriculture in the Best Exporter category. The Golden Hundred of Polish Agriculture only includes companies from the agricultural sector. The ranking was prepared by the editorial board of the Wprost weekly, and the Ministry of Agriculture and Rural Development under the honorary patronage of the National Institute for Rural Culture and Heritage.

The European Union as the driving force behind the Polish economy

Had Poland not entered the EU in 2004, the Polish people’s real incomes would have been 25-30% lower. The foreign trade balance would be worse, the road infrastructure would be less developed, and the foreign investments would bring poorer results. Such are the conclusions from Where is the Real Gravy? The Major Economic Benefits from Poland’s Membership in the European Union report prepared on behalf of the Schuman Foundation and the Konrad Adenauer Foundation. The authors of the report have pointed out that the main economic benefit from the EU membership is Poland’s participation in the common market, while the European funds only play an auxiliary role. The report shows that the EU membership is responsible for more than a half of Poland’s entire GDP growth after 2003. Without it, shortening of the distance between our country and the developed Western European states would be impossible. Over the last 17 years, the per capita GDP of Poland has grown from 49% to 76% of the EU average. As the research has shown, most Poles are convinced that the main benefits from the European Union are the European funds, allocated, among other things, for the construction of infrastructure. Yet actually, Poland draws more benefits from its participation in the European Single Market (ESM).

#marketnews

China: the largest non-EU recipient of Polish dairy products

Poland comes 5th among Europe’s largest beef producers We are among the leading beef producers in Europe. The high quality of the meat produced in Poland also makes our country one of the largest exporters in the continent.

Chinese consumers value European products, treating them as premium goods. So far, however, only milk has been recognizable among Polish foodstuffs. The remainder of the dairy assortment have large potential as well. According to the Polish-Chinese Business Council, China is in the world’s top three milk producers, but its domestic production is unable to meet the growing demand for dairy products. Furthermore, Chinese consumers have limited trust in the local dairy industry in which safety-related incidents have often been recorded over the last decade. European products are treated as premium-class goods and Poland benefits from that. Over the last five years, Asia has been one of the fastest-developing directions of Polish dairy exports. In 2016–2020, foreign sales in this product group nearly doubled. As reported by the Polish Federation of Cattle Breeders and Milk Producers on the basis of preliminary data of the Ministry of Finance, the value of exports of dairy products from Poland between January and August 2021 amounted to approx. EUR 1.76 billion, i.e. PLN 8 billion, which was 8% higher in comparison with the analogous period of the previous year. The European Union countries have the greatest share in the receipt of Polish dairy products, with China being the leader among non-EU states (5% of the value, approx. EUR 92 million). However, this is still little for the scale of the Chinese market which has been shifting from the export model to the consumption model for several years. Polish food exports to China comprise less than 1% of food imported there. The total volume of food exported to China by such countries as New Zealand, Japan, the USA, or Germany are higher than the value of the entire Polish market, so the sales potential is vast.

We are on a good, European level. We are the fifth largest beef producer in Europe, and a major exporter, since 80% of Polish beef is exported. Of course, compared with the global market, we still have a long way to go, we will never reach the level of the USA or several other countries.

The Polish industry is accelerating, despite exports being slightly out of breath

Yet we have vast prospects for beef production and the development of this market. There are still about one million hectares of unused meadows or pastures. This is a perfect, so to speak, ‘field’ for development of beef cattle breeding in Poland, Witold Choiński, the President of the Board at POLSKIE MIĘSO (Polish Meat)

As reported by IHS Markit, the Payment Morality Index (PMI) for the Polish industry exceeded 54 points in November, stopping at 54.4 points. This means growth by 0.6 points in relation to the October reading. This is an optimistic forecast before the official data of the GUS on industrial production. The industry still remains on the rise, even though it is becoming more and more troubled by personnel shortages and narrowing export opportunities. As pointed out by Mariusz Zielonka, an expert from the Lewiatan Confederation, the positive effect comes largely from external factors. The indexes related to new orders have increased, strengthened by the unwavering internal demand. New orders could have reached a much higher level, were it not for the continuing price increases of goods and services, discouraging the customers.

The development of the Polish meat industry is also evidenced by the producers’ investments. Poland’s most advanced beef cutting plant will soon appear in Szczuczyn. It will stand out with a unique identification system, which will mark individual beef joints with QR codes enabling them to be tracked back to a particular animal. Apart from its contribution to ensuring consumer safety, it will also facilitate withdrawal of individual batches if any irregularities are found and reduce the amount of wasted food.

#marketinsight

Confectionery, Snacks and Polish Agri-food sector Poland is an important actor on the worldwide food market. Polish producers benefit from rich manufacturing traditions and recipes passed down for generations, utilizing state-ofthe-art technological solutions.

The unique taste, naturalness and rich nutritional values of Polish products, combined with the manufacturers’ openness to new trends and requirements of target markets, make Polish food increasingly recognizable worldwide. The products most appreciated on foreign markets include excellent confectionery and snacks – the best reflections of the Polish passion for tasty food you can enjoy together.

Polish confectionery in numbers For many years, confectionery has been among the major food export products from Poland. Currently, Poland is the EU’s 6th largest confectionery manufacturer, as well as the 3rd largest exporter, both within the EU and worldwide, after Germany and Belgium. In 2020, the Polish confectionery exports reached the value of EUR 2.25 billion, amounting to approx. 7% of the entire value of agri-food exports from Poland (EUR 34.3 billion). The exports of confectionery increased by 8% in relation to 2019. The greatest connoisseurs of Polish sweets included citizens of the EU states, as well as of the USA, Ukraine, Russia, Saudi Arabia, Australia, Serbia, and Canada. Over the first ten months of 2021, the value of confectionery exports from Poland

Poland is the EU’s 6th largest confectionery manufacturer, as well as the 3rd largest exporter, both within the EU and worldwide, after Germany and Belgium.

reached EUR 1.97 billion. During the same period, a 5% growth in the value of these exports were recorded in relation to the analogous period of the preceding year, allowing one to be optimistic concerning the future trade results.

Classic confectionery with a modern twist Which kinds of confectionery could be considered the showpiece of Polish food? Chocolate products unquestionably deserve this honour, comprising the majority of Polish confectionery exports for years. In 2020, products containing cocoa comprised 82% in the exports structure of Polish confectionery and found their enthusiasts in 162 countries, reaching as far as Antarctica. Natural ingredients, high quality, and excellent taste are all keys to the success of Polish producers of those timeless classics. A wide range of the offered articles will satisfy the most demanding consumers. The offer includes more than 250 types of chocolate tablets, including the ones enriched with good-quality dried fruit, lyophilized fruit, or superfoods. Polish chocolate products include both classic pralines, truffles, sweets, hand-decorated wafer cakes in chocolate coating, chocolate-coated fruit, nuts or the famous milk souffles, but

#marketinsight

also modern products, such as protein bars. High-quality dark chocolate with cocoa content exceeding 70%, as well as confectionery based thereon, with rich nutritional value, is gaining on popularity. However, Polish confectionery is more than chocolate. Other traditional Polish delicacies include the famous fudge, appreciated on many foreign markets due to its unique milk and caramel taste. A new version of these cult sweets is fudge with an addition of CBD – a natural ingredient of hemp, with medicinal properties giving it a relaxing effect, helping fight inflammations and supporting the natural defence mechanisms of the organism. The Polish offer also includes other „classics”, such as white chocolate products, toffees, caramels, hard candy, drops and herbal sweets, as well as many innovative products, such as mouth-cleaning sweets acting as a “peeling” for the tongue.

CBD

A new version of fudge is with an addition of CBD – a natural ingredient of hemp, with medicinal properties giving it a relaxing effect.

Tasty and healthy Contemporary enthusiasts of sweet delicacies pay attention to more factors than just the taste, and while making their choices, they also consider safety, quality, and additional functions of the products, as well as the production ethics. One can observe an increase in the number of consumers for whom confectionery is not just a momentary, “guilty” pleasure but a part of everyday life in the spirit of self-care and care for the world. Responding to such needs, Polish producers offer so-called “clean-label” products – with no enrichment agents, flavour enhancers, stabilizers, preservatives or other chemical ingredients, yet with an addition of functional elements, being among the hottest trends in the recent years. Examples include confectionery dedicated to active people (sugar-free, with a high protein content, fibre and minerals), enriched with superfoods or other salutogenic ingredients. The offer also includes vegan confectionery, free of gluten and other allergens, often additionally holding an ecological production certificate. The production processes are conducted in accordance with the international quality systems, such as HACCP, BRC Global Standard, or IFS. On top of that, manufacturers are increasingly marking their products with UTZ and RSPO certificates, helping them support sustainable production of cocoa; they also implement their

own comprehensive strategies in the area of sustainable development. A more refined alternative to confectionery, as proposed by Polish manufacturers, are natural snacks, belying the myth that tasty snacks must be unhealthy. A wide group of enthusiasts was gained by cereal-based products which can be crunched with no less pleasure than fried crisps. They include slow-roasted wafers made of top-quality cereal grains, high-protein legume crisps, or blue maize popcorn with an addition of cocoa oil.

Other hits are snacks made of expanded cereals or specially dried fruit and vegetables; the production technology of puffing enables the preservation of their distinct, natural taste and most of their essential nutritional values. These products are free of artificial additives, low-fat or completely fat-free, unsweetened, often gluten-free as well, and comprise an excellent source of fibre, magnesium and many other beneficial ingredients. If you wish to satisfy a minor hunger in a delicious and healthy way, it is also worth reaching for

#marketinsight

bln EUR

Polish agri-food foreign trade in 2004-2020 and I-X 2021 34,8

35 29,7

The Polish agri-food sector adapts to the changing conditions and, since Poland’s accession to the EU in 2004, it has been producing significant surpluses and achieving increasingly higher values in foreign trade each year. other snacks from the Polish offer, including crispy dried sprouts, tasty bars made of cereal or unprocessed (“raw”) ingredients, or a mix of thoroughly selected seeds and dried fruit. A significant part of these products hold an ecological production certificate.

Polish Export Offer The export offer of Polish foods is much wider than confectionery and snacks. Poland is a significant producer and exporter of foodstuffs in the EU and worldwide, including the EU’s greatest poultry exporter, the EU’s first and the world’s fourth greatest producer

24,3

23,9 20,4

21,9 19,3

17,9

8,5

7,1 5,2 4,4 0,8

30,5 28,6

27,8

31,8

5,4 1,7

6,4 2,1

10,1 8,1

11,7 11,5 10,3 9,3

13,5

15,2

10,9

12,6

13,6

14,3

15,1

6,1

6,7

2013

2014

16,1

7,8

20,0

21,3

22,7 18,9

17,3

7,0

8,5

9,7

10,5

11,7 9,5

20,0

10,5

4,3 2,0

1,4

2,2

2004 2005 2006 2007 2008 2009

export

2,6

2010

2011

2012

import

of apples and mushrooms, and – which may come as a surprise – the world’s fifth greatest exporter of tea. Poland is at the very forefront of the production of many fruit and vegetables. It is also among the EU’s major exporters of beef (3rd) and pork (7th), dairy products (4th), cereal and farinaceous products (4th), as well as fish products (7th). The Polish agri-food sector adapts to the changing conditions and, since Poland’s accession to the EU in 2004, it has been producing significant surpluses and achieving increasingly higher values in foreign trade each year. The products are mainly exported to the EU market, yet sales to third countries, including the most prospective states of Asia, Middle East and Africa, are steadily growing. In 2020, the value of agri-food exports from Poland reached a new, record-breaking value of EUR 34.3 billion, more than 6 times higher than in the accession year. The preliminary trade data for the period between January and October 2021 also indicate maintenance of this positive trend. The value of exports of Polish agri-food goods over that time amounted to EUR 30.5 billion, thus recording a 6.7% increase in comparison with the analogous period of the previous year. The greatest recipients of Polish food included the EU countries, as well as the UK, Ukraine, Russia, the USA, Saudi Arabia, Algeria, Israel, Norway, Belarus, and China. Therefore, there are legitimate reasons to be optimistic about the future and to expect another record-breaking result in 2021.

2015

2016

balance

2017

2018

2019

2020

I-X 2020

I-X 2021

source: KOWR based on Polish Ministry of Finance

Promotion of Polish food on foreign markets Even the best products need support in the area of promotion on international markets. Promotion of Polish food and support to Polish agri-food exports are the responsibilities of the National Support Centre for Agriculture (KOWR), a government agency subordinate to the Ministry of Agriculture and Rural Development. The tasks of the KOWR include, among others, organization of trade missions for Polish companies and foreign importers, distributors, representatives of trade chains and industry media; facilitation of cooperation between Polish and foreign entities of the agri-food sector; and organization of national stands under the slogan “Poland Tastes Good” during international fair events. The KOWR analyzes the market conditions to come up with the best response possible to the needs of the Polish agri-food sector. The exhibition activities scheduled for 2022 will be implemented in such countries as Germany, the UAE, Saudi Arabia, Japan, the UK, Thailand, Singapore, India, France, the Netherlands, and Israel. Works on the establishment of foreign KOWR Offices in selected countries of the world, the markets of which have been deemed the most prospective for exports of Polish agri-food products, have also began. The first offices will operate in the USA, China, Vietnam, Saudi Arabia, and Nigeria.

The National Support Centre for Agriculture establishes and develops contacts with entities interested in cooperation with the Polish agri-food sector and development of trade. Contact us under the address: eksporter@kowr.gov.pl More information: www.polandtastesgood.pl/en/

VOBRO – VARIETY, FLEXIBILITY, QUALITY AND NOVELTIES

VOBRO has over 35 years of experience in manufacturing chocolate pralines and chocolate sweets. Products from the company’s factory in Brodnica reach consumers almost all over the world. The consumers’ preferences differ in various parts of the world and may also change over time. This requires manufacturers who have been present on a given market for a long time to adapt their offer accordingly. How do they cope with these challenges at VOBRO? We asked Tomasz Kuca, VOBRO’s marketing director. - VOBRO’s product range consists mainly of pralines and boxes of chocolates. In the case of these products, there are not that many differences when it comes to purchasing needs. Chocolate boxes have always been, are and will always be one of the most popular ideas for a more or less formal gift, regardless of the latitude or longitude. And the difference in each market is more due to consumer taste preferences. On the European market one of the most popular ﬂavor variants of chocolates are cherries with alcohol in chocolate. Whereas on the Arab markets, for example, this product is not sold at all, precisely because of the alcohol content. Depending on the market, the format of purchased sweets is also different - in some countries pralines are bought in bulk areas, while in other countries this form of serving does not exist and all consumption takes place from pre-packaged boxes or bags, even 1 kg ones. VOBRO’s solution is to offer products in various forms: we offer the same product as a bulk box of chocolates, as a 1-kilo bag or as a bulk box placed in a collective carton. As far as changing consumer preferences are concerned, we observe trends and react to them on an ongoing basis by offering new products and ﬂavors in our portfolio.

Hazelnut Passion brand in different packaging format

Until recently, VOBRO’s product packaging was characterized by graphic designs dominated by colorful bouquets of ﬂowers and calendar occasions. Today, the portfolio is completely different - on each product, one can clearly see the brand’s name. Why such a change? - We have built a very straightforward portfolio, in which each brand has a distinctive graphic element and color code. In addition, we based our graphic design on the features and, the beneﬁts of the products inside the packaging. Thanks to that, graphics now strongly relate to the content of packaging. We have also taken care of graphical consistency in the area of each brand, regardless of weight variant or form of product presentation. As a result, each of our brands has a unique and recognizable graphic design. Of course, image and concept changes were consistent in the offer directed to all markets where our products are available. In this regard, we carried out projects with Aleksander Koczy, supervising the SaltPepper Brand Design team. This is quite a change in the visual aspect of the brand’s products. So, isn’t there a danger from less communication of calendar occasions on chocolate box packaging? - We have limited the communication of calendar occasions on our boxes of chocolates to maximum 25% of the packaging face - its role is only to remind about the possibility of purchasing the product for a given occasion. That is why we have invested heavily in developing a new quality of design for our products - to make them appealing to consumers. We can already see that this is appreciated by our customers, as we notice a better performance of our products on store shelves.

New Delissimo pralines box as standard and as Valentine`s activation.

Apart from image changes of the products available in the offer, one of the characteristic features of VOBRO is a continuous surprise with new products on the market. In the last six months, the company introduced many new products and product innovations to its portfolio: - New Frutti di Mare mini box of chocolates with seahorse-shaped pralines and two-layer ﬁlling - A new concept of Pralines boxes, containing a mix of two-decade pralines, including new ﬂavors: crème brulee, apple pie with cinnamon and cheesecake with peach

Such a wide variety of products, both in terms of number of recipes and forms of serving, requires high production capabilities. The owners of the company are systematically investing in production lines, year after year increasing the production capacity of both pralines and chocolate candies. New chocolate figures dedicated - to Christmas and Easter

New Pralines boxes New Pralines boxes and new flavour proposals and new flavour proporsals - Completely new graphic design of Love & Cherry chocolates with new forms of delivery - New POP Popcorn & Chocolate candy concept based on popcorn particles in chocolate candies And this is not the end of it - stresses Tomasz Kuca. - Completed investments in production lines will allow us to introduce a completely new version of our jellies with chocolate ﬁlling in the ﬁrst quarter of 2022. We named them JELLY DOT and have created a very fresh and noticeable graphic design for them. We worked for quite a longtime to make the effect really spectacular.

New Pop Popcorn & Chocolate Candy - The scale of innovations is really large - stresses Tomasz Kuca Just to mention beautifully enhanced graphics of our gift boxes Frutti di Mare 92g and Cherry Passion 147g. Also our latest Christmas and Easter novelties - beautifully wrapped single pralines in ﬁgurine shapes (Santa Claus, reindeer, hare, chicken) ideal for activation of sales per weight or appropriately created packaged products.

New concept of liquid filled jellies in chocolate - As you can see - concludes Tomasz Kuca - VOBRO is able to offer its customers a great variety of products and forms of packaging. Please feel free to contact us regarding our branded products as well as in the area of own brands.

#foodsector

The food sector in the pandemic period In spite of the global crisis caused by the pandemic, foreign trade in agri-food products is doing well. According to the National Support Centre for Agriculture (KOWR), the agri-food exports from Poland reached a record-breaking level of EUR 34 billion in 2020, which is EUR 2.2 billion higher than in the previous year. This means a 7% growth of the value of exports compared with 2019. In the first half of 2021, the upward trend was maintained, achieving a 5.3% increase in the value of exports.

The National Support Centre for Agriculture claims that such a good result under unfavourable conditions has been achieved, among other things, due to the growing economic activity of Polish entrepreneurs, good preparation of domestic companies for functioning under the pandemic conditions, as well as the sustained demand for Polish products on the international market. On the other hand, the price competitiveness of Polish goods was supported by the PLN/EUR exchange rate, favourable to exporters. Do entrepreneurs themselves share this opinion? We have asked Polish producers how they have fared during that difficult time.

Transport: a major challenge Observation of the market shows that the FMCG industry is among the sectors of the economy which are less vulnerable to market fluctuations connected with the COVID-19 epidemic. “The weakening of the export demand due to the pandemic since March 2019 had not been exclusively caused by economic downturn in partner countries but also by difficulties related to the administrative blockade of certain sales channels. Due to the erratic behaviour and moves of the market, it was hard to plan which product categories or which specific products would rotate in the following period and what turnover could be expected to close the sales in 2020. The situation changed in 2021. Be-

tween January and July 2021, Polish agrifood exports achieved the result of EUR 20.5 billion, i.e. 5.2% more than in the previous year. The growth of exports resulted from the abolition of limits and restrictions in international trade, the constantly growing economic activity of Polish entrepreneurs, the good and skillful preparation of Polish companies for operation under pandemic conditions, as well as the sustained interest, and consequently demand, for Polish goods. The price competitiveness of Polish agri-food products was supported by the PLN/EUR exchange rate, favourable to exporters. Good export results were also caused by the economic recovery, especially in the countries of Poland’s major trade partners. An obstacle to an even more dynamic development of exports has been the situation concerning the transport of goods. Maritime freight prices are constantly breaking new records in relation to the 2019 prices. Starting from 2 February 2022, the ‘Mobility Package’ will come into force and significantly affect the transport situation, and thus the costs connected with shipment of products abroad. In our opinion, 2022 will be a difficult year for exports,” explains Iwona Grzybowska, the President of the Board of the District Dairy Cooperative in Łowicz. The market situation remains dynamic, but the experience gleaned so far allows us to make more precise business decisions and

Starting from 2 February 2022, the ‘Mobility Package’ applies in Poland. production plans. “In 2021, we have recorded a high increase in comparison with 2020 in the category of UHT Milk – by as much as 20% – as well as UHT Cream by 38%, i.e. in product categories with prolonged shelf life. Powdered products, milk and whey have also recorded a 10% increase in revenues. The fourth product category recording an 18% growth in sales is Curd.” “Today, we export our products to more than 50 countries, with emphasis on Asian and EU countries, and we are constantly gaining new customers. The share of exports is approx. 30% of the company’s turnover. Our brand hero, Łowiczanka, visible in the brand’s logo, conjures positive associations in customers from foreign markets, since it has already become a guarantor of high quality for many and associates the product with a European producer of well-established reputation,” Iwona Grzybowska says.

dairy

#foodsector

New directions compensate for losses Another dairy producer from Poland, „Mlekpol” Dairy Cooperative, has fared just as well. Małgorzata Cebelińska, Trade Director, admits, „The initial period of the pandemic meant, above all, a change in the work system and the adaptation to new safety principles and the related restrictions. In the case of exports, the greatest difficulties were connected with the lockdown of Chinese ports, causing a temporary halt of production and the previously scheduled loading of Mlekpol’s products. However, the PRC market quickly recovered, and after a period of down time, Chinese dairy imports recorded a considerable increase. Simultaneously, many countries with internal dairy production deficits started looking for new supply possibilities at the time, especially concerning longterm products, such as UHT milk. With our available production capacities, the experience of our sales team, and openness to new projects, we have expanded our exports into new directions that we had never explored before. Restrictions and lockdowns in different countries caused a drop in the sales of many products, especially in the food service channel, particularly in tourism-reliant countries, such as Italy, Greece, or Cyprus. On the other hand, a large portion of the sales lost in this sales channel has ultimately been realised by our distributors in retail chains. This

In the case of exports, the greatest difficulties were connected with the lockdown of Chinese ports, causing a temporary halt of production. is why, despite many perturbations and the dynamics of change, Mlekpol has achieved satisfactory results on its export sales.”

Sustained dynamics in spite of growing expenses Although the market of chocolate products maintains a certain degree of stability, this industry has not been spared by problems either. “The main challenge is the growth of operating expenses, connected with the deteriorating availability of the increasingly expensive raw materials, as well as the rising prices of transport and energy. We try to respond the best we can by developing a diverse and high-quality offer, as well as securing the availability of the assortment and the continuity of the supply chain. An important value is contributed by long-term, good cooperation with our suppliers of raw materials and services, which proves even more important during the pandemic. Service, understood as guaranteeing the continuity of supplies to customers, has become crucial in the development of positive relations with our partners and in building com-

petitive advantage,” says Cezary Knaś, Export Manager at LOTTE Wedel. In this case, despite many perturbations on the market, the confectionery producer closely follows the chosen strategy. “Since the beginning of the pandemic, we have been functioning to fulfill the assumptions of our developed long-term strategy in the best way possible. Exports are an important part of this strategy; therefore, Wedel’s team exclusively responsible for this area focuses, above all, on the development of our business on the hitherto markets, with simultaneous acquisition of new ones. As a result, we are present in more than 60 countries, pursuing the set objectives of presence and activity in regions we currently consider particularly prospective. At this moment, they include Russia, the area of the former Commonwealth of Independent States, and the countries of South-East Asia. The undertaken actions, bringing good results, are all the more satisfying if we keep in mind the additional ‘turbulence’ related to the substantial exchange rate changes in the East or the consequences of Brexit, which bring administrative and cus-

sweets

#foodsector

FMCG tom problems. We have avoided them with, among other things, our experience, knowledge, and preparation of Wedel’s partners abroad who play a crucial role in our business model. We are closing 2021 with a sustained double-digit growth rate, which has been one of our goals. Another year is ahead, and we are focusing on even more intense activity in selected regions, flexibility of action, further development of cooperation with our partners, as well as personnel reinforcement of the export team,” Cezary Knaś says.

Quick adaptation of the offer to new consumer preferences Alena Cimoch, Export Director at Brand Distribution Group, admits that the pandemic has significantly affected the increase of turnover in the food sector. Appropriate response to the changing conditions and flexibility in the actions taken have become crucial to many companies. “After a period of increased demand for essential products, the FMCG market had to adapt quickly to the new consumer preferences. We have observed a turn of contractors towards lesser-known brands that will ensure high quality and a competitive price. Natural, traditionally manufactured products enjoyed much interest. In a short time, we have expanded our offer to include a diverse assortment from Polish manufacturers, adapting to the structure of demand on international markets. At the same time, we have reorganized our work so as to utilize the scale of our business to the greatest extent possible, we have acquired many new markets. In the situation of increased demand, distribution turned out to be a bottleneck. Ensuring an efficient supply chain (including the supply of production raw materials and packages) will be crucial to the FMCG industry. In spite of the still unstable global economic situation, we look confidently into the future. The sector has proven quite resistant to the pandemic crisis. We have maintained sales at a stable level, acquired new customers, increased employment. This gives us a sense of safety and prospects for development,” Alena Cimoch admits.

Focus on markets and the offer

Growing costs affected most companies of the FMCG market, and the case

We have observed a turn of contractors towards lesser-known brands that will ensure high quality and a competitive price. was no different for the Polish producer of sesame snaps and halva. “During the pandemic – as every company – we struggled against certain challenges. They included the growing costs of packaging, prices of electricity, gas and raw materials, costs of logistics and transport. Production costs are on the rise in virtually every industry, which will surely translate into shelf prices. Currently, we have our specific markets and products that we are developing,” says Marek Moczulski, President of the Board at Unitop. Despite high uncertainty, Unitop has maintained its market position. “We are developing in Poland, as well as in exports. We introduce new product lines adapted to the needs of modern consumers. We emphasize concentration – we know what we should focus on, our portfolio is not overly dispersed. Exports are crucial to us, comprising the bulk of the company’s turnover. Among other things, we have won undisputed success in North America. We are proud to have been uninterruptedly producing halva and sesame snaps, appreciated by both Polish and foreign consumers, since 1945. We are guided by tradition and care for taste. Quality plays a great role in the production

process, and our halva is hand-made,” the president of the company stresses.

Success without signposts Grupa Maspex exports over 600 products to more than 60 countries worldwide. “One third of our annual turnover is comprised by foreign sales – exports are an important part of our business. We had to face the pandemic that substantially hindered exports to certain markets. There is no shortage of transport or planning challenges either. They are additionally compounded by uncertainty and anxiety. Nevertheless, 2020 saw Maspex achieve one of its better results in foreign sales. That was affected by the situation on foreign markets and the demand for our products, but also by the innate skill of efficiently adapting to market expectations and new situations. The pandemic has upset our well-ordered rhythm of operation and threw us into completely unknown waters. No maps, no signposts. We acted quickly and responded appropriately to the earthquake affecting our partners. What has paid off was above all the many years of forging strong bonds with our strategic partners, as well as the active expansion of our group of customers. Just like the entire Polish agri-food exports, we have managed to

strengthen our position. With efficient management, we responded to the demand from new markets and developed new contracts, in the previous year as well. Looking back from the end of 2021, I can say that this year’s results have surpassed our most daring expectations as well. We hope to maintain this position in 2022,” says Barbara Wieczorek, the General Manager Business Unit Export at Grupa Maspex.

In pursuit of competitive advantage Makarony Polskie (Polish Pasta) is a holding that manufactures pasta and ready meals at 4 plants, under the Novelle and So Food brands, as well as Private Labels for the largest discount store chains in Poland, Ukraine and the EU countries. “Pasta is an international product, well-liked around the world due to its versatility and durability. It is resistant to market fluctuations but, just like other products, it changes in response to customer expectations. Consumers look for healthy,

Pasta

quality products made from diverse kinds of flour. Novelle products meet such needs. We manufacture semolina pasta, egg pasta, high-protein pasta, as well as pasta made of chickpeas, lentil, or green peas. Our vegetarian products under the Novelle brand bear the V-label quality marking. So Food tray meals are produced with clean labels: no preservatives, colourings or flavour enhancers. We preserve them through sterilizing, which gives them a 9-month shelf life. Our plants hold the IFS and BRC quality certificates. We stand out on the market with the quality of our products, but also with our production capacities. Our plants adapt to the needs of the market, we have the capacities for mass production and the necessary know-how, acquired on global markets through the many years. We produce under private labels and for customers who include the largest distributors and B2B,” informs Zenon Daniłowski, the President of Makarony Polskie. The products of this company are available in Poland and on international markets,

#foodsector

especially the EU and Ukraine. “The share of exports in our revenue is growing year by year: in 2020, it was 9%, and in 2021, it has already reached approx. 11%. We estimate that foreign sales will comprise approx. 15% of our turnover in 2022. To build distribution on the importer’s market, we establish cooperation with a local distributor, which gives us the competitive advantage. We have the products that the customers need, the know-how, the production capacities, and the technology. We are ready for new successes and cooperation in international projects,” says the President of the company. Constant, long-term strategies, adherence to the basic offer while emphasizing the top quality of the products, a flexible approach and adaptation of the portfolio to new preferences, or compensation for sale losses with new export directions – Polish entrepreneurs have handled the challenges posed by the pandemic in many ways. And the data may indeed show that the Polish exports are pandemic-resistant.

#interview

Feeling better, doing better We talk with Tetiana Gurnevych, International Sales Director in one of the most renowned confectionery companies in Poland – Wawel originaly established in Cracow. What was 2021 like for Wawel? Please provide us with a summary. For Wawel, 2021 was a period of further development of our current product lines and the launch of products with a few good ingredients, made without preservatives, colourings and artificial flavours. Wawel’s portfolio was enriched with new products with fine ingredients, such as the Ekstra Gorzka 100% cocoa bar, made of only one ingredient - certified cocoa beans. The Królewskie Mleczko line, delicate marshmallows covered in chocolate, was expanded with new, seasonal flavours, Raspberry and Cappuccino. The last quarter also saw the launch of a new advertising campaign for the Wawel brand, „The noble taste of chocolate, worth waiting for”. It refers to what we are best known for: chocolate. It explains that the final taste and texture of chocolate is influenced by time - conching time, which is the thorough mixing of the chocolate. Wawel does not add the E476 emulsifier to its chocolate. Instead of using a chemical additive, we rely on long conching time. So, we refer to the idea of slow life and the belief that good things are worth waiting for. In 2021, Wawel was awarded in that year’s international Superbrands project. This title is awarded to the strongest brands on a given market (based in Poland on consumer and expert opinions). What were the biggest challenges in the past year? One of the major challenges of the past year was the ongoing COVID-19 pandemic. Prices of raw materials are increasing at a rapid pace – increases of up to several dozen percent compared to a few percent in previous years pose a real challenge for the entire industry. A major problem resulting from this pandemic is the availability of raw materials and logistics. In the case of cocoa pulp, which is our main raw material, we have taken preventive measures to ensure its continuous availability, resulting in increased inventory. The biggest challenge we currently face and will certainly face in the coming months, not just in our industry, are the dynamically rising costs of running a business. Has the turmoil of the pandemic or price fluctuations affected your company’s exports? When it comes to exports, we are more accustomed to there being changes in markets that arise from different reasons. We recognize that overseas sales are a highly volatile environment, so we should react quickly to changes. While we can also feel the impact of the pandemic

abroad, both in 2020 and 2021 we were able to generate sales increases, win new markets and gain new customers. As far as price fluctuations are concerned, we are in the same situation as other producers. This is now the market reality and we should learn to react accordingly and, what is more, grow our sales. In times of change, we listen to our customers and strive to be a supportive partner in difficult situations, because we depend on long-term relationships and trust to strengthen our position in our target markets and continue to grow. In how many countries do you offer your products? What part of production is exported? Our products are distributed in 60 countries on 6 continents. We focus on building our distribution in Central and Western Europe. Our presence in international networks is helping us to expand in these markets. We also care about the development of our product lines and brand recognition in the Middle East, North Africa, North America. We are consistently expanding our presence in overseas markets by working with new customers, which guarantees us regular sales on a large scale. At the moment, exports account for a dozen or so percent of our entire production. What products is Wawel famous for on markets abroad? Wawel Krówka Mleczna is a real bestseller in Arab countries. This product is very popular, so we make every effort to ensure that the distribution is smooth and the quality of the product is at the highest level. Apart from Krówka, equally popular in tropical countries are Tofflairs sweets, an original combination of the famous caramel taste with soft chocolate filling. Another of our strong categories are pectin jellies with fruit filling - Fresh&Fruity, which have found consumers both in tropical and European countries. In all countries we are known for our Premium chocolate line which, this year, was extended by a new product - Premium Extra Dark 100% Cocoa. We have years of experience with dark chocolate and produce it at the highest quality level. This is recognized by consumers, who are paying more and more attention to the ingredients in products. We are also developing our line of chocolate with no added sugar, which also has a high cocoa content. We are Halal and Kosher certified, which allows us to gain the trust of local consumers and grow continuously by adding new products into distribution.

#interview

Wawel

Please tell us about your recent innovations. Are they also sold on markets abroad? In 2021 the Królewskie Mleczko z Wawelu line was expanded with other delicious flavours – Cappuccino and Raspberry. Currently there are four flavours of Królewskie Mleczko available on the market: Vanilla, Sweet Cream, Raspberry and Cappuccino. The entire line is also available on markets abroad. The huge popularity of the product and positive feedback from various markets drove us to launch an international equivalent of Królewskie Mleczko Vanilla, marketed under the Your Delicious name. Another novelty launched this year is the already mentioned Premium Ekstra Gorzka 100% Cocoa bar, available in the export version as Premium Extra Dark 100% Cocoa. As in Poland, it is very popular among consumers. It is a Product consisting of only one ingredient certified cocoa beans. With the deep aroma of Forastero cocoa beans from Ghana, the new Extra Dark takes us on a journey full of original flavour sensations. The thin bar was created through a long, careful conching process that gives it its velvety flavour. The perfectly smooth structure and characteristic gloss emphasizes its natural ingredients and deep aroma. The bar was packed in an elegant cardboard box with an attractive design, evoking to the tradition of the Wawel brand. This is another product with a few ingredients, just a year earlier the „Ziarna Świata” Premium Chocolate from Wawel product line was introduced. Each chocolate is made with cocoa beans from only one region - plantations in Cameroon, Venezuela and Ghana. They are composed of a maximum of three ingredients. By introducing products with few ingredients, we are trying to prove that a sweet snack can go hand in hand with good quality. We appreciate that our consumers are making increasingly conscious choices, so we create high quality products, taking great care about how they taste and are presented. Do trends in the confectionery market in different countries tend to be similar? The sweets category varies based on the location of the country, taste preferences, traditions, while more and more people are striving to ensure that savouring a sweet moment is not burdened with subsequent remorse. The consumer wants to feel like they are being fair to their body on the one hand, and to the planet on the other. Hence, when choosing sweets, more and more often the ingredients in the product are an important issue. The trend of experiencing pleasure in a responsible way is something that we notice and which we, as the Wawel brand, respond to, for example through the Good Ingredients

programme that we have been running for several years - our products do not contain artificial colourings or flavourings, and our chocolate does not contain the E476 emulsifier. The second trend that is important is premiumization. We are part of it by offering our customers a line of premium chocolate. This year we have extended our premium line with a 100% cocoa bar. Dark chocolate is gaining momentum around the world, and this is the area where we undoubtedly have a rich chocolate range to offer. Has the pandemic affected changing trends on foreign markets as it has in Poland? During the pandemic, in the candy category, we could observe the emergence of the home baking trend, which basically means experimenting with baked goods at home. In Poland, people started experimenting in their kitchens on a large scale. Let’s remember that in the case of chocolate, especially dark chocolate, a large proportion of shopping opportunities is related to baked goods, so as a brand we also benefit from this trend. During the pandemic the market faced a different reality, with new challenges in the form of new consumer trends and higher operating costs due to increases in raw materials, energy and the cost of labour. These price increases have obviously affected confectionery manufacturers not only in Poland, but also on the international arena. What plans does Wawel have for 2022 in terms of investments, products and export? For Wawel, 2022 will be the time for increased investments in quality, and so in innovative production technologies, such as lines for preparing chocolate couverture, including conches for mixing chocolate and kitchens for preparing fillings. We are also planning to invest in production automation. We are also going to continue the „Wawel – the noble taste of chocolate, worth waiting for” advertising campaign, which marked the beginning of the process of implementing the new brand strategy. We continue to actively expand into new markets, while keeping in mind those we are already in. We are currently focused on intensive development of our product lines and strengthening our position on the South American, Asian and African markets. This is possible thanks to our wide range of product categories, which we can tailor to individual markets. Thank you. Monika Górka

Your natural fresh choice!

For over 30 years we are one of the leaders of Polish exporters. As a part of Ewa Bis Group, we have been supplying top quality Polish food products to over 70 countries around the world. We sell our products across the EU, Africa, Asia and North America. We cooperate with retail chains, distributors, retailers and wholesalers. Our main purpose is to satisfy the needs, requirements and expectations of our customers concerning quality and food safety of offered products.

Apples Fresh fruits & vegetables NFC juice, puree concentrates Frozen fruits & vegetables

P.P.H Ewa-Bis Sp. z. o. o. ul. Serwituty 25, 02-233 Warsaw, Poland sales@ewabis.com.pl www.ewabis.com.pl

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Global trade forecasts

Trade in 2022

Trade in 2021

Renata Juszkiewicz, President of Polish Organization of Trade and Distribution (POHiD)

2021 in trade was a period of relative stabilization, due exclusively to the actions taken by the industry. Trade companies have started regarding the pandemic as a phenomenon of continuous nature, forcing them to reorganize the way they run their businesses so they can respond flexibly. However, this does not change the fact that every restriction, be it tightening of customer limits in stores or lockdowns, is extremely onerous and severe to the industry, as it translates to a lower number of customer visits in stores and an outflow of some consumers to the e-commerce channel. A serious challenge to traders is posed by disruptions of global supply chains, bringing about limitations in the availability of components, as well as increases of raw material prices and freight rates. The industry has put enormous effort and expenses into maintaining the continuity of the supply of food and essential articles to stores, ensuring the safety of employees and customers, and implementing

innovative solutions to meet the expectations of consumers who wish to do quick, safe and convenient shopping during the pandemic. These include self-service checkouts, shopping apps, sales in the online channel or in the Click&Collect model, and non-cash payments, among other things. All of these solutions are becoming increasingly common and – as stressed by traders – are absolutely essential today if a company wishes to maintain its competitive advantage. Trade chains associated in the Polish Organization of Trade and Distribution (POHiD) have increased the number of self-service checkouts in their shops to 8,500. Their safety expenditures reached PLN 420 million. They also granted a pool of benefits amounting to PLN 290 million to their employees for working under pandemic conditions. They conducted more than 500 charity actions aimed at helping those most in need. Human resources are shrinking due to demographic processes, which is the reason why the

trade sector has been struggling for many years against the growing problem of personnel shortage. The pandemic contributed to the consolidation of this unfavourable trend, resulting in the reduction of the number of foreigners coming to Poland, who could provide an efficient remedy to the employee deficit on our market. The recent years, including the current year, have brought increased legislative pressure and an increase in the fiscal burden imposed on the industry. Its amount is already approaching 20 levies. In 2021 alone, among those that came into force were business tax, sugar fee, capacity fee, advertising tax, and CIT for limited partnerships. The industry’s condition has been considerably impacted by the record growth of inflation, which reache the level of 7.7% in November. Trade companies are struggling with price increases in the purchase of commodities from manufacturers and suppliers, as well as with high operating costs related to the growing prices of fuel, gas, electricity, packaging, or labour.

The predictions for 2022 are, unfortunately, far from rosy. Market experts predict more difficulties in global trade chains, progressing employee deficit, as well as further growth of inflation and operating costs. Traders claim that the new burdens for the trade, scheduled by the government to start from the next year, such as the minimal income tax introduced under the Polish Deal, the digital tax, the carbon pricing, or increased excise tax for alcohol and cigarettes, will reduce the profitability of the industry, to ultimately result in a drop of investments and increased price pressure. It should be emphasized that since the beginning of the pandemic, despite difficult conditions, trade

chains associated in the Polish Organization of Trade and Distribution (POHiD) have maintained their price competitiveness, protecting their consumers against large increases of food and industrial articles. However, this is becoming increasingly challenging. Starting from next year, the industry will also be forced to stand up to new ecology-related challenges. The direction of these measures and the final shape of the obligations to be imposed on companies will be determined in the package of environmental laws transposing EU directives into the Polish law, regarding, among other things, Single-Use Plastic, Closed-Loop Economy, or Extended Producer Responsibility.

Along with the coming into force of the amendment of the Sunday Trading Ban Act since 1 February 2022, large-surface trade will lose an opportunity to improve its condition, weakened by the pandemic, inflation, and excessive fiscal burden. In such a difficult and unprecedented situation in which trade has found itself currently, close cooperation with the government is necessary. The industry will need a stable and predictable legislative environment, and above all, alleviation of the tax pressure inhibiting further development of the sector. Traders also demand government aid in the area of regulations facilitating the employment of foreigners.

#foodsector

Consumer 2021 Change – this word seems to be the best reflection of 2021 in the context of customer choices. Why? Because everything has changed. Literally and metaphorically. Monika Górka, Managing Editor The surrounding has changed, the shopping habits have changed, the mode of shopping and people’s affluence as well… Or maybe it is just the priorities that have changed? And, speaking about priorities, it is worth mentioning another important word, inseparably connected with the time of the pandemic, and sometimes with the post-pandemic time too: health. A consumer in 2021 is a consumer who chooses health. Or at least declares to do so. Yet, as usual, there are two sides to the coin. We eat healthier; we reach more often for ecological products; we limit our alcohol consumption; we eat less meat, choosing that of better quality; we look for vegetarian or vegan variants; even though we are not inclined to radically change our nutritional habits, we gradually shift to good and better choices. The ideas of clean label and zero waste are no longer just fashionable slogans to show off on social media but real attitudes building good nutritional habits. Moreover, it is worth paying attention to the fact that consumers have changed their decisions and certain shopping habits during the pandemic period. They would purchase much more products for home cooking and baking than before. Interestingly, during the pandemic, the category of products for cooking developed sales faster than ready meals. This is obviously due to the fact that we have been recently spending much more time at home than before. Our homes have become our places of work, study, cooking, sport and entertainment. The other side of the coin is much darker. Dieticians are ringing alarm bells! 50% of Poles are overweight or obese. The pandemic has significantly aggravated this phenomenon; we stayed at home more often, we led a less active lifestyle, and consequently, we snacked more between meals. Unfortunately,

We reach more often for ecological products; we limit our alcohol consumption. the pandemic has intensified the problem of obesity in children. There is also an increase in the scale of incidences of type 2 diabetes, i.e. the diet-related variant, resulting from poor eating. However, let us focus on the reports resulting from market research. What was the consumer like in 2021, what was your consumer like? Judge it for yourselves.

Food quality before price As shown by The Conscious Consumer report prepared by the Deloitte consulting company, an average of six out of ten respondents, having to choose between a healthier product and a favourably-priced one, would choose the former. Among the surveyed countries, the highest percentage of such attitudes was observed in Poland (79%).

“The price still plays a very important role all across Europe. However, when facing the choice between buying a cheaper product and a healthier one, they pick the latter. Fair trade foods enjoy less popularity. Seven out of ten surveyed, choosing between a commodity produced in accordance with the sustainable development principles and one at a lower price, would decide in favour of cheaper shopping. It is no wonder that respondents with higher income and higher education are more inclined to buy organic foods,” says Kamil Kucharczyk, Deputy Director of the Financial Consulting Department at Deloitte. Healthy foods, ready products, less meat – this is how one could briefly sum up the shopping trends of consumers in the passing year of 2021. The shopping habits of the Poles were largely connected with the pandemic and the fact that many Polish consumers had changed their nutritional habits. “During the pandemic and lockdown, many Polish consumers would prepare meals at home and they had plenty of time to check the composition of products and to read the label more cautiously than before. The Poles want to eat more healthy, which is why food producers, fitting in with this trend, have greatly increased the availability of bio, eco,

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gluten-free or lactose-free products,” comments Katarzyna Staneta, Group Account Manager at ASM Sales Force Agency. Before, we could usually find such goods in individual stores, at fairs, in specialist trade chains, or online, but in 2021, they have also conquered large chains. Stores successfully exhibit them on shelves, giving them more and more surface area. For instance, the Nielsen report shows that at Carrefour Polska, sales of ecologic foods in 2020 grew by as much as 24%, which is a substantial amount and this growth should be expected to be even higher in 2021.

Carrefour Polska: sales of ecologic foods in 2020 grew by as much as 24%, which is a substantial amount and is expected to be even higher in 2021.

What is rising, and what is falling? The gradual departure of the Polish people from meat products has been a very significant trend in the passing year. The “Trends in Nutritional Habits of the Poles 2021” survey shows that the percentage of vegetarians in Poland remains stable and low. Only 2% of Poles identify as vegetarians. However, 17% of us do eat meat, yet try to limit the amount. This percentage should be expected to increase year by year, also due to climate protection issues. As noted by Katarzyna Staneta, manufacturers offer an alternative in the form of an increasing range of plant-based meat substitutes – this is the greatest trend of the current year. Vegetable dried sausages, vegetable blood sausage, or meatless cold cuts – this is just the beginning of the producers’ ideas to attract vegetarian customers. Bio products enjoy increasing interest. The leading goods in this category are foodstuffs for children, plant yogurts and beverages, as well as products from the category of juices, nectars, still drinks. “The clean label idea will be this year’s trend and possibly the next one’s too. It assumes that a consumer selects products free of additives from a long list marked with an »E«. Thus, customers decide to purchase

products that are healthier to them. Consumers expect products with artificial ingredients replaced by natural substitutes, and there is no turning back from this change,” says an expert at ASM Sales Force Agency. Last year saw an increase in consumption of fruit (54%) and vegetables (59%), especially in countries where the health aspect is a crucial factor in the choice of foodstuffs. Of special interest is Poland, where 74% of the people admitted they had reached for fruit and vegetables more often (77%) – as the Deloitte report shows1. Higher awareness and concern for health have also altered the consumer behaviour. As much as 45% of Europeans admit they have consumed less meat over the last year. An average of 39% of the surveyed claimed they had eaten more ecologic products than before. Moreover, 48%

stated they had drunk less alcohol over the last 12 months. This can be also connected with less frequent social meetings, caused by the coronavirus pandemic. However, one can notice that Poland is at the forefront of countries which have limited their alcohol consumption to the greatest extent (59% of the surveyed have declared to have done so).

Ecological and regional The concern about the environment and search for safety have become important decisive factors in consumer choices since the outbreak of the pandemic. The sense of common social responsibility has arisen, along with satisfaction that we create the “new normality” together and feel an increasing sense of influence on our own future, the local community, and the entire planet.

We cook at home more often, drink less alcohol, limit meat consumption and avoid ordering ready meals due to the use of plastic packaging. “The increasingly aware consumers all across Europe make pro-ecology choices more and more frequently during their food shopping. Among other things, this is manifested by the use of their own multi-use bags – declared by 90% people in Poland – as well as the selection of local products and readiness to pay more for them. The habits are changing too: the participants of the survey declare they cook at home more often, drink less alcohol, limit meat consumption and avoid ordering ready meals due to the use of plastic packaging,” says Irena Pichola, a partner and leader of the Team of Sustainable Development in Poland and Central Europe. Over the last year, many Europeans have chosen regional goods (60%), originating from sustainable crops and produced in accordance with the idea of fair trade. The crucial factor is the willingness to support local suppliers, the possibility of purchasing

fresh products, and their availability. Most European respondents (74%) are willing to bear additional costs (a minimum of 5%) for the purchase of food and locally-produced goods. Among all participants of the survey, 72% (the same percentage for Poland) were ready to pay more for food coming from sustainable crops and farming, as well as for fairtrade products2.

A shift in priorities? The pandemic has significantly altered the balance of power regarding the main motivators behind the shopping decisions in the categories of food and beverages. The Mintel data of October 2021 show that 25% of respondents in Poland are currently spending more on food (excluding meals ordered from restaurants), while 33% less on eating out. One can notice a reduction of expenses on non-essential needs (45% of positive answers) and spending less time in stores (42%). Polish consumers increasingly do their shopping online (35%) and avoid paying in cash (38%). Health – both as a shopping factor and as a mode of positioning – has considerably gained on importance. In response, more and more functional solutions are appearing on the market. Based on the analysis of data from Mintel’s Global New Products Database, over the 12 months until October 2021, the leading functional solutions utilized in new food products in Europe were those giving a shot of energy, supporting the immune system, as well as strengthening the nervous system and cognitive abilities. “Apart from health, the pleasure aspect remains very significant, especially in relation to the needs connected with stress manage-

ment and reduction of the sense of anxiety. Almost one third of Polish respondents declare they reach for snacks for this very reason, to relax and get rid of stress. However, health and pleasure have to be affordable. Cautious spending is becoming an increasingly common practice. On the Polish market, consumer declarations indicate that 44% of the respondents try to plan their meals. Almost two fifths of them purchase larger amounts of discounted products and select ingredients that can be used in many dishes. A similar percentage declare to reach for private labels as a part of saving tactics,” summarizes Honorata Jarocka, Senior Food and Drink Analyst at the Mintel Institute.

Shopping patriotism is valued According to the latest research conducted on request of the “Teraz Polska” (Poland Now) Polish Promotional Logo Foundation, consumers in their everyday shopping are guided by the quality, price and origin of the products3. Polish consumers put quality first during their shopping, followed by the price of products and services. Such a trend has been observed invariably since 2017, when a change at the leading position had been recorded for

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the first time. Answering the question, “What is most important to you during everyday shopping?”, 77% of the surveyed mentioned quality, while price was indicated by almost 73% of the respondents. As the following factors, consumers would mention: country of origin (27.4%), ecological values (23.4%), quality labels on the product (14.7%), and packaging (10.1%). Comparing the obtained results with those from the previous year, one can notice that quality and price still remain the main factors considered while making shopping decisions. The largest growth (by 2 and 4 percentage points, respectively) was recorded by the country of origin and the quality labels on the product. The survey shows that consumers pay slightly less attention to the packaging appearance itself than in the previous year, yet they pay more and more attention to the contents of the label, such as the composition, origin, or certificates.

Food shopping? Stationary! According to the KPMG survey describing a consumer in the age of COVID-19, the Polish people usually do their food shopping at stationary stores. Despite the outbreak of the coronavirus pandemic, 6 out of 10 Poles have seen no reason or necessity to give up on doing food shopping at stationary stores. However, it is worth stressing that a part of the surveyed also used online channels in that period – 29% admitted they had been buying food products via a website. The situation is completely different in the case of non-food shopping. Only 29% of Poles during the COVID-19 pandemic have done such shopping at stationary stores. During the COVID-19 pandemic, 66% of Poles did not give up on food shopping at stationary stores. The most important factor considered in the case of food shopping is the location of the store. 70% of the surveyed paid attention to it. Slightly less respondents (63% of indications) paid attention to the

During the COVID-19 pandemic, 66% of Poles did not give up on food shopping at stationary stores. The most important factor considered in the case of food shopping is the location of the store. possibility of seeing the product for themselves. The price of the offered goods occupied the 4th position and it does not seem to have played any crucial role in decisions about the choice of the shopping channel in the case of food products. In the wake of the COVID-19 pandemic, a half of all Poles have limited their food-shopping visits to stores to a necessary minimum. Food shopping at stationary stores is usually declared by Poles at the age of 55-69 – 78% of them had seen no necessity to give up on this form of shopping. On the other hand, the largest group (43% of indications) of Poles whom the pandemic has prompted to limit their visits to stationary stores in order to do their food shopping are people aged 25-39. Men, more often than women, declare they visit stores with no restrictions4. Smaller trade outlets, located close to home, have rapidly started attracting new customers during the pandemic, being considered safer than hypermarkets. Convenient, quick and safe shopping – this is what has counted the most and has prevailed over the final cash receipt value. There are predictions that even when the epidemic subsides, the trend of shift towards stores located close to home will continue to grow. Shop owners have to keep their fingers on the pulse and care not only for the most relevant offer but also for the safety principles.

Back to the past? A return to the past, or, more exactly, to the pre-pandemic reality, is not 100% possible. Many “changes” are here to stay forever. For many years, the trends on the food market have been aimed at health properties of foodstuffs. The market has evolved significantly; the last 2 years, although they had been hard, not only for the industry but for each individual person, have also had a “positive” overtone. This is a risky statement, but given the latest reports connected with consumer behaviour or culinary trends, one can draw such conclusions. Judge it for yourselves.

1. Source: A study of consumer behaviour in supermarkets, conducted by Deloitte, covered 17,000 respondents from 15 European countries, including Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the UK. 2. Source: The Conscious Consumer report by the Deloitte consulting company. 3. Source: The Conscious Consumer report by the Deloitte consulting company. 4. Source: KPMG, Nowa rzeczywistość: konsument w dobie COVID-19 [A New Reality: A Consumer in the Age of COVID-19], 2020.

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Generation by generation 30 years of Mokate Group Three decades of operations on the coffee and tea market – this year marks the jubilee of Mokate Group. A family company from Silesia is currently active on many foreign markets, achieving great success. How has the market changed over those 30 years? What challenges await coffee producers today? Adam Mokrysz, the President of Mokate Group, is interviewed by Wojciech Szeląg, the host of the Gabinet Spożywczy programme, and Michał Siwek, a Department Director at International Food & Agri Hub of BNP Paribas. 30 years have gone by. Looking back, what were the most important moments in the brand’s development over those three decades? There have been a lot of groundbreaking moments or milestones in the 30-year history of Mokate. Above all, as a family, we have been building our business for 4 generations. Before that, the company’s name was Mokrysz – from our family name – and it was a very good decision, even a crucial one, to transform it and to rename it to Mokate in 1990. My mother started the consistent building of the company, in Poland above all, but later abroad as well. Therefore, a strong entry to the domestic market was important, especially with a product innovative for that time, namely, Mokate Cappuccino – specialty coffee popular in the 90s. Then we decided to enter the Central-Eastern and Central European markets, i.e. markets of most countries between Germany and Russia.

Have any turbulence or dilemmas appeared in the company during those 30 years? Sometimes we managed to win, sometimes we learned. The change of the consumption model was certainly a challenge to us. The market changed substantially, other coffee categories developed, including so-called black coffee or other substitutes for cappuccino. Although Mokate had diversified its business geographically and segment-wise, with different kinds of products, we have remained true to our values, which was immensely important to us. The DNA of the family company has been preserved through its presence close to people, close to the market and to the customer. In our opinion, this is how family companies stand out, with known values and with the people behind them. We have created a strong family business, changing our corporate logo from Mokate to Mokate: A Family Business. Thus we have

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invited other family companies to cooperate. Relations and their nurturing, as well as business development and prospects, exist on the basis of the closeness to people that we have maintained as a family. We have managed to advance from a small local business to the international scale, while remaining an independent family business all the time. The overwhelming majority of your sales – more than 70% – come from foreign markets. From the Polish perspective, you are present on many quite distant markets, such as Johannesburg or Dubai. What is your recipe for such spectacular success in this international presence? There is no recipe for success. Certainly, one has to follow one’s own road, be consistent, methodical. Everyone creates their own path, both in life and in business – paints their own picture. I believe it is quite an art to build a fantastic team based on the values and the prospects that propel us forward. Furthermore, it is important to notice market opportunities, to keep up with the changes and sometimes to get ahead of them, creating innovations. We have taken this very road; we had always wanted to develop our business without copying solutions applied by the world’s largest companies, but by creating innovations, both in the area of the product itself and of the package or the business model. We wanted that model to be competitive, to bring some added value, especially for the sake of the consumer. Building a business on the basis of the DNA of a family model, with other families and our associates, is another important issue. Of extreme importance is the internal atmosphere in the company, satisfied people building Mokate with our family for years. From the viewpoint of your product portfolio, how do you react to the increases in the coffee segment in 2020, especially in the sales of coffee beans, and to the changes of shopping and consumer patterns? The market changes taking place involve selection of the consumption model. The Polish people have strongly fallen in love with coffee, even though Poland is a tea country. Coffee consumption is growing quickly and determinedly, more and more people are taking delight in different kinds of it. Coffee is a stimulant, a beverage keeping us company on an everyday basis, at business meetings or with friends. Many people believe coffee wakes them up every day, so they drink it in the morning. The model has changed so much that people want natural products, which is why the segment of fresh coffee beans is growing at the fastest pace. This phenomenon will surely deepen. Another fundamental change on the market is the significantly higher

Coffee is a stimulant, a beverage keeping us company on an everyday basis, at business meetings or with friends. Many people believe coffee wakes them up every day, so they drink it in the morning.

amount of coffee drank away from home. Market players who had not been known for coffee have entered this market and created a new group of places offering this beverage. What investments does the future hold for the company? How will Mokate stand out in the nearest future? I believe the foundations of the company are crucial. As we have said before, there are people behind every project. We, as a family, care for those people to develop along with us, to have interesting challenges and a common driven perspective. As for the future, we plan the development of Mokate Group on the basis of innovation and geographical expansion. We are consistently building the organic core of our business on the main markets from our portfolio, but also on so-called emerging markets, i.e. those that grow faster and offer good prospects. We invest in the company; all of our factories are expanding just as we speak, we believe in our business and we develop it consistently. Simultaneously, we consider new acquisitions. So all of this boils down to organic growth and acquisition projects. We introduce new products in accordance with the prevailing market trends and consumer needs. Are foreign partners often surprised when they learn Mokate is a Polish company? Above all, partners like predictability. They like our business being family-based, built generation by generation. Non-European partners are willing to watch our continent. Poland is becoming increasingly known, building its international brand through famous people and events taking place in our country. Yet we are perceived as the European continent rather than a specific country, both in Africa and in Asia. The important things are the infrastructure, the business model, and a good history. What we have managed to build as a family guarantees what we can achieve together. Thus, the skills, the product quality, the people behind the company, the common possibility of building a perspective on strong foundations – this is what our partners value the most.

For many years as a company, having a family tradition connected with this game, we have observed that chess is very positive, has many enthusiasts and serves as an excellent alternative to screens and modern technologies.

Today, young consumers are concerned not just with the product itself, its quality or price, but also with such aspects as fair trade or care for the environment. How do you respond to such needs of the young generation? Above all, we are aware that the world is changing, that young people will soon make decisions about shopping, and thus decide the future of companies. The social aspect is very important. We are a company that shares its success by supporting different initiatives in our home region of Silesia. Our leading social goal is the popularization of chess in Poland and worldwide. For many years as a company, having a family tradition connected with this game, we have observed that chess is very positive, has many enthusiasts and serves as an excellent alternative to screens and modern technologies. Therefore,

we have taken this course of chess development and popularization, we have established the Mokate Chess Academy, we have introduced chess to more than 1,000 schools in Poland in cooperation with the Chess Association, and we intend to continue. Young people do play, we also organize tournaments and invite grandmasters. Additionally, such aspects as care for the climate and the environment are very important as well. As a company, we walk this way; in our opinion, all things that should be eliminated and those which a product should contain are all necessary criteria that have to be taken into account and implemented. This is a precondition for functioning in future business. We rejuvenate our brands to reach young consumers, to meet their expectations and needs. Thank you for the interview.

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The Map of Christmas Customs

All across Poland, Christmas practices differ between regions. Many holiday customs have already been forgotten, but those still cultivated in different parts of Poland emphasize the uniqueness of the given region. How had it been before, how is it now? Join us on a beautiful Christmas trip around Poland. Monika Górka, Managing Editor Christmas Eve, decoration of the Christmas tree, sharing the wafer, or singing of carols – these are customs practiced in most Polish homes. Sometimes, Christmas customs vary in minor nuances. Every part of Poland has some interesting traditions that, in spite of the fading of regional differences, keep being cultivated to a lesser or greater extent. In most regions, the Christian tradition intertwines with folk beliefs. And this is the most interesting thing! We present selected customs from different regions of Poland.

Kuyavian customs Let us start from the region of Kuyavia, where the ritual Christmas period used to last from Christmas Eve on 24 December to Candlemas on 2 February. The church customs mingled with superstitions or divinations going back to pre-Christian times. For instance, the tradition dictated an odd number of dishes on the holiday table – there was supposed to be 5, 7, or 9 of them. It was only the Christian customs that started suggesting 12 dishes, referencing the number of the apostles. Apples, poppyseed, as well as peas with cabbage – those were the essential components of a Christmas Eve supper in this region. Interestingly, the local dishes included dried plum soup, millet groats, and traditional cabbage with mushrooms. Out of each Christmas Eve dish, a token portion was put aside into a clay bowl, for the cattle. Of course, these animals were expected to speak. Why cattle? Cows were deemed special ani-

mals, due to their presence during the birth of Jesus Christ. On the second day of Christmas, while going to the church, the host would girdle himself with a wisp of straw. Coming back from Mass, he would sprinkle this straw onto trees in his orchard, to prevent the fruit from being wormy. Interestingly, people gathered at the Mass were thrown on peas or grain. Another important thing for the Kuyavians was the week day on which Christmas fell. For instance, if it fell on Sunday, it was a good omen, meaning a sunny and bright year. Another good prediction was Christmas on Thursday, bringing a good year for wheat. On the other hand, bad omens were Wednesday – auguring for a wormy year – and Friday, portending a foggy and gloomy one.

In Kashubia, it was like this… The tradition of decorating the Christmas tree only appeared in early 20th century. Before that, a rye sheaf used to be hanged at home, to ensure plentiful harvest and well-being. The relic of this custom is hay put under the Christmas tablecloth in many homes today. A similar custom is present in other regions of Poland. When the Christmas tree appeared, it used to be decorated with apples and self-made cookies in Kashubian homes. It could not have been adorned sooner than on Christmas Eve. During the holiday period, a certain gentleman also appears, particularly awaited by the youngest feasters. Who is this? As we can read in a Kashubian

newspaper, it was Starman (Gwiazdor): “Dressed in an inside-out sheepskin, girdled with a straw twine. He has a cap (myca) on his head, galoshes (skorznie) on his feet, and carries a whipping cane (korbacz), but also a basket with dainties for good children. On his face is a lambskin mask, known as larwa. In the parts of Poland that used to be under the Prussian partition, instead of Santa Claus, we will meet Starman”. What appears on the dinner tables in Kashubian homes? Traditional dishes include: fish soup, fried mushrooms, and rice with blueberries. Christmas food in this region of Poland has always been based on such ingredients as dried fruit, mushrooms, cabbage, potatoes, fish, beans, peas. Leftovers from the Christmas supper are fed to the livestock which may speak in the night; the animals are also sprinkled with holy water. An important part of the holidays is carolling (kolęda), actually performed by a party of carol-singers wandering from one house to another. Among them, one can find a merry devil, a musician, Death and a Gypsy. After supper, the host goes to the orchard to knock on trees with an axe. This is supposed to ensure abundant harvest next year.

Warmia and Masuria in their holiday garb Christmas customs differed between Warmia and Masuria. This is because Warmia has traditionally been a Catholic region, while Masuria was Lutheran.

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O n c e upon a time… This is how many stories begin, not necessarily fairy tales. Thus, in times of old, there was no Christmas Eve fasting. Meat dishes reigned on the tables. There were no Christmas trees in houses either, but people would put up sheaves of hay or hang a green jeglijka branch. Today, the inhabitants of Warmia and Masuria decorate green trees, just like people all across Poland. A beautiful custom, still cultivated in some places, is to sprinkle sand on the floor and bench. This is supposed to reveal the footprints of the deceased who descend to earth on the Christmas night1. A tradition cultivated in many homes is drawing straws from under the tablecloth; this is connected with certain superstitions. Namely, a person who draws a straight straw is supposed to live a safe life. A curved straw means a life full of turns and pitfalls. An interesting fact is that children in Warmia and Masuria used to receive gifts, just like they do today, yet in Masuria, they were given by Nikolus, and in Warmia, by Szemel.

For a long time, there was no tradition of Christmas Eve fasting in Warmia and Masuria. Different meat dishes were eaten on Christmas Eve. Geese, sausages or roasts would appear. The kind of Christmas Eve food was also largely affected by the location of the region and its natural richness. Many dishes were inspired by the Russian or Lithuanian cuisine. People would eat groats prepared in many ways, as well as different dishes made of fish caught in the Masurian Lakes.

In the very heart of Poland... In the old days, just like today, holi-

day preparations were focused on the preparation of Christmas Eve food. Rooms would be filled with the scent of dried plums, nuts, apples. Christmas trees were decorated with ornaments made of straw and crepe paper, nuts, apples, or self-made gingerbread. Before Christmas trees reached Poland, in Masovia, just like in other regions of Poland, people would place sheaves of unthreshed grain in room corners, decorated by światy, or decorations of different shapes, made of Christmas wafers. In Central Poland, following a very old tradition, hunts used to be held by noble manors on Christmas Eve. If hunters were

1. source: „Zwyczaje świąteczne w różnych regionach Polski”, nocowanie.pl, https://www.nocowanie.pl/zwyczaje-swiateczne-w-roznych-regionach-polski.html

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lucky, it meant the entire coming year would be equally successful. Fishing took place as well; carps for the Christmas table used to be caught on 24 December. In Masovia, we encounter all kinds of carol-singing groups: those wandering with a Nativity scene, carollers carrying a star, or even “Herods” – acting out scenes referencing the events in Bethlehem and the story of King Herod. Traditionally, just like today, diner tables were filled with fasting dishes: cabbage with peas, cabbage with mushrooms in oil, herrings, noodles with poppyseed, fruit soups, mushroom borsht, as well as dumplings with cabbage and mushrooms. As late as the 1950s, many (especially children) would impatiently await shortcrust cookies with an addition of soda (known as sodziaki) or yeast cakes which were the easiest to prepare. Typical of a Christmas Eve supper were poppyseed cakes, usually baked on a yeast base. For the sake of embellishment, such cakes were decorated with dough stripes arranged in a diamond shape. An important role was played by honey, used to sweeten poppyseed and other food. Children were also bought sweets and gingerbread2.

Podlasie and its customs Podlasie is a gorgeous region of the country, characterized by its unusual richness of nature. An important local custom is preparation of dishes out of all kinds of produce, which is supposed to ensure good harvest in the upcoming year. Such food as kutia sweet grain dish, borsht with mushrooms, buckwheat groats, or oat kissel appear on tables. All household members have to taste every dish. Hay is placed under the tablecloth, along with slips of paper with humorous wishes, used to predict one’s future3. Christmas Eve has to be a fasting day. Therefore, people in Podlasie prepare yeast fritters with no milk or eggs. They are quite popular in Podlasie and often served as early as the morning, as a fasting breakfast. Easy-to-make sweet yeast fritters, are usually fried in linseed oil. A very popular Christmas Eve dish in Podlasie was oat kissel, unknown in other regions of Poland. It used to be made of dried oat grain, and lat-

er, of more readily available oatmeal or oat flour. An addition of honey or cranberries complements it perfectly. Christmas dining tables in this region also feature such dishes as: fasting borsht with mushrooms, fried fish, herrings in different forms, millet groats, buckwheat groats with mushroom sauce, boiled raspberry stalk drink (kompot), or noodles with poppyseed, poured with linseed oil. Influences from the Eastern Borderlands are certainly abound here, as a considerable number of dishes are of Ukrainian or Belarusian origin4. The order of sitting down at the table is important as well: starting from the eldest, followed by the younger ones – since the locals believe that the family members will die in the same order. In some areas of Podlasie, a beautiful custom has been preserved, connected with putting the supper leftovers near the oven and sprinkling the bench with sand or ash. The food was intended for the deceased ancestors. In the morning, from the marks in the sand, the family members would guess who, and if someone at all, had come during the night.

In the Silesian mood It is common knowledge in Upper Silesia that the presents are brought… neither by Santa nor by Starman but by Christ Child. In the region of Cieszyn Silesia, the gift-bringer is Little Angel, more associated with the Lutheran Church. Of course, one should remember to set a window ajar for him. Certain symbols intended to ensure well-being are important here as well. In many Silesian homes, even before Christmas Eve, people remember to put several scales aside when gutting a carp, to put them into their wallets. One can also put money under their plate during the Christmas supper. The most prominent Silesian Christmas dishes include fish head soup, peas with cabbage, dumplings with mushrooms, as well as dried mushrooms fried in oil. Potato dishes are obviously indispensable. Panczkraut, also known as ciapkapusta, is served too: it is made of potatoes with sour cabbage, well mixed and spiced.

Popular confectionery in this region of Poland includes gingerbread hearts, Bytom gingerbread (bytomskie kamyki) or Legnica baubles (legnickie bombki). Makówki poppyseed dessert is only prepared during the Christmas period. The recipe varies depending on the family traditions and region of residence, but poppyseed is always the basis. Besides, they include bread, milk or water, honey or sugar, and dried fruit. In Lower Silesia, on the other hand, poppyseed-based dishes are accompanied, among other things, by dumplings with buckwheat groats or świszcz – buckwheat groats mixed with dried plums. The tradition has it that every unmarried woman should walk outside at midnight on Christmas Eve and listen from which direction a dog would bark. This will be where the future fiancé would come from.

The Cracow way Old Christmas traditions include making of beautiful Cracow nativity scenes. The most popular is the one displayed outside the Franciscans’ Church. Nativity plays, carol concerts and different competitions take place here on each of the three Christmas days. The roots of the traditional Cracow cuisine go back to the period of the Galician Autonomy, also reflected during Christmas Eve. Galicia was inhabited by as many as 14 different nationalities, which has influenced not just the customs and the carols sang, but the cuisine as well. Although a traditional Christmas Eve soup in many regions of Poland is borsht with mushroom-stuffed noodles (barszcz z uszkami), people in Lesser Poland prefer dried mushroom soup, sour rye soup (żurek) on mushroom broth, or almond soup. Other must-eats include Zator carp in aspic, łazanki pasta with cabbage, as well as traditional poppyseed cake and Viennese cheesecake. From the sweet foods, Cracow layer cake deserves special distinction. It is made of yeast dough divided into 4 equal parts separated with nut cream and jam. Anyone who has visited Cracow in the Christmas period just once surely could not resist this unique delicacy5. There are many disputes concerning who brings the presents. Depending on the family

2. source: http://www.mazowieckiszlaktradycji.com/artykuly/o-potrawach-wigilijnych-na-mazowszu/?K=Kulinaria 3. source: https://www.nocowanie.pl/zwyczaje-swiateczne-w-roznych-regionach-polski.html

#discoverPoland

tradition, in Lesser Poland, we get them from St. Nicholas a.k.a. Santa, the Little Angel, the Little Star, or Christ Child.

Highland traditions In older times, the holiday table in the Carpathian region of Podhale used to be belted with a chain – this was to guarantee that no members would leave the family and the livestock would stick to the household. An axe, portending peace in the family, together with a ploughshare, would be placed under the table. During the supper, each family member would hold their bare feet on the ploughshare in order to stay healthy. The Highlanders believe that deceased ancestors visit us on Christmas Eve, just like in other regions of Poland, but remember – in Podhale, you must not use any sharp tools on this day, in order not to hurt a wandering spirit. During the supper, you should care-

fully watch your spoon – if it falls, it is said to portend death in the family. A beautiful Christmas custom, which is unfortunately fading into obscurity, is bachelors’ visits to their sweethearts’ homes. When entering the house, the bachelors would throw grain or fava beans around and extend their wishes. Christmas Eve was a day of strict fasting. Formerly, the Highlanders would have modest and staple meals on that day: potato and flour noodles; kłuta, or overboiled cabbage with potatoes; wholemeal flour cake with curd; and finally, boiled fava beans or peas. Sometimes, bread with honey would be eaten. A Christmas wafer would be put on the table in the heel of a loaf of bread.

4. source: https://www.zajadam.pl/boze-narodzenie/wigilijne-smaki-podlasia 5. source: https://grandascot.pl/blog/krakow-poznaj-5-tradycji-ze-stolicy-malopolski/

A well-known Christmas specialty of Podhale is bukty, or potato dumplings. Moskole are popular as well, a typical dish of the regional cuisine. These are potato pancakes roasted on a tray, served with crumbled sheep cheese and molten butter. Many Highland homes serve cabbage and kłóty, or cabbage with potatoes. Each region of Poland has something really unique to boast. Differences can be seen, above all, in Christmas dishes, but also in the way of celebrating, superstitions, or customs present in every family. In our country, the Christmas symbolism combines elements of folk beliefs and Christianity.

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The Polish kingdom of halva They export traditional Polish halva to Greece – the kingdom of this delicacy. Their products stand out with high quality and a clean label. About success in Poland and abroad, the changing market, and the challenges of the industry – Marek Moczulski, the President of the Board of Unitop, interviewed by Joanna Kowalska.

You are the largest producer of halva and sesame snaps in Poland, as well as one of the European leaders. You also export to other continents. What challenges and difficulties does the market pose to a company with quite a narrow specialization? I will begin from the benefit of focus: we know what to focus on, our portfolio is not overly dispersed. There are many companies on the market that own several hundred or even several thousand SKUs, which generates the problem of how to sell them. This is not our concern. Another benefit is the fact that the market on which we operate is niche. Both halva and sesame snaps are small categories in relation to the entire confectionery market. Yet at the same time, they are products with a lower penetration scale than mass products, so they will not be available in every store. This penetration poses a kind of a challenge to consumers who have a problem with availability while trying to buy something during impulse shopping. However, I can see more positive aspects of our business. The Americans say, “get big, get niche, or get out,” and this is true. Being a medium-sized company often means being a mediocre company. However, being a relatively small player, but one focused on development, is quite satisfactory.

Your business largely relies on exports. One could conclude that this channel is more important to you… Indeed, exports are very important to us, constituting the bulk of the company’s turnover. The thing is that we have gained undisputed success in several export directions, including North America. We also often manage to sell halva to the “lion’s cave”, e.g. Greece, a country famous for this traditional delicacy. Nevertheless, it turns out that our halva is highly desirable there, even if in small amounts. We also care about our domestic market. We are selling more and more products in Poland. Both in the halva and sesame snaps category, we have achieved significant success. We have increased our sales over the last two years, and our portfolio includes interesting new products that have gained appreciation. Our plans include the development of our offer. We hope it will satisfy the consumers. Do you think that the increase of availability and shares on the Polish market can be credited to new products? New products are unquestionably a vital part of our business, yet the basis is obviously comprised by products which have been present in our offer for many years. Our company was established in 1945 and it has been producing both halva and sesame snaps ever since, with several other confectionery products along the way. We have immense traditions, excellent technology, committed employees and, most importantly, everyone feels connected with this tradition which is the foundation of our operations. We have a history we are proud of, we make our halva manually – this gives us the taste advantage. Halva enthusiasts know what this is about. Our halva is characterized by long fibres, which means high quality. However, I invite everybody to consume this product, because if you find a good halva, which our product unquestionably is, you will keep going back to it.

Why is your halva so popular on the Greek market? Is it about the product, or rather about the partner relations? I think both of these are important, the relations and the products alike. In countries perceived as halva kingdoms, which are mainly located in the Middle East, whenever someone tastes our product, we start negotiating the production of halva for their market. The world has gone a long way forward in the area of mechanization. The process of packaging should be automated, since it is highly time-consuming, yet if halva production is overly mechanized, the product will lose the properties it used to have several decades ago, it will become sesame powder. So we have the benefit of our quality, or the traditional way of production. What trends are currently prevailing on the confectionery market, especially in the halva category? Have the existing trends intensified during the pandemic, or maybe completely new ones have come into being? Some trends had been visible before, and the pandemic has emphasized and strengthened them. The first one is the clean label trend and search for healthier products. Many consumers pay attention to product composition. For instance, looking at our sesame snaps, you can see they only have a couple of ingredients. Our products are almost natural, even though they are obviously processed in order to obtain the desired product consistency – sesame grains have to be roasted and enriched with components ensuring the crispiness and shape of a sesame snap. Consumers wish to feel safe, they want to control what they eat and to be sure the food will have no adverse effect on their health. The pandemic has also had some effect on the category of snacks that recorded drops at the height of the lockdown. Home office and remote education made the consumers reach for such products definitely less often. The lifestyle changed to “slow”, and people started preparing more meals at home. Consumption styles have changed, which has unquestionably affected our category as well. A very positive aspect of our product is that they are indeed natural, healthy, yet sweet at the same time. With the combination of these three characteristics, if the market penetration was higher, sales would surely grow even more. How have your products found themselves in a trend of increased home cooking? How has this situation translated to sales? There were highs and lows, depending on the market and the period. We recorded no violent perturbations but rather a stable growth. Apart from consumption trends, one should also pay attention to the behaviour of the economy and the way people prepare for a so-called crisis or period of uncertainty. We also face disrupted supply chains, so the pandemic has affected the availability of certain products, sometimes very essential ones. Currently, shelves can be empty before Christmas again due to supply delays. Sesame is a peculiar raw material that needs to be imported. It is not only the pandemic but, among other things, the climate changes that affect the supply chain. Have you experienced any problems in this area? The climate changes are an obvious thing, but their effect on the availability of products has been negligible so far. Under the pandem-

#interview

ic, however, we have been facing a transport situation characterized by container logistics perturbations. Freight costs have increased many times and the same product can cost much more today. This is not just due to an increase in the price of the raw materials but of its transport as well. The profits of container freight companies have grown fourfold. This is a challenge, not just for us, since every company faces the increase of expenses, especially if the product has to be transported in a container across several continents. Would you name the growth of logistic expenses as the greatest challenge? This is a major challenge but not the only one. Our crucial markets are America and the Middle East, where we have to send our product by containers, and high expenses are accompanied by uncertainty of delivery times. As recently as 2 years ago, the time of delivery to Middle Eastern ports was approx. 6 weeks; today, it is a minimum of 9 weeks, with 10 or 11 weeks to Canada or the USA, and we cannot know for sure if this time will become even longer. Currently, 800,000 people in Poland are quarantined, which means that human resources are limited at many workplaces. The costs of production are on the rise in virtually every industry – packaging and raw materials are getting more expensive. Sometimes it can be explained by the previous year’s supply and demand imbalance, caused by lockdowns and renewed market recoveries. Now is an excellent opportunity to increase everything, which must also translate into shelf prices. You have mentioned a momentary market standstill and subsequent recovery. Is it worse now? Currently, the problem inolves disrupted supply chains. Even if there is demand now, a factory with no appropriate components for production cannot supply the products. This is compounded by the price-related uncertainty. We have several long-term contracts now, but many of them have been changed to so-called prices of the day, which may change dynamically. There are plenty of examples, not just on the food market but also, for instance, in the automotive sector where shortage of one chip is enough to extend the time of waiting for a car to one year. This does cause perturbations. Can any plans be made in the face of uncertainty? Has Unitop got any plans for the future? We operate under conditions of uncertainty, yet we have to make some assumptions. A situation of lack of containers and uncertainty whether the products would be delivered in time and at a standard price will ultimately pass. Therefore, we have to prepare for such a time, so we develop in spite of all perturbations. My colleagues or competitors surely act similarly, making assumptions that are sometimes changed on the go. We have to be highly vigilant and keep our eyes wide open.

So the only certain thing is uncertainty… Exactly. This is surely the case now. On the FMCG market, an uneventful day has always been a lost day. What now? New markets? New products? We have our specific markets and products that we develop. We also speak of automation that we will successfully implement, in spite of all the delays in part deliveries, because this is the future. There is a shortage of manpower currently, we face vacancies or high staff turnover at many positions. And we have to address it appropriately. Thank you for the interview.

#marketinsight

The confectionery market situation and trends Chocolate confectionery accompanies us in our everyday life, simultaneously changing and developing over the years, pursuant to the trends and consumer expectations. POLBISCO (polbisco.pl) The chocolate market will be changing to provide flavours that we know and like, but also to surprise us with less obvious combinations of traditional and modern, textures, new formats or categories – such as the entry of the E. Wedel chocolate brand into the ice cream category that had been new for the company, or production of full caramel chocolate, completely new on the market (several years ago). The pandemic brought a substantial increase in sales of confectionery through the e-commerce channel that had previously been predominantly popular for clothing and beauty products. In response to this situation, confectionery producers accelerated the development of their online sales. New consumer trends require producers to be creative and to adapt rapidly to the current needs. Consumers are willing to pay more for high-quality products with an interesting taste and a guarantee of unique experiences. The exports of confectionery in 2021 were characterized by an upward trend. An increase of 6-12% y/y in revenues was recorded in the first half of 2021. It is worth pointing out that the EU market is reached by 70% of Polish agri-food exports. Next year, higher prices of raw materials and electric power will translate to increases of product prices. A problem with availability of packaging has been noticed as well. More expensive utilities will also affect the prices of our products. One should make the consumers aware of what the industry could be facing in the months to come.

The category of confectionery, which, like many other industries, has not remained unaffected by the pandemic. But now it is gradually returning to the baseline situation. Sales of impulse formats, such as candy bars, wafers, or ice cream lollies and cones, is stabilizing. This category had been recording drops, especially at the initial stage of the pandemic, and it gave way to such products as family or multipack ice cream and chocolate slabs. The dynamic growth of the latter segment, especially of dark chocolate, was caused by the Polish people’s shift towards home-made pastries. Currently, the sales of the slab segment is reaching the pre-pandemic level. Marek Przeździak, the President of the Board of Polbisco – the Association of Polish Producers of Chocolate and Confectionery Products

The Poles are increasingly looking for products that will allow them to make conscious choices, that draw attention to the supply chain transparency, the sustainable origin of raw materials, and the responsible approach of companies to their business. Aleksandra Kusz vel Sobczuk, Corporate Communication Manager, LOTTE Wedel

Polish people love all kinds of confectionery. Every fourth of us cannot imagine a day without a little sweet snack. They are even used by people on diet or leading healthy lifestyles. The quarantine caused a surge in interest in so-called family products, created for sharing together, while it contributed to drops in sales of typically impulse products, such as candy bars. As for the chocolate segment itself, as shown by the data of the Central Statistical Office (GUS) it has recorded increases and keeps on growing, albeit at a lower rate than before the pandemic. Piotr Nowicki, Department of Brand Marketing at Millano

POLBISCO is an association of Polish manufacturers of chocolate and confectionery products. The association has been operating uninterruptedly since 1996 and currently unites the leading companies of the industry, representing approx. 80% of the market. Polbisco is one of the largest trade organizations in Poland.

#interview

Top quality of Polish dairy products by Mlekpol About current trends on the dairy market, products’ innovations and main export directions we talk with Małgorzata Cebelińska, Sales Director at SM Mlekpol – one of the biggest dairy products producers from Poland. What are the current trends on the dairy market? How does Mlekpol respond to the new needs? Many trends in the food sector, including the dairy industry, have strenghtened in the wake of the COVID-19 pandemic. I mean the production safety, high quality and Polish origin of the product. These ideas have been guiding Mlekpol for years. We always strive to meet the expectations of our consumers and respond to their needs. Consumer patriotism and an interest in locally-made products has increased during the pandemic. Furthermore, the demand for products with a long shelf life, in larger, economy packages, has increased. An equally important factor, especially for younger consumers, is to pro-

tect the protection of our planet. Our social awareness with regard to climate change and environmental protection is gradually increasing. Mlekpol’s strategy fits in with these trends. We aim at our business to generate the lowest carbon footprint possible. For example, the Łaciate brand has introduced innovative cardboard packaging fully recyclable and made from 89% renewable raw materials. What innovative products has your company presented recently? Mlekpol is a conscious dairy producer. We cooperate with outstanding experts from the Dairy Industry Institute of Innovation in Mrągowo on development of new products, resulting from the current

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trends and consumers’ expectations. As a result of our collaboration, we regularly expand Mlekpol’s product portfolio. In the 4th edition of the “Golden Innovations of FMCG & Retail 2021” competition, our Łaciaty cream cheese was awarded in the “Dairy” category. The Indian style cream cheese with hemp and black cumin has been appreciated by consumers for its innovative taste. We have also introduced a new line of crème fraiche cream dips. This is an interesting proposal for those who look for surprising taste combinations. The dips are made of a combination of Mlekpol’s cream with delicious additives. We have offered our consumers 3 taste variants: garlic and herbs; caramelized onions and cheddar; tomatoes, red pepper and chili. In which countries are Polish dairy products enjoying most popularity? What are your directions of development or plans for the future? Mlekpol’s products are appreciated in many countries over the world. Our assortment is present on five continents. Apart from the high, stable sales in the European countries, we are constantly developing our cooperation with Far Eastern countries likeChina, Vietnam, Korea, or Cambodia. The pandemic period has also caused increased demand for Mlekpol’s products in Georgia, Armenia, Kazakhstan, and Azerbaijan. The Middle Eastern countries show potential for growth of sales. They have significantly increased their dairy products import recently. Our plans for the future include further development of cooperation with African markets. These countries, due to their demographics and production deficits, need to import milk and they offer prospects of a long-term cooperation. What is the foreign opinion about Polish dairy? Polish milk is well-known on many markets all over the world. For many years, we have been exporting almost 30% of the Polish production. As Mlekpol, from the very beginning, we have been focusing on the production of safe, top-quality products. The use of the best Polish raw material helps us keep the high quality and the unique taste of our products. Knowledge of the requirements of different export markets made Mlekpol decide to tighten the quality standards for raw material in relation to current legal regulations. This is an important criterion which is always met thanks to the education and everyday discipline of the Mlekpol’s suppliers. This is the reason why the products of our Cooperative are trusted, guaranteeing good taste and quality to consumers in Poland and abroad.

Polish milk is well-known on many markets all over the world. For many years, we have been exporting almost 30% of the Polish production. As Mlekpol, from the very beginning, we have been focusing on the production of safe, top-quality products.

GOLDEN INNOVATION

FMCG 2021

How do you sum up 2021 from the viewpoint of development on foreign markets? Development on the foreign market was very difficult in 2021. The main reason was the supply chain disruption, related shortages of containers, and high freight rates. Currently, export shipments to Asian countries are the smoothest to implement, which is in line with the growing demand. Unfortunately, the negative situation related to transportation effectively block our development on African as well as Central and South American markets. Cooperation with foreign customers, in a very difficult and uncertain time of the pandemic, has been focused on the purchase of essential products with long shelf lives. Therefore, UHT products like milk and creams, cheese, butter, or powdered products, were the ones most needed. Despite complex work and many difficulties, especially connected with the growing operation costs, Mlekpol will end the year with another record in terms of milk purchase (over 2 billion litres), achieved revenues, and export growth. Thank you.

#trends

Global innovation trends and consumer insights in chocolate confectionery In the midst of the ongoing COVID-19 pandemic, chocolate confectionery brands continue to innovate in an attempt to address a variety of consumer needs and to inject more excitement into daily routines. With chocolate being perceived as an indulgent and stressreducing treat, further room for new product development exists across all markets. For example, in the US, 48% of chocolate consumers eat chocolate to indulge and 44% to relax/unwind. Honorata Jarocka, Senior Food and Drink Analyst, Mintel

EUROPE Consumer demand for more exciting flavours is inspiring chocolate launches with multisensory appeal. Meanwhile, launches with ethical claims are rising fast, addressing consumers’ moral concerns. Flavour quality remains central to consumers’ choice of chocolate, illustrating the inherently indulgent nature of the category. Indulgence is the top reason to eat chocolate for consumers across major European markets, and 78% of UK consumers prioritise taste when choosing between chocolate products. Furthermore, consumers are enthusiastic about trying more innovative flavours. Almost half of chocolate buyers in Germany and the UK, and 57% in Poland, would be tempted to buy a product with a new flavour. Therefore, chocolate brands can afford to be bold with flavour inno-

vation given that consumers’ appetite for new experiences is significant. However, consumers’ value-for-money expectations should also be taken into consideration, with brands expected to make sure that flavours are not so unusual to be seen as off-putting. Offering a fine balance of risk and reward is key to tempting consumers into buying out of curiosity. According to Mintel GNPD (Global New Products Database), a significant proportion of new chocolate launches in Europe are unflavoured/plain while hazelnut remains the most popular flavour within flavoured creations. Orange has seen an increase in launch activity, reaching 3% of total launches in the 12 months to November 2021. Sustainability remains an important aspect when shopping for chocolate: European consumers are increasingly expecting chocolate brands to communicate their ethical qualities and to demonstrate their commitment to people and the environment. In a competitive sector like chocolate confectionery, ethical credentials can

help brands stand out from the crowd provided that they are communicated in a transparent and engaging way. In the UK, for example, 35% of consumers say they mostly buy chocolate with ethical certifications. As a result, more European chocolate producers are launching products that address consumers’ heightened interest in ethics and sustainability. For example, between December 2020 and November 2021, ethical and environmental claims were featured on over half of new chocolate launches in Europe.

57%

consumers in Poland would be tempted to buy a product with a new flavour.

#trends

APAC In Asia-Pacific, chocolate brands continue to innovate around new textures, flavours and colours to stimulate consumers’ senses. Responding to consumers’ interest in premium offerings by incorporating high quality and authentic ingredients is also a popular strategy. Indulgence remains a strong buzzword in the chocolate category, with more than half of Chinese consumers buying chocolate to treat themselves. Innovating around new and unexpected flavours and textures helps to further elevate the indulgent nature of choc-

48%

olate. For example, in China, 48% of consumers say they have bought chocolate to try a new flavour and 55% would try a chocolate product if it had a rich texture, eg gooey. As Asia’s chocolate market matures and consumer tastes become more sophisticated, more brands are focussing innovation around more unusual flavours, textures and colours. Launches that stimulate the senses are likely to drive interest and keep consumers engaged given that, for example, 37% of Chinese consumers would like to try chocolate with unconventional flavours, such as wasabi or durian. In the APAC region, crunchy remains the most common texture descriptor in chocolate – featured on 20% of NPD in the 12 months to November 2021 - while launches

consumers in China say they have bought chocolate to try a new flavour.

THE US Seasonal and holiday-themed chocolate has been a notable area of innovation. With the backdrop of COVID-19, the obesity crisis is compelling chocolate producers to cut sugar content and offer products with a ‘better-for-you’ image. A sizable six in 10 US consumers buy holiday-themed chocolate, illustrating the fact that seasonal celebrations are well-established consumption occasions for chocolate in North America. Whether consumers buy these for themselves or as gifts, seasonal chocolates enjoy mass appeal. Chocolate brands are boosting innovation efforts around seasonal products, such as new flavours that are designed for a specific holiday, advent calendars and fun chocolates that can excite consumer interest. Between December 2020 and November 2021, as many as 39% of all chocolate

with a light, gelled and airy texture have been increasing in profile. High in demand among Asian consumers are premium chocolate products made with high-quality ingredients. Consumer interest in premium offerings has risen, with 77% of Chinese consumers, and 39% of Australians, stating that they have been regularly buying premium food since the outbreak started. Justifying a premium price tag, chocolate brands underlining high-quality and authentic ingredients are therefore likely to stand out in this region. Looking at innovation activity, premium launches accounted for 7% of all chocolate launches in APAC introduced in the 12 months to November 2021 - showing that there’s still plenty of room for new innovations.

launches in the US featured seasonal claims. The prevalence of dietary diseases and the impact of COVID-19 have made healthy diets a bigger priority for consumers. In July 2020, 65% of US adults were trying to eat healthily all, or most, of the time. This behavioural shift is also relevant for the chocolate category, as 20% of US consumers decreased their consumption in the past year. The leading reason cited for reducing chocolate confectionery consumption was a reduction in sugar intake. Therefore, chocolate brands that are looking to reduce their sugar content or are using natural sugar alternatives are likely to appeal to the growing number of health-conscious consumers. However, since palatability is key, ‘better-for-you’ options need to be tasty as well. Sugar-related claims remain niche but have steadily increased in new chocolate launches in the US. In the 12 months to November 2021, 5% of US chocolate launches carried ‘no added sugar’ claims, 3% were sugar-free and 2% featured a low-/ reduced-sugar claim.

of US chocolate launches carried ‘no added sugar’ claims (Nov20’-Nov21’).

What’s next? Thinking about the future of the chocolate category, the war on sugar will continue to be a challenge for brands. Embracing sugar reduction will not be enough since brands will need to deliver on taste and texture as well. Taking better care of the planet and consumers’ health has become mandatory, while the role of chocolate confectionery as a mental health support will become increasingly more important.

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.

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Under continuous change, it’s the customer who creates the future The pandemic triggered many changes in consumer trends and pushed the FMCG sector to a major reconstruction. How to effectively meet customer expectations then? Interview with Armen Papazjan, Deputy Chairman of the board and CEO of Brand Distribution Group – an international distributor of FMCG products operating in 100 markets. 29 years of experience speaks for itself. Please, tell me about the most important achievements of the group. We are a distributor of fast-moving consumer goods available in retail chains, wholesalers and in other stores around the world. We have come a long and interesting way – we started as a family business founded by Angelika and Wiktor Sawosz. I think that the very fact of reaching the global player’s status is the essence of our success. Brand Distribution Group has opened branches in Germany, Singapore, Spain, Great Britain, we are opening an office in the USA soon. In recent months, we have expanded our reach to new markets, including African countries, Peru, Chile, the Philippines and Arab markets, where we have acquired many new contractors. In addition to being present in key global markets, the important part of the strategy was our ability to adapt the offer to the diverse needs of consumers and market requirements. These are specific to each geographical region. This is our strength that determined our presence in 100 countries. Dynamic expansion would not be possible without a well-thought-out assortment strategy. Introducing distribution brands to the offer was an equally important development factor – this is a significant competitive advantage itself. We also wanted to educate and build a

new quality. When we launched the Triumf and Voll brands (both free from harmful substances), the ecological trend that is so strong today was not a thing back then. Meanwhile today, the choice between what’s effective and what’s safe for health and the environment is not a necessity. We also complement our portfolio with innovative food products, e.g. from the superfoods or functional food categories. We are glad that we could have contributed to it and that these past business decisions rank us today among valued and reliable distributors. How did you deal with the pandemics and numerous constraints? Was this the time difficult to prepare for? In 2021, the entire world economy changed significantly, and the market became more competitive. However, we have been operating in international trade for many years, we have experienced many shocks and we are used to operating in a dynamic environment. Like others, we faced challenges we had not experienced so far (lower consumer spending, temporary drop in production, shortages, longer order times, drop in margins, increases in prices of transportation and raw materials), which resulted in the increase of our fixed costs. This prompted us to make new management decisions. Early identification of disturbing market signals, quick response, as well as the ability to

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create and implement alternative scenarios for operating in borderline situations were crucial for us. We increased the pace, reorganised the processes to maintain their continuity and to guarantee a diversified offer and security for customers throughout the entire supply chain. Of course, like everyone else, we switched to remote working. We observe that companies that were flexible in managing risk coped better with the crisis in the first period of the pandemic. How did these changes affect your plans for 2022 and beyond? Society and business have learned to live and work effectively in new conditions. The situation on the market is changing dynamically, as are the priorities and needs of our clients, and it’s them who determine our strategic goals. It is the customer who decides how we will change! We have started the process of group transformation, which is based on three main pillars: team development and its competences, the omnichannel idea in B2B distribution and further expansion on foreign markets. We cheer to our foreign subsidiary BD Iberia, which is intensively growing its team and is developing with impetus. We are planning further investments, and we are expanding the assortment offer. Development is key. Is innovation one of the most important requirements today to remain competitive on the FMCG market? Many famous brands underwent an identity crisis during the pandemics. Having the perfect product is not enough, success is determined by understanding how and why consumer expectations and behaviours change. The battlefield for customer interest has shifted from the point of sales to a variety of learning points. The need to personalise products and ensure the right experience at every stage is now as important as the functional features of the product. After all, innovation does not only concern the product itself – it also includes, for example, packaging, recipes, modernity, and effective logistics. Our contractors are looking for attractive brands that build real consumer commitment through their authenticity and elements of social responsibility. How to meet the ever-growing expectations of trading partners on the international arena? We operate on a highly competitive market and, apart from the products, we offer a comprehensive goods distribution service, transaction security and the continuity of logistics processes from the producer to the customer. By reaching manufacturers directly, we offer them access to international retail chains, comprehensive export consulting, outsourcing of sales and marketing forces, and full logistics chain service. Everything in one place. A modern business model is ... First of all, it’s the one focused on knowing the customer’s needs and solving their problems. Modern also means the brave, the one that does not copy the solutions of others but looks for inspiration. In the open innovation model, the client is involved in the creation of ideas and services, and actively participates in the development processes. This allows for a high level of individualisation and personalisation of the offer. We are supported here by reliable data analysis (big data), on the basis of which phenomena such as „as a service” models (where basically everything can be a service) or the “internet of things” take real shape.

Apart from the products, we offer a comprehensive goods distribution service, transaction security and the continuity of logistics processes from the producer to the customer. Business engineering integrated with the customer and based on digitisation opens new, exciting development opportunities for enterprises. The wide scope of distribution is also an important advantage of the Brand Distribution Group. Our clients are primarily international retail chains, e-shops and local distributors around the world (often from very exotic destinations), who are looking for high-quality products of well-known brands produced in the USA and in Europe. A wide range and access to exotic markets is our strength. We purchase selected, unique goods from the most distant places in the world, often regional products manufactured according to traditional recipes. Many of our new products come from Poland, where the cost of production remains at a competitive level, while maintaining the highest quality standards. This allows us to provide contractors with a favourable price-quality ratio. The range of our activity allows us also to position excellent domestic food products as delicacies or even exotic products on distant markets. Comprehensive commercial, marketing and logistics solutions for FMCG would not be possible without a good, professional team... I believe that the driving force behind every company are people who give it their commitment, skills, and time. About 200 people work for the Brand Distribution Group. We are constantly hiring employees for new positions – this was the case even in the most difficult Covid-19 time. The success in our industry is largely determined by a qualified team of traders and logistics specialists – thus, we are looking for warehouse employees, assistants and export sales specialists, buyers, transport, and logistics specialists. We also care about the constant development of employees, and we invest in modern tools. Recently we have brought together teams of people who have a similar approach to their duties and who speak a common language. This not only significantly increased the efficiency, but also positively influenced the energy of individual teams. The increasingly visible crisis became a springboard for changes for our team and triggered a process of incredible transformation. We understand that it is the customer who sets the direction we follow. We reorganised our work to respond faster and better to the needs of our contractors. We diversify sales channels and use our scale of operations even better to ensure the company’s stable development. We have also embedded our business in a digital reality, and we benefit from it largely. We also managed to make the necessary management changes: move from micro-management to modelling. Therefore, we are entering 2022 definitely stronger – both in business-wise and as a team. Thank you.

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2021: FMCG, Retail, Franchise The passing year, just like the previous one, brought about many challenges to companies. The continuing COVID-19 pandemic, the changing consumer expectations, the growing inflation, the price increases – have the enterprises been able to increase their profits and maintain their market position under such circumstances? The franchise sector has not remained unaffected by the pandemic and the lockdown either. In many cases, this has forced creation of new solutions and projects. The year is summed up by representatives of the FMCG, retail, and franchise chain sectors.

Piotr Knauer

Ewa Krzuś-Wiśniewska

Dariusz Sapiński

CEO, President of the Board, Hochland Polska

Vice-President of the Board, Trade & Trade Marketing Director, TiM

President of the Board, MLEKOVITA Group

2021 has been a good year, but a difficult one as well. We have gone through 12 more pandemic months without loss of life or severe cases of illness. Our active measures in the area of ensuring the safety of our employees and business partners have been successful. From the business viewpoint, we have recorded good sales growth rates in all channels. In terms of business profitability, the cost pressure has significantly increased; we are ending this year with a positive result which, nevertheless, looks worse than we had expected at the beginning of the year. We have managed to defend our market shares and the leadership of our brands in the cheese category. We have seen to successful start ups of our new products: “Sielski” cheese in an innovative packaging with a significantly lower plastic content, and the chocolate variant of the popular “Kanapkowy” cheese. We have successfully held another edition of the great “Almette Lottery – ECO HOUSE WITH ITS OWN SPA”. We have conducted large investments at our plants and we continue on the path of business digitalization and automatization. Next year, we wish to continue growing, developing and strengthening our brands in an even more concentrated way. We are going on with our investment plans at production plants and throughout the supply chain, giving even more consideration to the aspects of sustainable development and employer’s attractivity. Hochland will be delicious – in 2022 as well!

The last year was difficult and unpredictable for the entire FMCG sector. Logistic and transport problems caused delivery delays, resulting in order fulfillment failures and a build-up of problems. The runaway inflation and price rises are worth mentioning as well. The growing prices of raw materials have had a profound effect on the price policy in all segments of the market. Despite the unfavourable conditions, our company has fared excellently in 2021. We have recorded growth in relation to the previous year, which is all the more satisfying as 2020 was a record-breaking year in the history of our company. This is due to our broad portfolio of well-known brands, as well as to our team’s hard work. We smile as we look forward to the future. We hope that 2022 will be kind to the wine industry. At TiM, we believe that development is the key to success, so we will invariably train our team as well as educate our customers and raise their awareness in the area of wine. We intend to break new records on the wave of growth, believing that positive trends are here to stay for a longer time. A very important field for development will be the Wine Library concept, reflecting the latest trends. In the first quarter of 2022, we will also commission a new warehouse to store approx. 12-13 million bottles, which would make it one of the largest wine warehouses in Europe. All of which is out of our love for wine.

In 2021, MLEKOVITA, investing and increasing its exports, has been dynamically developing and strengthening its position as the industry leader in Central-Eastern Europe. Implementing the strategy of building a global company, we are open to expanding our Group with new, profitable cooperatives. It already has 22 production plants – this year, we have been joined by two entities, in Ostrowiec Świętokrzyski and Kalisz. We have also opened the largest and most modern logistic centre in the dairy industry, for the sake of an even more effective distribution of our assortment of 1,555 top-quality products known in Poland and 167 other countries – we export approx. 40% of our output. We have introduced a range of product innovations, such as cheese sticks in batter, in a new line of Bistro Minutka ready meals. We are developing a line of functional products, including fermented, high-protein, or lactose-free ones. Among other things, we have expanded it by adding Dar Pure drinking yoghurts having a so-called simple composition (just 3 ingredients), and enriched the compositions of the Polskie acidophilic milk and the Dar Pro whey with vitamins. The positive effect of these products on the immune system is additionally communicated on the package. Spring saw the debut of 15 products from the ice cream category, including powdered mixes for ice cream parlours.

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Przemysław Gierak

Edmund Borawski

Tomasz Tarczyński

President Denver Food

President of the Board, SM Mlekpol

Marketing and Exports Director, Tarczyński

2021 was a breakthrough year in the history of Denver Food. Our company has emerged in large chain stores, entering Auchan and Carrefour with our own vegetable pates, the products that became the foundation of the Denver Food brand as vegan and gluten-free. Despite the continuing pandemic – as a gluten-free producer – our sales grew to record-breaking levels that should translate into growth by more than 25% y/y at the end of the year. Customers increasingly pay attention to the quality and composition of the foods being sold. The Denver Food products are gluten-free, vegan and mostly ecological. In the age of healthy living, consumers are increasingly eager to choose such products and this trend should be maintained in 2022. As Denver Food plans to expand its portfolio with new plant products, we are looking forward with high expectations to the new year. Due to the fact the sales of Denver Food rely not just on the domestic market but on large-scale exports as well – predominantly to the Persian Gulf – we wish to give a stronger emphasis to our presence on that market in 2022. As of today, we are present in virtually all large trade chains in Qatar, and we conduct advanced negotiations with distributors from other countries. The next year will bring a breakthrough in the company’s operations, as we plan to purchase our new seat where we will be able to double or triple our efficiency in order to keep up with the new expectations.

In spite of the pandemic, our Cooperative has been in full swing in terms of milk processing, as well as the implementation of investment plans. With their high quality and excellent taste, our products are appreciated by consumers worldwide. We export to several dozen countries on five continents. The pandemic has also created opportunities for cooperation with new markets – east of Europe, such as Turkey, Azerbaijan, Georgia, Armenia, or Kazakhstan. These directions are highly promising and offer prospects for longterm future cooperation. A huge success of SM Mlekpol this year was the Economic Award of the President of Poland in the “National Success” category. The Cooperative has been appreciated for its positive effect on the development of the Polish dairy industry, and thus, for the promotion of the regions in which its production plants are located. We have come a truly long way to become a market leader. Our success is largely due to our farmers and employees. On an everyday basis, we cooperate with nearly 9,000 suppliers who will deliver more than 2 billion litres of milk to Mlekpol this year – they are the pride of our Cooperative. This milk is processed at 13 production plants employing 2,800 people. It should be noted that the entire industry has also faced rise in costs in 2021 – transportation, packaging, energy and fuel are becoming more expensive – which will result in changes to the shelf prices of products.

What the food industry faced in 2021 was, above all, the results of the pandemic and the increase in prices of raw materials, utilities and fuels. There were positive aspects as well, such as economic recovery, resulting in the development of exports, and the changing consumption trends of meat and its alternatives. Our company will rate 2021 as a successful year. We have reinforced the position of the Tarczyński brand as a definite leader of packaged processed meat in Poland in terms of value, outrunning our main competitors. With our new advertising campaign and a change of packaging, we have revived the category and accelerated the growth of our kabanosy dried sausages, and also dynamically increased our market shares in the frankfurters category. Over the last 12 months, Tarczyński has introduced several new products to the market – including the Rośl-Inne vegetable sausage line that we have been strongly developing over the last two years. 2021 also saw expansion in the availability of our portfolio on the key export markets. We have completed several crucial investments, including further expansion of the production line and the constant changes related to the ecology of production, packaging and ongoing operation of the company. As in the previous years, we have also been strongly involved in supporting local communities and sponsoring sports. Our plan for 2022 is clear: we wish more than just to respond to consumer needs; most of all, we wish to surprise and to set the pace for the market changes, consistently aiming at building the position of a global leader in the production of protein snacks.

Zbigniew Grycan

Owner, Lodziarnie Firmowe

2021 brought many difficulties and challenges. In particular, this applies to the ice cream and café chains that had been operating in a limited scope for the second year in a row. This was compounded by the price increases of essential raw materials, supply chain problems, and the growing production costs. All of this made the past year very hard. Looking back from the viewpoint of our entire business, we are nevertheless convinced that the strength of our brand, built for more than a dozen years, the uncompromising approach to quality, the customers’ trust in us, as well as the enormous commitment and hard work of our employees, have allowed us to survive that difficult time. Consumers have been eager to choose our family ice cream, which helped us reinforce our position of the market leader in this category again. This shows that the quality, taste and tradition, the values that we follow and that have stood behind the Grycan brand since the very beginning, are immensely important.

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Mieszko Musiał

President of the Board, Carlsberg Polska

2021 was a difficult year for the sector, as a third one in a row with drops in the volume of sales. We continue to face the results of the pandemic, we are also facing enormous, often double-digit growth of package prices, raw materials, electric and thermal power, as well as labour costs. This has already translated to more than a dozen-percent increase of the average beer price over the last 3 years. After the 10% excise tax increase in 2020, the government is already proceeding with another rise of the excise tax rate, by 10% again, plus a 5% incremental increase in 2023-2027. These measures do not support the industry. 2021 at Carlsberg Polska has been a time of care for the health and safety of the employees in connection with Covid-19, introduction of numerous new beer products, and expansion of the 0.0% beer offer. Our brands have gained recognition of the consumers and won many awards, e.g. the Okocim shandy at the Chmielaki Krasnostawskie competition, or the Innovative Product 2021 for Somersby. We have also implemented investments this year, including a new returnable bottle washing machine at the Kasztelan Brewery, worth PLN 12 million, and a dealcoholization station at the Okocim Brewery, worth PLN 10 million. 2022 is full of uncertainties due to the pandemic, changes of excise tax rates for beers and flavoured beers, as well as the uncertain behaviour of the market and the consumers. We are also waiting for the new regulations concerning extended producer responsibility and the deposit system.

Wiktor Kowalski

Maciej Herman

Rafał Adamski

This year is definitely passing under the sign of the broadly understood consequences of the coronavirus pandemic which significantly affects new spheres of our life and has strongly shook the global economy as well as the trade chain over a short period of time. In view of the pandemic, on one hand, we face challenges connected with the availability of raw materials for production and packaging as well as the instability of their prices. On the other hand, we are closely observing the trends, following up by searching areas in which the enterprise can grow, and implementing new solutions. Our current response to the changing trends in the cake category is to introduce home-style pastries into the offer; they will hit the shelves as soon as the first quarter of the next year. In this product group, our goal was to combine the home-like appearance, taste and nature of the cakes, while preserving the characteristics of such pastries that are desired by the consumers, such as longer shelf life, taste repeatability, and safety-guaranteeing quality. As a part of the new offer, we have prepared a series of pre-cut tin and mold cakes, both in classic, popular taste versions and in less obvious variants.

2021 has confirmed the importance of a flexible approach to business again. Challenging the status quo and benefiting from the arising opportunities, with simultaneous continuation of the ongoing activity in the face of all the challenges, is a direction we have been following in the current reality. And there is no shortage of concerns and problems – the concern for the employees’ health, logistic difficulties, the increase in the costs of raw materials and services are just some of them. However, a chocolate producer, especially in its jubilee year, cannot lose its optimism, so, while analyzing the obstacles, I think about the opportunities too. One of them is the dynamic development of the Polish exports of chocolate confectionery – we wish to ride on this wave again next year, developing on the previous markets and gaining new ones. We also see potential in new product categories in which we plan to mark our presence gradually. At the same time, we do not forget our foundations while planning the new products for next year. We are aware that in uncertain times, consumers are in particular need of products they value for top quality – next year, as a company with 171 years under its belt, we will invariably provide such products to them, while gradually expanding our offer.

2021 brought many changes, mainly economic ones. The raging inflation and the increase of product manufacturing costs translate to high prices, not only of essential products. Thus, as manufacturers, we were faced with the choices: to limit the market reaching costs (less investment in consumer promotions, employment reductions, etc.), or to introduce necessary raises in order to maintain the hitherto consumer offer and the appropriate staffing of our points of sale. At I.D.C. Polonia, we have chosen the latter way. We believe that the most important thing in this difficult period, for us and for our trade partners alike, is to maintain a high cooperation standard: direct cooperation with stores, promotions suiting the formats and assortment, and product innovation meeting the consumer’s needs. An example of such measures in the passing year has been the expansion of the Andante biscuit portfolio to include “functional” formats – after the success of mini-biscuits purchased as snacks, we have proposed variants that can be used as semi-finished products in home pastries. For 2022, we have already prepared more new products under the GÓRALKI brand, as well as numerous marketing campaigns and promotions to give support in the resale to our trade partners.

Brand Manager, Dan Cake Polonia

CEO, Lotte Wedel

Sales Director, I.D.C. Polonia

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Jan Kolański

President of the Board, Colian

Jakub Nowak

President of the Board, JNT Group

Bogusław Miszczuk

President of the Board, Sokołów

Marta Klęka-Nowa PR Manager, Prymat

2021 was no easy year. We are still reeling from the pandemic’s impact on the conducted business. The first noticeable problem was the disruption of trade chains, and consequently, complications in the assumed production plans, resulting from the lack of certain raw materials. The prices of most materials, electric power and fuels have gone up. Due to this fact, the increasing costs of business require a high degree of financial caution and careful consideration of expenses. One should also mention the sugar tax, effectively inhibiting the development of the carbonated soft drink market in Poland. Introduced with a view to improving the health of the Polish people and to reduce the content of sugar, it has only reduced the profits of enterprises and in no way has it contributed to building appropriate habits among the society. The current situation does not instill a sense of safety in business and makes one ask many questions about what tomorrow will bring. As I have already said many times, business likes predictability. Additional burdens, combined with the rampant inflation, enormous growth of raw material and packaging prices, as well as disruption of the trade chain, are not favourable to further development of companies. For the wine industry, 2021 was a year of challenges, requiring flexibility and rapid response from entrepreneurs. The first half of the year passed under the sign of the pandemic and the related restrictions that have translated to the change of consumer behaviour and to trade chain problems. The second half added incremental inflation, as well as a shortage of means of production. JNT Group, having previously prepared for the implementation of a quick development strategy, has handled the dynamic situation excellently. We have entered new product categories and introduced many new products. This is especially important in view of the fact that 2022 will also abound with changes we are ready to face. The rise of excise tax and low harvests signalled by many winemaking regions will cause an incremental increase of the shelf prices of wine. The products that will become more expensive will be replaced by new ones, supplied by those who could guarantee high quality at a favourable price. We will continue the strategy of active development through our key brands, such as Monte Santi, Grzaniec Galicyjski mulled wine, or Wino Chefa, reinforce the segment of grape wines, and introduce new winemaking regions to the market. In spite of the highly challenging market situation, the Sokołów company has developed good results in the passing year. Among the unfavourable conditions that have affected the entire meat sector this year, particularly painful were the unstable situation of the raw material market and the high price change dynamic of both beef and pork raw materials. We also keep struggling with a crucial problem, the quickly-spreading ASF virus. As much as 67% of the area of Poland is covered by restrictions, and the farmers’ situation is becoming difficult. This epidemic has also resulted in severe export limitations. Of course, our activities and results have been significantly affected by the ongoing COVID-19 pandemic, and consequently, by the necessity to ensure the safety of employees and to maintain the continuity of production. Despite challenging external factors, the company has reached satisfactory results in 2021. The mass of sales increased by more than 4,500 tons. Sokołów has also allocated a record-breaking amount for investments – PLN 316,700,000. The implemented investments are oriented, above all, to increasing the production capacities, with simultaneous reduction of its impact on the environment. This year, we have introduced more than 50 new products into sales. We know just how important the sense of safety is to consumers today, also in terms of the manner of shopping. Therefore, we have initiated online sales of our company products. Currently, we are implementing supplies from 38 locations. In the upcoming year, dynamic development of the company and fulfillment of consumer expectations will remain our goals. We will continue the implementation of solutions and technological innovations to allow more environmentally-friendly production and reduce the consumption of natural resources. A time of intense work is surely ahead, yet I am convinced we will be able to handle these challenges again. This was another year marked by great significance of the trend of home cooking. For years, the Polish people have been invariably willing to cook, and the successive lockdowns have reminded them that peparing meals at home with their family is economical and fun at the same time. Responding to this trend, Prymat has introduced many new products last year. We have also undertaken new, intense marketing and sales activities. The new products in the Prymat brand offer include a completely new breakfast line (spices for porridge, eggs, and cottage cheese), hitherto unknown on the spice market. Furthermore, we have introduced spices in convenient tubes for popular dishes: vegetables & salads, potatoes & crisps, pasta & pizza, large-weight braised & roasted meats. The Kucharek brand offer was joined by two new stock cube varieties: herbal and meat. We have also introduced three new products under the Smak brand: kalamata olives, garlic cream, and dried tomato strips. Moreover, we have started two large pro-sales activations: a lottery with Prymat mustards and another one for the Kucharek brand. We also maintain high activity on TV (culinary shows: “Doradca Smaku”, “Kuchenne Rewolucje”, and “Kolekcje Smaków”), as well as sponsoring – both on TVN and on TVP – and digital activities, conducting extensive advertising.

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Marek Moczulski

Evangelos Evangelou President of the Board, „Herbapol-Lublin”

President of the Board, HELIO

All the time, we are facing enormous uncertainty. The disrupted trade chains are not helping. The situation is not stable, and we are experiencing maritime transport problems; unstable prices of raw materials or packaging have a bad effect on the condition of the market. The passing year was difficult to the entire sector, yet the sector has emerged unscathed. In view of the radical increase in costs of production, and consequently, the changes of shelf product prices, it is hard to estimate right now how much it would affect the sales volumes in individual categories. We, the Unitop company, are developing all the time, marketing new variants of halva and sesame snaps. Our goal is to stimulate the entire category and to encourage the consumers – especially the younger generation – to eat the Unitop brand products. We are strongly developing on the Polish market, but at the same time, we are growing stronger in exports. Next year, we will surely want to reach the younger generation through new products.

Another year is behind us, one in which we have faced many challenges, not only the pandemic-related ones. However, I feel that since the pandemic had forced us to take a more flexible and creative approach to business, we have handled them well. In 2021, we focused on the development of the organization and on actions that will also benefit us in the upcoming months and years: we have expanded our machinery park and conducted modernization of premises in several locations. In the fourth quarter of this year, we also presented two new advertising spots supporting important brands from our portfolio: Big-Active and Herbapol Polana, which appeared on the market of natural cosmetics in late 2020. As for the plans for the upcoming year, it can already be seen that it will be a challenging time for everyone, producers and consumers alike. The growing raw material prices will unquestionably become a major problem. Therefore, we are preparing for the necessity to respond to the market situation on an ongoing basis, so as to fulfill our assumptions.

29 years are behind us. We are entering our 30th year in excellent shape. Each quarter last year broke a record in sales. The annual turnover is already reaching PLN 300 million, i.e. more than any other company in the dried-fruit segment of the B2C. The contractors appreciate our quality, modern production infrastructure and reliability. Our other advantage is high investment in the brand and innovative products. It is this that has placed us at the head of the dried-fruit peloton. In 2021, the HELIO brand received the highest score among the dried-fruit sector in the rankings of the most valuable Polish brands by the editorial boards of both Rzeczpospolita and Gazeta Finansowa. We have also received many prestigious awards, e.g. Superproduct statuette of the Świat Kobiety magazine, the Golden Cash Receipt – Award of Polish Merchants, the European Medal, or the Golden Consumer’s Laurels. They confirm the attractiveness of our offer and are evidence of the strength of the HELIO brand in the categories which have key importance to it and also offer most prospects to retailers. The research shows that the image of the healthy brand of HELIO is obviously paying off today.

President of the Board, Unitop

Magdalena Pajor

Director for the Groszek and EuroSklep Franchise Chains, Eurocash

Leszek Wąsowicz

The passing year was quite challenging for the franchise sector. The difficult market situation, caused by the epidemic, has forced people looking for business ideas to consider the available options with more caution. However, we have managed to increase the group of franchise stores by 350 new outlets opened under the Groszek and EuroSklep signs. At the same time, our hitherto franchisees are eager to open new stores under the aforementioned brands. In the nearest future, the greatest challenge will be the growing inflation and price pressure. This is why we are constantly developing trade-marketing measures to help us provide low-price products to consumers, such as utilization of attractive promotional mechanisms, including the much-liked multi-item discounts. In communication with the consumer, we use standard communication tools, such as chain brochures, billboards, banners and our Groszek mobile application, and the EuroSklep app will soon come into light as well. Consumers will find even more interesting promotions there. At the same time, we are expanding the offer of the Groszek and EuroSklep private-label products. We can see the consumers’ growing interest in such goods. A private label is a perfect solution for consumers looking for good products at a reasonable price. Furthermore, we focus on development of new technologies that make everyday work and business easier for our franchisees. We are open to trends and novelties – we watch them, analyze them, implement the selected ones. The upcoming year of 2022 will be special for the EuroSklep chain due to its 25th anniversary of operation. We have prepared a range of surprises and attractive promotions for our franchisees and consumers, which we will soon start communicating.

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Bogdan Łukasik

President of the Board, Modern Expo

Piotr Dziarski Sales Director, Stock Polska

Marcin Grzebyta Project Manager, WAN-VIT

As much as we used to deem 2020 an unpredictable year, 2021 has definitely been a period of transformation, not just in the FMCG sector but throughout the industry. The growing share of e-commerce, the development of marketplaces, the multiple-channel nature and digitalization of sales – these are just some of the changes that had begun even before the outbreak of the pandemic and only accelerated during its course. All of them perfectly fit in with the competences developed for many years by Modern Expo Group, not just in the area of SMART products utilizing state-ofthe-art technology but also with regard to last-mile solutions. This made us fully prepared to take the opportunities that have arisen in our industry over the last months, thus reinforcing our position as leaders, not just in traditional retail but, most of all, in the last-mile segment, establishing a series of strategic collaborations in the area of package machines for Europe’s leading operators. Thus, with our careful observation of the market, predictive skills and quick adaptation, 2021 has been one of the most important and breakthrough years during the 25 years of history of Modern Expo Group.

The passing year was full of challenges in our industry. It was the second year in a row in which we faced an additional small-capacity tax and the COVID situation. This has not remained unaffected in the market, especially concerning the vodka category which has been losing in volume by 3.6% year on year*. We have also observed a drop in the small-package volume at an increase of the 500 ml capacity. In such a dynamic situation, the key was for the brands to actively respond to the changing conditions. At Stock Polska, we have focused on product innovation meeting the consumer needs and on strengthening cooperation with our partners and suppliers. Thus we have obtained results that make us highly satisfied – our volume of bottles sold is growing year on year. The market shares have also been growing for another year in a row. Our strategy brings measurable results and we intend to continue it. The excise tax rise is ahead of us, and we are already facing pressure from growing inflation, as well as higher costs of energy and semi-finished products. This is why we predict a significant rise of the shelf product prices. We also expect the current economic situation to cause further drop in the category volume and reverification of the consumer’s shopping habits. *Stock, based on NielsenIQ – Retail Trade Panel, Entire Poland (Food), volume sales, periods: MAT SEPT 2021, category: vodka.

WAN-VIT – a family company established in 1993 – is involved in the production of warm ice cream and traditional confectionery, as well as healthy foods. In the previous year of 2021, it recorded high growth of sales and interest in its products from the healthy foods category. In response to the constantly growing demand, we will introduce new BIO products, starting from the beginning of the first quarter of 2022. They are free of chemical contamination or GMO modifications. Consumption of such products is not just healthy but the basis of wellbeing. This will be a good and proven way to fight overweightedness and diet-related diseases, as well as to provide some additional energy every day. The creation of product recipes with favourable effects on the organism is our other goal. This year’s novelty, First Liquid ChocOmega3 in chocolate flavour, contains the required daily dose of Omega-3 fatty acids. A combination of these ingredients in the First Liquid ChocOmega3 pouch is a perfect way to enjoy an excellent flavour, while building the immunity of your organism. For more information, see 4proctive.eu.

In 2021, we have continued the development of our franchise offer and created our own solutions for entrepreneurs, facilitating everyday business activities and ensuring safety during the ongoing pandemic. We were the first trade chain in Poland to introduce a new collective insurance for our franchisees. The “Policy for Business” is an unique initiative aimed at the minimization of risk related to business failure as a part of its own operation. The policy is available to all of our more than 6,300 franchisees, regardless of their hitherto time of work and financial situation. Since November, all new franchisees have also been gaining an additional financial bonus of PLN 10,000.

Damian Rybak

Director of the Department of Development and Franchisee Support, Żabka Polska

#trends

Major zero-waste trends for 2022 Too Good To Go takes a look at the trends for 2022. Among other things, the spotlight has been placed on nostalgia food, smart food shopping, or ultraurban farming. These are zero-waste areas as well as actions aimed at the initiation of social changes in the area of food waste avoidance and sustainable development. What do these terms mean? How will we manifest these trends in 2022? Too Good To Go Too Good To Go jointly with Trendradar have prepared an overview of trends that will be particularly close to us this year. The main axis is the subject matter of zero waste, food, and waste limitation. Some of them had already been developing in the previous years, yet new ones that few had known so far have emerged.

33% of food is being wasted Too Good To Go

For a long time, we have conducted our operations in the spirit of sustainable development, which is embedded in the Too Good To Go philosophy. We wish to encourage the society to make conscious choices and to use pro-ecological solutions in order to follow together on the mission for food waste limitation. Now we have decided to take a closer look at zero-waste trends, to confront them with our operations, and to

inspire ourselves and other people for the New Year!” says Anna Kurnatowska, the Country Manager of Too Good To Go. Then, what will have the greatest impact in 2022 in the eyes of Monika Borycka of TrendRadar? This year, zero waste is the centre of interest on the map of eco-trends, and it is of small wonder, as this megatrend is gaining power year by year. It also intermingles with such „green” trends as climate diet, no-

stalgia food, smart food, eco-tech, or search for new, more sustainable and natural materials that can be innovatively used, e.g. as substitutes for non-ecologic products. In the area of our consumer attitudes, 2022 means a return to tradition, planning and saving. This is why well-thought choices, reuse of existing products, or use of technologies in the service of ecology will be so important. Circular is the „New Normal” for Gen Z

#trends

Recycle

Reuse

Reduce

Reuse, recycling, and resale – these are the keywords for a circular economy, extremely close to the youngest generation. Generation Z wants to see the economy as a closed circuit in which used-up materials and resources are reintroduced into another life cycle. This is why they like solutions and business models based on rental and reuse so much. This is an area in which Too Good To Go has considerable merits – it has been encouraging people for a long time to use their own bags or boxes when picking up the meals. Generation Z is also a large part of app users who are eager to engage in saving meals, intercepting “surprise packages”.

They will work just as perfectly in support of plastic decomposition, which is particularly important in the case of single-use packages. This year, we will definitely focus on reusable packaging, which has also been forced by the ubiquitous pandemic. A significant increase in sales of takeaway meals has been observed, which is a substantial challenge for packaging manufacturers. Eco-aware customers want their food to be packed in accordance with their convictions. Therefore, the application of recyclable solutions, biodegradable and edible materials will be trendy. Apps in the service of ecology correspond perfectly with the Smart Food Shopping trend, due to the growing interest in the Eco Tech trend. Customization, analysis of our diet, meal plans, a ready shopping list. These solutions are easy and pleasant to us. We will focus on limitation of food waste through conscious choices. Digital and smart solutions in the area of responsible approach to food will be vital, as evidenced, among other things, by the success of the Too Good To Go app. For more than two years of operation, over 2 million meals have been saved through technology and the involvement of nearly 1.5 million users. Another food-related trend is Nostalgia Food, or return to the tastes of childhood that we associate with blissful tranquility. We will try to see sentimental connotation in foods. Simple, austere forms without unnecessary ornaments or household gardens are to help us return to our roots. Combination of growing your own food with a need of presence of plants in our life is another noticeable trend – the gardening therapy. Working with plants and

looking after them excellently affect our wellbeing and mental health. This year, we can notice the increased significance of urban farming and gardening in a new form. We are speaking about ultraurban farming, focusing on the development of internal farms and planting crops in urban greenhouses or farms for the needs of a specific institution, shopping mall, supermarket, or community. Vertical farms, household hydroponic (water-based) crops, mushrooms grown above shop alleys, and robot-run farms are solutions frequently used in big cities. Regenerative agriculture is a trend noticeable in industrial food production. It involves departure from the standard form of farming and focuses on a method that generates no damage to the natural environment. The centre of interest in regenerative farming is the use of natural fertilizers, zero-emission, focus on the organic matter of soil, water purity, biodiversity, and contribution to the negative carbon footprint. It is worth keeping in mind that the EU has set the target of CO2 emissions limitation to 2030, and Too Good To Go allows us to get closer to this objective every day by saving carbon dioxide emissions with every meal saved through the app. An exciting year is ahead!

“Climate” diet, zero-waste and reuse packages, and magic mushrooms We are increasingly aware of the cost borne by the planet in the process of food production. This is not just the carbon footprint from transportation, but from consumption of water, energy, or soil as well. Some products have lower footprint, others have a higher one. However, keeping the effect of food on the environment in mind, we will want to make conscious choices. This is why normalization of plant food is a natural consequence of this and the search of balance in diet. Many of us wish to reduce the consumption of meat or dairy products, choosing flexitarian or reductarian diets. It turns out that some mushrooms, such as the Japanese koji, are able to perfectly enhance the taste of dishes. Umami aromas can be extremely helpful in the production of plant-based meat. The “magic” of mushrooms also rests in their biodiversity.

About Too Good To Go

Too Good To Go unites users in the common struggle against food waste, connecting customers with places where food surpluses have remained. The app was started in Denmark in 2016 and has gained more than 49.6 million users in 17 countries ever since. The Too Good To Go partners in Poland include: Carrefour, Lindt, Starbucks, Costa, Bakalland, Pizza Hut, A. Blikle, North Fish, Massolit, Natura Cold Press, MOD Donuts, and many others.

#interview

Terravita!

About export hits of Terravita, portfolio changes over the years and challenges faced by confectionery producers we talk with Arkadiusz Majchrzak, Export Manager at Terravita. What percentage of company turnover comes from exports? What is its development potential? What aspects of development do you emphasize most? Export sales in 2021 accounted for approx. 45% of Terravita’s turnover and so far has shown a growing trend year to year, although this growth slowed down with the break of the pandemic. Unfortunately, this was reflected primarily in the limited opportunities for participation in foreign fairs and trade visits as well as direct meetings with Customers in foreign markets. I hope that 2022 will bring at least a partial return to the situation from before early 2020, which in turn will translate into a return to growth and increased sales. Terravita’s export hits are... Terravita’s export hits are primarily chocolates in our economic brand ALPINELLA 90g / 100g and large-format chocolate in carton packages, the gift edition of the TERRAVITA 225g brand. The premium slim chocolates COCOACARA 100g with high cocoa content in decorative cartons. The new line of TERRAVITA 100g chocolates, launched in September 2021, was also very well received on the export market and we are gradually expanding its sales. Chocolate bars are the largest segment of the chocolate confectionery market in Poland and the basis of your business. How will you develop this category? In fact, the basis of our offer and the best-selling products in our portfolio are chocolate bars: both in the Terravita brand and our second Alpinella brand. The plans for the next two years include the development and expansion of the product range in both brands. Economical Alpinella brand bars are extremely popular on the Polish market and even more popular on the Eastern European markets, which is why we will be introducing new products in the Alpinella range in the line of basic 100g bars in line with the trends in the confectionery market. These will be milk chocolates with fruit fillings, with flavours popular in Poland and Europe, and at the same time distinguishing themselves from the wide range of chocolate bars currently found on shop shelves. In the Terravita brand, in 2021 we introduced a completely new quality line of products. New flavours, new quality of chocolate and a new, attractive graphic design constitute the basis of the Terravita 100g chocolate assortment. 2021 was also a year of introducing several novelties: including the line of Terravita 235g filled chocolates, which turned out to be quite a success. By analyzing the data and the market situation, we planned to enrich this category with at least 2 new flavours. The portfolio expansion is planned for the beginning of the new season, i.e. September 2022.

How have the recipes of your sweets changed over the years? Changes in our products over the years result from many factors. Of course, they are related to the development of products in the context of changing market trends as well as shopping habits and consumer expectations. Only a dozen or so years ago, the most extensive group of Terravita bar products were milk-filled chocolates. Today, the most dynamically developing segment are bitter, healthier, high cocoa products. The developing market and richer society are also reasons for looking for more sophisticated and original products of higher quality. All this influences the adjustment of product recipes to the standards currently required by consumers. The changes also apply to the quality aspects of chocolate products caused by updates to the laws and regulations defining the properties of chocolate products sold on the Polish and European markets, to which manufacturers must adapt. The biggest challenges faced by confectionery producers in Poland and on foreign markets are... The biggest challenge for the entire industry in the coming year, apart from the pandemic situation and the related change in consumer behaviour, will be inflationary pressure and a huge increase in operating costs related to the increase in the prices of energy, raw materials for production and packaging. In these conditions, maintaining a satisfying profitability of enterprises will be difficult. It will also be a big challenge to deal with unfavourable circumstances related to the availability of raw materials; poor harvests, limited availability of containers on the routes of East Asia-Europe and North Africa-Europe, and speculation on the stock exchanges further worsen the situation of confectionery producers. Undoubtedly, the industry will be forced to raise the prices of its products. We will see how Consumers react to the change in prices and to what extent this will translate into purchases in the near future. Thank you.

#tradefairs

photo: ISM (ism-cologne.com)

We are optimistic about the future! Karol Wiśniewski, Marketing Director, Maxpol

The previous edition was cancelled due to the global epidemiologic situation at the time, and here is when we have to admit that this conversation would have been impossible were it not for the October edition of Anuga, the world’s largest food fair. Traditionally, like every two years, Cologne convalescent, vaccinated or negatively-tested people only, full digitalization of tickets, or widened fair aisles – these are just some of the restrictions applied to ensure the visitors’ safety at the exhibition halls at Messeplatz 1 in Cologne. Both conclusions and experiences from organization of such a large event allow us to look with hope into the future, towards Amsterdam, Barcelona or Paris that will undertake the organization of great fair events in 2022. The repeatedly postponed private label fair in Amsterdam shows just how important trade fairs are in business strategies of Polish companies. More than 100 companies from Poland keep maintaining their participation in the event, despite the postponed dates. The MAXPOL company has been organizing the Polish pavilion in the capital of the Netherlands for many years and we are anxious to welcome Polish exhibitors once again.

We meet right before the beginning of the 51st edition of the world’s largest confectionery fair: ISM Cologne, which will take place between 30 January and 02 February 2022.

When discussing trade fairs, it is necessary to has received both the Exhibitors and visitors hungry for business meetings. Precisely speaking, over 70,000 visitors from 169 countries, along with 4,600 Exhibitors from 98 nations, have shown that fairs are still possible and that they are among the best tools to acquire new customers and to maintain the existing ones. Of course, the pandemic has left its mark – entry for mention the example of Dubai – today’s capital of global trade events. In this city, trade fair meetings have been taking place throughout 2021. This is unquestionably due to the high vaccination level of the local society, as well as application of sanitary restrictions allowing safer visiting of exhibition halls. MAXPOL itself offered its services in the UAE at several events, such as Yummex (the new name of ISM Middle East), Beautyworld Middle East, or Automechanika Dubai. All of this is emphasized by the unique event which Expo 2020 surely is; it can be visited in Dubai from 1 October 2021 until the end of March of the current year. As many as 2,500 Polish companies are involved in the event, including the Bogutti and Lot companies among the sponsors of the Polish pavilion.

Here we would like to wish a Happy New Year to our partners and associates. May 2022 be kind to us all and may we all meet at trade fairs.

Upcoming events: IFE

London, UK, March 21-23rd

ALIMENTARIA & HOREXPO Barcelona, Spain April 4-7th

THAIFEX

Bangkok, Thailand May 24-28th

PLMA’S WORLD OF PRIVATE LABEL Amsterdam, Netherlands May 31st-June 1st

ANUGA HORIZON

Cologne, Germany September 6-8th

SIAL PARIS

Paris, France October 15-19th

ISM MIDDLE EAST

Dubai, UAE November 8-10th

PLMA CHICAGO

Chicago, USA November 13-15th

Need an exhibition space? maxpol@maxpol-targi.com.pl | www.maxpol-targi.com.pl

#interview

We focus on the strong development of franchise chains! About the development of franchise chains, the effect of the pandemic on supply chains, the quickly developing market of storage areas, and the current economic hazards – an interview with Krzysztof Tokarz, the President of the Specjał Capital Group. The pandemic has changed the situation of many production and trade companies. How has it impacted your business? The beginnings of the pandemic were hard for many of us, there was much fear, uncertainty, sometimes panic. Some shop owners decided to close their businesses. GK Specjał – perversely speaking – gained on the pandemic. Rational action helped us handle the chaos appropriately. The maximum safety of our employees came first. All of them were given face masks, safety gloves, disinfectant liquids, and other disinfectants. Secondly, we decided not to interrupt our operations. Our consumers were served on an everyday basis, of course, in compliance with all principles of safety. Furthermore, GK Specjał trade representatives were present at trade establishments every day. If not in person – as there were some stores that did not accept such visits – they fulfilled their duties by telephone. Such activities made our turnover rise significantly at the beginning of the pandemic, especially since we had support from both warehouse personnel and drivers. Of course, later months brought legal restrictions of trade, such as senior citizens’ hours or reduction of the acceptable number of people in stores. However, the category of small and medium grocery stores gained a lot during that period. Thus, our company has recorded growth as well. Most importantly, we have gained the trust of our customers. The consumers knew they could rely on us in that difficult time, where other companies could not rise up to the task. They failed to deliver the goods, trade representatives of many producers did not visit the

shops… At the same time, our employees were performing their duties with the due diligence. May 2021, you have opened your 10 000th franchise store under the Specjał group of companies. What number of shops do you currently have in individual trade brands? Indeed, our 10,000th store was an important achievement, also because we have actively participated in its modelling. This is a large establishment in the town of Górno, owned by the Eko Górno company. The owners are greatly satisfied with joining our chain; upon the conversion of the store, its turnover grew by as much as five times. Although they were surprised by such a high profit, we had anticipated such a result. We currently have more than 10,700 stores and we plan for all of our franchise chains, i.e. Livio, Rabat Detal, and Nasz Sklep, to have 11,000 trade outlets by the end of the year. It is common knowledge that the period before Christmas is a difficult time for contract signing, because everybody is focusing on the sales of goods and customer service. However, I believe we will manage to implement all of our planned projects. 2021 was a time of very intense development. This might be due to the fact that the previous year (of a highly pandemic nature) had greatly weakened any changes. For a store owner to decide to accept the franchise, prolonged talks and signing of an appropriate contract are necessary. First, however, you need to show the benefits to a franchi-

#interview

see joining our chain. The pandemic highly limited any interpersonal contacts. In view of this, although the previous year had seen an increase, it was not as high as this year. You intend to open 11,000 stores by the end of the year. What will the next year be like? Do you plan any visual changes, or maybe technological changes in stores? We are working all the time to make our franchise stores look better and better. A shop has to change and to attract, not just by prices and assortment. Visual issues and additional services are important too. This can be seen in Western countries where a shop is not just a place for shopping but an institution where you can settle many important everyday matters. We have a range of projects we implement at our own establishments (we own 60 such stores); this is where we test them in a sense, checking the level of customer satisfaction, to introduce the proven solutions to franchise networks as the next step. We intend to operate and develop our stores according to this scheme. Our plans are certainly very ambitious, as we have already set forth our objectives for the next two years. One of them is to open 14,000 stores. This is a truly ambitious task, since this scenario will make us gain approx. 1,500 stores annually. At the same time, it is worth keeping in mind that, unfortunately, we are losing many shops as well. They shut down for different reasons – competition, the age of owners, bad financial results… The fulfillment of our plans means much intense effort, so we have to prepare for it very well. We are also working on supplying our stores with a very wide range of products. In what new categories would you like to expand it? Our assortment is wide and varied. Looking globally at the entire company (19 branches across Poland), we offer 20,000 SKUs on store shelves. At the same time, we strive to support local producers and their goods, also because customers look for such an offer. It would be a grave mistake to overlook this. We surely want to develop. Several years ago, we entered the category of alcohol and now we are among major market players. We intend to repeat this success, we can see much room for development. We are also developing the dairy category, which is difficult – largely due to short shelf lives – but crucial. We have introduced packaged products in the cold cuts category, but we are still trying to develop in this segment. Given the fact that we already have cold stores and

Our assortment is wide and varied. Looking globally at the entire company, we offer 20,000 SKUs on store shelves. At the same time, we strive to support local producers and their goods, also because customers look for such an offer. It would be a grave mistake to overlook this.

refrigerator lorries in almost all branches, it would be a shame not to use such technological resources. We are watching the fish segment closely and are thinking about fish in jars with longer expiry periods. Our franchisees expect such changes, so we are do everything to handle them. Coming back to your plans – I think opening of 14,000 stores under a franchise sign is feasible, given that Specjał has performed a couple of successful acquisitions. How attractive is the retail trade market today in terms of investment? I would begin by explaining how to determine the attractiveness you are talking about. Namely, some distribution companies have benefitted from the coronavirus situation, so the attractiveness of the investment market is quite small. The conditions on the market are too good for someone to want to sell their shares.

#interview

We have built a very large organization over those 31 years, employing 5,500 people. We would like the volume of small and medium stores to grow all the time. We know there are stores that will unfortunately shut down, especially the poorly-managed ones. However, we can also observe an increase in volume. We are dynamically developing, having achieved virtually 100% growth over three years. This is a very high increase, characterized by growth that is higher than the market dynamic. Many distribution companies are interested in leaving this market, which is not good. We like competition because it means stimulation to act. It is important that companies improve their quality and I believe a great deal of them do so. This market has many Polish distribution companies that are doing great. This is something to be proud of, as almost all companies had begun from scratch, and now they are building organizations that compete with large potentates with vast capital. We fare similarly, as we have built a very large organization over those 31 years, employing 5,500 people. Coming back to the question – we conduct many talks, but no spectacular transaction has been completed yet. In the previous year, we bought the company of Mr. and Mrs. Kolonko from Wągrowiec, yet that was a small investment we had decided to make in view of our area of interest. I hope we will soon reach consensus with a large company and complete an acquisition. Nationwide retail trade needs excellent organization in the area of permanent supplies. How do you develop the storage area, logistics and transport? What investment outlays in these areas have you incurred recently? What are the objectives and amounts? The expansion of our assortment and the increase of the turnover would obviously be impossible without investments. This year, approx. PLN 30 million was invested to increase storage areas. I mean the purchase of new shelves, warehouses or vehicles (we have contracted as much as 120 of the latter). Of course, we are still erecting new warehouses, e.g. in Ostrowiec Świętokrzyski, where the floor area has been doubled. In Pruszcz Gdański, we are at the stage of constructing a warehouse increasing the surface area by another 1,000 m2. In Leszno, we have additionally built approx. 500 m2. The case was similar at our warehouse in Krapkowice, where, apart from the area expansion, we have added a canopy and wind protection. Last year, we built more than 1,000 m2 of additional storage area and offices in Rzeszów. In Czeladź, we increased the storage area as well, and there were quite a lot of such projects indeed. Our warehouse rental stage had ended and we increased the floor space by 1,200 m2. A similar situation was in Warsaw where we have added the same amount of space.

To sum up, we are constantly expanding our storage areas. This also makes us an attractive partner to developers who own warehouses. We also plan investments worth PLN 30-50 million annually. We are thoroughly analyzing the investment market. The pandemic has made e-commerce popular, especially in the area of FMCG, and the prognoses are impressive. Do you intend to use e-commerce in your operations? Yes, we have such plans and we are implementing them. We are completing the project of opening our first online store in Rzeszów. Upon testing, this project will be introduced in other cities. I think that in six months, we will be offering this solution to our franchisees. You repeatedly stress that GK Specjał is in an excellent financial situation. Please tell us how it translates into cooperation with suppliers and what are the benefits for your franchisees and trade partners. On one hand – we do have very good financial results, and for many years. They are mainly connected with the trade sector, but the security and medical sectors that we have been developing have their shares too. On the other hand, we can also boast a very rare phenomenon – profits have not been taken out from the company for 31 years. We have invested all of our capital in development, and money is used, among other things, to make cash purchases. We buy as much as 70% of the goods for cash, and sometimes we even make prepayments to support manufacturers who struggle with the fulfillment of production. This is very important, the producers appreciate it a lot, because there are few companies on the market today that achieve very high turnover and are reliable at the same time. Due to our financial stability, we are a very good partner for cooperation. It is also because of our high flexibility, as our attitude to payment deadlines is not overly stringent. As much as we do want payments to be made within an appropriate time, a customer will very often agree upon an investment with us, then he builds a store, expands his store and stock… and then we jointly arrange for a longer payment term

#interview

and a higher credit limit. We do so for the customers to have a smooth entry into the market, so they would not have to take out a loan from a bank. Actually, we are a quasi-bank for our customers, yet we are quite flexible in this regard. There is system of blocking right after a failure to pay the due amount. For this, we have a separate department of control of receivables, making decisions on potential unblocking of the given customer and on shipping the goods (even though the customer has not paid for them). All of it depends on whether or not the customer has any explanation for the entire situation. Of course, the case is different with customers who are repeatedly in default with payment. We act more stringently towards them, because common sense dictates so. You are a 100% Polish company. Does it help the business? I think it helps a lot. It might not be helpful with regard to producers, since most of them are international corporations. It is no matter to them if they trade with a Polish company or a foreign one. As for our customers, shopping patriotism is highly noticeable. It seems to me that the development of our company is caused by the fact that customers trust us. We can communicate in Polish, we can tell each other sincerely what is good and what is bad. Another very important thing is that many customers have my telephone number and know they can always call me. It is also highly important that any problems occurring in cooperation are resolved on an ongoing basis. We have talked a lot about development. What hazards do you see? Much is being said about manpower shortage, high inflation, transport problems. These are truly serious hazards and we are surely not the only ones to experience them. Particularly puzzling is the shortage of drivers and

warehouse staff – we have no such problems with other jobs. We are trying to react very quickly. We wait for no decisions from London or Lisbon, but we are able to respond here and now. Contact with me is virtually instant. We respond quickly because, above all, we have to deliver the products to our customers; this is our principal duty. Many hazards to small-sized trade had been predicted as early as 2000. Yet I think the volume of small-sized stores will remain in Poland for many long years. This is unusual on a European scale, as there are no such stores anymore in many countries of the EU. Similar predictions have been formulated for our trade since 2000, and yet it is late 2021 and the market is thriving. The stores are making money and their owners are satisfied. This is a result of a great deal of work, commitment, not only in the physical aspect but also in the mental one, which generates enormous responsibility. To wrap up, how do you think the retail and wholesale trade would be changing in Poland? What do you think about unassociated stores, do they have the right to exist, or are their days already numbered? Franchise chains are the future of unassociated retailers. Sooner or later, I think many of them will face the decision: either close the store or enter a chain. Of course, I highly recommend and invite you to our chains: Nasz Sklep, Livio, Rabat Detal – they are waiting for you! Having joined a franchise chain, a retailer receives assistance in the form of better purchasing conditions and a broadly understood business support. Sometimes it also entails critical remarks that we direct to poorly-managed stores, but we do so in good faith. It is worth following them and being open to changes. Simply speaking, the world is changing! The market is changing and every forward-thinking entrepreneur has to learn constantly and to follow the trends. Digitalization and customer communication are unquestionably among them. Thank you for the interview. Tomasz Pańczyk, President of the Fischer Trading Group Publishing House

#Polishcompanies

fmcg

snacks

conventional organic

Brand Distribution Group

„Brześć” Sp. J. ZPC

P.P.H Ewa-Bis Sp. z. o. o.

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

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

25 Serwituty Street 02-233 Warsaw, Poland sales@ewabis.com.pl www.ewabis.com.pl

The Ewa Bis company was established in 1987 in Warsaw. The company is a part

Brand Distribution Group is an international distribution group, which has been

Brześć is a family company located in

of Ewa Bis Group bringing together 14

actively operating in the FMCG market

the very heart of Kujawy region. It is here

companies from seven countries: Poland,

for 29 years. It specialises in sourcing and

that since establishing in 1984 company

Russia, Ukraine, Germany, Nigeria, United

distributing high quality food and non-food

produces products of the highest quality

Arab Emirates and Canada. Ewa Bis exports

brands. It cooperates with international

and with a unique taste. The latest tech-

to over 60 countries around the world. The

and local retail chains and manufacturers

nology in conjunction with many years of

company is one of the largest Polish export-

all over the world. It operates based on its

tradition and tested recipes all help to make

ers. In 2020 Ewa Bis generated 60 million

own stocks, modern technology and sales

company stand out. Brześć is BRC certified,

EURO in sales revenue.

offices located in Poland, Spain, Great Brit-

which assures you that company’s food is

Ewa Bis offers conventional and or-

ain, Germany and Singapore. It employs

produced in accordance with the highest

ganic products to food industry, the retail

nearly 200 people and communicate in

standards. Because of this, the amazing

trade and HORECA business, such as: Fresh

20 languages. It creates a modern organ-

taste of products is enjoyed not just in Po-

Fruits & Vegetables; Frozen Fruits & Vegeta-

isation providing its partners with a com-

land but in many other countries around the

bles; NFC Juices, Juice Concentrates; Fruit

prehensive product distribution service,

world. Because of steadily growing group of

and Vegetables Purees; Dairy Products (in-

security of transactions and continuity of

fans, company has launched a special ex-

cluding Cheese, Powdered Milk, UHT Milk);

logistics processes all over the world.

port line – Crispico Little Snack.

Frozen Meat; FMCG brands.

#Polishcompanies

fmcg

dairy

tea coffee

GRUPA MASPEX Sp. z o.o.

Dairy Cooperative MLEKPOL in Grajewo

MOKATE Group

37 Legionów Street 34-100 Wadowice, Poland +48 33 873 10 75 export@maspex.com www.maspex.com Grupa Maspex is one of the largest food

13 Elewatorska Street 19-203 Grajewo, Poland +48 86 273 04 44 +48 86 273 04 80 export@mlekpol.com.pl www.mlekpol.com.pl

265A Katowicka Street 43-450 Ustroń, Poland +48 32 434 97 00 export@mokate.com.pl www.mokate.com

The MOKATE Group is a family busi-

companies in Central and Eastern Europe with sales revenues more than 1.17 bn EUR

Dairy Cooperative MLEKPOL in Grajewo

ness established in 1900 and is comprised

and exports to over 60 countries. It was es-

is one of the biggest milk and dairy producers

of several companies operating in Poland,

tablished in 1990.

in Poland. It has been a leader on domestic

Czech Republic, United Kingdom, Slovakia,

The company produces fruit and veg-

dairy market for years and it is one of twenty

Hungary, South Africa and Dubai which

etable juices, nectars and drinks, energy

largest dairy processors in Europe. Mlekpol

export their products to nearly all the co-

drinks, pasta and cereal products, salty

as a first trader in Poland reached 1,93 billion

untries in the world.

and sweet snacks, cappuccino and instant

liters per year in milk purchase. This equals

The company has three production

drinks, chocolate dragees, jams, ketchups,

to over 5 milion liters of milk per day sup-

plants, in Ustroń (Poland), Żory (Poland)

sauces, ready meals etc. with IFS stan-

plied by around 9000 farmers – members of

and Votice (Czech Republic). The turnover

dards. Company has 15 plants as well as

the Cooperative. Its main product categories

of Mokate is now over one Billion zloty per

the most modern logistic hubs with stor-

are UHT products, cheese, butter, milk and

annum, with 60% of sales now originating

age capacity for over 450 thousand pallets.

whey powders. Mlekpol’s products are made

in export markets. The company employs

Brands like Tymbark, Kubus, Caprio, DrWitt,

in 13 modern production plants. They are

1700 people all over the world.

Tiger, Lubella, Łowicz, Krakus, Kotlin, La

known by, among others, European, African

The leading brands in the MOKATE port-

Festa, Coffeeta, Ekland, Salatini are un-

and Asian countries. Mlekpol’s export sales

folio are: Mokate, Marilla, NY Coffee, Loyd,

questionable leaders in their categories.

are growing systematically each year.

Minutka, Alpino and Grandma`s Tea.

#Polishcompanies

spice seasoning

dairy

Prymat Group

Sertop Sp. z o.o.

OSM in Łowicz

14 Chlebowa Street 44-337 Jastrzebie-Zdroj, Poland +48 12 252 88 21 export@prymat.pl www.prymatgroup.pl Att. Natalia Wojas (Export Director)

58 Przemysłowa Street 43-100 Tychy, Poland +48 32 217 08 38 +48 32 326 46 41 export@sertop.com.pl www.sertop.com.pl

3 Przemysłowa Street 99-400 Łowicz, Poland export@mleczarnia.lowicz.pl www.mleczania.lowicz.pl/en

Polish producer, using Polish milk, free

Prymat Group is the leading spice and

The company SERTOP is one of the

from GMOs. The logotype is recognizable

seasoning producer in Poland with several

leading manufacturers of processed cheese

on store shelves all over Poland and in over

factories and over 1000 employees. The

on the Polish market. The company has

50 countries around the world.

company produces processed, wet and dry

more than sixty-year tradition of producing

vegetables and mustards for supermarket

high quality products based on proven rec-

390 million liters of milk obtained from

The

cooperative

processes

over

chains, HoReCa and B2B. It works in accor-

ipes while maintaining strict quality control.

3 400 family farms. The official confirmation

dance with the highest quality standards:

It uses only natural ingredients without any

of the Quality Management System level is

IFS, HACCP and Halal.

preservatives and colorings. SERTOP offer

the IFS (International Food Standard) cer-

R&D and Quality Department develop

includes more than 20 flavors of processed

tificate issued by the promotion certifying

products that meet the needs and require-

cheese in a variety of formats, such as:

TÜV NORD and the HACCP System.

ments of consumers. All are compliant with

round boxes, cubes, bars and sausages.

The company’s offer includes UHT milk and

standards and competitive in terms of fla-

SERTOP sells its products to the Polish

creams, cheese in the form of blocks, portions,

vour combinations and quality. Appropriate

market and the markets of the European Union

slices, curd shavings, cottage cheese, cottage

physical and chemical analyses, including

and the United States, Canada, countries of

cheese, fermented products (kefir, buttermilk,

microbiological and organoleptic tests of

the Middle East, South Korea. The company is

yoghurt), milk powders. The cooperative has

both raw ingredients and finished products

certified BRC Global Standard Certificate and

a range of lactose-free products and products

are carried out in our testing laboratory.

IFS (International Food Standard).

for vegans and vegetarians.

#Polishcompanies

confectionery

sesame halva

confectionery

TERRAVITA Sp. z o.o.

Unitop Sp. z o.o.

VOBRO Sp. z o.o. Sp.k.

48 Szarych Szeregów Street 60-462 Poznań, Poland +48 61 66 307 office@terravita.pl www.terravita.com.pl

9 Siedmiogrodzka Street 01-204 Warsaw, Poland +48 22 653 57 77 export@unitop.com.pl www.unitop.com.pl

78 Podgorna Street 87-300 Brodnica, Poland +48 56 493 28 51 export@vobro.com.pl www.vobro.pl

Terravita is a Polish brand, passionately

Founded in Poland in 1945, Unitop is the

creating chocolate based on the best co-

market leader in sesame-based products

coa beans and sophisticated ingredients.

and one of the largest producers of halva

For years, the company has been pleased

and sesame snaps in Europe.

to discover the sweet treasures of the earth for you.

Known for its care for tradition and quality, the company brings its delicious

Working in Terravita is a constant search

and nutritious snacks to more than 40

for fresh ideas and flavors. All of producer’s

countries around the globe including Aus-

products have one task – to awaken some-

tralia, Great Britain, Italy, France, Germa-

one’s love for chocolate every day. Regard-

ny, Canada and the United States. With a

less of whether it is a confectioner to whom

heart for the environment, every product

the company supplies semi-finished con-

at Unitop is made with recyclable pack-

fectionery products, or customer who tries

aging and the company doesn’t believe in

chocolate products of Terravita for the first

using palm oil in its manufacturing. Ded-

time – the company offers the same quali-

icated to supporting local communities,

ty, because the chocolate must be perfect

Unitop is known for its passion for chil-

every time.

dren causes at home in Poland.

VOBRO was established in 1986. The company employs over 400 people, most of them are long-term employees who present vast experience and have been associated with the production of sweets form many years. The VOBRO company is known preliminary 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 candies 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 new brand JELLY DOT, as well as health-promoting product – the VITALIO brand. The VOBRO brand is a leader in many markets in term of the occasional products offer, i.e. products bought by consumers as calendar occassions (Valentine`s Day, Mother`s Day, Christmas, etc.).

#Polishcompanies

fmcg

confectionery

organizer

Z.P.H.U. WAN-VIT

Wawel SA

PPH MAXPOL

11a 3 Maja Street 88-430 Janowiec Wlkp., Poland +48 601 831 863 www.4proactive.eu www.wan-vit.pl

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

251 Rolnicza Street Dziekanów Leśny 05-092 Łomianki, Poland maxpol@maxpol-targi.com.pl www.maxpol-targi.com.pl

WAN-VIT is a family company estab-

Wawel SA is one of the most renowned

lished in 1993 involved in the production of

Polish confectionery producers. It offers a

warm ice cream and traditional confection-

wide portfolio of chocolate tablets, choco-

Throughout this period, several tho-

ery, as well as healthy foods.

late bars and pralines, candies, caramels

usand exhibitors took part in the trade fairs

Maxpol is a company with 30 years of experience in the exhibition industry.

In response to the constantly growing de-

and fruity jellies. Wawel owes its success

organized by Maxpol. The company orga-

mand, company introduces new BIO products

to over a century of experience along with

nizes fairs in Europe, Asia, North America,

which are free of chemical contamination or

continuous development and a modern pro-

South America, Africa and even Austra-

GMO modifications. Products manufactured

duction process. Permanent care for high

lia. Maxpol designs and builds standard

by WAN-VIT help fight overweightedness

quality and global standards resulted in an

and custom stands, provides transport of

and diet-related diseases, as well as provide

exceptional growth and development. To-

display units, comprehensive logistic servi-

additional energy every day. The creation of

day Wawel’s products are available in about

ces for fair participants and technical sup-

product recipes with favourable effects on

60 countries worldwide and the number of

port during the fair. The company holds the

the organism is company’s goal.

loyal consumers is constantly growing.

title Ambassador of Polish Food Export.

#discoverPolishproducts

CHOCO&PEANUT 250 G

TRUFFLE 250 G

YOUR DELICACY

Producer: Wawel SA Site: www.wawel.com.pl Contact: export@wawel.com.pl

Choco & Peanut 250g is a combination of exqui-

Get familiar with an exquisite combination of

Your Delicacy is light as a cloud vanilla souffle

site chocolate sweetness – a strong cocoa fla-

chocolate and cocoa filling with a hint of rum.

that is covered by delicate Wawel chocolate.

vor and crunchy peanuts, covered with Dessert

The product does not contain colors or artifi-

The natural aroma of vanilla makes Your Delica-

Chocolate. The product does not contain colors

cial flavors.

cy one of a kind.

or artificial flavors.

AMKI SESAME THINS 30 G Producer: Unitop Site: www.unitop.com.pl Contact: export@unitop.com.pl

LUXURY CREAM FUDGE

They are soooo good, we dare you to only eat

Producer: Unitop Site: www.unitop.com.pl Contact: export@unitop.com.pl

one! This eat-anywhere snack is the perfect mix of sweetness and sesame seeds wrapped in a distinctive, irresistible crunch to give you a boost of energy when you need a little pick-me-up, at home or when on the go. Amki Sesame Thins are a better-for-you alternative to sweet snacks like cookies or candies. Best of all, they are gluten free and suitable for a vegan diet!

Unitop’s Luxury Cream Fudge has developed a cult following since it’s inception in 1966, and is particularly popular in Saudi Arabia where the brand and the product are considered a flagship commodity in its category. The confection owes its popularity to its rich taste, achieved through the use of simple, high-quality ingredients like real butter.

#discoverPolishproducts

TRIUMF WASHING CAPSULES 2IN1

SUPERSHOTS

Producer: Brand Distribution Group Site: www.bdgroup.eu Contact: contact@bdgroup.eu

Triumf washing capsules 2in1 dissolve instantly, even in lukewarm water.

SUPERSHOTS are products which combine concentrated ginger extracts,

Packed 18 and 30 pieces, in an attractive, ecological packaging, the pro-

superfoods with the greatest nutritive value with NFC juices, served in a

duction of which uses 70% less plastic. Highly concentrated, washing gel

convenient 60 ml clear glass bottle and 100 ml PET (pasteurized or HPP).

capsules for white, colored and sportswear, are easy to dose and wash

SUPERSHOTS are available in the offer of the Brand Distribution Group.

effectively at temperatures as low as 30°C. They are safe for the user because they contain the most bitter substance Bitrex™, which makes it impossible to swallow the product. New on the market from November 2021, in the exclusive distribution of the Brand Distribution Group.

DR WITT FUNCTIONAL DRINKS TYMBARK PARTY DRINKS

Distributor: GRUPA MASPEX Site: www.maspex.com Contact: export@maspex.com

DR WITT is a functionality and convenience closed in tasty fruit drinks. As

Tymbark Party Drinks in a fancy glass bottle 250 ml are the colourful and

It owes its exceptional quality to the special formulas enriched with vita-

extremely refreshing alternative of cocktails without alcohol. This is our

mins and minerals as well as other nutrients which support proper func-

proposal for any party lovers who want to have fun and enjoy popular

tioning of the organism.

drinks, but alcohol free.

Each flavour is dedicated for one of the five different functions – immunity,

Our products are based on popular fruit like: apple, orange, lime, cranberry,

antioxidation, beauty, vitality and metabolism, so that everyone can find a

blueberry, with reduced sugars. Those combinations will satisfy even the

drinks that supports chosen health area.

most demanding tastes.

Large offer consists of 10 proposals: orange juice, multivitamin exotic, mul-

We offer Tymbark Party Drinks in five delicious flavours: SPRITZ, COSMO-

tivitamin green, multivitamin red, carrot-orange, blackcurrant-pomegran-

POLITAN, LIMONELLO, MOJITO, SUNSET.

ate, mango-apple-orange, apple-cherry, apple-watermelon, guava.

health is an important trend, DR WITT answers it with its rich offer.

#discoverPolishproducts

MOKATE GOLD PREMIUM

MOKATE COFFEE MIXES

Producer: Mokate Site: www.mokate.com Contact: export@mokate.com.pl

Gold Premium range are the best known Frothy Coffees on the market, and loved by customers worldwide. Carefully selected ingredients with Rainforest Certified Coffee for top quality with a true love for the best coffees allow us to bring a range of delicious tasting frothy coffees.

Very convenient and quick to use both in and out of home. An excellent aroma, velvety flavour in convenient and quick to use format.

UHT MILCASA MILK 3.5%

MOZZARELLA CHEESE BLOCK

Producer: Mlekpol Site: www.mlekpol.com.pl Contact: export@mlekpol.com.pl

UHT Milcasa 3.5% milk comes from cows grazed on the cleanest

Mozzarella is a cheese with a mild and delicate flavour. It is perfect for baking and,

Polish meadows, fed with non-GMO feed. Mlekpol is a precursor

which is distinctive for it, after melting it becomes flexible and very stretchy, which

of introducing UHT milk to the Polish market. It is distinguished

makes it the most popular choice for making pizza. In combination with tomato sauce

by a long shelf life, a guarantee of safety and convenience of

and basil leaves, it creates the classic taste of a timeless margherita, but it also builds

use. Heat treatment of milk destroys microorganisms, makes the

a delicious composition with other ingredients. Mozzarella can be used in many

product safe and preserves nutritional values, including vitamins.

dishes, such as casseroles, lasagne and pasta. Mozzarella from Mlekpol provides a

It is an excellent source of calcium and protein. Thanks to verified

unique Italian taste, because the product is made of the highest quality Polish milk

technology and modern packaging, it stays fresh for a long time,

from cows grazed in the cleanest regions of Poland. It is also an excellent source of

keeping its taste.

calcium, valuable vitamins and minerals.

#discoverPolishproducts

JELLY DOT

VOBRO CHOCOLATE FIGURES FOR EASTER

Producer: ZPC Vobro Site: www.vobro.pl Contact: export@vobro.com.pl

New format of liquid filled jellies in chocolate with new brand – JELLY

These chocolate figurines in the shape of a bunny and a chick are ideal for

DOT. Pectin jellies in three flavoures: orange, cherry and lemon covered

Easter. Each single figurine is packed in a separate wrapper and is avail-

by delicate chocolate. Producyt available in following format: bulk car-

able in three flavours: hazelnut, pineapple and milk, and cocoa and cream.

ton, bag 1 kg and bag 200 g.The product guarantees consumers a great

The product is available in various packaging formats: as bulk format and

taste experience.

in 1 kg and 300 g packs.

CRISPICO PUFFS AND SNACK STICKS Producer: Brześć Site: www.brzesc.pl Contact: brzesc@brzesc.pl 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.

PROCESSED CHEESE CHEDDAR – 130 G SLICES

PROCESSED CHEESE MIX „YOUR… FAVOURITE” – 140 G ROUND BOX

Producer: Sertop Site: www.sertop.com.pl Contact: export@sertop.com.pl

#discoverPolishproducts

OSM ŁOWICZ YOGHURT DRINK

OSM ŁOWICZ UHT MILK 1L

Producer: OSM in Łowicz Site: www.mleczarnia.lowicz.pl/en Contact: export@mleczarnia.lowicz.pl

Refreshing yoghurt drink in comfortable, handy package on the go

Łowickie UHT milk is made of top-quality Polish milk. It has been treated at

(200 ml). Optimal capacity and straw is a comprehensive solution for chil-

ultra high temperature (UHT) to extend its keeping qualities without using

dren to backpack, to school or on a trip. Natural, slightly acid but sweet

additives or preservatives. It stays fresh for up to 9 months.

tone yoghurt drink.

#discoverPolishproducts

MILK CHOCOLATE WITH MINT & LIME FILLING

MILK CHOCOLATE WITH CARAMEL YOGURT FILLING AND HAZELNUTS

Producer: Terravita Site: www.terravita.com.pl Contact: office@terravita.pl

Milk chocolate with mint & lime filling. This combination has its faithful

Bars of chocolate 235g. Delicate milk chocolate with two layers of filling:

supporters. Joyful and fresh lime to the classic duo, which took this choc-

yoghurt and caramel. In addition, each cube hides a crunchy hazelnut!

olate to a new level of refreshment. The different textures of fillings are combined with the delicacy of new milk chocolate 32% of cocoa.

KUCHAREK UNIVERSAL SEASONING Producer: Prymat Site: www.prymatgroup.pl Contact: export@prymat.pl Kucharek is a perfectly-balanced mixture of dried vegetables and spices which guarantees the best culinary effect: in soups, one-pot dishes, meat, fish, vegetable dishes or casseroles. Kucharek will also help enhance the flavour of sauces, dips, creams and all kinds of dressings. In line with current trends and consumer needs, Kucharek universal seasoning does not contain any preservatives or artificial flavourings.

Producer: Prymat Site: www.prymatgroup.pl Contact: export@prymat.pl

PRYMAT TUBES WITH READY SPICE MIXES

Ready spice mixes in tubes answer current trends. They enable us to accept any culinary challenge, whether we prepare dishes on the basis of trusted recipes or attempt culinary experiments. Thanks to the closed and comfortable tube, you can enjoy perfectly tasting dishes for even longer.