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SLOVENIA

INVITES YOU!

Interview: Jeffrey Tirman, CEO Elan

“Elan is now the last company to fully produce skis in the Alps” 10-14

The Wall Street Journal news organization was not involved in the creation of this content. Produced by Časnik Finance, d. o. o., Slovenia.

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5.1%

54,239 Republic of Slovenia Capital: Ljubljana

Population: 2 million Land area: 20,273 kilometers

billion USD-gross domestic product of Slovenia in 2018*

A member of: EU, NATO, OECD

9.2%

26,259 USD-gross domestic product per capita in 2018*

Coastline length: 46 kilometers Currency: EURO

- GDP growth in 2018*

- export growth in 2018*

1,930 USD-average gross salary in January 2018

1,254 USD-average net salary in January 2018

9.3%

1.5

- import growth in 2018*

%-average inflation rate in 2018*

* - the latest economic forecast of the Institute of Macroeconomic Analysis and Development of the Republic of Slovenia

8.0 %-registered unemployment rate in 2018*

Distance is not an obstacle

W

ith a population of 2 million, Slovenia is one of the smallest European markets, but it has a strong economy and vital export companies.

This can be confirmed not only by last year’s 5 percent economic growth, which placed Austria’s southern neighbor among the stars of the European Union, but also by this year’s forecasts, which predict that the smallest European country will again this year experience economic growth of 4 percent, twice the European average.

These results, although remarkable, can be influenced significantly by good cooperation with the US, with whom we achieved just under a billion euros through trade in goods last year. It is interesting that tiny Slovenia has in recent years held a positive trade balance with the strongest economy in the world. In simplified terms, this means that we export more to the US than we import, and this can partially be accounted for by the recession, which forced Slovenian companies to stand on their own two feet and begin increasing their exports. And that’s not all. There have been quite a few Slovenian production and high-tech companies, which we covered in our magazine, that have shown themselves to be able to compete in the most competitive market in the world. One of them is the Slovenian ski manufacturer Elan, the last company to fully produce skis in the Alps, which successfully competes in both the domestic European and American markets. The magazine also describes the performance of the largest and above-average Slovenian companies in recent years.

Although the trade in goods between Slovenia and the strongest economy in the world can’t yet be described as

SLOVENIA INVITES YOU!

ADVERTISING SUPPLEMENT June 2018 On the cover: Jeffrey Tirman, CEO Elan Photography: Jure Makovec

Writers: Vanja Tekavec Vanja Alič Technical Editor: Maja Volk Translation: PSD, d. o. o. (www.psdtranslation.com/en)

There have been quite a few Slovenian production and high-tech companies, like for example Elan, Dewesoft, Interblock, TPV, and SIJ, each of which have been covered in our magazine, that have shown themselves able to compete in the most competitive market in the world. highly substantial, the realization that in today’s modern world distance no longer presents an obstacle is far more important than actual numbers. Slovenian companies are known for their innovativeness and a well-educated workforce and the best markets for innovative companies are those that are the most competitive, as was pointed out by the famous Slovenian businessman Sandi Češko. Stronger cooperation with the US is therefore not only an opportunity for greater recognition of Slovenian companies throughout the world, but also a massive opportunity for Slovenia to make a global breakthrough in business and technology. The more companies from both sides of the ocean nurture their relations and familiarize themselves with each other, the more opportunities there will be to take advantage of the numerous and still undiscovered economic and commercial opportunities between the two countries.

Vanja Tekavec

Project Manager: Monika Klinar Telephone: +386 1 30 91 480 E-Mail: monika.klinar@finance.si Advertisement Marketing: Telephone: +386 1 30 91 590 E-Mail: oglasi@finance.si

Publisher: Časnik Finance, d. o. o., Bleiweisova cesta 30, 1000 Ljubljana, Slovenia www.finance.si Director and Editor in Chief: Peter Frankl

Circulation: 30,300

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Embassy of the Republic of Slovenia Washington D.C. Stanislav VidoviÄ?, ambassador sloembassy. washington@gov.si http:// washington.veleposlanistvo.si The Consulate-General of the Republic of Slovenia in Cleveland Andrej Gregor Rode, consul-general sloconsulate.cleveland@gov.si http://cleveland.konzulat.si The Consulate of the Republic of Slovenia in New York Erik Horvat, honorary consul slovenia.nynj@gmail.com The Consulate of the Republic of Slovenia in Pittsburgh Petra Mitchell, honorary consul Petram77@gmail.com The Consulate of the Republic of Slovenia in Denver SreÄ?ko Vidmar, honorary consul lucky.vidmar@gmail.com The Consulate of the Republic of Slovenia in Florida Gregory S. Chan, honorary consul gchan@stu.edu The Consulate of the Republic of Slovenia in Houston Sandra Prat Wilkens, honorary consul sloconsulhouston@gmail.com The Consulate of the Republic of Slovenia in Michigan Yousif B. Ghafari, honorary consul sloveniaconsulmi@ghafari.com The Consulate of the Republic of Slovenia in Illinois John P. Vidmar, honorary consul slovenianconsul.chicago@gmail.com SPIRIT Slovenia Public Agency www.spiritslovenia.si www.investslovenia.org The Bank Assets Management Company www.dutb.si Slovenian Sovereign Holding www.sdh.si Slovenian Tourist Board www.slovenia.info

4 Slovenia invites you! www.slo-mag.si

HOW GOOD WAS BUSINESS FOR SLOVENIAN EXPORTERS TO THE US LAST YEAR

Achievements and plans of exporters who have successfully launched themselves in the American market

I

t can safely be said that the distance of the American market is no challenge for successful export-oriented Slovenian companies, judging by the results of a short survey regarding the business conducted last year by these companies in the American market and their ambitions.

Impol has high hopes in the automobile and aviation industries

The Slovenian Impol group is the leading manufacturer of aluminum rods for the automobile industry in Europe and the sixth biggest Slovenian exporter. The group and its products have been present in the American market for over 50 years and since 1990 they have been selling

Jure Makovec

The products the Impol group exports to the US market are mainly of high added value and the chief buyers of Impol’s products are from the automobile and aviation industries. these products under their own brand. “The products we export to the US market are mainly of high added value.

Our customers are representatives from demanding industries such as the automobile and aviation industries.

Above all, these customers appreciate the quality of our products, which is strictly related to our own development of aluminum alloys with exceptional mechanical properties,” highlighted a spokesperson for Impol, which generates 94 percent of its revenue from exports. The group last year increased its revenue by 27 percent to almost 700 million euros, while generating 39 million euros of profit.

When asked about their growth in the American market in the last year, they stated that there’s a substantial increase in the demand for niche products used in the automobile and aviation industries, and that due to the

measures that were taken against China this year, they also managed to launch their rolled products in the US market and thereby considerably increase their sales volume. Impol last year generated 1.5 percent or a little over 10 million of their revenue in the US, while a total of 2.05 percent of its sales were generated in the North American market. In the future, they would like to gradually increase their sales share in the American market and remain a niche supplier in the field of pressed products.

The door manufacturer Pirnar plans to open 10 franchise stores

In the middle of last year, the Slovenian door manufacturing company Pirnar entered the American market when they opened their first sale store in the vicinity of Los Angeles. “We wanted to learn the ins and outs

RODS

DISCS

PROFILES

FOILS

Impol, Slovenska Bistrica, Slovenia (EU), www.impol.com

Jure Makovec

TPV wishes to expand into the American market with its own production

Jure Makovec

of the American market, familiarize ourselves with our customers and their demand for product. After over half a year, we can say that the decision to expand into the American market was the right step,” emphasized Gašper Pirnar of the Pirnar company. The Slovenian company generates most of its revenue in the German market. Last year, their doors were awarded the German Design Award, an important accolade which some call the European design Oscar.

But the company’s ambitions to expand in the American market do not end with the opening of their first store in Orange County, as they plan to open a new store in Las Vegas soon and, in approximately three months, another one in San Francisco, while their goal is to open at least five franchise stores in the US this year, followed by another ten next year. The decision to venture across the Atlantic is based on the desire to lower their dependency on the German market.

“American consumers seek something different, new, unique. Americans appreciate hand craftsmanship and artistry, and this could prove to be a big advantage for us,” added Gašper Pirnar. The company would also like to strengthen its brand in Austria, Italy, Switzerland, Great Britain and France.

6 Slovenia invites you! www.slo-mag.si

Over the next two years, the Slovenian door manufac­turing company Pirnar plans to open ten franchise stores in the US. In the photo: Gregor Pirnar, Roman Pirnar, Anže Pirnar.

By expanding into the US market, they want to consolidate their market position in the TPV Group as a global automotive supplier.

The TPV group, a developer and manufacturer of components for the automobile industry such as bodywork kits, chassis and components parts, automobile seat elements and engine gaskets, has been present in the American market since 2014. At the moment, the share of revenue generated directly from the North American market is small, but with the newly acquired deals it is increasing. The company would also like to expand their own production into the US market.

“With the expansion to the American market we wish to establish the position of the TPV group as a global supplier of the automobile industry. The expansion and growth of business of our European customers largely contributed to making the decision to intensify the presence in the mentioned market.

Cooperation in platform deals in the American market also demands an increased level of localization as regards complex products,” stated a spokesperson for the TPV company, which also exports to the US indirectly through its European partners.

“With this newly obtained business potential, we’re hoping to significantly increase our presence in the American market,” continued the company spokesperson. The company’s main partners are BMW, Daimler, Volvo, Jaguar, Volkswagen, Brose, Benteler and Magna.

The US is the market of many new opportunities for Akrapovič

The renowned manufacturer of exhaust systems for motorcycles and automobiles began its campaign in the American market soon after it was established in 1991.

This paid off as the company last year generated approximately 13 percent of all of its revenue in the American aftermarket segment. The company cooperates with two distributors in sales of aftermarket exhaust systems for motorcycles and, following the update of its business model in the middle of last year, with another company in sales of aftermarket exhaust systems for automobiles.

They sense that the biggest opportunity for business growth lies in aftermarket products. “Due to the highly-developed automobile modification culture and also due to the general market potential, the American market presents one of the biggest markets with a potential for further growth in the segment of aftermarket products,” pointed out a spokesperson for the company. They see new opportunities in the sports car and super sports car segments, mainly for models of the BMW and Porsche brands, for which they have developed a wide array of aftermarket exhaust systems and into which they plan to expand further in the future.

“One of the products found in our range is the exhaust system for the Chevrolet Corvette, the eminent automotive icon from the US. In addition to the aftermarket products, the company also manufactures exhaust systems for certain motorcycle and automobile brands which are also sold in the US. Due to various reasons and most of all due to the large number of orders in

pov

ič

The product range of the renowned exhaust system manufacturer Akrapovič also includes an exhaust system for the eminent automobile icon Chevrolet Corvette.

other segments, we do not plan activities in the custom segment. However, we do see a large potential in the “side-by-side” car class in the future,” added the company spokesperson.

SIJ has high hopes for its special steel

The largest Slovenian steel group, the Slovenian Steel Industry (SIJ) generates almost a tenth of its sales in the US.

www.sij.si

The Slovenian Steel Industry (SIJ) with its sale of steel and steel products is among the ten biggest Slovenian exporters and is present in the American market with a wide array of products. Some of their bestellers are the

AMONG THE TOP FIVE SLOVENE EXPORTERS

acroni • metal ravne • ravne systems elektrode jesenice • suz • ravne steel center oro met • mwt • sidertoce • niro wenden griffon & romano • kopo international • sij asia odpad pivka • dankor • metal eko sistem top metal • zip center

SIJ

Akr a

SIHARD tool steel for use in cold conditions, SIDUR and SIMAXX special steel and SINOXX stainless steel, and last year, they generated 9 percent of sales revenue in the US market.

“We have achieved an increase of exports to the US, while the demand for all of our products also increased,” pointed out Dušica Radjenovič, the Head Manager of Sales in the SIJ group. The increasing demand in the American market was attributed to favorable trends in the automobile, oil, gas and nuclear industries, as well as to increased activity in the American market. One of these activities was the company’s participation at the PowerGen exhibition in Orlando.

The SIJ group also has its own distribution company in the US, Kopo International, located in Hazlet, New Jersey, which sells the company’s products and, with a thousand-tonne permanent supply of SIJ steel, offers American customers quick and reliable delivery and responsive local support.

SwatyComet relies on high-quality products

SwatyComet, the Slovenian manufacturer of grinding and cutting wheels, has been present in the North American market since 2017. The doors to the American market were opened for them by the American family company Weiler Corporation, who have been the owners of SwatyComet since 2015. Everyone in the company is pleased with their business in the American market and the predictions for the future also look promising.

“We can be very satisfied with the progress made in the growth of grinding tools, which we produce in Slovenia. We are most pleased with the efficiency of the products we offer at the high-quality market level. Our products successfully compete with and, in the premium product segment, often exceed the efficiency of our competitor’s products. This inspires us and provides optimism for future growth,” emphasized Matjaž Merkan, the CEO of SwatyComet.

Their expansion of business to the American market was supported by the parent company Weiler, with their highly qualified teams in America, Mexico and Brazil. “Swatycomet mainly seeks buyers within the metal processing industry in the American market.

Our products are intended for cutting and grinding metal components prior to, during and after welding. Our most common end users are shipyards and companies dealing in the construction of pipelines,” added Matjaž Merkan. The company see new business opportunities mainly in the automobile and steel industries.

8 Slovenia invites you! www.slo-mag.si

The company SwatyComet, owned since 2015 by the American family company Weiler Corporation, also sees new business opportunities in the automobile and steel industries.

A decision to expand into the American market was also made by the company Droga Kolinska, which forms a part of the leading food industry group in the region of the former Yugoslavia, the Croatian Atlantic Grupa. Among its most recognized products in the region and in Europe is their Argeta brand of pâté, which since last year has also been produced in Harrisburg, Pennsylvania.

The company stated that they were encouraged to take the long journey across the Atlantic by emigrants from the former Yugoslavia who now live in the US and Canada. “In America, emigrants from our region showed a strong demand for Argeta pâté, but due to the strict American legislation governing the import of meat products, we were not able to meet the demand.

While striving to at least obtain the mandatory certificates and permits for our fish spreads, the Americans originating from our region carried the Argeta pâté in their suitcases or had it delivered through the mail. There exists no agreement between the US and Europe which would allow the export of poultry and meat products to the US. The sale of fish spreads was approved by the U.S.F.D.A. and we have been exporting Argeta tuna and Argeta salmon, both produced in Slovenia, to the American market for a few years. For the production of Argeta made from meat, we have concluded a production agreement with the American company Brother&Sister of Harrisburg, Pennsylvania”, explained the company representatives.

In Harrisburg, Argeta is also being produced for the Canadian market and this year’s plan is to sell 303 tonnes of Argeta. They have selected the Grand Prix Trading Corp of New York as the distributor, “We’re starting in the ethno market in North America, with 1050 sales locations in the US and 740 in Canada,” the Droga Kolinska representatives explained.

Sten Hartman

Jure Makovec

Droga Kolinska and its Argeta pâté making their way across the Atlantic

Not long ago, emigrants from the former Yugoslavia were bringing the popular Argeta pâté to the US in their suitcases or had it sent to them through the mail, but now they will be able to buy it at 1050 locations in the US and at 740 locations in Canada, declared the Slovenian company Droga Kolinska.

INTERVIEW: Jeffrey Tirman, CEO Elan

“Elan is now the last company to fully produce skis in the Alps”

L

ast year the world-renowned ski manufacturer Elan generated more than one quarter of its ski sales in the North American market. This might not seem much considering all of the skis produced by Elan, but the fact that a factory in tiny Slovenia last year generated its biggest growth in the North American markets of the US and Canada, and while also acknowledging that the US is Elan’s biggest ski market, puts this information in a different perspective.

Elan also produces sailboats, provides equipment for sports halls and manufactures high-quality and complex composites for the offshore wind power industry. We discussed the vigorousness of Elan and their plans with the company’s CEO, the American Jeffrey Tirman. Elan has its headquarters in Begunje, a town close to the Slovenian and Austrian border, and has since 2015 been owned by the financial funds VR Capital and Bank of America Merrill Lynch (BAMLI).

Elan does business with snow, sun, water and wind. How has each of these, let’s call them natural elements, promoted Elan’s business last year, generating approximately €85 million of revenue.

Based on revenue, our biggest division is the winter-sports division. Namely our ski production, which makes up almost 50 percent of sales. The 2017/2018 season was very good, as our ski sales achieved growth of almost 20 percent, or €40 million of revenue. According to the pre-season results, things also look promising for the 2018/2019 business year, when we estimate we’ll reach €45 million of revenue from ski sales. Our second most important division is the production of high-quality and complex composites for the offshore wind power industry. We produce external casings for very large wind turbines, internal structural supports for wind blades and tools for the production of blades. With composites, we are also entering the aviation and transport industries but right now I am unable to provide more details. Production of advanced composite components for offshore wind power is growing and last year generated just over

10 Slovenia invites you! www.slo-mag.si

€20 million of revenue and we expect roughly the same results this year, excluding potential new business that we are pursuing. We also produce sailing yachts, which should this year generate approximately €12.5 million of revenue. Our fourth division, Elan Inventa, offers technical seating solutions and equipment for sports halls, such as contractible seating systems for large, multi-purpose halls and arenas. We have supplied these seating systems for the fairgrounds in Düsseldorf and Köln, along with many other large venues. At the moment, most of Elan Inventa’s business takes place in the Scandinavian countries and in Germany, Switzerland and Austria. We have also made a few business deals in the Gulf states, and in Kazakhstan and nearby countries, to name a few.

Our annual business growth is around ten percent, but it is of course hard to estimate growth with this kind of project oriented business.

How have you managed to increase the sales of skis by as much as a fifth?

In the coming season, Elan will launch a new model of skis, the Elan Element, on the American market.

Under the leadership of the ski division director, Leon Korošec, several key factors contributed to this growth, but most of all the innovation which is extremely important in the ski industry and is an area that gets a lot of attention here in Begunje. This tiny corner of Slovenia is the birthplace of many of the biggest ski innovations in the world. For example, Elan was the first company to produce carving skis and the first to make skis with an integrated binding system. Last year we managed to launch another breakthrough innovation on the market - the first ever truly functional folding touring skis, something others have unsuccessfully attempted to do for decades. It is crazy if you think about it as we cut the ski in half, then add hinges, rotating panels and so on, and out comes a ski with the same rigidity profile as a normal ski, and one which skis as well, if not better, than an uncut ski. Our folding ski has been precisely and meticulously tested with the help of several army mountain warfare and rescue units from various countries, including Italy, Austria, France, the US and Canada, and it passed every single test. I have skied using the folding skis myself and they are truly excellent.

Jure Makovec

www.slo-mag.si Slovenia invites you! 11

When buying skis from Elan, you can rely on the product as we have been making skis for 75 years at the same location, the same factory here in Begunje, in the vicinity of the Slovenian and Austrian border. And that’s not all, Elan is also the last company to fully produce 100 percent of its skis in the Alps, hence remaining true to its roots. All other ski companies manufacture their skis in Romania, China, Ukraine, etc. For Elan, Begunje is the home of tradition, quality and Slovenian heritage.

Last year, we dedicated a lot time and energy towards repositioning of the Elan brand, not just with dealers but also with consumers. To put things in perspective, up until now, the ads for skis always involved a skier storming down a very steep hill, or perhaps an individual slalom skier, whereas we have put family and friends at the center of it all. Our message for the consumer - we want you to have fun when skiing on Elan skis and socializing.

We want you to have a great day out on the slopes, and to be happy with your friends and family.

So, how did the last ski manufacturing company in the Alps last year manage to achieve the biggest growth in the US and Canada - across the ocean and not on its home soil - in Europe?

Where can American consumers buy Elan skis?

In most mountain resorts with ski shops. However, you won’t find them just anywhere, as we do not intend to undersell our skis by any means. I will tell US consumers to be on the lookout for a new Elan ski in the upcoming season, as Elan will launch a new model in the US, the Elan “Element”. It is a ski intended for newer skiers as it is super easy to turn while providing good stability at the same time. This was achieved by a series of innovations within the body of the ski, which has several flex points for a more uniform flex when turning.

Recently, Elan has taken over the distribution company Alpina Sport USA, a distribution company of the Slovenian manufacturer of top-class sports footwear Alpina in the NorthAmerican market.

The story is very simple. Some time ago, Elan had its own distribution company for selling skis in the US, which the

Jure Makovec

Although the Elan brand has been strongly established in Canada and the East Coast of the US since long ago, a significant leap was made in the spring of 2016, when we hired Jeff Mechura, who is very well respected in the American ski industry and to whom we have entrusted

the development of our ski brand. Mechura opened doors for us to reach key ski dealers and buyers in the US. This all coincided with the introduction of our “Ripstick” ski, which was very well received on the West Coast of the US, where ski conditions are very different compared to those on the East Coast. In the east, there is a lot of heavy snow and ice, whereas in the West there’s more powder. And once things came together, we found the American market was quite enthusiastic about Elan.

12 Slovenia invites you! www.slo-mag.si

previous owners shut down. Over the last several years, we have sold products intended for the American market through the company Alpina Sport USA, while our company, Elan Canada, sold Alpina products in Canada.

For Elan, the acquisition of Alpina Sport USA was a logical step, since almost 70% of Alpina Sport USA revenue comes from the sale of Elan skis. The US is our biggest market for skis and we now fully control the distribution network in the US and Canadian markets.

our production to grow to approximately 400,000 pairs of skis and the ratio to remain about the same.

Back in the day there was an unwritten rule that in the summer Elan produced skis, whereas in the winter you produced boats and sailboats.

Would Elan be interested in the acquisition of Alpina?

No. This won’t be the case as long as I am CEO at Elan. We do not manufacture cross-country ski boots, ski helmets, shoes, hiking boots, etc. We do, however, know how to make skis and we will stick with what we know and do well. We believe that we make skis better than anyone else in the world and that is what we will continue to do.

Two years ago, you were asked about the significance of the Olympic games in China in 2022 and back then you stated that by then Elan would be present in China. How many Chinese will be skiing on Elan skis in 4 years?

I hope that many will. I believe that the Chinese government plans that there will be around 300 million Chinese skiing within the next ten years and we of course want to be a part of this story. At the moment, China is not a big market for Elan, but the sales there are growing, and we expect them to grow further. In general, the Chinese lack knowledge about skis, but we expect that to change rapidly and, together with Slovenian ski instructors, we are trying to help.

We also have a very good distributor in China, so whenever a new large ski resort opens, we are present with our skis, which skiers can either rent out or buy. Chinese ski centers are usually located around 100 kilometers from large cities and towns, which is a big plus for the ski industry as that means it is easy for skiiers to get to the slopes.

They also provide great ski conditions on both natural and artificial snow. China, therefore, presents a big potential market where we intend to stay. We have built good relations in China and intend to keep things that way.

Will VR Capital and Bank of America Merrill Lynch still be Elan’s owners during the Olympic games in China in 2022?

I doubt this very much. We have recently been approached by multiple external parties who have showed an interest in the acquisition of Elan. Hence, we have hired a financial advisor based in Frankfurt, Freitag & Co., to explore these expressions of interest and we expect that one or more transactions will be completed by the end of the year.

Elan manufactures skis under its own brand but also for other producers. What is the proportion?

In 2017 we manufactured roughly 360,000 pairs of skis, approximately two thirds of these under our own brand and the rest for other ski companies. This year, we expect

“Last year we managed to launch the first ever truly functional folding touring skis, something others have unsucces­ sfully attempted to do for decades,” says Tirman.

This rule is a thing of the past as today we produce skis throughout the entire year. It’s similar with sailboats, which we usually begin manufacturing in the late fall.

Every customer wants their sailboat in April, but we can’t please all of them since we are limited to a maximum number of roughly eight yachts per month.

Importantly, Elan is currently in the best financial situation it’s been in the last 50 years and we’re making investments in new facilities and new technologies. Last year we spent €5 million on capex investment, and the year before €2.5 million, and we plan to spend another few million euros on investment this year. We are always assessing capacity utilization and looking for ways to smartly expand production and grow our business, always remembering that things move in cycles.

We live in the time of global warming. Does this mean that in the future skiing might become a privilege of the rich? How have you adapted to this and do you also focus on directing your innovations towards solving this question?

If your business is the production of skis and winter gear, then you’re in a similar position to farmers, since you depend on the weather. When it comes to global warming, this can significantly affect the number of days with snow cover and the less snow there is, then the fewer consumers wanting new skis there are. Although we have given this a lot of thought, I’m not sure there’s much else we can do apart from trying not to contribute towards global warming ourselves.

However, I would also like to point out another phenomenon that some scientists are talking about as it relates to climate change - with the increase of average air temperatures and melting Arctic ice, the amount of cold water coming from the Arctic towards Western Europe is also increasing, impacting ocean currents and hence the European weather. This could mean that winter weather in Europe will be even colder in the future, which could provide a long-term benefit for ski manufacturers, and for skiers as well!

Elan’s innovation last year was the folding touring ski. Where do you wish to market those?

Our folding skis have very distinct characteristics as they can be used to jump out of a helicopter, traverse demanding terrain, etc. Therefore, they are perfect for the military, mountain police, and emergency responders. The folding skis will eventually be available in stores, but since they will be quite expensive, we don’t expect a big retail market for them. However, we wish to one day produce a folding ski which will be affordable for every consumer. Imagine having a pair of skis you could put in a small regular check-in bag and hop in a cab with it. It’s what we want, but we aren’t there just yet.

www.slo-mag.si Slovenia invites you! 13

The US is Elan’s biggest market for skis, says Jeffrey Tirman.

Ray Skelton

Testing of Elan skis on ski slopes at Boyne Mountain in Michigan.

The European Union prides itself on having the fastest economic growth in the last decade.

How can this be capitalized on by your nautical division?

Since taking over Elan, you have employed an additional 200 workers. Which one of your divisions contributed the most towards the recruitment of additional staff?

The nautical industry has been experiencing changes, in large part dictated by the growing charter industry, since an increasing number of people wish to spend their vacation on the Adriatic coast. Elan has already established strong connections with the charter industry and in the future we will strive to further build on those. We want to offer great and quality sailboats at a reasonable price, since buying a sailboat for €300,000 can be financially demanding for most. Another desire of ours is to establish a long-term business model for the nautical division, independent of the trends of economic growth.

The two divisions which contributed the most were ski manufacturing and advanced composites for offshore wind power.

Are your sailboats also sold in the US? Yes. We currently sell our sailboats at 5 locations in the US, on the East and the West Coasts as well as in the vicinity of Chicago/Toronto. American sailors like spacious and comfortable sailboats. Our products were received very well, and people see Elan sailboats as elegant and modern-looking, as well as having great performance characteristics.

14 Slovenia invites you! www.slo-mag.si

What are your plans for 2018?

We wish our growth this year to continue and a lot will depend on realizing new business deals in the field of high-quality and complex composites. If we work well, it will pay off later in the year and even more so next year.

I have read that you have ten pairs of Elan skis.

Why that many?

I am one of Elan’s biggest customers for sure. I’m not sure I own just 10 pairs, but I am an Elan ambassador and I love selling our skis. All of my friends now ski on Elan. My favorite ski to use is the Elan Ripstick 96, which is truly wonderful. I encourage every reader to try the Ripstick. It will be hard to ski on anything else afterwards.

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Who are the Slovenian export

giants W e are presenting the largest (page 17) and above-average medium-sized Slovenian export companies (page 18) along with information on their perfor-

mance in 2016.

The biggest export companies are those which generate at least half of their revenue abroad. Among these are, for example, the biggest Slovenian pharmaceutical companies, manufacturers of household appliances, suppliers of the automotive industry, the biggest Slovenian steel companies and many others.

16 Slovenia invites you! www.slo-mag.si

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The list of above-average medium-sized contains companies which generate 50 percent of revenue from sales through exports.

For example, these include a manufacturer of hightech medical lasers, globally recognized manufacturers of ultralight motor gliders and measuring instruments for various industries, manufacturers of electrical equipment and plastics products, and automotive industry suppliers, to name but a few.

The largest Slovenian exporters Company name

Main business

GEN-I

Trade in electricity

Sales on foreign markets (in EUR million)

Interim export growth (in %)

Share of export in sales (in %)

Number of employees

Net profit (in EUR million)

1275.7

-13.8

78.0

193

8.6

Revoz

Production of motor vehicles

1071.0

5.1

99.1

2,066

15.9

Krka

Production of pharmaceutical preparations

1020.4

-1.5

95.2

4,639

102.9

Lek

Production of pharmaceutical preparations

850.2

5.8

95.0

3,534

74.8

HSE

Trade in electricity

787.3

7.3

63.8

138

44.4

Gorenje

Production of electric domestic appliances

636.5

4.5

89.3

4,253

3.7

Impol

Casting of light metals

462.7

1.9

80.5

38

15.4

Hella Saturnus Slovenia

Production of lighting devices and equipment

352.0

4.3

95.7

1,504

3.2

Adria Mobil

Production of bodies for motor vehicles; production of trailers and semi-trailers

316.6

23.2

98.3

789

27.3

Cimos

Casting of light metals

312.3

-17.6

98.2

1,596

-13.8

Interenergo

Trade in electricity

306.9

55.0

82.8

25

-9.7

SIJ Acroni

Production of pig iron, steel and ferro-alloys

295.3

-12.8

87.6

1,120

6.0

BSH Hišni aparati

Production of electric domestic appliances

262.8

3.3

92.0

1,231

7.9

Talum

Aluminum Production

241.6

-2.2

79.5

805

0.8

LTH Castings

Casting of light metals

229.5

12.6

99.5

1,556

30.3

TAB

Production of batteries and accumulators

221.8

11.6

96.5

604

20.9

Mahle Letrika

Production of electrical and electronic equipment for motor vehicles

186.0

8.3

94.9

1,428

18.6

Geoplin

Wholesale of solid, liquid and gaseous fuels and related products

172.7

-7.6

55.1

40

7.5

Goodyear Dunlop Sava

Production and retreading of rubber tires and tubes for vehicles

171.2

0.2

82.6

1,336

4.1

Rail freight transport

159.2

-0.7

89.5

1,232

8.9

Tires SŽ - Tovorni promet Helios Tblus

Production of paints, varnishes and similar coatings, printing ink and mastics

158.4

-6.5

87.3

756

17.1

Boxmark Leather

Production of luggage, handbags, saddlery and harness products

148.5

0.0

99.7

1,951

-7.0

Cinkarna Celje

Production of dyes and pigments

148.3

1.2

87.4

937

9.8

Količevo Karton

Production of paper and cardboard

137.5

0.8

92.4

375

14.3

Unior

Forging, pressing, stamping and roll-forming of metal; powder metallurgy

135.9

6.3

80.9

2,057

5.1

Belektron

Business and other management consultancy activities

135.2

3.4

79.5

5

-1.2

Port of Koper

Cargo handling

131.7

8,9

69.1

881

40.6

Kolektor Group

Company administration

128.8

-2.7

88.7

248

24.9

Hidria Rotomatika

Production of electric motors, generators and transformers

124.1

3.5

89.7

1,062

5.3

SIJ Metal Ravne

Production of pig iron, steel and ferro-alloys

116.5

-7.6

73.9

986

7.3

Domel

Production of electric motors, generators and transformers

108.0

19.0

92.5

858

9.4

Droga Kolinska

Processing of tea and coffee

106.9

-6.6

66.8

465

9.0

Valiant

Wholesale of solid, liquid and gaseous fuels and related products

98.0

82.3

97.6

7

0.6

Danfoss Trata

Installation of industrial machinery and devices

97.9

6.4

94.6

395

13.2

Savatech

Production of other rubber products

96.0

-0.8

85.1

761

12.7

Papierfabrik Vevče

Production of paper and cardboard

92.4

-2.5

95.7

250

-2.7

Akrapovič

Production of other parts and accessories for motor vehicles

91.4

15.1

98.9

826

12.1

Trimo

Production of metal structures and parts of structures

91.0

27.7

87.7

350

4.0

Knauf Insulation

Production of other non-metallic mineral products

85.9

4.1

78.0

406

7.1

Novem Car Interior

Production of other products of wood, cork, straw and plaiting material

80.3

9.8

99.9

584

9.5

Adient Slovenj Gradec

Production of other plastic products

79.3

2,3

97,9

581

5.5

Palfinger

Production of devices for lifting and transport

78.1

-0,7

95,0

470

3.5

Design

www.slo-mag.si Slovenia invites you! 17

Company name

Main business

Sales on foreign markets (in EUR million)

Interim export growth (in %)

Share of export in sales (in %)

Number of employees

Net profit (in EUR million)

Interblock

Production of other electrical devices

78.1

65.5

96,9

156

29,0

Vipap Videm Krško

Production of paper and cardboard

77.7

-2.5

88,3

337

-5,8

Contitech Slovenija

Production of other rubber products

77.1

16.4

95,2

280

12,9

ETI

Production of devices for distribution and control of electricity

77.1

7.7

88,4

824

2,3

Bayer

Wholesale of pharmaceutical goods and medicinal goods and materials

77.0

2.1

65,2

118

1,9

Swatycomet

Production of abrasive products

74.3

-4.8

92.2

825

4.3

Kolektor Etra

Production of electric motors, generators and transformers

73.6

16.6

85.1

337

9.5

Paloma

Production of paper household and sanitary goods and of toilet requisites

72.3

3.1

83.4

641

1.5

Iskraemeco

Production of instruments and appliances for measuring, testing and navigation

71.6

10.7

95.2

710

3.2

Filc

Production of non-wovens and articles made from non-wovens, except apparel

70.7

11.8

94.4

261

16.5

GKN Driveline Slovenija

Production of bearings, gears and elements for mechanical energy transfer

70.2

13.4

90.2

394

7.6

Arcont

Production of metal structures and parts of structures

68.7

8.0

99.1

676

4.2

ebm-papst Slovenija

Production of electric motors, generators and transformers

68.2

2.5

98.1

404

0.3

TPV

Production of other parts and accessories for motor vehicles

67.5

15.3

87.4

717

1.3

Elrad International

Production of consumer electronics

66.1

36.4

88.4

428

9.7

Štore Steel

Production of pig iron, steel and ferro-alloys

65.5

-1.2

69.4

538

1.9

Starkom

Production of other parts and accessories for motor vehicles

63.5

23.0

99.2

262

5.5

TBP

Production of other parts and accessories for motor vehicles

59.0

12.8

99.4

746

7.4

Titus

Production of locks and hinges

58.8

12.3

79.7

406

6.3

Iskra Mehanizmi

Production of other electrical devices

58.1

3.2

88.0

381

4.1

Toyota Adria

Sale of cars and light motor vehicles

56.4

16.8

56.1

35

0.1

Silkem

Production of other non-metallic mineral products

56.2

-18.7

94.0

187

4.0

ITW Metalflex

Production of electric domestic appliances

53.6

15.7

85.7

313

9.3

Calcit

Quarrying of stone

53.5

3.5

80.9

144

4.8

Elan

Production of sports goods

53.1

6.6

91.0

537

1.3

Steklarna Hrastnik *

Production of hollow glass

52.4

5.5

99.0

601

6.2

Sales on foreign markets (in EUR million)

Interim export growth (in %)

Share of export in sales (in %)

Number of employees

Net profit (in EUR million)

Op. *due to exceptional restitution the profit is lower by 725 thousand euros. Sources: Gvin, companies, own calculation

Above-average medium-sized exporters Company name

Main business

Cablex-M

Production of other electrical equipment

47.9

6.3

96.1

231

2.2

Fotona

Production of medical and dental instruments and supplies

40.3

21.3

99.3

233

8.4

Incom

Ice cream production

36.5

20.0

89.7

218

1.8

Gg Bled

Forestry service

36.5

41.1

84.4

74

2.2

Plama-Pur

Production of plastic plates, sheets, tubes and profiles

35.7

13.9

85.7

203

4.8

Siliko

Production of other rubber products

33.7

11.4

72.7

266

3.8

Atotech Slovenija

Production of other chemical products

28.8

9.4

91.7

65

1.4

Sibo G

Production of plastic packaging

28.4

10.4

90.6

202

2.4

Niko

Production of other unclassified metal products

28.4

7.9

92.8

259

5.3

Isokon

Production of plastic plates, sheets, tubes and profiles

26.5

7.0

92.3

160

2.7

Hc Hidromontaža

Construction of other civil engineering projects

22.6

12.3

100.0

21

1.8

Rem

Production of metal structures and parts of structures

21.5

26.4

59.8

146

4.9

Akers Valji Ravne

Production of metallurgy machinery

20.5

8.6

99.1

93

1.4

18 Slovenia invites you! www.slo-mag.si

Company name

Main business

Sales on foreign markets (in EUR million)

Interim export growth (in %)

Share of export in sales (in %)

Number of employees

Net profit (in EUR million)

Pirnar

Wholesale of hardware, plumbing and heating equipment and supplies

19.9

35.4

88.9

59

1.2

Monter Dravograd

Production of metal structures and parts of structures

19.1

10.8

92.8

176

1.7

Polycom

Production of other plastic products

18.4

8.5

73.4

190

1.5

Alpod

Wholesale of wood, construction materials and sanitary equipment

17.6

30.3

72.6

51

1.3

Pišek - Vitli Krpan

Production of agricultural and forestry machinery

17.5

13.9

84.4

166

2.7

Transpak

Production of machinery for food and tobacco industries

17.0

44.9

92.9

94

1.8

Mineralka

Production of other non-metallic mineral products

16.4

7.6

98.7

77

1.9

Alius

Installation of industrial machinery and equipment

16.2

31.7

98.3

118

1.8

Trimo Mss

Development of building projects

15.8

81.6

95.5

9

1.1

Škrlj

Production of machinery for food and tobacco industries

15.6

8.8

94.7

83

2.1

IHS

Production of devices for lifting and transport

14.8

16.1

97.3

97

1.5

Dewesoft

Computer programming activities

14.7

18.1

95.4

56

4.0

Pipistrel

Production of aircraft and spacecraft

14.1

18.8

96.4

107

2.0

Arex

Manufacture of tools for machinery

13.9

48.4

85.8

91

2.1

LPKF

Production of machinery for other special purposes

13.8

17.3

97.5

98

1.7

RLS

Production of instruments and appliances for measuring, testing and navigation

13.8

7.5

94.1

108

3.0

Plasta

Production of plastic plates, sheets, tubes and profiles

13.5

17.3

59.4

120

4.4

Fibran Nord

Production of plastic plates, sheets, tubes and profiles

13.4

6.6

74.6

59

1.0

Oplast

Production of other plastic products

13.3

15.2

71.3

193

1.7

Tekstina

Biotechnological research and development

13.1

21.2

98.6

70

3.7

Marmor Hotavlje

Processing of natural stone

12.5

58.4

89.1

119

1.2

Omega Air

Production of pumps and compressors

11.7

30.1

68.2

159

1.5

Mos Servis

Installation of industrial machinery and devices

11.5

14.6

99.4

113

1.5

Plastoform

Production of other plastic products

11.2

11.4

51.3

164

3.6

Belinka Perkemija

Production of other inorganic basic chemicals

11.1

5.8

79.9

56

2.6

Mercis

Non-specialized agency involved in the sale of a variety of goods

10.3

15.3

80.6

34

0.8

Papiroti

Production of corrugated paper and cardboard and cardboard packaging

10.2

10.9

87.4

87

1.0

Ko-Si

Production of non-wovens and articles made from non-wovens, except apparel

9.9

25.4

94.9

85

1.7

Rodex

Production of electronic components

9.9

13.5

96.5

85

0.7

Tehnos Žalec

Production of other plastic products

9.7

29.3

75.3

92

1.6

Nektar Natura

Production of fruit and vegetable juice

9.4

15.9

53.9

63

2.9

Adria Transport

Rail freight transport

9.1

10.5

78.5

25

1.3

Codex

Shipping and other activities supporting transportation

9.1

6.5

83.9

22

0.8

Mercury Processing

Data processing, hosting and related activities

9.1

17.5

62.6

83

0.8

Brus

Freight transport by road

9.0

12.3

74.3

105

0.9

Rosenbauer

Production of motor vehicles

8.9

11.5

57.6

94

1.0

Unichem

Processing activities unclassified elsewhere

8.4

17.6

67.3

89

0.7

Strip's

Production of other electrical devices

7.9

22.5

69.6

90

1.4

Kemira Ktm

Production of other inorganic basic chemicals

7.5

8.8

68.7

30

0.7

Tem Čatež

Production of plugs, switches and other wiring devices

7.2

14.0

64.7

119

0.9

Pfeifer

Freight transport by road

5.7

12.3

52.1

88

0.9

Services International

www.slo-mag.si Slovenia invites you! 19

ECONOMIC COOPERATION BETWEEN SLOVENIA AND THE US

What kind of opportunities are Slovenian companies presented with in the American market?

The first contact American investors have with Slovenia is often the Bank Assets Manage­ ment Company, which manages a quite diverse investment portfolio worth a little over a billion euros.

S

pecial steels, electronic gaming tables, skis, and pâtés are just a few of the products with which the Slovenian export companies have entered and now successfully perform in the American market. Among them is the world-renowned ski manufacturer Elan, which last year generated almost a third of its ski sales in the North American market; Studio Moderna, which has its own bed factory in the US, and the company Interblock, which supplies the entire North American region with electronic slot machines, to name just a few.

Another Slovenian company, TPV, a developer and producer of bodywork and chassis systems, car seat elements, and engine sealants, is also planning to expand operations to the US. TPV supplies eminent world corporate groups and manufacturers of the most prestigious brands of cars, such as BMW, Daimler, Volvo, Jaguar, Volkswagen, Brose, Benteler and Magna, mainly in Europe, Asia, and in South and North America.

We export more to the US than we import from there

The United States of America is the twelfth most significant foreign trading partner and the second most important export market outside of the European Union.

It is interesting that since 2014 tiny Slovenia has held a positive balance in trading with the US, the world’s strongest economy. The fact that we export more to the US than we import from there can also be explained by the fact that recession forced Slovenian companies to stand on their own two feet and begin increasing their exports. Our balance in the US was also positive last year, when we exported 570 million euros of goods to the US and imported 380 million, which brought the foreign trade exchange between the countries close to a billion euros.

20 Slovenia invites you! www.slo-mag.si

Slovenia mainly imports mineral fertilizers and processed petroleum derivatives from the US, whereas we export electrical machinery, mechanical and electrical machines and pharmaceuticals. The automotive industry by way of European companies is also important.

Although the trade in goods between the countries is not at a substantial level, a country like Slovenia with its small and open economy is extremely interesting from a strategic perspective, as emphasized by Branko Žibret, partner and Director of the consultancy company A. T. Kearney for East Europe.

“Slovenia is a country with an educated and expensive labor force which can succeed long-term by manufacturing products with an increasingly high added value. If we consider this to be the driving force behind Slovenian exports, it is crucial for us to cooperate with the world’s largest economy in exchange of goods, services and capital flows,” pointed out Žibret. This kind of opportunity was fully embraced by the high-tech company Dewesoft, a manufacturer of cutting-edge measuring technology solutions. Among those excited by this company’s technology is NASA, and their customers also include Space X, the Kennedy Space Center, Lufthansa, Bosch, BMW, and Audi, to name just a few.

Slovenian privatization and American capital

Despite the fact that Slovenia, with its population of 2 million, is a small consumer market and as such does not present an inflow market for foreign investments, it manages to attract investments since investors today seek safe countries. “When global companies make decisions about where to invest, they seek environments where political and economic instability is highly unlikely, and Slovenia certainly is one of these environments,” emphasized Branko Žibret.

Aleš Beno

In the past Slovenia predominantly attracted branches of large American ITK companies and pharmaceutical giants, but in recent years, American capital interests have been put into effect as part of the privatization of stateowned enterprises led by the Slovenian government.

By far the biggest American investment in Slovenia is the second largest bank, Nova Kreditna banka Maribor, bought by the American multinational investment fund Apollo Global Management. In 2015, the Slovenian ski manufacturing company Elan was bought by Merryl Lynch International and Wiltan Enterprises Limited and has now been put up for sale. The investment firm The Gores Group acquired the laser production company Fotono. Another American company worth mentioning is the family owned Weiler Corporation, which in 2015 took over a Slovenian abrasives manufacturer.

The first contact American investors have with Slovenia is often the Bank Assets Management Company, which manages a quite diverse investment portfolio worth a little over a billion euros and which is comprised of non-performing assets taken over from the Slovenian systemic banks. Among them are, for instance, financial claims (€721 million), residential and commercial real estate (€192 million) and ownership interests (€99 million).

“The Bank Assets Management Company enjoys an enormous amount of trust among international investors, which is something of which they are fully aware.

With its performance, the Bank Assets Management Company has built a reputation of being the reference company for effective management of non-perform-

ing assets, which was confirmed with the company’s excellent business results. Additionally, the Bank Assets Management Company is considered an adaptable, agile and transparent institution, which follows the strictest international codes effective in all aspects of the management and sale of assets, “was emphasized by a Bank Assets Management Company representative.

Slovenian companies are known for their innovativeness

Sandi Češko, the Director of Studio Moderna, is also convinced that Slovenian companies could better exploit the opportunities in the American market. Today, the distance between markets is no longer an obstacle and Slovenian companies are known for their innovativeness and a well-educated workforce and the best markets for innovative companies are those that are the most competitive,” emphasized Češko. The American market is also the most organized in the world and it is the proper functioning of the rule of law that is of key importance for a small company wishing to expand: “In Europe, Slovenia is perceived as a great subcontractor country and it’s hard to get rid of this label. Americans are unaware of this and so are interested exclusively in the quality and benefits of your product or innovation. Capital is available to anyone and investors are willing to take more risks.

To sum up, I believe the perception of the American market is completely false and this explains why young Slovenian businessmen who are not restricted by stereotypes are more successful in the US than in any other markets,” added Češko.

Slovenia is a country with an educated and expensive labor force which can succeed long-term by manufacturing products with an increasingly high added value, says Branko Žibret, partner and Director of the consultancy company A. T. Kearney for East Europe.

www.slo-mag.si Slovenia invites you! 21

WHAT KIND OF CONNECTIONS HAVE SLOVENIAN WINEMAKERS BUILT IN THE AMERICAN MARKET?

American wine consumers tend to be swayed by influential wine critics After the Italian market, the US is the second most important market for Slovenian winemakers. The connections formed in the 1980s during the trade in goods American Coca Cola for Slovenian or Yugoslavian wine - were crucial for the establishment of Slovenian wine in the US market.

The US is the second largest export market

Slovenian winemakers today annually export a little over 5 million liters of wine, and for them the US market is the second most important foreign market after that of Italy.

This means that they export a million and a half liters of wine to the US. An interesting fact which Dušan Brejc pointed out is that in the last 15 years, Slovenian winemakers have focused the supply of their wines almost exclusively on the catering sector and far less on retail, which used to predominate 20 years ago and more.

22 Slovenia invites you! www.slo-mag.si

Marijan Mocivnik

T

he American market has been a traditional market for Slovenian wines since the days of the former Yugoslavia. In the 1980s the Coca Cola company established sales of Slovenian and other Yugoslavian wines in the American market and introduced them as one of the most famous varietal wines in the world. These were the words of Dušan Brejc, the President of the Vinska družba Slovenije, the oldest professionally organized group of winemakers and winegrowers in Slovenia.

“The company Slovenijavino, later renamed Slovin, annually exported around 450 thousand cartons of wine from the former Yugoslavia to the US, which was a huge business.

It’s worth mentioning that back then Slovin was a very large company - on a global scale. It employed 6000 people across Yugoslavia. During its peak it even had a 2 percent market share of the entirety of European wine exports,” explained Brej.

According to Brejc, it was these past connections that proved crucial in the 90s, when consumers of simple, mass-produced wine disappeared, making room for Slovenian family winemakers who were flourishing at that time.

“The US, along with Great Britain and Germany, presented a market with the least prejudice. This means that wines from lesser known wine growing regions were being bought - in contrast to Italy, France and Portugal, where loyalty to their own wine is very strong. This is the beginning of the American story of a journey of winemakers from the wine growing region of Goriška Brda, led by Aleš Kristančič from Movia winery. They managed to spark great media interest through magazines such as the Wine Spectator, and through wine critics like, for example, Robert M. Parker jr.,” said Brejc.

“Colliano is a special range of wines produced for the American market and aimed exclusively at American restaurants,” stated the chief oenologist at Klet Brda, Darinko Ribolica.

“This might not be unusual for family winemakers such as Movia or Marjan Simčič, but when selling 500 thousand liters of wine to the US, this is not self-evident anymore. Klet Brda, the largest exporter, exports mid and high-priced wines to the American market. This is connected with changes in the shopping habits of US Millennials, who drink less, but better and more expensive wine,” believes Brejc.

The chief oenologist of Klet Brda, Darinko Ribolica states that their annual exports to the US total just over 1.2 million liters of wine and sales are still growing, mainly due to the business connections that were established in the past.

A good example of this is the brand Avia, which was launched exclusively on the American market by the abovementioned company Slovin and was bought by Klet Brda in 2000. “Brici”, which is what the locals are called in Goriška Brda, use this brand to export white wine varieties of Chardonnay, Pinot Gris and Italian Reisling, and red wine varieties of Merlot, Cabernet Sauvignon, Pinot Noir and a form of Cabernet and Merlot to the US. Sales of these wines are aimed mainly at supermarkets, whereas other brands are used more in catering.

Irena Herak

“The Millennials in the US tend to drink less wine but choose better and more expensive varieties, a trend acted upon

by Klet Brda, an exporter of mid and highpriced wine to the American market,” stated Dušan Brejc, the president of the Vinska družba Slovenije.

Aleš Beno

Winemakers Aleks Simčič and Klet Brda have also joined forces and created the brand Giocato, to be presented in the American market.

Special assortment for the US market.

Colliano is the name of the special line offered by Klet Brda exclusively for the US (Collio is the Italian side of Goriška Brda). The line distributes to the market Rebula and Sauvignonasse variety wines (former Tokaj) and forms of white and red Krasno wine. Why Colliano? “Advisers in our company in the US have proposed that the name Colliano would be better than Krasno, which is otherwise the name of the line in other markets. These wines are intended for use exclusively in American restaurants,” answered Ribolica.

The chief oenologist at Klet Brda pointed out that American wine drinkers are very thrilled with their Pinot Gris, the export of which keeps growing every year.

“Pinot Gris is a simple, easy-drinkable, fruit wine with a highly recognized name in the US. This might be due to the fact that American consumers are easily influenced by the opinion of renowned wine critics. It is also a fact that Pinot Gris from Brda carries structure, flavor and depth, whereas Pinot produced in the flat regions such as Pinot Grigio from the Italian region of Veneto is a sparse, flavor-lacking wine.”

How important the opinion of eminent wine critics is for Americans is also evident from the recent increase in the export of their Rebula wine. “Ever since a few positive articles were published about this traditional Brda variety, everyone’s been placing orders. From complex wines to simple and sparkling wines.”

Pinot Gris is our top seller

Klet Brda also has another “trump card” for the American market. Giocato is a project specifically adapted for the American market with the winemaker Aleks Simčič (Edi Simčič Wines). “For quite a few years I was selling my wine in the US through a distributor, who started doing business as an importer for small prestigious wineries.

After the recession at the end of the previous decade, he realized his business would survive without the quantity.

It was then that we started cooperating with Klet Brda and the Giocato brand was established.

The brand, owned by Simčič and the American importer, sells approximately 250 thousand bottles of wine annually. They currently sell Pinot Gris and Sauvignon.

We also tried with Chardonnay, but weren’t successful, since the American drinkers are used to the Californian Chardonnay,” said Simčič.

“Together with oenologists from Klet Brda, we determine a wine’s profile and quality, whereas operative matters are taken care of at the largest Brda wine cellar,” Simčič pointed out.

Most of this wine is sold in the catering industry, per glass. “This wine is affordable, therefore it is often the first form of contact an American wine drinker has with Slovenian wine. Wine shops sell the wine for 10 to 12 dollars,” explains Simčič, who finds the US a very significant market. This can be attributed to two aspects – the first is that, other than China, the US is the only market allowing a large quantity of exports, and the second aspect is reputation.

Distributors are crucial for sales

Simčič exports 15 to 20 percent of his entire production to the US. The most popular white wines sent across the Atlantic are the variety wines: Chardonnay, Sauvignon and Malvasia and their quantities slightly exceed the red wine varieties. “A specific of the US is the existence of very traditional markets within individual states, where everything is based on the Californian style and their varieties, although some better developed markets also exist, which seek diversity,” explained a co-spokesman.

In his opinion, becoming established in the American markets largely depends on the distributors. “In most states, the law still does not allow import and sale within the same company. The importer must engage a distributor in each individual state. Therefore, the distributors play a key role, since they are the ones selling the wine.”

Slovenia is a country with a long-established winegrowing and winemaking tradition

Slovenia is a country with a long-established winegrowing and winemaking tradition. The winegrowing land in Slovenia is divided into three winegrowing areas and nine winegrowing districts. The Slovenian vineyards lay in the center of the European winemaking area and spread out over 15,000 hectares. Slovenia is part of a large European winegrowing area with perfect climate conditions for nurturing vines.

Other parts of this area are, for example, Burgundy and Bordeaux in France. The intertwining of climate effects and soil gives Slovenia the diversity in its wine repertoire and the quality of its wine is considered among the best in the world.

www.slo-mag.si Slovenia invites you! 23

SLOVENIA’S BEAUTY

The undiscovered beauty breaking records in tourism

Jure Makovec

When visiting Slovenia, you simply must go and see the glacial lake Bled close to the Alps.

J

ust a few years ago it seemed that Slovenia, perched between Italy, Austria, Hungary and Croatia was fairly unknown to people. But those days are now long gone, as this country of two million in the north of the Adriatic Sea has been breaking records in tourism for the last four consecutive years, beating all of Europe with its increase in overnight stays of foreign guests and a week rarely goes by without representatives of various recognized tourist organizations or eminent media praising the splendors of one of the smallest European countries.

The country is also gaining popularity among those looking for authentic destinations and those who are unfamiliar with the explosion of mass tourism. Among these guests are an increasing number of Americans.

Meeting your inner self in Piran

If you arrive from Italy, e.g. from Venice, it is best to start your visit to Slovenia on the Slovenian coast. Despite measuring just 46 kilometers in length, it offers numerous tourist spots, places and attractions. One of these is Piran, one of the most colorful and photogenic towns on the Slovenian coast, which the Slovenians delight in calling their “Little Venice”.

24 Slovenia invites you! www.slo-mag.si

Even though Piran cannot boast singing gondoliers and elegant black gondolas, it won’t take long for you to simply fall in love with this port town and its medieval town walls. The magic of Piran can best be experienced if you get lost in its narrow streets and tightly packed houses or engage in conversation with a friendly waiter in one of the selected restaurants offering a wide variety of seafood dishes. Another specialty of the Slovenian coast is connected to the sea - salt panning. In the Slovenian coastal towns of Sečovlje and Strunjan, salt is still being produced today using a 700-year-old natural and manual method. Where there’s an abundance of salt, there’s also plenty of opportunities to use its healing effects. Since Slovenians obviously don’t want to be left behind, you can enjoy sea therapy, aerosol therapy, climatic therapy and therapy with saltpan mud.

Where fine wines are made...

While Piran is often compared to Venice, similarities are also often drawn between Tuscany in Italy and the Slovenian region of Goriška Brda. Rightfully so, as this magnificent region is just miles away from the Italian border and will steal your heart with its medieval villages

and hills covered with vineyards, fruit trees and many hundred-year-old cypresses.

After you feed your soul with the almost Hollywood-like scenery of this magical wine growing region full of castles, manors and villas, it will be time to take care of your taste buds, as the Goriška Brda region is not only a place where excellent wine is made, but a place where you can eat well too. Freshly baked bread and home-made olive oil. Prosciutto and Pancetta. Goat cheese, asparagus, polenta...these are just a few of the delicious dishes in which you get to indulge in Goriška Brda, while the nearby sea gently caresses you with warm Mediterranean air.

If you’re also a fan of adventuring into the unknown, you might be in for a special treat - while travelling on meandering local roads you might lose track of whether you’re in Italy or Slovenia; which can be as welcome as finding your inner self in the middle of Piran.

Good food is also inseparably linked with the river Soča Valley, which due to its milky blueish-green color is often called the “emerald river” by Slovenians. With its development of sustainable tourism, the valley was the first in Slovenia to obtain the title of European Destination of Excellence (EDEN) and is also home to Ana Roš, who was last year crowned as the best chef in the world by the world-renowned academy of The World’s 50 Best Restaurants. The Slovenian celebrity chef also increased the culinary popularity of Posočje (the river Soča Valley) in 2016, when she was the only female participant in the American documentary Chef’s Table.

The prettiest bay on the Slovenian coast belongs to Piran.

A visit to Slovenia is not complete without visiting the cosmopolitan resort of Bled and its lake of the same name, located just 15 kilometers from the Austrian border. Traditional tales claim that the lake was filled by the stunningly gorgeous mountain fairies, so they could dance in the middle of the lake undisturbed on moonlit nights and, with a little imagination, you can just about imagine such a sight when you ascend to the breathtaking medieval Castle Bled and, from a height of 139 meters, view the lake’s surface reflecting the neighboring mountains. Once you are done taking in the view, which in recent years has been a real hit on Instagram, you can pamper yourself in thermal waters, visit the eminent Vila Bled Hotel, or swim in the warm lake water, which in summer is a warm 26 degrees.

Vila Bled was once the residence of the Yugoslavian president Tito. A fascinating hotel, surrounded by a big park, partially hidden from the sight of passers-by, has sustained its charm and character from the 1950s up to today. It is here where you will be rewarded with the main prize - the remarkable view of Lake Bled, a view that was once shared by Tito and international including American - film stars, prime ministers, kings and queens.

The adjective “royal” can also be found in one of the two golf courses Bled offers. The credit for that goes to the Karadzordzevic royal family of Yugoslavia, who realized 80 years ago that Bled is a place where the love for sport can be combined with the breathtaking beauty of Slovenian nature. Slovenia has sixteen golf courses, which are not hard to get to regardless of whether you’re on the Slovenian coast, in the lively capital Ljubljana or nestled in the Slovenian Alps.

And there is no better place to conclude the day you started with a boat ride on a glacial lake and continued with lunch at the nearby medieval Castle Bled, than

Aleš Beno

Shutterstock

Marjana Virant

The greenest place in Europe

You will quickly become fond of the kindness the people of Prekmurje offer while they proudly show you “cimprače“, the traditional Pannonian houses made of wood, mud and straw.

Otočec Castle is the only “water“ castle in Slovenia, being located on one of the islands of the Krka River.

It was proclaimed a cultural monument.

www.slo-mag.si Slovenia invites you! 25

Our pick of the top seven destinations for American tourists: Piran, Portorose – 2.5hour drive from Venice, holiday by the sea at any time of year, congress, spa, gambling and nautical tourism, salt pan mud therapies

Goriška Brda – 1.5-hour drive from Venice, visits to tourist farms, culinary and wine tours, cycling, sightseeing of cultural and natural monuments.

Bovec – rafting on the Soča River, kayaking, canyoning, skiing at the highest Slovenian ski resort, culinary indulgences, hiking

Bled – high-end Alpine resort, walks around the glacial lake, thermal water bathing, hiking in nature, weddings at Castle Bled.

Ljubljana 4-hour drive from Vienna, guided culinary and wine tours, shopping centers, congress tourism, sightseeing at Ljubljana Castle.

Otočec – fivestar hotel, culinary indulgences

Prekmurje – spa tourism, thermal water bathing, countless options for relaxation, culinary indulgences

in the Slovenian capital of Ljubljana, just an hour’s drive away, which in 2016 was awarded the title of the greenest city in Europe. The view of Ljubljana with the old town and the medieval castle on the city hill resembles the Austrian city of Salzburg. Another similarity the Slovenian capital shares with the Austrian center of classical music is the distant view of the snow-covered mountains, among which can be seen Slovenia’s highest peak, the 2,864m high Mt. Triglav.

Celica, an artistically restored former prison that is considered to be one of the most popular tourist sites in Ljubljana. The chefs at the Otočec Castle, located less than an hour’s drive from the capital in the direction of Croatia, are also known for their imagination. The only Slovenian water castle lies on an island in the middle of the Krka River and also includes a five-star hotel.

A capital you will fall in love with

After you’ve enjoyed the embrace of the Adriatic Sea, breathed fresh mountain air in the Slovenian Alps, or taken a relaxing stroll in the capital, you can complete the experience with a quiet end to the week in the north-eastern part of Slovenia, at the border with Austria and Hungary, on the left bank of the Mura River, in Prekmurje. Not long ago, this Slovenian region was somewhat overlooked, but this has changed; a situation which has a lot to do with the English a decade ago buying old houses in Prekmurje for their extended weekend getaways and some even moving there permanently.

You will quickly become fond of the kindness the people of Prekmurje offer while they proudly show you “cimprače”, the traditional Pannonian houses made of wood, mud and straw, which were an important part of the housing culture of the rural population in Prekmurje, even as late as at the start of the 20th century. Of course, you cannot visit Prekmurje without indulging in the local culinary pleasures, which many agree are exceptional. While you will be spoiled with fresh seafood and olive oil in the coastal towns of Portorose and Piran, when in Prekmurje you’ll have a chance to taste the black gold, a name Slovenians use for their culinary specialty pumpkin seed oil, pumpkin ice cream, or indulge your sweet tooth with the unique Slovenian dessert gibanica, which will treat you to an intense mouthwatering explosion of flavors.

Despite having everything a capital needs, you shouldn’t look for similarities with other European capitals since Ljubljana is simply - too small. But it’s the city’s intimate character that you will fall for when enjoying a cup of coffee or a glass of wine on the bank of the Ljubljanica River in the city center while taking in the view of the old town and Ljubljana Castle. In recent years Ljubljana has also been transformed into a friendly oasis for cyclists, and it does not disappoint from a culinary standpoint, either.

Even just a few years ago, the Slovenian capital was not considered a distinct culinary capital, but this has now started to change. This has a lot to do with Ljubljana’s own culinary market event where, every Friday from March to October, the best Slovenian chefs gather and offer visitors their dishes and excellent Slovenian wines. The event has the somewhat felicitous name of “Open Kitchen” and lets restaurants and chefs from all over Slovenia offer their dishes and wines for a day at the Ljubljana market. The project, initiated by young enthusiasts with the desire to bring all of the flavors of culinary Slovenia to one spot, has now grown into one of the most popular and most visited events in the Slovenian capital.

Ljubljana, with its predominately Baroque architecture, also offers a few excellent restaurants and charming and attractive hotels. Among the latter is the hostel 26 Slovenia invites you! www.slo-mag.si

Slovenian black gold, cimprače, sleeping in a hayloft

SLOVENIA. PRIME LOCATION to INVEST. We help you start and grow your business in Slovenia.

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Slovenia’s time-tested qualities make it a prime location for R&D competence centers, logistic centers and green technologies.

Foreign investors are of key importance for Slovenia.

We are here for you. Standing by your side in the Slovene business environment.

We aspire to grow and develop together. To learn from one another.

To make progress together.

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FALL IN LOVE WITH

SLOVENIA Experience the luxury of nature’s paradise. Step right into the fairy tale and immerse yourself in the world of breathtaking natural scenery. Take a boat ride to the legendary island, ring a bell and make a wish while enjoying the magical views of the alpine landscape. Lake Bled will leave you in awe.

SLOVENIA. Green. Active. Healthy.

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Slovenian Tourist Board

Enchanting Lake Bled