2021: FMCG, Retail, Franchise

Piotr Knauer
CEO, President of the Board,
Hochland Polska

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!


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

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.


Dariusz Sapiński
President of the Board,
MLEKOVITA Group

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.


Tomasz Tarczyński
Marketing and Exports Director,
Tarczyński

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.


Edmund Borawski
President of the Board,
SM Mlekpol

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 long-term 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.


Przemysław Gierak
President
Denver Food

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.


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.


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
Brand Manager,
Dan Cake Polonia

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.


Maciej Herman
CEO,
Lotte Wedel

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.


Rafał Adamski
Sales Director,
I.D.C. Polonia

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.


Jan Kolański
President of the Board,
Colian

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.


Jakub Nowak
President of the Board,
JNT Group

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.


Bogusław Miszczuk
President of the Board,
Sokołów

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.


Marta Klęka-Nowa
PR Manager,
Prymat

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.


Marek Moczulski
President of the Board,
Unitop

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.



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


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.


Leszek Wąsowicz
President of the Board,
HELIO

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.


Bogdan Łukasik
President of the Board,
Modern Expo

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-of-the-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.


Piotr Dziarski
Sales Director,
Stock Polska

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.}


Magdalena Pajor
Director for the Groszek and EuroSklep Franchise Chains, Eurocash

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.


Marcin Grzebyta
Project Manager,
WAN-VIT

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.


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

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.