The last edition of the Infoarena Business Journal FMCG, Retail & Agribusiness Arena 2014. Find out what was going on on the last day of the Arena and read about conference conclusions. Ps: We have Paparazzi corner!
Business Journal YOUR BUSINESS INTELLIGENCE AND NETWORK PARTNER | Official Newsletter of the 5 th FMCG, Retail & Agribusiness Arena 2014 | November 2014 | No. 04 | <p.02> MINISTERIAL MEETING Agricultural and food sectors have an important role <p.09> PAPARAZZO CORNER We are grateful to all participants, partners and sponsors <p.03> ROUND PANEL How to achieve organic growth Global perspective, communication and collaboration - Integrated re- gional approach between private, public and international financial sector to improve transport and logistic infrastructure, linking Danube culture region with Black Sea and Adriatic ports. Overall consensus of participants from corporate advisory and financial sector is that consolidation and M&A activities in FMCG and retail sector is expected to accelerate, focus on market niches (investment/ acquisitions of products/companies with export potential beyond SE region) Continued investment in product and process innovation (latest IT solu- tions in retail, PL development and young and professional management will be driver of growth) EBRD and other private sector financial providers expressed readiness to support the previously mentioned trends. A platform of dialogue of the whole industry, public and private sectors to increase investment and trade in the region as well as to third markets. The Agro Sector In Perspective T he Fifth Conference of the FMCG, Retail & Agribusiness ARENA 2014, under the auspices of the French Ministry of Agriculture and Organised by Infoarena and the European Bank for Reconstruction and Development, encompassed 150 participants from 15 countries. The conference was dedicated to relation- ships in the food sector, the consumer goods sector and trade relations across the region. Eventually they accepted the conclu- sions we make in full. FMCG, Retail & Agribusiness ARENA 2014 was completed with success. SEE YOU AT THE NEXT INFOARENA CONFERENCE! Conference conclusions
Transcript
Business JournalYOUR BUSINESS INTELLIGENCE AND NETWORK PARTNER
| Official Newsletter of the 5th FMCG, Retail & Agribusiness Arena 2014 | November 2014 | No. 04 |
<p.02> MINISTERIAL MEETING
Agricultural and food sectors have an important role
<p.09> PAPARAZZO CORNER
We are grateful to all participants, partners and sponsors
<p.03> ROUND PANEL
How to achieve organic growth
Global perspective, communication and collaboration - Integrated re-gional approach between private, public and international financial sector to improve transport and logistic infrastructure, linking Danube culture region with Black Sea and Adriatic ports.
Overall consensus of participants from corporate advisory and financial sector is that consolidation and M&A activities in FMCG and retail sector is expected to accelerate, focus on market niches (investment/ acquisitions of products/companies with export potential beyond SE region)
Continued investment in product and process innovation (latest IT solu-tions in retail, PL development and young and professional management will be driver of growth)
EBRD and other private sector financial providers expressed readiness to support the previously mentioned trends.
A platform of dialogue of the whole industry, public and private sectors to increase investment and trade in the region as well as to third markets.
The Agro Sector In Perspective
T he Fifth Conference of the FMCG, Retail & Agribusiness
ARENA 2014, under the auspices of the French Ministry of Agriculture and Organised by Infoarena and the European Bank for Reconstruction and Development, encompassed 150 participants from 15 countries. The conference was dedicated to relation-ships in the food sector, the consumer goods sector and trade relations across the region.
Eventually they accepted the conclu-sions we make in full.
FMCG, Retail & Agribusiness ARENA2014 was completed with success.
SEE YOU AT THE NEXT INFOARENA CONFERENCE!
Conference c onclusions
Business Journal • page 02
The six regional countries of Cro-atian, Bosnia and Herzegovina, Serbia, Montenegro, Hungary
and Slovenia, and before the start of the “FMCG, Retail & Agribusiness ARENA 2014”, held Ministerial meetings where the main topic was the development of agribusiness in the region, improving for-eign trade in agri-food products in the re-gion, and the opportunities and arrange-ments for joint trade to third markets.
Following presentations and exchanges of views on the possibilities of greater regional co-operation in agriculture and food industries, participants at the Min-isterial meeting adopted resolutions to recognise the diverse and complex chal-lenges faced by both agriculture and food industry sectors both across Europe and globally. This requires a serious and co-ordinated response by the relevant insti-tutions. Ministers of the six states agreed that the agricultural and food sectors have an important role in the economies of all countries in the region and that joint ef-forts can increase this concurrency. They also agree that the process of integration within EU provides a good opportunity for the agri-food sector of member coun-tries and candidate countries. However, other forms of regional co-operation can be beneficial and should be supported. Ministers welcome the achieved current level of regional co-operation amongst the countries of Central and Southeast
Europe. They also believe that economic interests and mutual understanding are an important advantage for encouraging future activities. They also consider that some of areas for future closer co-oper-ation include - but are not limited to - an increase in mutual trade, joint efforts to overcoming barriers to third markets and joint projects related to basic infrastruc-ture, such as irrigation and transport. The keys are to confirm the readiness of the participating countries to consider these and other ways to encourage future co-operation for the benefit of agriculture and food sectors in the region.“In this way we have shown the hon-esty of our government to intensify co-operation and to solve problems” said Tihomir Jakovina, Croatian Minister of Agriculture. Dejan Zidan, Minister of Agriculture, Forestry and Food for Slovenia, pointed out that this meeting comes at a favourable time as country regions face major challenges. “The first crisis was due to the Russian embargo on food products from the European Union, which is very unfavourable for farmers and the food production industry. An-other challenge is climate change, and the disasters this year have been really felt across the region. For this reason, we must together find solutions to ease the situation for farmers and the entire sec-tor. We must find common mechanisms, and one of these mechanisms is bet-ter co-operation and a common way of
dealing with these challenges. A specific solution is shared with third markets; im-mediately I think of the markets of China and the Arab market. A few days prior to a conference in Slovenia came a large Chinese delegation to open the door to their market”.
Zoran Rajić, State Secretary, Minis-try of Agriculture and Environment (Serbia), noted with satisfaction that the countries of this region, although small, have great possibilities for joint use their advantages. “Croatia and Slovenia are members of the European Union; Serbia has special trade relations with Russia and China, as well as Bosnia and Her-zegovina and Turkey. All these are our strengths - and that co-operation we can use “, he stressed.
With the host Minister of Agriculture, RH Tihomir Jakovina, the meeting was attended by Dejan Zidan, Minister, Ministry of Agriculture, Forestry and Food, Slovenia, Zoran Rajic, Secretary of State, Ministry of Agriculture, For-estry and Environmental Protection, Serbia, Milos Jovanovic, director of Foreign Investment Promotion, Mon-tenegro, Dusan Neskovic, Assistant Minister, Ministry of Foreign Trade and Economic Relations, Bosnia and Herzegovina, and Milán Radacsi, Sec-retary of Economic Affairs, Embassy of The Republic of Hungary.
Ministerial meeting of regional countries relating to Agribusiness held In Dubrovnik
Agricultural and food sectors have
an important role in the economies
of all countries in the region
Business Journal • page 03
Round Table Trends in retail was moderated by Melanie Seier Larsen, Director, Boston Con-
sulting Group Croatia, a very effective presentation evoking the trends in Retail. Speaking about the possible preparation of the retail industry for future growth, Andrey Dvoychenkov, director of Nielsen for the Adriatic region, pointed out how the latest trends in the industry focused on customer satisfaction. In this section, it is possible see an increase as consumers want to find everything they need in one place, and that their pur-chases are appropriate. “It is therefore necessary to adapt services to enthusias-tic customers, with the obvious focus on private brands, along with promotional activities based on customer behaviour,” says Dvoychenkov. High quality fresh food is the top line that always attracts customers. Realistically, customers like promotions and discounted rates. Inter-estingly, promo price is more successful for food categories rather than for non-food e.g. laundry detergents, which are purchased infrequently and consumers often don’t remember a regular price.In addition, innovation as well as growth is very important,” stated Dvoychenkov.
PRIVATE LABELS
Most private label goods in the region are purchased in Slovenia, Croatia,
Serbia and Bosnia. “There is no fear from big brands, as private labels may threaten some local produce rather than big brands. The consumer is an impor-tant factor in the price and/or quality of it, and we must be aware it not good to compromise between these two factors,” explains Dvoychenkov.
Katarina Jaksic, Regional Marketing Director for Ipsos Adria (Serbia), as-sesses how private brands are growing and that they have the highest share in developed countries. “Consider the United Kingdom; that is so developed that consumers are buying more than 50% private branded goods. The share of private labels in the region is associ-ated with the share of the five leading chains in each country. Private labels have an advantage as far as the relation-ship between price and quality, whilst the dominant brands are in packaging and innovation. Brands emerged from the needs of consumers to save money. Offers from private labels have changed and enriched the scene. Today, brands are moving towards innovation and cre-ating a quality brand. The main disad-vantage is the poor customer loyalty, as opposed to brands that have loyal cus-tomers, “said Katarina Jakšić.
For Krešimir Dominić, Planning &
Development Director for Abraka-dabra (Croatia), brands have a beauti-ful story to a wider area and there is an aggravating factor that cannot be con-trolled in retail. “They have the potential for growth in promotions in conjunction with retailers,” says Dominic.
Jelena Doko Cetina, retail manager at Nielsen, noted that private label manu-facturers invest more in research and development. “It is wrong to understand that private labels are copies of a brand,” says Doko Cetina.
Maria Anargyrou Nikolic, commer-cial director of Coca-Cola HBC Ser-bia, added that manufacturers are in-creasingly associated with the brand, and that brands and retailers are increas-ingly working on mutual trust. “In pri-vate label, retail has to be careful in the case of local products in that in many cases they do not have the standards required by developed markets”, warns Anargyrou Nikolic.
Private labels, opines Helmut Fenzl, CEO of Spar International Croatia, have several dimensions. “With an af-fordable price - an already known - its specificity is differentiation”, quotes Fenzl.
Panel: Trends in Retail
How to achieve organic growth
(continued on next page)
Business Journal • page 04
Martin Elling, director of Lenta and a member of the Council of Agri-business at EBRD Switzerland, also pointed to some of the risks associated with private labels. “If Coca-Cola has a problem with the quality then it is their problem, and if a private brand has quality problems, then it is a problem throughout the chain. Also, traders are constantly thinking about margins and they more focus on brands at the lower range”, says Martin Elling.
CREDIT CARD AND IT SERVICES
Catalin Cretu, sub-manager of Visa Europe for Romania, Croatia and Slovenia, stressed the importance of a database within credit card companies. “Security, control and convenience of payment are very important to the customer, and that we can, based on evidence, differentiate bonus rewards. Because of the database we have, our retailers can implement a marketing campaign. We can see how consumers behave in-store and what happens in the store and outside it. We can see a portfo-
lio of the consumer and where they buy, while in the case of cash payment you cannot see the cocoa buyer behaviour. It is on the basis of consumer behaviour that credit card companies can analyse purchases, and can lead to very good co-operation between retail and credit card companies”, suggested Catalin Cretu.
Speaking of loyalty, Dejan Damnjanović, Head of Sales Manu-facturing, Retail and Services, Atos (Serbia), believes it is crucial to have personalised offers. “Whatever channel you use, you always get the same in-formation. The IT sector brings a wide range of novelty and innovation and to retailers the decision is how to use them“, said Damjanovic.
Ivan Guzelj, Sales SE Europe, Sym-phonyEYC, pointed out the problem that the leading retail chains in the re-gion have unique shopping centres. All sales of one chain are different as they were taken and not built. “The customer was so confused and did not know where anything was. Can their solutions help customers know where that product is at
any time on the shelf”, questions Guzej.
Dragan Munjiza, Foudner & Owner of Viktor Jakov (Croatia), found that a large retail chain for 15 years in Croatian and Serbian markets is planning to enter the markets of the region. As a good ex-ample, he noted that DM in their range, incorporates organic products from local manufacturers.
Initiatives for e-commerce in the EU will make it a lot easier to sup-ply and facilitate the work of retail chains, says Damir Plejić, director Respons Digitus. “The main chal-lenge for retailers is how to create the experience and use information in or-der to maintain position”, says Plejić.
Tone Stanovnik, General Manager of Špica International (Slovenia), pointed out that some funds should be directed towards young people who have no mon-ey but have time to develop creative so-lutions to improve the business. “Young people know how to use new technolo-gies and have the opportunity to work on innovation”, pronounced Stanovnik.
Agrokor Atlantic Group Atos Bingo Chep
Coca-Cola
Hellenic
Delta agrar Eos Matrix Erste Group E&Y IFCO Systems MK Group
Podravka STUDEN & CO Symphony EYC Špica International Visa Europe Žito Group
Sponsors of the 5th FMCG, Retail & Agribusiness Arene 2014.
Sponsors and Partners
Organizer Co-organizer Under the auspicies of
EBRDInfoarena Ministarstvo poljoprivrede
(continued from previous page)
Business Journal • page 05
Source: Nielen, PLMA, IRI
Slide from PP of Nielsen at FMCG Arena 2014
Slide from PP of Ipsos at FMCG Arena 2014
Business Journal • page 06
Last name First name Company Country Function
Dominić Krešimir Abrakadabra integrirane komunikacije Croatia Planning & Development Director
Doko Cetina Jelena ACNielsen d.o.o. Croatia Retailer Services Manager
Galić Mislav Agrokor d.d. Croatia Executive Vice President for the Business Group Food
Bogdanić Marta Agrokor d.d. Croatia Director of Projects, Investments Division
Benić Anita Agrokor d.d. Croatia �Executive Director for Investments
Kuštrak Damir Agrokor d.d. Croatia Executive Vice President
Mizo Nikola Alkaloid AD Skopje Macedonia Director profi t center Chemistry , Cosmetics , Herbs
Nanov Darko Alkaloid AD Skopje Macedonia Head of Export Cosmetics and Herbs
Hrvić Rusmir AS GROUP-KLAS D.D. SARAJEVO Bosnia & Herzegovina Director
Kostić Dragomir Atlantic Brands d.o.o. Serbia Director General
Marković Aleksandar Atlantic Brands d.o.o. Serbia Director of sales
Vranković Neven Atlantic group Croatia Group Vice President for Corporate Activities
Mišetić Ivan Atlantic Grupa dd Croatia Secretary General
Idžojtić Miroslav Atos Hrvatska Croatia Head of SAP Practice
Damnjanović Dejan Atos IT Solutions and Services d.o.o. Beograd Serbia Head of Sales Manufacturing, Retail and Services, Atos South-
East Europe
Krpina Ljerka BADEL 1862 Croatia Senior coordinator for a production function
Kulišić Dalibor BADEL 1862 Croatia Senior Coordinator for market activities
Poznić Dalibor Belje dd Croatia CEO
Paunovski Tatjana Bingo Tuzla Bosnia & Herzegovina PR
Kunosić Ljiljana Bingo Tuzla Bosnia & Herzegovina Executive Director
Zubak Matea Business Conferences Croatia Project manager
Gavazzi Tomislav Business Conferences Croatia Founder&owner
Majetić Pavić Carmen Business Conferences Croatia Program Director
Pavlović Ana Business Conferences Croatia PR
Bešenić Ivana Business Conferences Croatia Key account manager
Knezević Predrag CHEP Croatia Business development representative Croatia
Šamu Karlo CHEP Croatia Field Service Executive
Zindović Branka CHEP Serbia Serbia Sales representative Serbia
Fiser Dragan CHEP Serbia Serbia Asset Menagement
Raguž Željko City of Dubrovnik Croatia Deputy mayor
Anargyrou Nikolic Maria Coca Cola HBC Srbija Serbia Comercial director
Draja Mircea Coca-Cola HBC Slovenia General manager of Croatia, Coca-Cola HBC B-H Sarajevo and
Coca-Cola HBC
Veselinović Igor CocaCola Hellenic HBC Srbija Serbia Customer Development Director
Milinčić Predrag Coca-Cola Hellenic HBC Srbija Serbia National Field Sales Manager
Holik Alica Časopis PROFESSIONAL Croatia Marketing Director
Gaftea Diana DARBY Private Equity Hungary CFA Associate
Brozović Ivan Degordian Croatia Account Manager
Radivojević Spomenka Delta Agrar Serbia Director of export-import
Keranović Sanja Delta Agrar Serbia CFO
Kaličanin Vladan Delta Agrar Serbia Manager
Desivojević Cvetković Marija Delta group Serbia Vice President for Strategy and Development of Delta Holding
Abaker Adam Zeituna Germay
Budiana Mioara E&Y (Ernst & Young) Romania Manager
Indermuhle Urs E&Y (Ernst & Young) Serbia Partner, Transaction Advisory Services, Adriatic region
Mostarac Tamir EBRD Bosnia & Herzegovina Principal Banker
Jelušić-Kašić Vedrana EBRD Croatia EBRD Director for Croatia
Ždrale Miljan EBRD United Kingdom Senior Banker, Head of Agribusiness, South- Eastern Europe
Oona Schneider EBRD Croatia Principal Banker
Christoph Saenger EBRD United Kingdom Economist, Project and Sector Assessment
Cvirn Ana EOS Matrix Croatia Head of Operations Department
Franulić Šarić Diana EOS Matrix Croatia Head of Corporate Communications and Marketing
Cerinski Barbara EOS Matrix Croatia General Manager
Ibrahim Suhair EPH Croatia Director B2B tourism
Glasnović Marta Ernst & Young d.o.o. Croatia Senior Manager, Tax
Habuš Lena Ernst & Young d.o.o. Croatia Director, Transaction Advisory Services
Šarić Maša Ernst & Young d.o.o. Croatia Executive Director, Tax
Radak Stevan Erste Bank a.d. Novi Sad Serbia Director M&A
Bleier Ingo Erste group Austria Head of Erste Group Investment Banking
Gyuracz Attila Erste Group Bank AG Austria Director Merchant Banking
Milovanović Miloš FAO/EBRD projects in Serbia Italy Coordinator of FAO/EBRD projects in Serbia
Artuković Dubravko FRANCK dd Croatia CEO
Th e list of participants at the FMCG,
Retail & Agribusiness Arena 2014
Business Journal • page 07
Last name First name Company Country Function
Orešković Luka Harvard University Croatia Co-Chair, Emerging Europe Business and Government
Isoski Andrej HL Display Slovenia Country Manager
Radácsi Milán Hungarian Embassy in Zagreb, Croatia Hungary Secretary for economy
Thaler Heimo IFCO SYSTEMS Austria GmbH Austria Managing Director
Vrcan Irena IFCO SYSTEMS Croatia d.o.o. Croatia Director
Jovanović Miloš Investment Promotion Agency Montenegro Director
Jakšić Katarina Ipsos Adria Serbia Regional Marketing Director
Jovanović Aleksandra Ipsos Strategic Marketing Serbia Project Manager
Sabljić Maroje JaTrgovac Croatia Editor in chief
Milošević Boris KPMG d.o.o. Beograd Serbia Partner in the Department of advisory services
Trivić Saša Krajina klas Bosnia & Herzegovina Director
Trivić Nemanja Krajina Klas Bosnia & Herzegovina Marketing Director
Ković Zoran La Log Croatia Managing Director
Elling Martin Lenta Switzerland Member of the Board
Kruhek Ivica MARKER d.o.o. Croatia Co-founder and CEO
Krosnar Katka Mergermarket United Kingdom Journalist
Babache Andrej Mid Europa Partners United Kingdom Director
Nešković Dušan Ministry for Foreign Trade and Economic Relations Bosnia and Herzegovina Assistant Minister
Badovinac Petra Ministry of Agriculture, Croatia Croatia Head of Department
Bajkovac Ćurić Mihaela Ministry of Agriculture, Croatia Croatia Senior Adviser
Blažić Zvjezdana Ministry of Agriculture, Croatia Croatia Assistant Minister
Starešinić Zrinka Ministry of Agriculture, Croatia Croatia Advisor to the Minister
Kuskunović Miroslav Ministry of Agriculture, Croatia Croatia Spokesman
Guttman Saša Ministry of Agriculture, Croatia Croatia Head of the Independent Public Relations and Protocol
Jakovina Tihomir Ministry of Agriculture, Croatia Croatia Minister
Rajić Zoran Ministry of Agriculture and enviroment, Serbia Serbia State secretary
Veselinović Gligorije Ministry of Agriculture and enviroment, Serbia Serbia Advisor
Popović Snežana Ministry of Agriculture, Forestry and Food Slovenia Head of Department for EU and International Cooperation
Kočevar Luka Ministry of Agriculture, Forestry and Food Slovenia Head of Public Relations
Židan Dejan Ministry of Agriculture, Forestry and Food Slovenia Minister
Kostić Miodrag MK Grupa Serbia CEO
Dvoychenkov Andrey Nielsen Serbia Group Managing Director Adriatics Region,
Sokač Berislav Oracle Croatia Regional Director - Retail Global Business Unit at Oracle
Filaković Josipa Paying Agency for Agriculture, Fisheries and Rural
Development
Croatia Advisor to the Director
Jakupec Olivija Podravka Croatia Member of the Board
Mršić Zvonimir Podravka Croatia CEO
Devčić Vedran Port of Rijeka Croatia President of the Management Board
