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Agricultural Business and Retailing – Increasing Supply Chain Efficiency, Raising Volume and Quality Standards

Agricultural Business and Retailing – Increasing Supply Chain Efficiency, Raising Volume and Quality Standards. Agrokor Overview. Agrokor is the largest food retailer in Croatia and the leading food manufacturer in the region

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Agricultural Business and Retailing – Increasing Supply Chain Efficiency, Raising Volume and Quality Standards

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  1. Agricultural Business and Retailing – Increasing Supply Chain Efficiency, Raising Volume and Quality Standards

  2. Agrokor Overview • Agrokor is the largest food retailer in Croatia and the leading food manufacturer in the region • Agrokor is the second largest privately owned company in Croatia • Revenues in 2003 at approximately € 1.2 billion, which amounts to 5% of the Croatian GDP • Growth in revenues 2003/2002 at a level of 37% • EBIT – € 58 millions • Growth both organic and by acquisition thereby providing sustainability and stability • Strong local and regional expertise • Leading market positions, strong brands and resilient market share • Nationwide distribution network / established distribution platform • Synergies from vertical and horizontal integration

  3. Agrokor Business Portfolio AGROKOR FOOD RETAIL OTHER KONZUMFood retail & wholesale Frikom Ice cream & frozen foods Agroprerada Animal feed & apples AgrokorTrgovina Commodity trading Agriculture Jamnica Mineral water, spring water & juices Ledo Ice cream & frozen foods LGMoslavina Ledo Čitluk Ice cream & frozen foods Mladina Quality table wines PIK Vinkovci Processing of agri-products Sarajevski kiseljak Mineral water & juices Sojara Zadar Soya processing Solana Pag Sea salt Zvijezda Edible oils & margarines

  4. Supermarket chain Konzum Konzum maxi Super Konzum Wholesale, Logistics & Distribution E-business Konzum Overview • 1957 Konzum opens its first self-service store in Zagreb • 1994 Agrokor takes over the control package of shares and becomes the majority owner. Permanent reorganization and restructuring, closing of non profitabile and opening of large format outlets continues until today • 2000 Expansion outside the Zagreb region, nationwide across Croatia • 2003 Konzum’s revenues of € 809 million represent 67% of Agrokor’s revenue; 7000 employees; further growth perspective and development

  5. Retail • Total number of outlets: 431 - Total sqm:104.305 sqm

  6. Wholesale Centers • Total number of outlets: 11 - Total sqm: 36.940 • Zagreb x2 • Split • Rijeka • Osijek • Varaždin • Poreč • Sesvete • Sinj • Zadar • Šibenik • Dubrovnik

  7. Competitive advantages • Konzum’s main strength is its fresh food program Top service Best locations Own distribution KONZUM FRUITS & VEGETABLES Strategic partnership with domestic suppliers Fresh food DAIRY Private labels K+ and Rial MEAT

  8. Konzum’s market impact • Croatian market was characterized by a lack of supervision and organization, insufficient production, high costs and low efficiency • Agrokor decided to invest and develop domestic production, and standardize the production cycle Purchasing Facilities Packaging Warehousing Distribution Merchandising Standards

  9. Purchasing and Packaging

  10. Logistics and Distribution • Swisslog Warehouse Management system • 168 refrigerated Mercedes Benz trucks

  11. Merchandising standards

  12. Fruits & Vegetables Sales

  13. Fresh meat • Bjelovar – production facilities • Farming satifies 50% of total needs • 2 meat packaging facilities • MAP technology: Poreč, Split • New packaging 5-7 days shelf life • High quality and traceability

  14. Dairy • Milk collection • Milk processing at KIM Karlovac • Own distribution • Private label K+

  15. Export & Import with region Export Import

  16. Velpro opening

  17. THANK YOU

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