Market The Agrokor Group, one of the leading regional companies in the food and beverages production, distribution and sales, employs approximately 40,000 people. In spite of the recession circumstances in business Agrokor companies managed to adapt to new conditions and keep their leading position, even strengthen it and expand not only in but also in the region. Agrokor’s consolidated result for 2009 amounted to 26.477 million HRK, with the Retail Business Group accounting for the major part thereof, having generated a growth of 4% compared to 2008 using mainly growth potentials on regional markets. Its leader position in the region is a great Campden&Chorleywood-Food Research Association by Sarajevski kiseljak, Alastor d.o.o., Frikom, TP DC challenge and responsibility, especially under the Group (CCFRA), one of the biggest research and Sarajevo, Medijator, Sloboda , Agrolaguna. current economic conditions and the companies training organisations for food and drink industries In 2004 Agrokor acquired two Hungarian of the Agrokor Group are facing a difficult task. with their expertise being used on a daily basis. companies: the water filling plant Fonyodi and the ice- Leading companies of the Group in Croatia are Thus the Agrokor Group portfolio boasts products cream factory Baldauf, today kft. . , a renowned producer of water and juices; recognized for premium quality on an international In 2005 Agrokor became majority owner of the Ledo, the biggest Croatian ice-cream and frozen level, which is also evident from numerous companies PIK Vrbovec and Belje, the wholesales foods producer; Zvijezda, the leading oil, margarine awards and acknowledgements on national and company Idea from and Dijamant from and mayonnaise producer; PIK Vrbovec, the most global contests. Some of the recent awards and . In the same year the first Kozmo modern Croatian meat industry; PIK Belje, the acknowledgements demonstrate the recognized drugstore, a newly introduced format, was biggest agricultural industry company; Konzum, the quality, like the Superior Taste Award, which was opened as well as Idea’s first retail facility in Belgrade. leading national retail chain, and Tisak, the biggest awarded to ABC cheese, Juicy pineapple and In 2006 the Agrokor Group and the European kiosk retail chain and the leading Croatian distributor apricot juices, Sarajevski kiseljak (carbonated mineral Bank for Reconstruction and Development signed an of press, tobacco products and other merchandise. water) and Sky cola. Furthermore, the German equity investment agreement in the amount of 110 In the region the biggest companies are: in Bosnia DLG acknowledgement for quality was awarded million euro. and Herzegovina Sarajevski kiseljak, Ledo Čitluk and to PIKO parizer (Extra Wurst), Frankfurters and In 2007 the company Tisak joined the Agrokor Konzum, in Frikom, Dijamant and the retail Premier Ham. Numerous national and international Group and in the same year a takeover agreement chain Idea, in Montenegro Ledo, and in Hungary awards were given to wines and olive oils, Baranjski for the retail and wholesale business of VF komerc Fonyodi and Ledo kft. kulen (typical local paprika-flavored sausage) won was signed as well, whereby Agrokor became market Flexibility, dynamism and prompt adaptability are numerous awards at kulen fairs across the country, leader in food retail also in . the main qualities of the Agrokor Group companies and many other. In 2009 the Serbian company Nova Sloga a.d. that, due to their clearly defined strategy and Already three years in a row, Zvijezda oil entered the Agrokor Group, with its exceptional business adapted to recession circumstances still has been recognized by Croatian consumers as water Mivela already well known in the region. The keep the leading market shares in their respective the number one brand (Source: PMG research same year the company Agrokor vina was founded, businesses. conducted by Valicon company), while margarine, comprising seven noted wine cellars. mayonnaise, Jamnica and other products are also well The publishing house Znanje has been part Achievements positioned. of the Group since 2010, as well as Vupik, which High international standards imposed by entered the Group in spring, thus additionally globalization and everyday competition were History rounding up Agrokor’s agricultural business. recognized a long time ago at Agrokor, which The history of Agrokor began back in 1976, when implements Integrated Management Systems Mr Ivica Todorić established a private company for Product – Quality Management Systems, the production of flowers and flower seeds, The product portfolio of the Group is truly rich and Environment Protection Systems, which in the following decade became diverse and includes oil and margarine, ice-cream Health and Safety Management market leader in the flower business and frozen food, water and drinks, meat and meat Systems (OHSAS), Self-Control and diversified into new programs: products, flour, salt and various agricultural products. Procedures (HACCP) etc. import and export of cereal crops, Products such as Zvijezda oil, margarine and Agribusiness companies oil crops, fruit and vegetables. mayonnaise are essential for every kitchen, while apply the European food safety In 1989 Agrokor was Omegol is the most significant functional product strategy “from field to table” by established as a joint stock company line of Zvijezda. Ledo, a synonym for exceptional implementing the international and acquired a soya crushing plant quality of ice-cream, offers a number of impulse GLOBAL G.A.P. standard. in . Agrokor acquired the ice-creams such as King, Korneti (cones), Macho, Agrokor has recognized that majority ownership stake in Jamnica Snjeguljica (Snow-White) as well as family ice-creams product quality and safety and Agroprerada in 1992. such as Grandissimo, Quattro and other. Apart from are not monitored solely The company continues to ice-cream, the segment of frozen vegetables, fish, at the production site, thus expand its business by acquiring they apply rigorous quality majority ownership stakes in requirements for all input Zvijezda, Ledo, Konzum, Silos- raw material and feedstock, mlinovi and Solana Pag in 1993 accompanied by control and and 1994. presentation of all necessary In 1995 Agrokor was certificates on their health organized as a Group. In the safety. years to follow, new acquisitions Since I June 2008, included PIK Vinkovci, Barpeh – Agrokor has been today Ledo Čitluk, Jaska vino d.d. a member of the today Podrum Mladina, followed

172 SUPERBRANDS pastry and other products has experienced strong In the segment of water and drinks, in Jamnica’s Promotion development as well. A similar assortment is offered bottling plant in Pisarovina a new line was installed for Year by year the Agrokor Group invests considerable by the company Frikom, the leader on the Serbian bottling natural carbonated minerals water in glass funds in various forms of communication with the market. packaging. At the same time, at the St. Jana plant a market and consumers and continues the tradition The company Jamnica, besides mineral water new product line for bottling Jana spring water into a of socially responsible business conduct and production with a tradition of more than 180 years, new 5-litre PET-packaging was installed. In Sarajevski participation in various humanitarian and sponsorship also takes great pride in its Jana spring water brand, Kiseljak (Bosnia and Herzegovina) investments were projects and thus invests in the promotion and which has been achieving notable international made in new sales infrastructure, while in Serbia development of science, culture, sports, economy results. Worth noting are also Juicy natural fruit juices, investments in technological modernisation, as well as and the society as a whole. refreshing Juicy Fruits soft drinks and ice teas. the Mivela brand and packaging redesign took place. In 2009 and 2010 Agrokor traditionally The exceptional mineral water Kiseljak and In ice-cream and frozen food production, supported numerous projects and events of Mivela, a water rich in magnesium, additionally greatest investments were made in the company exceptional importance for Croatia and the entire complement the waters offer of Agrokor Group. Frikom in Serbia in the production line for washing, region. Agrokor’s brands are closely connected to A wide range of wines from the seven cellars, blanching and cooling, as well various sports, cultural and covering a number of specific Istrian and Dalmatian as freezing of vegetables. humanitarian events. varieties, such as Malvasia, Merlot and Plavac, as well Furthermore, investments The launched and as numerous continental wines like the multiple were made in a completely completed projects, actions, award-winning Goldberg and numerous other sorts new plant for the production valuable donations and are just a small reminder of the Agrokor wine list. of ice-cream and all segments sponsorships form an impressive Fresh and processed meats from the rich of the production process. list of activities with which assortment of the PIK, Sljeme and Belje brands are Significant investments in the Agrokor Group and its first-choice gourmet products, particularly delicacy Ledo and Ledo Čitluk into companies marked the previous hams, original mortadella, the traditional sausage the new infrastructure and period and reconfirmed their 'kulen', long-life sausages and other premium sales network were carried commitment to transparent processed products and fresh meat undergoing out, as well as the upgrade of business operations, care for the continuous controls. It is important to note that today the IT system. local community and conduct in Pik has completed the implementation of the process In the early 2009 one of compliance with the principles of traceability “from field to table”, which guarantees the greatest investments in of humanity and strong social every buyer and consumer that these are completely Agrokor during the last three responsibility. controlled processes resulting in health safety and years was completed. A new, quality of product. modern factory for cutting, Brand Values One of the most popular dairy brands in the processing and packing of An important guideline of region is ABC fresh cream cheese, a synonym of fresh meat and production Agrokor’s business policy is quality and natural product, made from only three of meat products was built the development of strong natural ingredients: milk, cream and salt, without any and launched in PIK Vrbovec, brands and their continuous preservatives added. securing exceptional freshness, quality and health improvement, which is why their market position When looking at Agrokor’s product portfolio, safety of meat and meat products according to the as well as consumer awareness, both in Croatia and it is worth mentioning K+, Konzum’s private label world’s highest standards. the region, has constantly been monitored with that covers a wide range of products and has been The agricultural sector underwent some of investments made in their further development established as an extremely appreciated brand of the most significant investments, thus continuing and strengthening. Having in mind that customer high quality and solid price positioning. the modernisation and efficiency increase in PIK satisfaction with products and services is of utmost Belje, PIK Vrbovec, PIK Vinkovci and Agroprerada. value, particular care and attention is paid to market Recent Developments In the livestock production group three pig farms demands and consumer observations through Agrokor Group is one of the greatest investors were completed and the construction of three various models and forms of mutual communication. in the Adria region, constantly modernising and new ones began. Investments in the development The majority of Agrokor Group’s brands are expanding its business through numerous investments of livestock breeding were accompanied by those leaders on the Croatian market, while some of them in all business segments and the knowledge of its in the production of animal feed while in crop are the leading brands on the regional level. employees. Through investments in strategic business farming investments were made in irrigation and Agrokor’s brands are of premium quality and the groups, retail and food, Agrokor strengthens its new machinery. Further investments comprised company’s strong competitive advantage, their leading position on the domestic and regional markets. equipment for production, sorting and storage in positions being a result of continuous investments In 2009 numerous investments were completed, different regimes for fruit and vegetables in the in state-of-the-art technologies, overall know-how, like the construction of the new oil and feedstock entire country. distribution, marketing and ongoing communication storage in Zvijezda, which enabled oil, merchandise In wine production, the most important with customers. and goods storage in cold regime. Dijamant, the investments were the one in the restoration of Ledo, King, Jamnica, Jana, Zvijezda, Margo, Frikom, leading oil, margarine and mayonnaise producing the Belje cellar, which dates back to 1526 and the Konzum… are but a few of the leading brands, many company in Serbia invested in the plant for primary planting of 29 hectares of new vineyards at the of which have become a generic term for their processing of oilseeds, their cleaning, drying and Banovo Brdo location. respective category. floor storage and built a modern laboratory for raw In the business group Retail the expansion material analysis. and refurbishment of stores continued, as well as www.agrokor.hr investment in automation of logistics processes and construction of storage capacities. More than 100 new shops were opened in Croatia, THINGS YOU DIDN’T KNOW ABOUT... Serbia and Bosnia and Herzegovina. During 2009 a state-of-the-art logistics and distribution Agrokor centre was opened in and another one in Dugopolje in 2010. Moreover, the IT system Agrokor, which started its business in 1976 as was upgraded by introducing the Oracle system a small family company in the production of for tracking the flow of goods. Konzum and Idea flowers and flower seeds, today has more than set the operational and goods supply standards in 38,000 employees. the region.

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