Major investment in the Croatian meat industry.
PIK Vrbovec, as the largest meat-processing company in Croatia, must be developing not only its main business, but also the business of distribution of its product range. Mate Štetić, director of the company, explained which distribution model the company has decided to implement, considering that it deals with food products which require special distribution and transport conditions, reports Poslovni.hr on October 30, 2015.
“Our distribution is an important link in the chain of success of our business. We are proud that we have evolved into a reliable distribution partner providing distribution services for many other companies as well. Good and systematic organization of the logistics business is a prerequisite for providing a high level of service in this segment. Of the total amount of products delivered to the retail outlets, about half are products from other companies. The distribution is organized at several levels: primary, secondary and internal distribution”, he explained.
In 2005, Agrokor company took over PIK Vrbovec and invested a lot of money. The production is constantly increasing, from 8,000 tons to more than 100,000 tons, which required an increase in storage volume. “The growth in sales and operating results logically requires the grow of needed storage space. However, sales growth did not demand a proportional increase of storage space because, thanks to the modernization of internal processes, we use it in the best possible way. Since Agrokor entered the company, PIK Vrbovec began a rapid development. We have invested more than 1.1 billion kuna, and the investments continue year after year. Some of the major investments were those in the new deep-freezing storage, storage of fresh meat and the storage of finished goods. We have significant storage areas in Vrbovec, Zagreb, Split, Osijek and Rijeka. The policy of distribution and storage is an integral part of our daily business strategy, with is the starting point of developing new lines of business. We are proud to point out that in our distribution department we currently have 160 vehicles. The importance of distribution can be seen by the fact that we have more than 400 employees in that sector. Five distribution centres regularly supply more than 8,700 retail outlets and other delivery locations”, said Štetić.
In addition to distributing its own products, PIK Vrbovec provides distribution services to many other companies, with main partners being Zvijezda, Perutnina Ptuj-PIPO, Belje, AIA, Zott, Zdenka and others. All partners are provided with a high level of service, thanks to which they can always rely on the smooth progress of their business operations. PIK Vrbovec has recognized the potential of distribution services, especially with partners whose products require temperatures between 0 and 4 degrees Celsius.
“Our product range is divided into fresh meat and meat products. Within these product groups, there is a long list of specific products which meet expectations of our consumers. Constant monitoring of market needs and desires of our customers is the guiding principle in the creation of new products and innovations, making us the market leader which creates trends in the meat industry. In each of the market segments, PIK offers to consumers premium brands, which with its quality can compete with the world’s best products. PIK Vrbovec is the leading meat industry in Croatia and the region that every year breaks new records in the quantity of produced and sold products. Sales of PIK in 2014 amounted to 90,000 tons, and this year we expect more than 100,000 tons of meat and meat products. Of course, we are pleased with our business performance, but there is room for further strengthening and development. Simply put, our plans will be consistent with the current strategy: continuous development, monitoring and implementation of new trends with further improvements and expansion of the product range and increased market share”, concluded Štetić.