In your opinion, is there still any room for development on the Polish market of pasta?

- There are companies, which are developing very quickly. What is happening on the market is the process of consolidation, increasing the scale of production in one production factory, lowering the unit costs of production that is improving effectiveness. In recent years, unfortunately a decrease in investments can be observed, which results from the fact, that in the period 2005-2006, an excess of production power has occurred. However, today, competition forces to lower costs and some companies are developing, others are resigning from functioning on the market, and still others are taking part in consolidation.  That is why we suspect that the development of the market will continue. At the moment, production power has balanced with the demand on the market, and considering that the pasta market is stable in its development, that is, it grows a few percent annually, then there is still room for new investments.

What products do Poles value the most? Are wholemeal pastas popular? Do we buy “special” pastas, e.g. those for lasagnes, or do we rather stick to those traditionally used in the Polish cuisine?

- From our observations, it seems that the Italian cuisine is becoming more and more popular. The largest consumption still belongs to pastas used for soups, that is traditional pastas (manufactured from Polish regular wheat flour, soft) and egg pasta (e.g. for chicken soup, tomato soup). It is estimated, that pastas for soups constitute 30% of the market. However, pastas for sauces have a smaller share, although an increase of the market in this segment can clearly be seen.

How important is export for your company? What part of your production do you export?

- In 2007 and first half of 2008, export summed up to over a dozen percent. Due to the weakening of the Polish zloty and the sales development on the local market, export has fallen below 10%. At the moment, export sales are developing and its profitability is improving.

What markets do your products go to?

- If we are talking about mass products, in the case of which the margin is not too high, the main recipients are above all Poland’s neighbouring countries: The Czech Republic, Slovakia, Ukraine, Germany and other Baltic countries. We export our pastas also outside the European markets, among others, to the United States of America, Canada and Australia. In the period, when the prices of rice increased significantly, we also exported great amount of pasta to Asia.

Aside from pasta, you also offer other products. Which of them do you export?

- One of those products is jam. We also offer traditional Polish ready-made meals, which we also exported, but most of the export was when more Poles worked abroad. At the moment, this direction somewhat weakened. However, we are implementing more and more products that are not pasta, standard and more universal, e.g. sauces for pastas and other dishes, for which we have great export hopes.

In June 2007, the company Makarony Polskie S.A. bought the company Stoczek. Are products from this brand known to clients from abroad?

- We sold the most products under this brand name to Great Britain in the period when there was a great number of working Poles there, but as I have already mentioned, the demand for these products has currently fallen, that is why we will be trying to introduce universal products bought by Poles on emigration, as well as citizens there.

Which of your products are most willingly chosen by foreign consumers? Which products are a hit abroad? What export products do you have in your offer?

- Pastas are most frequently bought abroad. Both pastas from wheat durum flour, as well as traditional, Polish pastas for sauces under the brand name Sorenti, and Abak and Staropolski pastas.

What are your export plans? Conquering new markets or strengthening your position in the countries you are already present in?

- We have the greatest hopes of the markets of the neighbouring countries, because we have the lowest costs of shipping our products there, therefore, we are trying to strengthen our position in The Czech Republic, Slovakia and Ukraine. Sales to countries, where transport takes place by sea is also developing, because the transport costs don’t depend as much on the distance. If the costs of shipping products are too high, entering such a market is unprofitable for us.

What production safety certificates do you have?

- Of course we have many various certificates. The company Makarony Polskie S.A. has the Integrated System of Quality Management ISO and HACCP, which particular stages are supervised by the Department of Quality Control. In some Factories, we also have BRC and IFS systems. We have all the necessary certificates which are needed for exporting products to foreign markets. Currently, we are waiting on finalising an investment in the Rzeszów factory manufacturing pasta, after which we will be able to certify the factory.

Do Polish products diverge from foreign ones in terms of safety?

- Polish products surely don’t diverge from those that are “foreign”. Polish standards are very restrictively observed, also by controlling institutes. At the same time, in Poland, investments in the manufacturing property were realised a lot later, and I think that it was done according to the best standards. Very often, Polish standards implemented in Polish factories diverge, but to an advantage. It also happens that our native factories apply even higher standards, uncommon abroad.

How do your pastas distinguish against those of the competition?

- Above all, pasta is such a product, which not all consumers differentiate. We try to use raw materials of the highest quality in the production of our pasta; therefore, everyone who has tried our pasta is satisfied. That is why the group of our clients is continually growing. We also go by one rule for all our products, that is, we try to manufacture only from natural, high quality ingredients; that is why the products of the company Makarony Polskie have the best taste quality. Various practices occur on the market, e.g. in the case of pasta for sauces, it is unacceptable for us to mix durum flour with regular flour, which is done by some manufacturers. We do everything we can, so that in quality, our products can be found in the top part of the market. We also have a few ideas for distinguishing our pasta in a special way, but that is a matter of yet another couple of months.

What are your plans with regard to the Polish market? Are you perhaps expecting new investments?

- As of March, when the mentioned investment in the Rzeszów factories is finalised, our production power will increase up to 4 thousand tons. Expenditures for the investment will come to over 20 million PLN. This investment is partly realised from grants, which will amount to about 11.5 million PLN. Earlier, we invested about 10 million PLN in the manufacturing factory in Płock and about 5 million PLN in the factory in Częstochowa. Thanks to all these procedures, our production power is the biggest on the Polish market.
At the moment, we are realising most of the sales via chain stores. We are currently third in Poland, after Lubella and Goliard in brand name products, but this year, our plan is to achieve second position.

Does private label play an important part of your production?

- We introduced our brand products onto the market in 2006. In 2007, only 12% of the sales were realised through our own labels. Currently 65% of our pastas are sold under private label of chain stores, and it can be seen that it is changing very quickly. The activity of the company embraces the production of pasta on order from chain stores and supermarkets. The recipients of our products are: Tesco, Carrefour, Auchan, Kaufland, E.Leclerc, Biedronka (Jeronimo Martins), Plus Discount, Chata Polska, Polomarket, Intermarche, Eko-Holding.

Thank you for the interview

Tomasz Masal

Makarony Polskie S.A. is one of the largest and dynamically developing manufacturers of pasta in Poland, with rich traditions and many years of experience. The seat of the company is in Rzeszów. The company has three manufacturing factories: in Rzeszów, in Płock and Częstochowa. Makarony Polskie S.A. offers a wide range of egg and non-egg pastas manufactured in many various forms and shapes: short pasta, long pasta, spaghetti, shells, and many more. For their production, the highest quality raw materials are used, deriving from specially selected varieties of durum wheat and regular wheat.