As export director of Arabatzis SA “Hellenic dough”, Sakis Ignatidis heads the exports of one of the biggest factories in dough business and shared his views with me, on several aspects, from pastry trends to the company’s expansion strategy.
As one of the major producers of frozen pastries in Europe, please discuss how the market is evolving on this segment, including details about consumer preferences.
Arabatzis: Frozen dough products have historically been a resilient, steadily growing category, but now we believe it has an even greater future given how well it aligns with consumer trends towards convenience, safety, health & wellness (frozen pastry products have no need of preservatives and is as nutritious as fresh) and sustainability (less food waste). Our company Arabatzis SA “Hellenic Dough” is reaching consumers worldwide with our products, through our business partners. It is within our Marketing and New Product Development Strategy to continually track consumer preferences and trends. What we observe is an ever-increasing global demand for frozen dough products as consumers notice price increases and grow concerns about fresh food spoilage. These come together with the younger generation’s needs for easy access and easy to prepare high-quality food, at the best possible value. Concerns about the shelf life of products is another major influence on shopper habits since consumers become more and more mindful of food waste. We are one of the leading frozen dough product companies, our consumer proposition is unique, as we produce clean label high-quality goods based on Greek – Mediterranean recipes. Products like filo dough, bougatsa with cream, traditional country pies with spinach and Feta cheese (P.D.O.), puff pastries and many more. All our products are made in Greece, in our modern and highly advanced factories, using the best ingredients. Our goal is to help our partners build incremental category value either by serving them with our brands or by helping them build their own product ranges. This is why relentlessly work to find the next meaningful consumer innovation, help to educate more consumers by leveraging the Bake-off corners and drive extra penetration through targeted promotional actions. And between you and me, the results year after year are quite rewarding!
Considering the two major channels of distribution – retails and foodservice – which of these are most prevalent to your business and why?
Our products need to be physically available where our consumer shops. In that context, both mass food retail stores and foodservice outlets are key to reaching our consumers. In the early days, our strategy was focused only on foodservice. We believe in the value of this channel as we can actively seek direct feedback on the quality of our products. But as our products started to become known for their superior taste and value for money proposition, we were approached by global mass food retailers to enter their stores. We believe that both channels work complementary to our route to market strategy. The modern consumer is increasingly experimental. Extensive media coverage of global diet and cuisine along with personal travel have created awareness for one of best Greek traditional food, the pie- with a variety of fillings, which holds a special place in the country’s cuisine, as it is among the oldest, simplest, and most delicious dish one can find in our Country. Finally, our flexibility ensures that we can adapt our production when required, serve, and satisfy consumers worldwide.
Your exports now represent around 38% of the turnover. How do you see the company evolving in the coming future, in terms of exports and new product development?
I remember that seven years ago, our company’s sales were ~EUR58M, with export sales representing 18% of the total turnover. In 2022, our company continues growing on a global level, reaching sales of more than +EUR100M with the exports reaching ~38% of the total turnover. Global expansion is and will be the key driver of growth for our company. My role is to travel all over the world, act as the ambassador of our great company and our delicious products and keep establishing new cooperation. We believe in the high quality of our products, their unique recipes, and their ability to adapt to local tastes, a skill, which as we expand globally, will fuel our export sales further year-after-year.
Speaking of products, you have a portfolio of over 700 different frozen pastry options – which are currently the best-sellers and how do you explain their success?
In a world where authenticity and tradition are writing the innovation rulebook, our company Arabatzis “Hellenic Dough” S.A safeguards our land’s tradition, selects only the best and purest ingredients, offering to the consumers a wide range of fine products that stand out for their quality and superb taste. We have an expanded portfolio of products, all produced with care and attention. Some of the most successful are the twirled pies with feta cheese, the spinach rolls, and the big traditional pies. Our products are for sharing on a table full of quality foods among our family and our friends. It is at these valuable, social moments, that we want our products to be served and excite all our senses. For the Greek people and the millions of tourists who visit Greece every year they are a reminder of happy times, family gatherings and unforgettable tastes. As we expand globally, we aim to increase our penetration in new consumer segments and partner with local retailers, so that we provide them high-quality frozen dough products, suitable to their taste.
Please discuss the investments you are currently making and have planned for the future, regarding the expansion of production capacity and the upcoming opening of the new production plant.
To fulfil the increased demand, the company invested in a new manufacturing facility, to double our production capacity. The fourth production plant of Arabatzis “Hellenic Dough” S.A, operating since the end of 2021, is continuously getting equipped with new production lines to accommodate the increasing demand and enable the completion of the new projects in line.
Besides the European continent, which other global markets do you consider to be attractive for your business and what is your strategy of expansion in the future?
The company will keep seeking, developing, and investing in long lasting business relationships all over the world, so as to serve more and more consumers globally. We already serve more than 43 countries. We have plans to expand this list further in 2022 while supporting our existing partners to grow faster.
“The fourth production plant of Arabatzis “Hellenic Dough” S.A, operating since the end of 2021, is continuously getting equipped with new production lines to accommodate the increasing demand and enable the completion of the new projects in line.”