Michalis Orfanoudakis, commercial director of PepsiCo - Marbo soon in Western Europe

(Michalis Orfanoudakis)

Chipsy`s "Domacinski" potato chips made snack lovers very happy this year. Commercials featuring grandpa Trifun leave almost nobody indifferent. People at Marbo Product, which is owned by PepsiCo, announce new surprises for their consumers.

In an interview with eKapija, PepsiCo West Balkans Commercial Director Michalis Orfanoudakis speaks about new products, new European markets for snacks made in Serbia, the competition between local potato manufacturers, and necessary subsidies for agricultural production.

eKapija: Pepsico took over Marbo in 2008. What is it that you are proud of the most in these five years of operations in Serbia?

This is an anniversary of ours, it is true: namely, we entered the Serbian market five years ago, with the acquisition of Marbo. After that, we had substantial investments in the manufacturing facilities in Maglic regarding a high capacity, “cutting edge technology” Potato Chips production line, as well as a state of the art, modern and efficient waste water treatment facility in line with our high sustainable development standards.

But, I need to highlight that I am really proud of Marbo team. Through ongoing trainings and recruiting of talented people, we have created a stable organization and great working environment. People are in fact our biggest and most important investment.

eKapija: The economic crisis began shortly after PepsiCo took over Marbo. How did you cope with the challenges of the economic crisis?

Economic crisis affected the business climate considerably. In this challenging period companies need to be more flexible and to adopt their business regarding new market conditions. If a company is investing in innovation and human resources, while giving costumers quality products for affordable prices, it`s surely on the way of success.

What we have proven in these five years is that with our strong team, PepsiCo global experience and Marbo’s local innovation, we can stay on top even in most challenging times. An excellent example of this three pillar approach is the success of Marbo`s brands – Chipsy, Pardon, Gud, and Clipsy, that are important members of PepsiCo global family of brands.

eKapija: How many employees do you have and what were the investments in the Serbian company since the acquisition?

I have said already that despite the significant investments in facilities and equipment, our biggest and most important investment was in the people. Currently Marbo Product has 960 employees in Serbia, and in total West Balkans region, Marbo employs over 1200 people.

eKapija: What percentage of total production do you export and where?

We are always looking for new opportunities beyond borders. Currently, we are exporting almost one third of our production to neighboring countries. Besides Serbia and Bosnia and Herzegovina, where we have production facilities, our products are also exported to the region, namely: Slovenia, Croatia, Bulgaria, Romania, FYROM, Montenegro and Albania.

As a leading manufacturer of snacks in Serbia, Marbo Product exports its products across the whole region. Based on the success of Marbo in those countries, we can see that there are fantastic opportunities not only on Balkans. We are already working on next steps which should be presenting Marbo product portfolio to Western Europe costumers very soon.

eKapija: You have recently launched Chipsy “Domacinski” potato chips and Pardon “Plocice” & “Grissini“ , how did the consumers react? What new products and flavors can your consumers expect to come out?

Chipsy Domaćinski has become incredibly popular as this new category of Chipsy introduced a whole new experience of snacking developed in line with the Serbian taste, and from delicious local potatoes.

Pradon “plocice” & “grissini” are truly unique products, forming a new subcategory for the baked snacks, but also for the whole market. They are marked by crispiness, great taste and a stamp of quality.

PepsiCo and therefore Marbo`s strategy is to constantly introduce innovative and indulging products adhering to the local market and consumers` taste and habits. In the same direction, Marbo will soon have additional pleasant surprises for the consumers.

eKapija: What were the results in 2012 and what do you expect this year?

The past years have been challenging still rewarding, 2013 though driven mainly by the launching of our innovative products, seems that it will be quite a good year and even better vs. what we anticipated.

Macro environment & commodities inflationary pressures are some of the parameters that we cannot control and many times they do form a challenge, still we always manage to overcome.

eKapija: You are one of the members of the Managing Board of the Foreign Investors Council. What proposals have the FIC been giving and what are the problems it has been pointing to when it comes to investments in agriculture?

FIC has invested great efforts in these recommendations for improvement of the business conditions in Serbia. But looking in to FIC White Book it is visible that minimum progress was made regarding the laws regulating the food industry and agriculture.

As one of the potentially key drivers of growth of GDP in Serbia, agricultural sector has big room for improvement. It need to offer more efficient and more stable business environment, bureaucratic procedures must be reduced and simplified, both on national and local level. But what is crucial is the proper implementation of all regulations.

Also, very important issue is subventions. Without long-term subvention policies Serbia will have difficulties to offer stable ground for investors. Serbia needs acceleration of the transition reforms, improvement of business climate and efficient fight against corruption.

eKapija: Will potato manufacturers from Serbia be able to cope with the competition in the EU considering that the duty on the import of potato from the EU will soon be abolished?

I do not expect the manufacturing to be jeopardized given the fact that local potato is of very good quality. Moreover I believe the competition will have positive effect on Serbian production as it will enforce all of us to invest on infrastructure , in order to remain competitive , something that is always value adding.

eKapija: Are there any new investments, new hires or acquisitions in the pipeline in Serbia? Which fields of the food industry are you interested in the most?

Serbia is the leading investment destination in the region. The strategic importance we allocate to this market is illustrated also in the fact that it is the regional center of our business operations in PepsiCo West Balkans.

Five years ago, with the acquisition of Marbo, we have enriched our portfolio with very strong local brands that have in the meantime became strong regional players. That is the path we wish to continue also in the future.

eKapija: Do you, personally, prefer “ Chipsy“ potato chips or some other snacks?

It is certainly not a surprise that I love all the products in Marbo portfolio. On top of my all-time favorite which is Chipsy CLASSIC, at the moment I could say I prefer “Clipsy SHOCK”, as it reminds me of the snacks that I used to eat as a child!

S.O.