Hrvić: The crisis has boosted citizens' national awareness towards domestic production

AS Holding company today unites 17 companies, almost 2,000 products, and more than 4,000 employees, with a growth trend. The story began in 1988 with a small shop, in 2003 a sugar factory was launched, and in 2006 a biscuit factory. Rusmir Hrvić, director of AS Holding, talks about future plans, AS Holding brands, and market expansion in an interview with SEEbiz.

SEEbiz: AS Holding companies increased exports by 11 percent in 2020 compared to 2019. Which brands stood out in particular?

Hrvić: We had very good results last year, and the export-driving brands were: Tuzlanska so, Zlatna Džezva, TOPS, KENT confectionery program, Zlatni puder flour, and Klasova jufka. All these products have found excellent positions on the shelves of stores in our export markets. The trend until the end of 2021 is similar to last year's 2020.

SEEbiz: In which markets did AS Holding brands achieve growth last year? What would you highlight in particular?

Hrvić: I would highlight the regional markets, primarily thinking of Croatia and Slovenia. The German market saw serious growth, and the one with very good results and huge potential is the USA, which has recorded significant growth year after year. We are satisfied with the positioning and the number of countries we export to, as well as the feedback from our consumers there.

SEEbiz: It is known that SEEbiz is the first regional business portal, so it is interesting for us to analyze the regional markets a bit. Which of your brands managed to "conquer", for example, Slovenia, Croatia, Serbia, or Montenegro?

Hrvić: AS Holding members have a long tradition, so Klasovo flour, Zlatni Puder, is number one in Montenegro. TOPS is one of the best-selling confectionery products in Croatia. Tuzlanska so is by far the first choice in Serbia, while Zlatna Džezva is the second best-selling coffee in Slovenia. The Maza cream spread has also generated great interest in all our export markets.

SEEbiz: You recently announced the opening of new markets this year and in the coming years. What are your goals in this regard?

Hrvić: Eastern European markets are currently in focus, primarily thinking of Romania and Bulgaria. The Russian market is a big goal we are working on, but it requires a lot of effort, work, and time. The Middle East includes several more countries where we are not present, and we can offer them European quality and HALAL certification, which is increasingly important, not only in that region but also in Western Europe. Generally, in all markets, including domestic ones, there is always room for improvement, so it is very important to maintain positions or strengthen them further.

SEEbiz: Investments in Agrokomerc or the Maza brand already seem very successful. What are the plans in this regard?

Hrvić: With Maza, we saw that our market desperately needs a domestic, quality brand, and that support is not lacking in that case. Behind the successful Maza story are months of work and expert teams, so we strive to approach every future Agrokomerc brand in the same way. The plans are to invest in equipment, work on maintaining and strengthening existing brands, and invest all efforts in new products that will conquer the market.

SEEbiz: It was recently announced that the Bosnian Cuisine program and your brands that cherish BiH tradition are increasingly finding fans and consumers in foreign markets who are not necessarily from these regions. How did you manage to achieve that?

Hrvić: Just as someone favors French, Italian, or the gastro tradition of any other country, people in foreign markets like, buy, and support the tradition of BiH cuisine. Our products are the embodiment of BiH tradition when it comes to flavors, ingredients, and food additives; somun, coffee, pies, soups, spices... Foreign consumers who are not from these regions are increasingly using our products and recipes to make traditional BiH dishes, and I believe that quality was the deciding factor in that story.

SEEbiz: It is interesting that at the beginning of the pandemic, you "led" the management board members into the production facility to send a message to the workers. You also packed pasta, according to your own words. Did you achieve the desired goal with that move?

Hrvić: The most important thing is the fact that we dispelled the fear among production employees that prevailed everywhere in the world during those days. Countless unanswered questions, uncertainty due to the situation with an unknown virus... Workers were afraid to come to work, to be in the plant during those days. The moment they saw me and my colleagues, the managers, I think they overcame that feeling. We worked together in the service of citizens because we were aware that we could not fail in such critical moments. I am extremely proud that we proved how much we can achieve together despite all the problems that stand in our way.

SEEbiz: Do you agree with the thesis that this crisis has somewhat turned consumers towards domestic brands in the food segment?

Hrvić: I agree because we are witnesses to that fact. Citizens of BiH have begun to appreciate domestic products and domestic producers more, and that is what we have lacked for years. The time of the pandemic has stimulated that national awareness in people, and it was up to us to emphasize how important it is to strengthen domestic production. Every individual directly influences the direction in which our economy and all segments of the state and society in general will move.

SEEbiz: Vispak d.d. Visoko, a member of AS Holding, and the German Development Bank DEG - Deutsche Investitions-und Entwicklungsgesellschaft, recently signed a loan agreement in the amount of 12.1 million euros. How will these funds be used and how much does the partnership with such a renowned institution as DEG mean to you?

Hrvić: It is a great reference for us. We are the first and only private company from BiH working with such an institution, and that is sufficient indication that they have recognized the value of what we do in us. I am extremely pleased about the trust they have placed in us. The partnership with DEG opens doors for us with other international institutions and creates opportunities for new and larger projects. Part of the loan funds will be invested in refinancing existing obligations, and part in a solar panel project, automation of existing production, and new equipment.

SEEbiz: You announced a long time ago that you want to be among the top five food producers in Southeast Europe. How close have you come to that strategic goal?

Hrvić: That is our vision, which we are getting closer to year after year. We have done a lot in BiH, in the domestic market through acquisitions and organic growth. The only correct way to achieve that vision is to first do everything that is necessary in our country, and then to expand regionally with our production facilities. For such a thing, there is still a lot of work and challenges ahead, but I am sure and I believe that we will succeed.