Export success story of Enzym company or the Lviv roots of European bread
We continue our series of the success stories of Ukrainian exporters who share their experience of operating in international markets. Our today’s guest is the Ukrainian Enzym company that is the biggest producer of baking yeast in Ukraine and a major market player in Europe. Lesya Khodakovska, the head of the export unit of the PrJSC «Enzym Company», tells us how the company paved its way to export business and became the visit card of Ukraine in the international yeast market.
Expanding horizons
Enzym company started to explore the European market back in 2001. Nowadays, we export more than 40% of our products to EU countries as well as to Belarus and Azerbaijan. Negotiations with other potential partners from other countries are underway. We see themselves as the visit card of Lviv and Ukraine in the international yeast market.
When did the local market became kind of too small for us? That happened, when our ambitions became even with our production and commercial capacities, which happened, after we had increased our productivity, obtained a number of international certificates confirming the quality and safety of our products as well as gained the reputation of a reliable and sustainable partner.
Our first major foreign market were the Netherlands. We developed cooperation with our Dutch partners quite actively to turn it into a comprehensive joint engagement in the end. Since 2003 we have been exporting to the Baltic countries. Since 2005 we have been exporting to Moldova, Romania, Hungary, Poland and Czech Republic. In 2007, we started to export to Bulgaria and Belgium. Now we are going to start selling our products in India.
Achieving success
You need a combination of factors to sell your products abroad. First, you need a successful, acknowledge and time-tested product. Second, it’s not only about sales, but also about service, which includes contact with the customers testing your product, market tours to study the customers’ needs and demand, finding solutions to improve the customers’ operations, sustainable quality and supply as well as marketing support. Individual approach in working with customers is indispensable as well, of course. It means our 24/7 availability for customers, prompt reaction to their requests, flexibility and the daily work of all units of our company. Each package of yeast is the result of a hard work by each employee of our company. Hence, you need the well-coordinated work of a team of professionals to enter the international market.
The quality of our products is of paramount importance for us. Enzym company received the ISO22000 certificate back in 2007. Last year, our company received the FSSC22000 certificate that is even more demanding in terms of quality but, at the same time, gives more opportunities to develop our sales in Europe. These certificates stand for a comprehensive system of norms and regulations supported by big international supply networks, major distributors or bread producers worldwide. Thanks to these certificates, our products are a great alternative to existing international brands.
Our company is a major player in the Ukrainian market, 60% of our products we sell in Ukraine. 40% of our products are, as already mentioned, are bound for export. We export our yeast to 14 countries in Europe, including Belgium, Poland, Czech Republic, Croatia, Bulgaria, the Netherlands, Germany, Slovakia. We also export to Belarus and Azerbaijan. In some of the European countries, our market share is equal to 25%. It is good for us to remain the leader in the Ukrainian market and, at the same time, to earn reputation abroad. It motivates us to develop further.
Our products that we supply to Ukraine and to Europe are made using the same technology, they come from the same production facility. Quality must be at the top level irrespective of the destination of our products. Along with this, we have special brands for our export products that were developed to ensure our visibility and recognition in the respective markets. For instance, in Poland we implemented small-size packages for pressed yeast that are sold under the trademark «Drozdze Lwowskie».
Implementing changes
We started to modernize our production facilities back in the 1990s, this process is still underway. We realized that we must be really efficient to be successful. Hence, we took over other companies’ experience in implementing modern food industry standards and invested heavily into our development.
We also became aware that we needed changes to work efficiently, which included new equipment and trainings for our workers. Each employee shall understand yeast production standards, sanitary standards, production process details and many other things that make you competitive in Europe.
I must note that the European market is very dynamic, European bakers are normally very demanding. This is why it is so hard to gain the trust of European customers and so easy to lose it.
Our competitors now are powerful international companies like Lesaffre, Lallemand, Pakmaya, AB Mauri. To compete with them, we must have a clear strategy and pay utmost attention to all «subtlties» and effectiveness at each stage of the business process. Every step in export business gives you some new knowledge. Every new contract, even if it does not lead to long-term cooperation, gives you a better understanding of this or that market. This is always an impulse to new ideas, new products and solutions. Export business helped us become more dynamic and systemic.
Find your niche
My piece of advice to companies considering exports: never hesitate! Sell ready-made products meeting European standards instead of raw materials. To enter the European market, you should integrate yourself in Europe first: you have to grasp the European approach to business, learn production standards and market specifics in each country. You have to learn market needs and trends as well as understand in what way your company can gain added value and, at the same time, create added value for the customers through its products or services. Hence, you must always be one step ahead – this is actually what the philosophy of Enzym company is all about.
It is important to understand the financial and business culture of Europe and be ready for absolute transparency. Ask yourself, if you are prepared for this. You also have to be understandable to your partners and customers. Ask yourself, if you are ready to explain to your potential foreign partner why your product must be present in her/his country.
You also need personal skills to be able to work in international markets – these are, first of all, professional competence, communication skills, motivation and passion for what you do. You cannot know all things in export business, since you will always be confronted with permanent changes in the national legislation, customs regulations, marking requirements etc. You must be willing and able to study potential markets, to assess opportunities, to find customers and to establish communication.
Our achievement now are more than 14 years of export operations involving 14 countries. This a kind of a double anniversary. All this started back in 2004, when we got in touch with a major Dutch distributor and sent two pallets with yeast to the Netherlands as a testing consignment. We realized that the quality of our products was in line with the European standards, so we continued to develop our cooperation with the Dutch partners, which has been lasting for 14 years already. We also made this cooperation more versatile. For many years, Ukrainian bakers have been enjoying the opportunity to take over useful experience from their Dutch counterparts. Jointly with our distributor we organize experience exchange programmes.
I am in charge of export sales. However, I cannot achieve my targets without the engagement and help of our top-notch professionals in production-related processes. I am focused mainly on the development of new markets, expansion of the range of products and our presence in the B2C segment. Of course, we can also have situations in the routine working processes that require my direct involvement. A good specialist is a person who loves her/his job and turns it into a lifestyle. Very often, new ideas and solutions come to my mind, when I enjoy my cup of coffee on a Sunday morning or in my free time on other occasions.
We have proven that food products from Ukraine are successful internationally, are sold good and enjoy a positive feedback from the market. Ukrainian food products have gained their place in the international market.