Coca-Cola HBC Magyarország: We aren’t stopping, we continue the expansion!

In the last five years Coca-Cola HBC Magyarország became one of the Coca-Cola HBC group’s regional production centres. The company also added many new products to its portfolio, offering something to drink for every occasion, in any hour of the day. What is behind the dynamic expansion? Our magazine first asked general sales manager György Galántai how they managed to increase sales by 30 percent in the last 5 years.

T.M. – Last year you invested HUF 6 billion in development, you built Hungary’s biggest food industry warehouse and this year you plan to break last year’s investment record. Is Coca-Cola HBC’s Hungarian affiliate attracted to records?

György Galántai
general sales manager
Coca-Cola HBC Magyarország

–Let me add to your list that recently we have increased the size of our production base by 50 percent, 13,000 hectares. We store 8.4 million products in the new warehouse, which serves more than 30,000 retail outlets in Hungary and a growing number of foreign markets. We deliver our products to 25 European countries, including huge markets such as Italy or Russia.

T.M. – To what extent are your plans supported by the government’s economic policy? How does Coca-Cola HBC Magyarország contribute to the country’s economic development?

–In Europe the corporate tax rate is the lowest in Hungary and the work-related contributions that employers have to pay are becoming smaller too. In accordance with the strategic agreement that we had signed with the government, in the last 5 years we invested HUF 20 billion in Hungary. Our contribution to the nation’s budget was HUF 25 billion in taxes.

T.M. – Coca-Cola HBC Magyarország has one of the biggest and most successful sales teams in the FMCG sector. How do you measure success?

–Sales expansion can’t happen without a good team and the best professionals. It is them who ensure that our customers are satisfied and it is them who guarantee high-level in-store implementation. I am very proud of my colleagues, the people I work with day after day. In the last few years we put a lot of work into strengthening our sales organisation.

T.M. – How long can the expansion continue? Will you keep breaking records?

–We can be hopeful about further growth. This year we plan to invest even more than last year in the production facility in Dunaharaszti and in the mineral water bottling plant in Zalaszentgrót.

T.M. – Last year classic products – such as Coca-Cola, Fanta and Sprite – were joined by Rézangyal and Italy’s No.1 coffee, Lavazza. What keeps this diverse portfolio together?

Gábor Ivády
commercial excellence leader
Coca-Cola HBC Magyarország

Gábor Ivády, commercial excellence leader:

–Our main goal is to offer consumers a product for every occasion, a drink to enjoy in any hour of the day. This is how Coca-Cola HBC is transforming into a so-called total beverage company. There are more than 200 products in our portfolio – classic carbonated soft drinks, fruit juices, iced teas, mineral waters, energy and sports drinks, premium spirits and Lavazza coffees. We started 2018 with launching a new product: FUZETEA products combine tea, fruit juice and herbs. The iced tea category is expanding rapidly and FUZETEA’s market introduction is backed with a campaign.

T.M. – Shopping habits are changing. People are increasingly health-conscious and they care about the environment too. How does this form part of your business strategy?

Zoltán Matskási
operational marketing manager
Coca-Cola HBC Magyarország

Zoltán Matskási, operational marketing manager:

–If we want to be successful in the market, we need to monitor changing consumption habits. A marketing strategy that is based on consumption occasions can better serve constantly changing shopper needs and it also gives us greater stability in building our business. Health-conscious shoppers don’t have to make compromises: they can find tasty zero-calorie products in our portfolio. Another element of our success is that in in-store implementation the focus is on the shopping experience. Each year we are using less water and energy in production, and we keep reducing our CO2 emission too. We use only green electricity in both of our production facilities. (x)