STRENGTHENED BY THE ACQUISITION OF FINLAND, WE ARE OPENING NEW CHAPTERS OF GROWTH - INTERVIEW OF THE DIRECTOR OF THE ALCOHOLIC BEVERAGES AND COFFEE SECTOR BRANKO VUČKOVIĆ

Interview with Branko Vučković for CafeBar & Restaurant Magazine 

1. The beginning of the year is reserved for the past-year analysis and starting off new-year plans. How would you evaluate the past year from the point of view of the sector you lead? 

A very successful year is behind us, for both categories – alcoholic beverages and coffee. 

When it comes to alcoholic beverages, I can proudly say that in a very challenging year, we managed to achieve double-digit revenue growth and thus demonstrated record results, fulfilling our ambition that may have seemed unattainable at times. We had a solid foundation, as we started 2023 as the second-largest alcoholic beverage distributor on the domestic market and number one in the premium segment. 

In the coffee category, both our brands - Costa Coffee and Vergnano - demonstrate excellent track records. I will mention only one achievement - in the year behind us, we have activated these brands in more than 500 HoReCa facilities. 

2. The plans are afoot, and I will feel free to compare the Finlandia vodka acquisition to our national team football player excelling abroad and signing a contract for a Serbian club. What can you tell us about this business success of yours? 

That's a good observation. Vodka has a high market share in the domestic market and is undoubtedly one of the key categories in alcoholic beverages. Finlandia, the leading vodka brand in Central and Eastern European markets, will strengthen our 24/7 partnership strategy. Our plan is to grow this category through innovation and recognizable execution in the field, predominantly through synergy with our carbonated soft drinks, primarily Schweppes. Finlandia will receive our full focus with a clear plan to build a recognizable brand, which we will bring closer to both our customers and consumers. 

3. If, perhaps, I went a little bit too far with the Finlandia comparison, the same parallel definitely holds for Bacardi. What are your plans for one of the most popular rum brands in the world? 

I believe the start of cooperation with the Bacardi Martini Group, one of the world's leaders in this segment, will be an important innovation for us. Apart from the recognizable Bacardi rum, this group's portfolio includes gin, whiskey, tequila, and perhaps one of the most recognizable brands on our market, Gray Goose premium vodka, an indispensable part of any nightclub. We are thrilled about this collaboration, and I am positive that with our amazing sales teams, we can open up opportunities for the growth of Bacardi brands in the domestic market. 

4. A promising innovation will soon be launched on the Serbian market - a combination of two cult brands in a ready-to-drink mix - Jack & Coke. This drink was introduced in 2022 in Mexico and a little later in the USA and European markets. How did Jack & Coke perform in those markets, and what can we expect here in Serbia? 

This question brings me to the third major innovation in the alcoholic beverage category. Considering that Coca-Cola is our basis of everything, Jack & Coke is a natural extension of our core portfolio and, I can say, one of the most anticipated collaborations between two legendary brands. This is a rapidly growing beverage category, and Jack & Coke has exceeded all expectations in the markets where it was launched. The Serbian market is open to adopting high-quality innovations, so I am confident of success in the domestic market. Customers are already impatient for us to jump-start this innovation, so I can share the information that Jack & Coke will be available in the market from March. 

5. Plum, apricot, pear, and quince Zlatna rakija brandies are confidently positioning themselves on our market. As far as I know, you have upgraded your manufacturing, so tell us something about it. 

That's right - we have improved the entire production process and now also use whole fruits originating from recognizable regions in our country. All this yielded results, as in 2023, we outperformed and recorded double-digit growth, which tells us that consumers recognized the quality of our "gold." Encouraged by these results, we are planning more innovations, with the desire to be at the very top among those who will improve the entire brandy category. 

6. The Coca-Cola HBC portfolio coffee segment recorded double-digit volume growth. What are your plans for further development this year? 

When you have two strong brands like Costa Coffee and Vergnano, you can plan growth even after a great year. With leader DNA, we are bringing new trends to the domestic market this year as well. We will strengthen our blend offer for both coffee brands. I can share with your magazine that there are plans to launch Costa 100% Arabica Brazilian Dark and Costa Crema, which are dark roasts and, as such, adapted to the taste of consumers in our market. Caffe Vergnano will also be available in a decaf option. Although this is currently a small segment of our business, it is extremely important for us to respond to different customer and consumer needs. 

In keeping with our strategy of being a 24/7 partner, I am pleased to announce that apart from coffee, we will have some other innovations for the HoReCa channel, such as hot chocolate and teas. 

7. How does your company's Coke Academy initiative, supporting customers and small retail chains through educational workshops and training, reflect on the broader community? How does this Academy contribute to raising the level of knowledge among end consumers about coffee production and preparation processes? 

Coke Academy is an initiative through which we create added value for our customers. We share knowledge and our experience with customers, especially smaller ones, who often do not have enough resources for education and keeping up with trends, improving their businesses, and therefore the entire market in that category. 

To answer the second part of the question: the coffee-making process is just as important as the quality of the coffee. For this reason, cooperation with Coca-Cola HBC in this domain also brings expert assistance. Namely, when customers choose our coffee brands, they have our coffee experts at their disposal. They can provide customers with educational training on the preparation process and teach them how to turn the bean into a perfect cup of coffee. I will also remind you that one of the most prestigious world associations in the coffee industry, the Specialty Coffee Association, has certified our 24/7 Experience Center as a barista training facility, and our trainers hold all the necessary certificates. All this with one idea in mind - that coffee lovers get the highest quality of prepared coffee. 

8. Your professional success is impressive, as evidenced by the record reach and positive comments on the recent interview on LinkedIn. I have received hundreds of comments with nothing but words of praise for you, describing you as an outstanding expert in the right place. You recently took up a new business role in which you will support Coca-Cola HBC Switzerland in HoReCa segment development. What advice would you give to young people? 

Thank you very much for these words; I am truly honored. I think the key is to dedicate yourself to and love what you do. I was fortunate enough in my career to constantly learn something new, enjoy what I do, and be surrounded by really wonderful people who have contributed to my professional and personal development. With the promotion comes a new role in the Swiss operation, and I'm really looking forward to that new page in the book of my career. Learning never stops - that would be my advice to young people. Use every opportunity to learn, be ambitious but also patient, and create a good working environment based on understanding, diversity, and a healthy winning spirit.