Ten years of success: how the Polish company Bogutti was able to conquer foreign markets

For about 10 years, the products of a relatively small family-owned company headquartered in Poland have been confidently marching on supermarket’ shelves. The manufacturer was able thanks to this to win the consumers’ favor and the retail chains’ loyalty.

Bogutti is a Polish family enterprise with a representative office in Ukraine, specializing in the production of high quality biscuits and sweets. The company is dynamically developing and mastering new sales’ markets on many continents. Sales are oriented towards export, which accounts for 60% from total sales. The rest of the products are supplied to the domestic market. Bogutti owns trade marks: La Gustosa, Tweett, Choco Gutti, ChocoFit, Cookies in American Style, Next, Free cakes. Bogutti is also a major supplier to retail chains in Poland and around the world. The products are appreciated for its quality and interesting tastes. In addition, the products are manufactured according to Halal and Kosher standards. Lukasz Gazarkiewicz, Co-owner of Bogutti, told RAU about key facts on the company’ history, peculiarities of the assortment and construction of processes, plans for the future and many other things.

More information is on the website: https://bogutti.com/en/. You can also get acquainted with the company’s products at the World Food Ukraine exhibition, which will be held on November 2-4 in Kiev, at the International Exhibition Center. Bogutti booth: А-3-2.

− Since when has the enterprise been operating? What have you achieved? What markets have you already mastered?

− We have been producing high quality biscuits and pastries since 2012. So next year we have the first 10th anniversary of the company. We are pleased with what we have achieved in this short period. Every year we are developing more and more and conquering new markets.

The plant was established in the Henrikov tract. The founder Bogdan Gazarkevich has many years of experience in managing confectionery enterprises. He decided to use it and founded the Bogutti company. A few years later, the management of the company was entrusted to me and my brother Mateusz. We focused from the very beginning on international development, believing that this will allow us to fully exploit the company’s potential. The products of our factory are conquering markets all over the world. It can now be found in over 50 countries. At the same time, the products’ high quality was appreciated by international corporations which entrust us the production of own brands. We work for largest companies in the world.

In 2020, we received the title “Gazeli Biznesu” in Poland from the Polish business magazine “Puls Biznesu”. The rapid growth in sales revenue and net profit during the period from 2017 to 2019 were the main criteria for obtaining this title. Receiving this award is proof of our rapid and sustainable development.

Key dates in the history of the company:

• 2012 − the company’ formation by Bogdan Gazarkevich and construction of the plant
• 2013 − first orders
• 2014 − the second production line
• 2015 − the sales’ beginning on the Ukrainian market
• 2018 − transfer of the company’ helm to sons: Lukasz and Mateusz
• 2019-21 − expansion of the plant, doubling of its square

− What makes the company different on the market?

− We focus on the high quality of ingredients and the development of our commercial offer. We have BRC Food, IFS Food and Halal certificates. The company operates in a very competitive confectionery industry. The large number of players forces us to develop a strategy that allows us to stand out from the competition. Only finding a suitable niche will allow a company like ours to survive and develop.

We work only with recognized and carefully selected suppliers. The goal is to offer products that can satisfy most discerning customers. At the same time, we try to combine quality with a very attractive pricing policy, since we want that the widest group of consumers to have access to our products. We are aware that the market is developing; therefore we are constantly working on our products’ development.

At the beginning of the year, we introduced a compact package (120 g) and a large package of cookies (225 g) Cookies in American Style with Belgian chocolate. We are currently working on developing products without added sugar and palm oil, which is a response to the global consumer trend.

A great advantage is that we are a small family company compared to our competitors; therefore we work very quickly and flexibly. We can guarantee an individual approach to clients, which definitely increase our attractiveness in the market.

A great advantage is that we are a small family company compared to our competitors; therefore we work very quickly and flexibly. We can guarantee an individual approach to clients, which definitely increase our attractiveness in the market.

− You say that the company is small? How many people do you have now?

− At the moment, we have about 150 employees in the office and in production. Slightly less than half are citizens of Ukraine. We place great emphasis on development; therefore we are constantly looking for qualified employees who could join the team. While the situation on the labor market in Poland is very difficult, we are faced with a shortage of specialists. But, despite this, over the past two years, there has been a significant reorganization of the sales’ department and the marketing’ department. It was possible to replenish the team with new employees, whose goal is to work on the further development of sales.

− You say that you are developing, but Covid-19 has not had a negative impact on the industry?

− The sudden outbreak of the epidemic came as a surprise to everyone. Significant restrictions on commercial activities, as well as the frequent lockdowns’ introduction, forced companies to act suddenly. Uncertainty about the epidemic’ development, the prevention and treatment’ possibilities meant that we had to act in an instability’ environment. The imposed trade restrictions or the inability to communicate directly with customers seem to have left an imprint on the entire industry. Most manufacturers have had to deal with a decline in turnover.

We have understood as a company that our partners were in a difficult situation. We have prepared additional promotional offers to ensure proper our products’ rotation on shelves. During the biggest quarantines, our goal was to support current partners to help maintain the continuity of production and employment, even at the cost of losing some of the margin. Most of employees have been working with us for many years; we could not afford to part with them.

At the same time, we tried to attract new customers as much as possible. Over the past 12 months we have significantly expanded our presence in the Balkans, the Far East and Latin America thanks to the recognized quality of our products. We also decided to take a chance and visit the only big food fair during the pandemic − Gulfood 2021 in Dubai.

− Where did you get the idea to enter the Ukrainian market with your proposal?

− As I mentioned earlier, Bogutti’s strategy assumed to develop globally from day one. The Polish market must be one of many. Currently, over 60% from the company’s turnover comes from exports. Bogutti’s first products were cookies with filling, very popular in Italy; and the company began its development from this market. Entering neighboring markets such as Ukraine has become the only step in development. The size of the market, its volume or declared demand, combined with relatively low shipping costs, have made Ukraine a potentially strategic development’ direction.

Before realizing products for sale, we carried out relevant research that confirmed our plans and identified products with the greatest potential. The history of recent years has shown that this was a very good decision. We are constantly developing in the Ukrainian market and expanding our distribution chain. We treat Ukraine as a key market for the company’ development, so we have our own representative in Ukraine. You can see and taste our products at the World Food Exhibition in Kiev “World Food Ukraine 2021” on November 2-4. Representatives of our company will be present at the stand #A-3-2. We invite you!

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