Bogutti, a Polish food brand, “We have successfully addressed the goods deficit in Ukrainian stores in a remarkably short period”

Representatives of Bogutti, one of the leading confectionary brands in Poland, spoke to us about a range of topics, including supplies to Ukraine during a full-fledged war, recovering cooperation, expanding into external markets, and much more.

Bogutti is a family business based in Poland, with an office in Ukraine. Its hallmark products are high-quality cookies and fudges. The company is actively expanding into new sales markets on several continents, with 60 % of its sales coming from exports and the remaining 40 % from the domestic market. Bogutti owns several trade names, including La Gustosa, La Gustosa mini, Weeksy, Tweett, Choco Gutti, ChocoFit, Cookies in American Style, Next and Free. Additionally, Bogutti has a significant share of retail procurement in Polish networks and around the world. The brand’s products are highly regarded for their quality and unique flavors, and they are also certified as Halal and Kosher.

– What was the impact of the war on the company’s Ukrainian office?

Artur Kryvoshei, Sales Representative at Bogutti Sp. z o.o. in Ukraine: Of course, the war had caused significant disruptions to our operations as we had to adapt to a new food market. The market was significantly impacted by Ukrainians moving abroad and a sharp drop in household incomes. Moreover, many companies had to move from conflict-stricken areas to safer regions, which is still an ongoing process. Many facilities were destroyed beyond repair or required significant renovations. The war impact was particularly palpable during the first few months after the hostilities began, with half-empty shelves and sales from pickups.

Despite those challenges, Bogutti remained committed to providing help during that difficult period. They prioritized their Ukrainian clients, fulfilling their orders first. Thanks to sound managerial decisions, they were able to postpone inflation to a large extent which prevented sharp price increases on the Ukrainian market. We hope that the most challenging stabilization period in Ukraine is now behind us and that we can continue our cooperation with clients at a normal pace, informing them about new developments at our facility and in the European market. We also plan to hold meetings, communicate with clients, and increase sales volumes, thereby contributing to keeping the Ukrainian economy afloat.

– Did Bogutti feel the consequences of the war in Ukraine? What is the current cooperation with Ukrainian clients?

Karol Pilacinsky, Head of Export at Bogutti: On one hand, Bogutti was concerned about losing an important market, and on the other, the steep rise in raw material prices due to the war had destabilized manufacturing processes. In response, Bogutti had to adapt to the new circumstances, suspending local manufacturing and dramatically reducing import options. As Poland is a close neighbor to Ukraine and the largest food producer in Europe, the company was able to cover the goods deficit in Ukrainian stores in the shortest time possible.

Now that economic cooperation with Ukraine is normalizing, Bogutti is gradually recovering its sales channels and creating new ones.

– Now we are seeing rising prices for energy carriers, raw materials, and transport. How has the company adapted to those changes?

Karol Pilacinsky: Over the last year, Bogutti has encountered an unprecedented increase in the cost of goods. COVID, Russian aggression against Ukraine, sea shipping difficulties, and high inflation have all combined to create tremendous pressure on manufacturers. Initially, the clients were resistant to the need to adjust prices, but Bogutti had to change their perception in order to overcome that challenge. Despite these difficulties, the company remains committed to delivering high-quality products to its customers.

As global price adjustments became a pressing issue, conversations surrounding the topic took on a more tolerant and casual tone. Our company, alongside its business development, implemented various measures to optimize expenses, seeking to limit the increase rate by eliminating unnecessary expenditures such as those related to package selection and production processes.

– Bogutti’s export offer is about 60 % of sales. What markets were the key ones for the company?

Karol Pilacinsky: While the company initially worked within European markets, Ukraine remained a crucial sales direction due to direct cooperation with trade networks. In recent years, the company has focused on sales development in other continents, particularly the Near East, where traditional Polish milk fudge has achieved a stable dominance. The company continues to expand its distribution geography, having recently visited several fairs in Asia resulting in new contracts. In Eastern Asia, there is a growing interest in our products, and we plan to take the necessary measures to increase our presence in this market.

– How did the company’s product profile develop over the past decade?

Karol Pilacinsky: We initially launched La Gustosa Italian cookies with cream filling, which were well-received in Italy. Afterward, we introduced new flavors to the range, followed by the addition of new brands. The company continues to monitor market changes and customer feedback to efficiently develop its range, with a focus on manufacturing cookies with no added sugar, a global trend for this food group. We have also introduced a new cookie package, Doypack, with a zip reclosable strip that keeps the biscuit fresh and stored for a long time. As our next step, we plan to expand our range of individually packed cookies.

– What international trade fairs does Bogutti visit? Has the participation in them increased the number of clients?

Edyta Pleban, the Export Manager at Bogutti: Our participation in numerous fairs is crucial to meeting and establishing relations with clients. The company values festivals and fairs as great opportunities to introduce its new goods and packages, as demonstrated by its visit to World Food Expo in Kyiv in November 2021.

This year we will participate in several international events. On April 23-25, we invite you to the ISM Sweet & Snack fair in Cologne. At stand B038 in hall 11.1 we will present our permanent offer and new products. Our future plans include attending PLMA in Amsterdam on May 23-24, Anuga Food in Cologne on October 7-11 and ISM Middle East in Dubai on November 7-9.

-What about new offers in 2023?

Edyta Pleban: The company has developed a range of goods with no added sugar and palm oil, along with new package designs. Our new products include La Gustosa mini cookies in Doypack bags with zip reclosable strips, La Gustosa No Added Sugar cookies with chocolate cream, Weeksy with no added sugar and palm oil in three flavors, and American cookies in individual packages.

We have also launched a new production line at our facility and acquired a more spacious finished products warehouse, enabling us to send larger goods batches within the agreed term.