PIVARA SKOPJE WILL CERTIFY ITS SUSTAINABLE AND RESPONSIBLE BUSINESS MODEL IN THE NEXT 100 YEARS
At a time when the sentimental Macedonian public finally accepted and got used to that the Head of the “best of Macedonia” (Pivara Skopje) may be a foreigner, the corporation “Coca-Cola HBC” and HEINEKEN are sending Jovan Radosavljevic who, even though for 19 years works in global corporations, has retained all the positive features of the Balkan mentality and friendliness. He admits that he easily adapts to the work in Skopje because it perfectly suits to him and he is hoping to stay here as long as possible.
According to Radosavljevic, there is a misconception among the Macedonian public that local brands like SKOPSKO have no future in the globalized corporate world. Rather, he emphasizes that modern corporations fight battles to come to such “rough stones” as Pivara Skopje and their presence here can only promote the brand through the implementation of already unified contemporary world standards and ways of operating.
Where do you come from? Tell us your main impressions of our best-known company?
I am in Pivara Skopje since March 1st, 2016. Previously I was in Romania at the position of Commercial Director, so directly from Bucharest I came to Skopje. I work for Coca-Cola HBC since1998 where I started from the most basic level; a year as Merchandisers, then a year as a Market developer and then my career went upwards. Before I left Romania, I was a Sales Director for Serbia, Montenegro and Kosovo.
Generally, there are no big differences between Serbia, Montenegro and Macedonia, but when you compare it to Romania, then this is different experience. What is important in Skopje are the interpersonal relationships and that’s what makes the business. In Romania people are slightly different and there is everything connected with some processes and procedures. Although Romanians are part of the Balkans they generally work hard to behave more like their counterparts in Western Europe. That is why, for me, coming to Skopje was like returning home.
What was most interesting is that in the first two months here while I was still studying about Pivara Skopje, every day I had at least one meeting without any agenda. Simply, people were coming just to meet me and we were spending 45 minutes in talking about who works what. Then I realized how the interpersonal relationships are important in Macedonia and how they run the things. That suits to me personally, because I am closer to that culture.
In addition, I saw that people in Macedonia are particularly proud of Pivara Skopje and SKOPSKO as a beer. It is one of the most recognizable brands in former Yugoslavia and hence SKOPSKO is the heart and the soul of this company. Whenever in Macedonia someone speaks about beer, SKOPSKO is first on the list. And I think every Macedonian is proud to have such a product. Even us, within the company, we have a special relation to SKOPSKO and whenever I travel to the company headquarter, I got at least a few orders from the management to bring SKOPSKO.
Whether before being sent to Skopje you were aware that you will manage a company that exist for 93 years and a company that owns one of the most famous Macedonian brands? How did you feel about it?
Despite my extensive experience in the business, with the appointment on the leading position of Pivara Skopje it was clear that I will face new challenges, quite different from all previous, even more, I was aware that the company that I should lead, not be mistaken if I say, is the “institution” on the Macedonian market. I tell institution, primarily in terms of the visibility of the brand, my impressions are that Macedonians feels Pivara Skopje in that way which is quite understandable, the company exist for almost an entire century, or more precisely 93 years.
From steam brewery founded in 1924, today Pivara Skopje is synonymous for a modern company with most sophisticated production facilities for beer and non-alcoholic beverages producing 4 major beer brands and 12 major brands of soft drinks. It should not be forgotten that in its 93-year history, Pivara Skopje passed through many stages of transformation, economic and political. But just at them, Pivara Skopje recognizes the strengths and opportunities for reconstruction, development and expansion by applying technological innovation, increase of the number of workers and of course the increase of the production capacities and product portfolio.
After successfully completed privatization, Pivara Skopje is owned by Coca-Cola HBC and HEINEKEN which, to this company with decades of experience, gave additional value. Pivara Skopje will continue the trend of growth, focusing on building trust with customers, increasing the love of the consumers towards its brands, ensuring further sustainable development and investments in the community.
Does SKOPSKO with its quality and volume of production can stand on the global markets? Is there in general, in this globalized world, place for small local brands?
There are many beers with good quality on the market and I can say that some beers are made to be world beers, having balanced flavor that should suit to everyone. SKOPSKO is slightly different. Although for its production are used raw materials of the highest quality and value, that does not guarantee that will suit to everyone. SKOPSKO is designed to be liked by those who want an old beer recipe. And because of that, once you start drinking SKOPSKO it is very difficult to go to something else. As for the quality based on the cost that we make for the purchase of raw materials, most responsibly, I claim that SKOPSKO is a premium beer that can stand along with all known competition.
As for corporations, I’m sure that they are not here to reduce the values of the small local brands. On the other side, we are part of two big corporations Coca-Cola HBC and HEINEKEN that have the biggest brands, and have the best quality.
So, the corporation cannot afford it to have a local brand which will be perceived as poor quality. Therefore, they set highest possible standards of quality and control everything not to have something that will accidentally went wrong. When you consider the fact that HEINEKEN and Coca-Cola HBC invested here around 40 million euros, we can be sure that they believe in this brand. So, the corporation is here to make the brand even stronger and more progressive, and finally return in to the reputation of the entire corporation.
From this point, in this global world has place for such local brands. After all, corporations are trying to find those “rough diamonds” in local markets. Consumers themselves are sometimes overwhelmed by unified tastes and they increasingly require products tailored to their personal taste.
In the marketing, sales, contacts with foreign partners, Pivara Skopje is a company that traditionally relays on its history. Is it a worthwhile strategy and will it continue?
The company’s history is something that “Pivarci” are extremely proud on. For us history is chronological balance of heritage, past work, people who have been through the company, processes and development. Strategically speaking, sustainability means history, tradition and experience that each of its aspect is translated into local brands, which thanks to the quality are internationally recognition. For decades, we are conveying the overall knowledge and skills in to the art of creating authentic drinks.
Ten years ago SKOPSKO, besides Macedonian was also a regional brand. With the enlargement of your company again there are conditions the brand of SKOPSKO to gain the control of at least part of the region. What can we expect in this regard?
Even now, SKOPSKO is present in part of the region, but as a member (brand) of a larger Group. Whether behind SKOPSKO as a brand will be a strategy on a regional level will depends on the principal. If you ask us in Pivara, SKOPSKO has the opportunity and the capacity to play a significant role in the region.
Statistics shows that young Macedonians are increasingly leaving the production of local wine and plum brandy (rakija) and just like their peers from the west drink more beer. Is that evident on the domestic market as well?
In the flow of new offers of alcoholic drinks on the markets, the young consumers who by joining the adulthood leaves the consumption of soft drinks, is the one who led by it youthful and adventurous spirit wants to experiment and tries new flavors. It is a global trend, not just local. But globally, the beer as drink constantly increases, mainly resulting from the growing trends of sales in emerging markets and as a result of increased consumption per capita. Beer in Macedonia, despite the tradition of production and consumption of wine and plum brand (rakija), we may say that it is a traditional drink, even though, Macedonia as a country is far from a Czech Republic or Germany on the beer map. But, that is quite understandable in terms of loyalty to the beer as a traditional drink and highly developed beer culture.
Explain us more about the beer as a beverage. Does besides the social benefits that the beer undeniably causes, also has real health benefits?
About 90 percent of the beer is water and therefore the beer is great for hydration. Throughout the history, beer was consumed because it makes the water easier to drink. In PIVARA SKOPJE we pay special attention to purify the water to have excellent quality as a basis to produce our beers.
Barley is the backbone of the beer that gives the beer its nutritional value. Before being used to produce beer, barley is converted into malt, which gives a rich roasted grain. The barley malt provides sugars that turns yeast into alcohol during fermentation.
Ingredient that defines the aroma and taste of the beer is the hops. First it was used in the production of beer in the Middle Ages because of its flavor and characteristics of natural preservative. Hops gives male and female flowers, but what’s interesting is that only the female flowers are used in making beer. It is precisely because the female flowers contain magical alpha and beta acids which give that distinctive aroma and flavor of hops, and bitterness that make the beer so tasty. Combining bitter and aromatic hops in different proportions and at different stages of the production of beer, you can get different variants of the bitterness and aroma.
For the fourth ingredient, the yeast, our beer masters say that it gives the soul of the beer. They believe that the yeast has a soul and feelings and they believe that their good mood and joy in the process of making beer is transferred to the yeast, which contributes the beer to be even better. So, it`s clear that beer is 100 percent natural drink and has health benefits.
Radler, Dark Beer, Cherry, SKOPSKO Smooth are just some of the new products of Pivara Skopje issued in recent years. Which of these products goes best on the Macedonian market and what kind of beer Macedonians wants to drink?
In its extensive period of working, Pivara Skopje developed many extensions of the traditional beer taste and new non-traditional beer flavors which in a certain period had their viability and relevance, which contributed and still contribute to the leading position of Pivara Skopje. The challenge is precisely that, to be innovative, to follow the latest trends, to monitor the market and to analyze the habits and the needs of consumers. Introduction of new products is only a confirmation of the innovative approach of Pivara Skopje in the production of beer and generally in all aspects and areas of operation.
However, each product is different and cannot be generalized. Different types of products correspond to different occasions and different target groups, while each of them is tied up with its own plan and marketing platform. As an example, I would point out SKOPSKO Smooth, our latest innovation and great success. SKOPSKO Smooth takes SKOPSKO as an inspiration, but also offer new, fresh and balanced taste to the younger generations. I would stress SKOPSKO Dark which was launched for the first time before Christmas and we can proudly say that’s great accepted by consumers as a product for cold days. In short, each product has a special marketing communication that refers to the same and has a purpose to get closer to consumers at the right time and in the right place. Of course, SKOPSKO is Macedonian brand icon for our customers, but we will still try to have a broader beer portfolio and work on the development of beer culture in Macedonia.
Traditionally, Pivara Skopje is a pioneer in introducing new management practices and is always open to new ideas. The latest example is your project through which you stimulate your employees to give their ideas and thoughts for the development of the company. Explain us more about that project?
Pivara Skopje believes that innovation drive the business and that is the only model for success in dynamic environments, competitive markets and global trends in the development of industries. We know that our people have a lot of potential for introducing innovations in every aspect of the company’s operations. The project for innovations which is recently implemented in Pivara Skopje is a project being conducted in the two Groups to which we belong. It aims to develop innovation culture in the company, to encourage employees to give their personal contribution to the improvement of working and production processes, in the development of human resources, sales, quality of our products, care and satisfaction of our customers, health and safety, corporate culture and business in general. We are proud of the fact that for a very short time since the project was launched, the staff realized the value of this project and constantly propose innovations, and some of them are already implemented in the company.
Macedonia in Prilep owns the world’s largest museum of tobacco which is the pride of the tobacco industry. Can we expect to finally get a real museum of beer having in mind the fact of the long tradition in this area?
As a person I think that everything that has value should remain as a legacy to the future generations. Pivara Skopje has written history in the production of beer and there is a heritage that this company should reveal to the public. Construction of the museum is not something that we have not thought about. That idea exists, but some conditions must be created. I believe that one day Pivara Skopje will have its own museum, just like the HEINEKEN museum in Amsterdam and others similar to it that exist in the world.
The relation of the employees toward the company Pivara Skopje is something that is very interesting. Such a commitment, a sense of belonging and pride can be rarely seen elsewhere in Macedonia and the region. Can you explain that?
First there is an old reputation of the brewery and the employees have a sense of belonging to a company that exist for many years. Furthermore, when you are part of a corporation, and I speak from my personal experience, that has own values and advantages. These values coincide with some of our personal values and it creates a synergy. We as managers, we have additional guidelines and we try to communicate with all employees in a completely normal way for them and to make them being identified with those values. Pivara Skopje is known for its social responsibility. At least for me that means a lot. When I get back home I can proudly say to my family and friends that I am a part of a company that helps when it is most needed and invest in the community in which it operates. Through our platform for social responsibility we realize projects for education and empowerment of young people and their potential, projects on health and safety both internally and externally, protection of water resources and the environment, responsible alcohol consumption and so on. Besides that, the management of Pivara Skopje pays a lot of attention to the employee satisfaction. We are constantly working and implementing programs, to make people working in this company feeling good. Once a year we do a survey of employee satisfaction, we analyze and evaluate what are our strengths and what are the areas that need to be improved. This is not only declarative, but a fact. We continually work to improve the working environment, working conditions, but also to the development of our people through special trainings. The results of all of this are more than evident, because every year is getting better.
What are your long-term predictions about the future of Pivara Skopje? Do you think that SKOPSKO will be produced and consumed in the next 93 years?
Although the period of 9 decades seems long, Pivara Skopje is one of the youngest breweries in the region. Our colleagues from historically traditional beer markets and countries develop beer traditions lasting more than 200 or 300 years. What makes us especially proud is the fact that in front of the second century of its existence, Pivara Skopje, is for several times modernized and build on, expanded its capacity and not only as an independent business entity but also as a part of the international global systems to which it belongs. This confirms our commitment and dedication, not only to continue to exist on this market, but also to continue to grow in terms of the interests and wishes of the consumers.
I could not find a reason to think that in the next 100 years in Macedonia and the region SKOPSKO will no longer be consumed. There is no way, to confirm that fact now and today, but certainly our goal is the values, the tradition, the experience and the knowledge to remain as a permanent duty to all future generations of “Pivarci.”
I am convinced that Macedonians will drink SKOPSKO in the next century. I cannot predict what should happen, SKOPSKO not to be on this market. Probably we should think about end of the world to begin to doubt that SKOPSKO will stop being produced.
In the prestigious global ranking made by “Dow Jones Sustainability Index”, for third consecutive year, Coca-Cola HBC and Pivara Skopje together with the other members of the Group is ranked first in the world by the results and commitment to sustainability and environmental protection. Which projects in social responsibility make you very proud and will you continue to invest in the community?
We are happy and very proud of this prestigious recognition which confirms our continuous efforts, the results and our leadership in the protection of natural resources and environment in the country and globally. In addition to that, being recognized as a leader in sustainable development in the whole world beverage industry means that we deserve that.
This gives us more motivation to continue with many of our projects for investing in the community we belong to. As a part of our company strategy, we work devotedly in order to contribute to a better and sustainable future for the benefit of all of us. Since our beginnings, 93 years ago, sustainability is a fundamental principle of Pivara Skopje and remains to be the one.
In this way, we invest time, skills, assets and other resources to protect, support and improve the quality of life of all members of our community.
Even the employees in Pivara Skopje show a willingness to help in a series of activities that the company realizes in the field of social responsibility; participation in the action of the Red Cross in facilitating the consequences of the Skopje floods in August 2016, lecturing project for education of children on “health and safety” in schools, mentoring engagement in the project “Skills for Success”, eco-action for cleaning the river Vardar coast and many others. Thanks to all of this, at the end of 2016 the employees of Pivara Skopje received the annual recognition for volunteering from the Red Cross of the city of Skopje. This recognition is a real confirmation of the volunteer spirit of “Pivarci”, but also an obligation to continue helping those who are most in need.
One of the projects that we are especially proud, the one that is recognized as a best practice in whole Group is the free training of the Educational Centre of Pivara Skopje and the company for business education “Motiva” for acquiring knowledge and skills among young people. The project should help young, unemployed people to overcome employment barriers or to encourage them to start their own businesses. In 2016 the training was passed by 136 young people, and our plans for the next five years are their number to exceed 5,400 participants.
I must mention our internship program that greatly helps young people to take the first steps in the business environment and to work on specific projects. We are proud that in this way we open new perspectives for young people, thus contributing to increase the employment and to the further development of the entrepreneurial culture in the country.
In recent years Pivara Skopje together with Coca-Cola conducted a series of successful projects promoting sport and regular physical activity. In order to continue this mission, together with The Coca-Cola company, supported by the local government and the organization ‘Open Fun Football Schools’ we started the project’ ‘Coca-Cola active zones’. Active zones are donated by the The Coca-Cola company and Pivara Skopje and they provide recreational-sports outdoor areas equipped with the most sophisticated fitness equipment, available to all citizens free of charge. In 2016 our partnership with The Coca-Cola company has resulted with fully furnished 5 ” Coca-Cola active zones ” in Strumica, Prilep, Tetovo, Ohrid and Skopje. But we do not stop here. The project continues in the next few years and the active zones will be donated across the whole country.
As a part of the HEINEKEN family, we are developing and upgrading campaign for responsible consumption of beer in order to raise awareness about the responsible consumption and reduce the effects associated to excessive alcohol consumption. We believe that as a largest producer of beer in the country we have a long-term commitment to spread this culture and to live the values of responsible consumption as part of our everyday lives in the community to which we belong. We believe that only responsible consumption can provide true enjoyment of beer. Excessive consumption does not mean success for our business and does not contribute to sustainable growth of the society.
Considering that good habits are acquired at a younger age and that they are extremely important for creating healthy generations, we are happy that for third consecutive year, we are conducting the voluntary project for education of children in primary schools on topics related to health and safety in the school environment. Through this project we want to raise awareness among the children about the importance of health and safety in schools and later in the workplace. I am proud that this year 63 of our employees on a voluntary basis transferred their knowledge to over 8,000 fourth graders in 113 elementary schools from 18 municipalities throughout the country. That confirms our corporate culture which is based on supporting the values and interests of the wider public.
Following the global leadership of the Coca-Cola HBC Group in sustainability and HEINEKEN, Pivara Skopje constantly makes activities for packaging waste management as well as energy and water consumption management. Last year, under the motto “Are you recycling”?, the employees and the management of Pivara Skopje together with the Dutch Embassy and the recovery organization “Pakomak”, cleared over 3km of the river Vardar coast. We are very much aware that this is maybe a symbolic contribution, but we hope that with this activity we sent a message to the community how we should all behave toward the environment and the water resources. As one of the founders of “Pakomak”, we in Pivara Skopje are fully committed and we constantly work toward achieving both our and national targets on packaging waste management. With this eco-action, we gave our contribution to these targets. We believe that by our example we will encourage other people and companies in the country to take actions for preventing the environment. At the end, I would like to add that Pivara Skopje is for 36 years’ partner of the Macedonian Handball Federation, long-term partner of Ohrid Summer Festival and Galichka wedding and many other projects that preserve the national tradition and heritage.
For how long Radosavljevic will stay in Skopje?
I sincerely hope to stay longer, because I learned a lot since I came here. The opportunity to meet that beer side along producing Coca-Cola means a lot to me, and most of all I certainly like the warmth of the people here. So I’ll try to stay here longer as to a place that makes me happy.
