Barba Stathis, the farmer with the thick mustache and the wide-brimmed hat, who “feeds” more than half the households in Greece, surpassing his “anonymous”, cheaper, competitors even in this inflationary time when every euro counts, preparing to land on the Thessalian plain.
The company’s new industrial unit will be established there in conjunction with the significant increase in cultivated land.
The new production unit of Barba Stathis
In the midst of a climate crisis and while the yields of the fields in Greece are reduced from 15% to 30% compared to last year, without even having a major natural disaster, the biggest challenge for the agri-food sector is the increase in production capacity, he explains to OT o Nikitas Pothoulakismanaging director of Barba Stathis.
He reveals that the company is in negotiations with producers in the Thessalian plain in order to strengthen the potential of the cultivated lands by 20 thousand acres. Through contract farming, Barba Stathis already has access to approximately 30 thousand acres of agricultural production in various regions of Greece, ensuring a sufficient supply of raw materials.
The increase in the capacity of the cultivated lands will be accompanied by the creation of a production unit in Larissa, in the facilities where the Froza company operated 30 years ago, which was absorbed by Barba Stathis.
It is an area of 50 acres in which the company currently maintains storage areas with a total area of 14,000 m2, which will continue to exist even after the addition of the new factory.
After all, “a new production unit should be close to a place where you can cultivate efficiently”, as Mr. Potoulakis says.
Investments of 30 million euros
The new unit will be the “jewel in the crown” in the 25-30 million euro investment plan for the next three years drawn up by the company, aimed at increasing capacity and further modernizing and automating its infrastructure.
It is estimated that the funds required for the new unit of Barba Stathis, a subsidiary of the Vivartia group, with CVC as the main shareholder, will amount to 15-20 million euros.
Today, the company, founded in 1969, has two production units in Sindos, Thessaloniki (including one for frozen vegetables and one for fresh salads), as well as one more in Riza, Edessa since the recent acquisition of Halvatzi Makedoniki ABEE, employing more than 600 workers.
Emphasis on exports
The upcoming increase in production is aimed at strengthening the company’s export sales, promoting – among other things – its own brand.
It is worth noting that exports now correspond to 10% of the turnover of Barba Stathis, which in 2023 reached 108.8 million euros, when four years ago it was limited to just 2%.
The bet of plant based products and the discussions with two multinationals
At the same time, the company, having innovation in its DNA, invests a lot in new nutritional trends and specifically in the rapidly growing sector of vegetable protein products.
“Plant based products are the future and can be the answer to the climate crisis”, explains the head of the company, even revealing that two large multinational companies have approached Barba Stathis and have asked her to produce plant protein products for them.
According to the CEO, the element that differentiates Barba Stathi’s plant-based products from the competition is that they come from pea protein – and not soy, as is the norm in the category – while olive oil is used for their preparation.
Investment of 17 million euros in the offers
In terms of prices, the company did not raise prices, absorbing most of the costs, and in fact, in the shadow of inflationary pressures, last year it proceeded to “finance” offers in supermarkets amounting to 15 million euros, for the benefit of consumer. For 2024, offers worth 17 million euros will be “financed”, says Mr. Potoulakis.
“When the price increase in the category of frozen items is +1%, our prices are -3%”, he notes characteristically.
“Of course this compresses the profit margins, but it is our strategic choice to support the consumer and repay the trust they show us”, he commented.
Hence the company will close the current financial year with little turnover growth (it recorded a growth rate of 2% in both volume and value in the nine months of 2024) and reduced profit margins.
Source: ot.gr
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