“The russians love gherkins. They eat them all the time, for breakfast, with vodka…” for bernard Poupon, director general of the reitzel group, the number one vendor of gherkins in supermarkets and to the catering trade in switzerland, russia is a dream market. The former soviet Union is progressing and the purchasing of canned food is gradually replacing the traditionally home-made preserved foods. bernard Poupon explains how “food products are experiencing an annual growth of more than 20% and that volume retailing is gaining ground in the country. A number of new supermarkets open every year, creating a strong demand for manufactured goods.” Reitzel set up in russia, a country of 130 million inhabitants in 2000. six years later, the company sells 20 million cans a year. “15% of the gherkins currently consumed in russia are sold under our label. A few years back we acquired the misrachi company in marseilles, france, which already held a strong position in the russian market. it trades under proprietary brand names, buying finished products abroad and reselling them under the brand names of our customers. we provide the brand dadavania, the number one on the russian market”, Poupon explains.
The most surprising thing of all is that the majority of cucumbers are produced in india with recipes catering to the tastes of russian consumers.
reitzel has just opened its own factory worth chf 4 million in bangalore, in the south of the india, employing 200 people.
The outlook for russia is challenged by limiting factors such as the weak purchasing power of the russian population. The manager bemoans the fact that the country lacks the resources to finance the growth. “There is no guarantee that we will be paid in russia. sometimes we refuse orders when a client seems unreliable. companies that are starting out don’t have money and find it difficult to pay their suppliers.” The Reitzel group is set to enter a new phase in its expansion. “we’re very happy with the way things are proceeding in russia. we are examining the possibility of opening an agency over there. for the moment we are travelling to and fro, we don’t have anyone stationed there. we have the option of entering into a partnership with an existing brand or establish our very own”.
Reitzel currently earns most of its chf 80 million turnover in switzerland and france. The group, specialists in salad sauces, mayonnaise, mustards and pickled foods, relies on exports to bolster growth.
management chose to concentrate on gherkins to boost its foreign sales as there is no world leader in the sector. This leaves plenty of room in the market for new players.
The company’s strategy relies on branches in spain, romania, Turkey and india. it also has plans in the Us, where sliced gherkins are a must-have ingredient for any hamburger. The cucumbers destined for the American market are also produced in india. in the new factory, reitzel can guarantee that gherkins are grown in the best climatic conditions and that they are adapted in size and quality to meet the demands of consumers all over the world.
Founded in 1909 in Aigle in the canton of vaud, the smE employs approximately 100 people in switzerland and approximately the same number in france. Part of the company société des denrées coloniales, run by hugo reitzel in the beginning of the 20th century, the company has become a swiss benchmark for pickled foodstuffs, sauces and mustard.
bernard Poupon was voted entrepreneur of the year by the auditing company Ernst and young in 2003.
The company is seen to be a showcase for success in a sector with intense international competition.
