"Our business started with my great grandfather who started growing apples in the region and we are now into our fifth generation. We had to prove that the tradition has been going on for at least 50 years, and news clippings of my great grandfather was one of the pieces of evidence submitted to the commission." said Michal Lachowicz, President of La-Sad and also the apple consortium Appolonia.
Click here to view the photo report of the La-Sad company tour.
Growers in the region currently grow 8 main varieties making up more than 95% of production of Polish apples. Michal shared that 50% of this production is made up of the most popular varieties, Idared and Jonagold.
The Appolonia consortium is the largest group in Poland, made up of 19 producers across 4 regions.
Knowledge sharing
"The Appolonia product has been in the works for a while now, but the actual project started two years ago. It is stronger and more successful than earlier projects because all of the participating companies have been sharing their knowledge with each other. With this information, we have learned that every participating company has some specific bits of information which they know but others do not, and it is the open sharing of all this information which has helped us become stronger and gives us the complete picture. This knowledge sharing has been extremely beneficial when it comes to overseas markets." said Lachowicz.
Shipments to Vietnam began in November 2015. The consortium sent 50% of their exports to Vietnam in the first shipments and, as of the first quarter of this year, that number has increased to 70%. Michal shared that he expected the amount to be even more with the next report.
"This increase proves the benefits of information sharing. When it comes to entering a new market such as Vietnam, if we don't know how to send, we will have ruined our chances after the first few containers."
Appolonia Brand
With more and more companies and partners showing more interest in branded products, Appolonia is busy building up their apples as a brand.
"Everybody has seen that we know what we are doing and are delivering good quality. For many years, Polish apples didn't have the reputation of being good quality apples, but we have now proven to our partners that 'yes we can'. We have known ourselves for a while that 'we can', but we needed the time to build the good reputation that we could give world wide quality. Branded activity is much different than placing unnamed products on the market, so we needed partners who were ready to develop the brand position and we have had some good starts with our partners in Vietnam and have a lot of hope for the future." said Lachowicz.
"In Vietnam, we have seen that they have reacted well. If you ask customers if they want apples from Poland they would say no, but they would say yes to apples from Appolonia. The prices are higher, but the quality is also higher too. European apples are seen as a high quality product in Asia."
Branding as a range
Lachowicz explained that their branding is the same kind of concept as the Italian brand Melinda. The brand is not the variety and several varieties are sold under the name Appolonia.
"It is more about delivering the best quality apples, instead of a particular variety. I have to be ready to be asked for my products. There is a difference between selling the raw materials and selling the brand. For example, with McDonalds, if the meat is bad in the big mac, it is not the producer's problem, it is McDonald's problem. This comes with a lot of responsibility and it is very important that we ensure high quality at all times." continued Lachowicz.
"The huge production in Poland has changed the mindset of producers and our companies in the market, and now the price is determined by marketing. The brand gives added value and when you have a good quality apple which is also branded, it is a winning combination."
Many misinformed about China
Chinese inspectors are expected to complete the final Polish inspection in the middle of October, finalising the apple agreement between the two countries. Appolonia has been present in the Chinese market for the last four years, working together with the Polish government and sending the first samples. Lachowicz said that the recent picture of the Chinese president eating Polish apples was the best marketing shot ever.
"The Chinese way of thinking is different, they need to take the time to get to know their business partners. Trust is everything and they need to know the person they are doing business with. We have coaches for the Chinese market, during our meetings and other business activities. We are young and open to learning and we have learned so much. Quite often when I hear someone talk about China, I find it funny, because the reality is usually very different to their perceptions."
"I have travelled around the world and I am convinced that China is the most powerful country in the world, with the most wealth. We don't see that Europe is dying economically, and the same goes for the US. We stupidly think that we are the best in the world and not really seeing things for how they are and I think that many will wake up to reality much too late. People underestimate China and have many wrong ideas about how it is there. Their railway systems are often superior to those in Europe and you don't realise that people living in Shanghai make, on average, more than a lot of people in Europe. I stay quiet and and let them think what they want." concluded Lachowicz.
For more information:
Michal Lachowicz
La-Sad/Appolonia
Tel: +48 605 330 433
Email: michal.lachowicz@appolonia.pl
www.appolonia.pl