Foods for thought

Poland's entry into the EU marketplace three years ago opened the door for an explosion of Polish food exports throughout the bloc.

As a result, Polish foods are seeing a revival in popularity at home and away. However, while Polish food products' biggest selling point is their unique, traditional roots, promotional costs and EU regulations are forcing producers to walk a thin line between exceptional and standardized

With Poland's EU accession, Polish products achieved duty-free export status to other member states, and industries from chemicals to machinery have reaped the benefits. None have had so much success however, as Polish food, which dramatically increased exports to the bloc. In 2004, exports of Polish food to the EU were worth some EUR 3.59 (zł.13.24) billion. Only two years later, this figure had nearly doubled to EUR 6.16 (zł.22.72) billion.

EU markets have gained significance for the export of traditional Polish foods and domestic brands as migrant Poles form a growing client base. Polish beer producers such, as Żywiec and Kompania Piwowarska, have proven exceptionally strong performers abroad, achieving strong sales growth to the chagrin of domestic rivals.

Palatable potential

Both at home and abroad, virtually all value-added food products (foods that have increased in price from the post-harvest stage of production due to alterations in size, shape, appearance or location) have seen double-digit sales growth over the past year. Growth of products such as specialty teas, convenience foods, prime deli meats, pickles and preserves are accompanied by the local development of upscale supermarkets such as Bomi, Piotr i Paweł and Krakowski Kredens. Demand for such products has grown so strong that this year a company founded by Benedictine monks from Kraków began building a nationwide network of markets offering traditional goods from monasteries and convents throughout Poland.

A growing number of independent, upmarket delicatessen operators are also preparing to enter the market with an extended offer of prime gourmet imports as well as traditional local fare. Agnieszka Górnicka, president of research firm Inquiry, agreed that the "back-to-tradition" philosophy behind the regional foods boom in Poland is becoming a driving force for both the retail food and restaurant markets.

Górnicka noted, however, that most Polish products that appear on foreign markets do so anonymously. They are often either shipped as raw products or packaged as private labels. Górnicka attributed this phenomenon to the high cost of promotion, distribution and market research abroad, which most Polish producers are not yet prepared to take on.

Sad story

"In a new market, it is vital to assure more than just the product's quality. Its packaging, distribution and marketing must fit consumer preferences in each individual market," said Górnicka. She added that there are a number of ways Polish producers could pool their resources to create much-needed marketing campaigns and distribution strategies to give themselves an edge when competing with local products or those of other European producers. Ignoring the importance of promotion and neglecting the significance of local market research may well stunt the vast potential of Polish foods.

"The sad story is that local companies with good products usually have poor marketing, poor negotiating power with retailers and distribution issues. If Polish firms don't start operating abroad as Danone or Nestle do here, they have no chance for real expansion," explained Górnicka.

Acquired taste

According to Grzegorz Pysz, vice president of Smak, a family-owned and -operated Polish food and distribution company, England, Ireland, Sweden and Spain are becoming vital outlets for Polish food imports due to the surge of Polish migrants. He noted, however, that "once a Polish product is on the shelf in Britain or Ireland, not only will native Poles reach for it, but the locals will take an interest in trying the new product as well."

Pysz also attributed the new-found popularity of Polish food to the fact that the industry has aligned domestic production standards with EU norms. This has brought Polish producers up to par, levelling the playing field throughout markets at home and abroad. At the same time, however, the increasing industrialization of the Polish food industry has boosted the popularity of traditional, home-style products.

Romantic perceptions

"In the early 1990s, when the Polish market opened up to foreign goods, most consumers opted for the higher-quality ingredients, flavor and packaging of new products," said Pysz. "Today, however, much has changed, Poles are becoming more patriotic and returning to traditional foods," he added.

Many of the latest Polish food products are indistinguishable from their Western European counterparts, in terms of packaging materials and content. There is an impression that these products lack something, an intangible essence of some kind.

"In Poland, people have a romantic perception of food that comes from the countryside, prepared by hand, outside of the industrial process," said Górnicka. "I have found that the basic underlying need is one of love and caring - food 'like your grandmother made' is supposed to remind one of the happiness of childhood," she added.

This perception is particularly significant, as much of Poland's urban population has recently arrived from the countryside. Firms such as Białystok-based meat producer PMB have established their images on traditional production practices. PMB's "kindziuk" and "kumpiak" products refer to Lithuanian traditions, making use of tried-and-tested techniques to create gourmet ham that easily rival Italy's most succulent prosciutto.

Preserving the past

On top of tradition, the natural, environmentally friendly manner in which traditional Polish food is produced also proves a strong advantage.

"The 'backwardness' of Polish agricultural production is currently its strongest virtue," said Igor Bieliński, an independent producer and distributor of specialty produce and a representative for a number of ecologically minded producers.

"The West has recognized that the best quality food is produced on small family farms. In Poland, a 20-year delay in standardizing agricultural production means that the traditional structure of growing food has remained largely intact," he explained.

However, a number of threats still remain. Bieliński noted that systems of controls and permits are becoming increasingly standardized, and the costs of adapting to a uniform system could threaten many smaller producers.

Indeed, the very EU norms that have inspired confidence in Polish products throughout the bloc pose a threat to their unique selling point. Producers often find they have to sacrifice their image as "traditional" in order to expand production and compete effectively. In addition, newly-implemented certification systems for eco-friendly firms could actually push producers towards greater standardization.

According to Adrian Pachnik, owner of the Pachniczówka apiary in Grębków, norms for food production in Poland were already significantly more demanding than in other EU member states years before the country's entry into the Union.

Protecting traditions

Pachnik agreed that if Polish products are to enjoy sustainable growth, in both volume and quality-for-value, Polish and EU authorities must adopt measures to support their expansion abroad while protecting traditions of cultivation and processing.

The challenge is how to step up production while maintaining the quality and independent character of each producer - no easy feat, as traditional producers throughout the world have found since the beginning of the industrial age.

"It's not just about sweet honey or a tasty ham - it's about the culinary and cultural heritage of Poland," concluded Pachnik.