PV International 0173

S U P P O R T E D B Y T H E C R O A T I A N C H A M B E R O F E C O N O M Y

pvpvinternationalinternationalCroatian Business & Finance WeeklyEstablished in 1953Monday / 7th November / 2011Year V / No 0173www.privredni.hr

20102010

Željko Jurkin, Eurovoće Group directorProduction below 12,000 tonnes of fruit and vegetables is insufficient for market survivalINTERVIEW

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Food export and importMain exports are sugar, cigarettes, wheat and tuna, imports cattle cake, live cattleand coffee FOOD MARKET

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Vestibul Palace – the best small family hotel in CroatiaMany famous celebrities have visited this hotel with only seven rooms TOURISM

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Igor Vukić

Different types of climate, relief and soil in Croatia enable the production of

various agricultural products, from arable and industrial crops to vineyards as well as continen-tal and Mediterranean fruit and vegetables. Croatia has a total of 1.3 million hectares of culti-vated agricultural land, of which 66% relates to ploughed land and gardens, 27% to permanent grass-land, 7% to orchards, vineyards and olive grooves, 0.4% to veg-etable gardens and 0.1% to nurs-eries. Due to its preserved nature and environment, Croatia has an advantage over other developed countries and can produce a variety of high-quality food safe for con-sumer health. Around 14,000 hec-tares or 1.2% of agricultural land is under ecological production.

There are around 1,200 compa-nies with approximately 15,000 employees working in agriculture.

Benefits from joining EUAccording to data provided by the Sector for Agriculture, Food Industry and Forestry of the Croatian Chamber of Economy, headed by its Director, Božica Marković, the most profitable activities in the agricultural sec-tor are the production of ciga-rettes and tobacco processing, fish processing, beer production, milk processing, tea and coffee processing and the production of soft drinks. These are also activi-ties that have attracted the bulk of foreign investment and whose companies operate successfully. Croatian agriculture should have great benefits from joining the EU and the Common Agricul-tural Policy. Furthermore, it will

be able to use extensive resources from European structural funds. The food and beverage industry contributes 21% to gross added value of the Croatian process-ing industry, and the production of tobacco products with 2.5%. There are over 1,200 companies registered in the industry, with roughly 47,000 workers and approximately 20% of the to-tal number of employees in the processing industry. The produc-tion of food, drinks and tobacco are activities with the highest em-ployment rate and total income compared with other branches of the processing industry. A vari-ety of products and brands have earned a good reputation on lo-cal and foreign markets, and the Croatian Chamber of Economy has issued the highest number of labels for quality and originality to food products.

AGRICULTURE AND FOOD PRODUCTION

Great potential one must know how to useThe food and beverage industry contributed 21% to gross added value of the processing industry

Once again it falls to me to write an introduction to year 5 of PVInter-national. The past year has been tumultuous; as Shakespeare might well have written “many amongst us were beset by fardels”.The remainder of this year is sig-nificant for Croatia; in the next few months we have a general election taking place as well as a referen-dum on joining the European Union. We view the latter as an important milestone which is exciting as, for Privredni vjesnik and PVInternation-al, our voice will gain greater stature. We look forward with anticipation to bringing you all the information and its implications in our weekly dis-patches.Just as we aim to be the voice of Croatian entrepreneurs internally, so we aim to be their ‘window to the external world’ a role we feel we are well-positioned to accomplish.Finally, I would confirm our sincere intention to bring you weekly all up-to-date information concerning Croatia. Thank you for your support in the past and in the future,

Darko BukovićEditor-in-Chief

A half decade of news

2 Privredni vjesnikYear V No 0173

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Luka Marelić, director, Agricultural Co-operative Pošip Čara

Optimistic about the Law on Co-operativesThe share of each member in the co-operative must be clearly defined

Even though pošip is a type of grape that matures ear-lier, the harvest this year

was finished in mid-September. In terms of quality, this might be the best harvest of the past dec-ade. However, in terms of quan-tity it is 40% below the level of 2010. This means that the wine produced this year will be long remembered for its quality. I must point out we are no differ-ent from other wine producers, since the volume of our supreme wine does not fall below 70% of the total quantity, and this year it will exceed 95% due to an ex-tremely good harvest. Regarding the market, I can say that nothing has changed as the market is satu-rated, partly due to higher pro-duction levels and partly due to the fall in purchasing power and increased imports, all of which have created a surplus. Moreover, illiquidity creates a burden for all those in the wine market, creat-ing to an extent a vicious circle

where everyone owes everyone. However, we managed to create a name and a trade mark in de-mand. For the past ten years we have been successfully export-ing to the American market pošip Marko Polo and now we export to the same market our pošip Čara, our most popular product. This is very important for our co-opera-tive which is one of the most suc-cessful of wine co-operatives. We owe this reputation to constant in-vestment in new technology and modernisation of the plant, and during the past several years we have invested almost €1.35 mil-lion. Furthermore, the Pošip Čara Cooperative has 140 members. As a result of the recently adopted Law on Co-operatives, we expect all relationships that had been a burden to the business of co-op-eratives, to be defined. Primarily, the share of each member of the co-operative must be clearly in-dicated. What is also important is that such mechanisms have been created that a co-operative can-not be abandoned or that its assets should not be divided and then misplaced. The intention of the law is to clearly define the share and contributions of co-operative members and that common assets cannot be sold or distributed. This also means that no-one would be able to purchase or appropriate common assets. It is true, how-ever, that the Law does not solve the problem of trustworthiness of certain members. In my opinion it should, since a member could place poorer quality grapes into the cooperative or sell them when the harvest is better. Luckily, our co-operative does not have such problems..

The 400 largest food processing companies generate nearly 88% of all

revenue from this sector. These companies booked a total of €5.8 billion in revenue, whilst other companies (3,757) gener-ated €0.77 billion. Data show a similar situation in terms of profit. These 400 made €0.24 bil-lion in profit against €31 million from other companies. The larg-est companies employ a total of 52,846 staff, whilst the remain-der have 17,105 employees.A similar situation exists amongst the 50 best performing compa-nies. 9 companies employ over 1,000 employees, with 9 compa-nies (Vindija, Podravka, Dukat, PIK Vrbovec, Belje, Koka, Jam-nica, Ledo and Zvijezda having annual revenue of over €0.14 billion. Zvijezda generated €131 million in revenue during 2010 followed by the Meat Process-ing Industry Brothers Pivac with €130 million, the Croatian Coca-Cola subsidiary with €129.6 mil-lion and Kraš with €122. The Varaždin-based company, Vindija, is at the top of the list of individual organisations, with an-nual revenue of €0.36 billion and €3.38 million in profits. Com-pany success has been the result of 50 years of investment into in-novation, technology and knowl-edge. Vindija has received many valuable international awards as a result of its healthy and safe food product range, following global trends and exporting to the European Union.The Koprivnica-based company, Podravka, has annual revenue of €0.26 billion and with its 3,639 employees is currently one of the few successful food processing

companies which is not in pri-vate ownership. It has succeeded in operating positively and in increasing profitability, irrespec-tive of current difficulties due to ownership and managerial issues.

Anticipating Croatian EU accessionThe Zagreb-based company, Dukat, with its €0.23 billion in profits, has continued its de-velopment as an element of the French food processing con-glomerate Lactalis. The compa-ny is the regional leader within the group, due to its top quality and new product development. It is followed by two companies from the Agrokor Group: PIK Vrbovec (€0.20 billion revenue) and Belje (€0.19 billion), Koka (€0.16 billion), another company in the Vindija Group and three companies in the Agrokor Group - Jamnica (€0.15billion), Ledo (€0.15 billion) and Zvijezda. Agrokor companies follow the conglomerate tradition: on-go-ing investment appropriate fund-ing, the use of advanced tech-nology and top quality control systems to promote food safety. Similar business policies are also followed by other compa-nies under the ownership of the 50 best performing companies group, along with continuous investment in marketing, market research and analysing market expansion possibilities. Some companies rely on foreign owner assistance, others on their own potential, anticipating Croatian EU accession, which will create new opportunities for exports. Nevertheless, this will result in severe competition on the local market. (I.V.)

FOOD SECTOR LEADERS

Quality and Quality and excellence excellence through through innovationinnovation

www.privredni.hrBusiness & Finance Weekly 3

Drago Živković

During the first nine months of this year, Croatian food and bev-

erage companies exported 6.6% more products than in 2010. Food and beverage exports totalled €0.59 billion according to data provided by the Central Bureau for Statistics. Imports are still far higher (€1 billion), but growth has slowed this year. In the ag-ricultural sector, exports of veg-etable and cattle products totalled €115.3 million (+8.3%), and ex-ports from fisheries totalled €62 million (+58%). During the first nine months of this year, the food industry exported 2% more food products (€0.42 billion). Bever-age exports were worth €77.7 million and tobacco products €38.92 million (-16.4%). Last year, Croatia exported food and drinks worth €1.36 billion, ap-proximately €27 million more compared with 2010. Exports reached €0.83 billion (+€35 million), showing that 2010 registered a deficit of €0.52 billion and around €6.76 million less than 2009. Croatia mainly exports sugar, cigarettes, wheat and tuna. It imports cattle cake, live cattle, non-roasted coffee, pigs and bananas.

Importers also exportersThe list of the largest food ex-porters is dominated by su-permarket chains. Konzum is the largest, followed by Lidl, Kaufland and Plodine. Food

processors are also big import-ers, which obviously lack raw materials from the local mar-ket. PIK Vrbovec, Braća Pivac, Gavrilović, Podravka, Danica and Koka fall into this category. Trade companies should also be included, particularly those im-porting food only for the purpose of selling, such as Stanić and Be-toven. The biggest food proces-sors are not only big importers. They are also the largest food exporters with Koka, Dukat, Vindija, PIK Vrbovec, Agrofruc-tus, Podravka, Gavrilović, and Danica in this section. The most important export market for the food industry is B&H (one third of all exports), followed by Italy and Slovenia (10%) as well as Serbia (around 7%). Croatia im-

ports from Germany (14%), Italy (11%), the Netherlands (8%) and Brazil (mainly meat). As in many other industries, the majority of goods are traded with EU coun-tries ($2 billion).

Deficit remainsAll the advantages and problems of Croatia’s position as a small, open economy are probably best reflected in agricultural and food production. During the past ten years, Croatia has tripled its im-port/export figures. However, the deficit, expressed as a percentage, remains stubbornly high. This is a consequence of the insufficient restructuring of local produc-tion which cannot seem to cope with foreign competition. This is confirmed by data according

to which total agricultural land has halved to roughly 1.2 million hectares, half of which relates to grain growing. A large proportion of the problem lies in split hold-ings. Of 190,000 registered pro-ducers, 63% cultivate less then 3 hectares of land, according to data provided by the Croatian Chamber of Agriculture. During the past decade, middle-sized producers have grown (from 20 to 300 hectares), and they now own around 32% of agricultural land and their significance con-tinues to grow. Large systems should also be added, such as Agrokor, Podravka, Vindija and Žito, which not only directly cul-tivate tens of thousands hectares, but incorporate thousands of sub-contractors.

FOOD EXPORT AND IMPORT

B&H is the main export market with Germany the main import marketCroatia mainly exports sugar, cigarettes, wheat and tuna, importing cattle cake, live cattle, non-roasted coffee, pigs and bananas

food and beverages exported

€0.59 billion ( (food and beverages imported

€1 billion

Privredni vjesnikYear V No 01734

value of Croatian processed fruit and vegetable market €35 million (

Boris Odorčić

The total value of the Croatian processed fruit and vegetable market is

estimated at about €35 million. Imports value by the end of Sep-tember stood at about €8 million and it is expected to increase by between €2 and €2.7 million by the end of the year. Consequent-ly, local production stands at about €25.7 million.Eurovoće Group exports about 10% of its production and this year exports are anticipated to be €1.67 million. Željko Jurkin, Eurovoće Group Director, point-ed out that Croatian processed fruit and vegetable production has significantly impacted on the trends dominant for the last fif-teen years throughout the region.

What is the reason for signifi-cant changes in the Croatian processed fruit and vegetable market? There was a significant product range expansion from Hungary and Bosnia and Herzegovina over the last decade. Prior to Hungar-ian EU accession, the Hungar-ian processing industry had sig-nificant export incentives which were used by local producers for market expansion, primarily by dumping rather than focusing on modernisation and strengthening competitiveness. Many Hungar-ian companies went bankrupt following Hungarian EU acces-sion and as a consequence of the abolition of the export stimulus package. They have been taken over by German and Austrian or-ganisations, producing primarily for their former markets and sub-

sequently their position on the Croatian market has significantly weakened. On the other hand, large processing companies in Bosnia and Herzegovina have significantly reduced production, most probably due to excess in-vestment in equipment and pro-duction plant, enabling local pro-ducers to increase production and local market sales. Significantly, Croatian consumers are opting for quality food of controlled ori-gin, regardless of the crisis and Croatian producers have largely exceeded their competitors.

Why have you merged Nova Đakovčanka and Marinada, two factories in Slavonia?We analysed the market situation and concluded that we would re-main a small company, unable to meet market needs for quantity following Croatian EU acces-sion. Subsequently, we decided to grow by merging two facto-ries in Slavonia and to specialise our production. We have come to the conclusion that an annual production level of below 12,000 to 15,000 tonnes of fruit and veg-etables is insufficient for market survival due to the low rate of capital turnover and high fixed costs. The a c q u i s i -tions and the for-mation of the

Eurovoće Group will certainly improve results, as we have proc-essed some 15,000 tonnes of fruit and vegetables this year.

Which processed fruits and vegetables have the greatest potential?Sour cherries and blueberries most certainly have the greatest potential. In addition, we believe we can sell a considerable quanti-ty of peppers, pears, cherries and apricots to the European market. Nevertheless, trends in produc-tion and consumption of pasteur-ised product range are weakening

throughout the world and global consumption of processed fruit and vegetables currently stands at a low 5%. Currently, there is a growing trend towards fresh and frozen fruit and vegetables con-sumption, which requires larger investment in infrastructure, cold storage plants, irrigation, high technology and similar.

What are your plans for the near future?An exclusive focus on the market is imperative in entrepreneurship in general and, consequently, for Eurovoće. The continuous fol-lowing of market trends in our branch and on a larger scale, adjusting to customer demands and investment in development are the prerequisites for market survival. Following consump-tion trends, which usually im-pact Croatia quite rapidly due

to large market chains, mak-ing us constantly reflect on our production and expand our product range. Markets are currently specialised and demanding. Nevertheless,

one can strive towards devel-opment and progress

by following trends.

ŽELJKO JURKIN, EUROVOĆE GROUP DIRECTOR

Top quality from local producers Production below 12,000 tonnes of fruit and vegetables is insufficient for market survival

INTERVIEW


continuous edible oil production70 years (

invested in reconstruction and modernisation in 2003€45 million (

Svetozar Sarkanjac

The Čepin edible oil factory is marking its 70th anniver-sary of continuous edible

oil production in 2012. The ed-ible oil refinery was founded in 1942 by Špajzer, a large estate owner from Čepin. The refin-ery was initially called the Oil and Alcohol Factory, as it also produced alcohol and even veal livestock feed, since there was considerable demand for it. The factory owner at the time skil-fully opted for a comprehensive production cycle: producing ed-ible oil from sunflower seeds, whilst using lower quality sun-flower seeds for alcohol produc-tion through fermentation. In ad-dition, he used the by-product of sunflower seed processing (sun-flower flat bread) as quality live-stock feed for beef and veal fat-tening. Nevertheless, Špajzer’s managerial skills were severely challenged by the war. The ed-ible oil refinery was part of the state-owned PIK Belje company for a brief period following the

Second World War. Subsequent-ly, the authorities moved the re-finery, first to Gospić and then to Glina for fear of possible Soviet aggression in 1949. The factory returned to Čepin in the mid-1950’s to become part of IPK Osijek, a company which nearly matched Špajzer’s skill in man-aging comprehensive production cycles, in 1961 and remained so until recently. Subsequently there was another war and some unu-sual alterations in the ownership structure. The oil refinery was reconstructed several times be-tween the two wars and in 2003 it was fully reconstructed and modernised with an investment of €45 million.

Privatisation finallyThe Čepin edible oil factory has been the largest Croatian edible oil factory and the most promi-nent Croatian factory for raw ed-ible oil refining over a long period of time, nevertheless, it has not been privatised thus far. It saw a plethora of financial and legal consequences of its operation in

IPK Osijek as. Finally, the edible oil factory became a state-owned

company in mid-2011, following many delays and employee pro-tests. By mid-August the Agency for State-Owned Asset Manage-ment (AUDIO) issued a Public invitation for bids for IPK Čepin share purchase of 81.5% of state-owned equity capital. The dead-line for the submission of the Letter of Intent expired at the be-ginning of September and we are currently expecting the Agency for State-Owned Asset Manage-ment final decision on the initial price and on the implementation of the process of legally binding offers. Four companies are alleg-edly interested in purchasing the oil refinery.

“We are the largest Croatian edible oil refinery with annual production capacity of 135,000 tonnes of sunflower and rape seed processing. Total produc-tion capacity of raw edible oil refinery stands between 55,000 and 58,000 tonnes, which is suf-ficient for one year of consump-tion in Croatia. The ultimate consumer is primarily interested in refined oil production and an-nual production capacity stands at 30,000 tonnes of refined oil”, stated Stjepan Komar, Čepin Di-rector.

Turn-key conditionThe buyer will purchase the fac-tory in turn-key condition includ-ing the reputable Čepin edible oil brand.“We expect to see our primary identifiable product, refined sun-flower oil following the finalisa-tion of the privatisation process and the solution to the necessary turnover in capital funding. We are planning to have a 25% to 30% share of the Croatian refined oil market”, stated Komar.

ČEPIN EDIBLE OIL FACTORY

A future buyer will purchase the factory in “turn-key” condition, including the Čepin edible oil brand

A good opportunityThe final phase of privatisation for the largest Croatian edible oil factory and the most prominent Croatian factory for oil refining


CROATIAN FOREIGN CURRENCY MARKET

Source: HNB WEEK NOVEMBER 5, 2011

Currency Kuna exchange mid-rate

AUD 5,636721

CAD 5,357121

JPY 6,945740

CHF 6,139538

GBP 8,690027

USD 5,418702

EUR 7,495148

T he Croatian financer in-dustry had an 11% to 12% level of non-recoverable

loans in 2011, which is on par with other comparable econo-mies in the region. Currently, such loan rates in most countries throughout the region have dou-bled compared with the pre-crisis period in 2007, according to an analysis carried out by Moj-bankar.hr.

The crisis, which began three to four years ago, has resulted in a decrease in trade and industrial production and, consequently, lower employment throughout almost all countries in the region.

The increase in non-recoverable loans from banks which had ag-gressively increased their loan portfolio during the pre-crisis pe-riod was a consequence of such macroeconomic trends.According to the analysis, the Eastern European region has been severely affected by this trend, whilst the USA and Euro-zone countries, with a higher lev-el of monetary policy autonomy, have witnessed relatively lower non-recoverable loan rates.

Higher capitalisation level than in the West Bank capitalisation in the region significantly exceeds that of Western countries, irrespective of high non-performing loan share, mainly generated by real estate transactions. The regional average exceeds 13%, whilst West European countries are currently standing at about 9%.

In addition, regional banks have not been exposed to, or have been minimally exposed to toxic financial instruments created by the USA.The lending quality in the econ-omy and the strengthening of the Swiss Franc have had a sig-nificant impact on the increase in the level of such loans in Croatia in 2011, which severely affected personal lending. According to banks, a high share of non-per-forming loans is one of the major obstacles to any lowering of in-terest rates in Croatia.2012 will not see any decrease in non-performing loans or a re-duction in interest rates irrespec-tive of the announcement of the necessary cuts and analysts’ esti-mates on minimum GDP growth over the forthcoming period, subsequently contributing to in-security in the labour market, as stated in conclusion. (V.A.)

12% OF LOANS UNRECOVERABLE

2012 will not see a decrease in unrecoverable loans or a lowering of interest rates

Lending quality to the economy and the strengthening of the Swiss Franc have had a significant impact on the increase non-performing loans

Petrokemija reverse trendThe Kutina-based company Petrokemija made €15.47 mil-lion profit during the first nine months, compared with a €17.12 million loss over the same period in 2010. The planned sales target of mineral fertilisers was 101.9% implemented, whilst the produc-tion plan target was exceeded by 12.4%. Business revenue stood at €0.30 billion, and expenditure was €0.28 billion. EBITDA stood at €28.57 million.

Wustenrot new insurer

The Croatian Financial Services Supervisory Agency has granted an operating permit to Wusten-rot life insurance, a new insurer to the Croatian market. In addi-tion to life insurance approval, Wustenrot has been granted a per-mit for accident insurance cover and health insurance. A new mar-ket player, currently ranked 17th in life insurance market, is not planning any investment into the most lucrative market segment, third party liability insurance for motor vehicles.

Croatian Postal Bank (HPB) profits Croatian Postal Bank made €9.54 million profit during the first nine months. The bank recorded an increase in most business areas. Consequently, total deposits saw a 9% increase to €1.62 billion, personal loans were 6.1% up, corporate loans rose by 5.5% and housing loans soared 31.8% over the same period last year.

::: news MOJ-BANKAR.HR

31.10. 1.11. 2.11. 3.11. 4.11 31.10. 1.11. 2.11. 3.11. 4.11 31.10. 1.11. 2.11. 3.11. 4.11

7.50

7.49

7.48

7.47

7.46

7.45

EUR 5.44

5.41

5.39

5.36

5.33

5.30

USD 6.17

6.15

6.13

6.11

6.09

6.07

CHF


T he Drniš-based company Dim mes continues the tradition of the Blažević

family who has been in the busi-ness of drying prosciutto and other semi-durable and durable dried meat products for many generations. Even though it has been operating under this name since 2001, the company made a big step forward in 2009 when the old plant was demolished and a new one built with state-of-the art equipment and computerised monitoring of the production process. The modernised produc-tion premises now fully comply with all HACCAP standards. Around €3.38 million was in-vested in the new plant, partly from the Development and Em-ployment Fund and partly from family capital. The company presently produces around 300 tonnes of dried meat products, mostly Drniš prosciutto and other local Drniš products, such as Dalmatian grilling sausage (pečenica) and pancetta. Dim mes employs 26 workers and its production capacity is approxi-mately 6,000 tonnes of prosciutto and around 400 tonnes of other durable products (grilling sau-sages, pancetta, buđola and other types of sausages). Its produc-tion capacity is now slightly be-low 40%. The company’s owner, Ante Blažević, says there is am-ple room for improvement and increased capacity, but the main

problem is the funding system, that is, unresolved financing and lack of resources.

High-quality delicaciesThe company achieves an an-nual income of around €2.7 mil-lion, but it could operate much better with greater financial support. The consultants that have drawn up a strategic de-velopment plan are convinced that a better financing system, organisation, improved sales system, product packing and labelling would double income in a very short period of time, points out Blažević. Dim mes imports raw material (whose procurement is the key problem of the Dalmatian producers of prosciutto and other dry meat products), from the Netherlands.Our market is disorganised, and Croatia meets only around one fifth of its needs. The remainder relates to import or semi-import, stimulated by countries that ex-port outside the EU. This means Italian and Spanish producers have an advantage since they are motivated to export outside the European Union, and they often sell products below the stand-ards of their countries. On our market the price of prosciutto ranges between €6.75 and €20 per kilogram, explains Blažević, who will not give up on the pro-duction of high-quality delica-cies despite the battles. (J.V.)

In 2001 Iveta, a locally well-known Bjelovar company dealing with PVC processing,

identified a market demand for quality panels for entrance doors. Subsequently, it created a sub-sidiary called Paneta, which has to date developed a wide range of entrance door panels, basing its production on top quality materi-als and modern design, in com-pliance with the highest British standards. Britain initiated PVC panel production in 1960’s. The

company began with the produc-tion of aluminium decorative panels two years ago, using high quality aluminium steel sheet and processing it, in accordance with Qualicoat standards using elec-trostatic powder coating.Its focus on top quality has re-sulted in satisfactory sales re-sults. Paneta has been constantly increasing its market share in Slovenian and French mar-kets over four years, following success on the Croatian mar-ket. Intense negotia-tions are in progress with potential clients

in Italy and Switzerland and the sale of products in these markets is anticipated in the near future. In 2004 it created a subsidiary in Banja Luka which has been sell-ing panels in Bosnia and Herze-govina.

Market recognition“We constantly focus on top quality materials, producing new types and shapes of panels every year, irrespective of our limited space, and presenting them in our catalogues. We now have consid-erable market identification for the designs and the information presented in our catalogues”, not-ed Ivan Peček, Paneta Director.The company assists its clients to choose the entrance door design, opting for various types of glass decoration. Panels are resistant and stable and in accordance with sound and thermal insulation standards, requiring minimum maintenance. Paneta is aiming to maintain top quality level and is convinced there will be an increasing number of clients in the Croatian market opting for quality panel doors. Its export orientation will be towards the Western European

Union and Scandinavian countries. It is anticipat-ing innovation in an-nual panel production, in accordance with the current technological standards. (I.V.)

h mar-

s s

Unioncounting nual in acurrstan

PANETA, BJELOVAR DIM MES, DRNIŠ

Doors to demanding marketsWe produce new types and shapes of panels every year, irrespective of limited production space

Ample room for improvementThe company presently produces around 300 tonnes of dried meat products mostly Drniš prosciutto

WE PRESENT

Paneta is aiming to maintain top quality level and is convinced there will be an increasing number of clients


Jozo Vrdoljak

A fter having been selected by ‘The Sunday Times’ as one of top 100 small

hotels in the world, Vestibul Ho-tel in Split has recently received local recognition at the Croatian Tourism Day. It won the Adrian award as the best small family hotel in Croatia. The Vestibul Palace Hotel is special in many ways. It was opened in 2005 and since then, due to its quality and efficient marketing, it has been visited by many famous people, from Formula 1 drivers (Jarno Trulli and Kimi Raikkonen), the CEO of Hugo Boss, world sail-ing champions, Star Trek actors, ambassadors, diplomats, manag-ers of global companies, actors and singers.

Unexpected visitThe Sunday Times’ journalists were announced. We were in-formed about their appearance in this article of their daily edi-tion, sold in over one and a half million copies, by the Director of the Croatian Tourist Board in London, Meri Matešić. We later found they would like to visit us, that is to perform an inspection, since we rank high in search en-gines and Split is a destination that has been registering a sudden tourism boom as well as the fact the hotel is of high architectural

value since it is situated in the middle of the Diocletian palace. Their journalist spent two days in our hotel, closely observing eve-rything, pointed out Nenad Nizić, owner of Vestibul. The hotel was founded as the result of a suc-cessful merger of three palaces (Romanic, Gothic and Renais-sance) as well as original Roman niches. It is located between the imperial Diocletian chambers and the imperial Peristil Square. In addition to the restaurant and kitchen, which was a prerequisite for categorisation, it has seven rooms, of which one is an impe-rial suite which costs €1,000 per night. It is interesting in that the kitchen has the remains of old Roman walls. Investment into this hotel totalled €1.2 million.

Wherever the visitor wants to goStaff of the hotel have an individual approach to visitors and will gladly transport them to the airport, an island or even Dubrovnik. There is also a tourist guide. Sustainability is achieved by non-accommodation services even though the average price of a room is €100 per night, points out Nizić. Furthermore, Vestibul has 12 permanent employees. In addition to the hotel, the Nizić family also owns the Dobrić Villa, also located in the old centre of Split. The hotel has been included in the prestigious group of Small Luxury Hotels of the World, in which only two hotels from the region are included, one from Dubrovnik and one from Bled.

Vestibul Palace – the best small family hotel in Croatia

Good marketing is pricelessFamous celebrities who have visited this hotel, with only seven rooms, have been Formula 1 drivers and ‘Star Trek’ actors

Ina profit rises

Ina Oil Company increased its profit during the first nine months of the year. Nett profits came in at €0.28 billion, €0.2 billion up year-on-year. The production of oil and gas increased, and nett debt was cut by 18%. This year Ina’s sales totalled €3.07 billion, 20% more over 2010.

Tolls increase incomeToll income from Croatian mo-torway concessionaires amount-ed to €0.22 billion (excluding VAT) during the first nine months of this year. This is 4.37% more year-on-year according to data provided by the Croatian Asso-ciation of Toll Motorways Con-cessionaires. The highest income (HRK1 billion) was achieved by Hrvatske autoceste, 2.4% up in relation to the same period of 2010. It is followed by Autocesta Rijeka-Zagreb, Autocesta Za-greb-Maribor and Bina Istra.

Varteks deficit reduced

Varteks increased its profitability during the first nine months. To-tal income for the company from Varaždin stood at €31.38 million, €1.1 million more over 2010. Sales grew by €2.16 million as well as sales to export markets (€13.34 million in total). During this period the deficit fell to €5 million, down €1.16 million over 2010.

Average salary €745The August average monthly nett salary per employee in Croatian companies was €745, according to data provided by the Central Bureau for Statistics. In rela-tion to July, average nett salary in August was nominally higher by 2.8%, showing real growth of 2.9%. Year-on-year, average nett salary in August was 2.3% high-er in nominal value and 0.3% in real value.

::: news

PV International 0173

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