The financial news of recent months paints a difficult picture for Greece and Greek businesses. Profitability and growth seem like an elusive oasis in these turbulent times, which makes the success of one Greek company as refreshing as a drink of cold water during an Athenian heat wave.
When most people across the globe look for refreshment, they often reach for brands like Coca-Cola, Pepsi, Heineken and Nestle to deliver refreshing treats, but how happy would these consumers be with a fizzy glass of warm soda? That’s why these companies often count on Athens-based Frigoglass, the leading player in the global beverage cooler market, to keep the goods ice cold.
By looking ahead to anticipate the needs for clients and consumers, Frigoglass is showing its strength by posting significant growth, investing in innovation and development, and expanding global operations, even amid these financially turbulent times.
While the jury is still out on whether sustainability can drive sales, research indicates that brand loyalty increases when there’s an environmentally friendly aspect of the product involved. For this reason, companies large and small are looking to realize the benefits of going green, and integrating that into their marketing messages.
According to an American Marketing Association study, more than half of corporate marketers believe that their organizations will increase their involvement in environmental sustainability, and 43% say their companies will increase marketing of these programs. Since 2007, companies have scrambled to gain consumer favor resulting in dramatic increases in sustainable, environmentally friendly or eco-friendly new products. Global giants, including Pepsi, Coca-Cola and FedEx, are publicly proclaiming their commitment to sustainability to consumers and shareholders alike, and while most start with implementing internal efficiency standards, they also rely on partners to help sustainability efforts reach the everyday shopper.
As key clients seek partners that enable them to achieve their own sustainability targets, Frigoglass’ success has been highly driven by the company’s commitment to providing superior solutions in beverage refrigeration proven to drive cold drink sales, while also promoting sustainable development in its operations. In this context, Frigoglass has been investing heavily in the next generation of refrigeration technologies promoting a sustainable business model designed to reduce the impact of greenhouse emissions and energy consumption.
Frigoglass recently launched the world’s first complete range of eco-friendlier Ice-Cold Merchandisers: Frigoglass Ecocool. The Ecocool environmentally friendlier line supports beverage companies towards their sustainability goals and more specifically reducing their carbon footprint emissions. The Ecocool line uses natural substances such as Hydrocarbons (HCs) and Carbon Dioxide (CO2) that minimize the impact refrigerants have on the environment. More specifically, while conventional refrigerants have an average global warming potential (GWP) of 1,300 over a period of 100 years, HC and CO2 have a GWP of less than 3. Additionally, all Ecocool units have energy management systems that reduce the power consumption by up to 50% versus conventional models. In addition by lowering electricity bills at the outlets, beverage companies can offer retailers cooling solutions to promote their products at a significantly lower cost base.
The investment in sustainable solutions is paying off for Frigoglass. The company announced strong first quarter 2011 financial results posting a 44.6% sales growth.
In addition to sustainability, Frigoglass is also expanding globally and diversifying its client and revenue base.
“The strong momentum that built during the course of last year has continued into the first quarter of 2011, with sales growth led by Europe. Western Europe posted a strong performance in the quarter, confirming its improving trajectory, whilst other regions sustained their demand levels,” explained Petros Diamantides, Managing Director. “We are pleased with the continued progress in our long term strategy, and while we are conscious of near term cost pressures, we remain confident in our ability to create further value for our shareholders through our strong global presence and relationships with the world’s leading beverage companies.”
As the name suggests, Frigoglass is also diversified to complement the beverage refrigeration business through the company’s glass operations. Frigoglass’ Glass operations, located in Nigeria, represent one of Africa’s largest glass bottle producers. Showcasing its commitment to expand its glass operations, the company recently announced the acquisition of 80% of the shareholding in the Dubai-based glass bottle and jar manufacturer Jebel Ali Container Glass Factory Fze (JAG), located in the Jebel Ali Free Zone.
“Indeed, the acquisition of Jebel Ali evidenced the increasing strategic importance of glass to our Company as well as leaving us ideally positioned in the region for exports to Europe, Africa and Asia,” noted Mr. Diamantides. “This highlights our strategy of actively pursuing growth opportunities around the world.”
Frigoglass is the most geographically diverse company in the ICM (beverage refrigeration) field, with operations spanning over 19 countries, across five continents, including production hubs in Romania, Russia, Greece, Turkey, India, China, Indonesia, South Africa, Nigeria and the USA. The company's customer base consists of major market players such as the Coca-Cola Company Bottlers, Pepsi, brewers (such as Heineken, SABMiller, Carlsberg, ABInbev, Efes), dairy companies (Nestle, Danone) and many others. The company's stock is 44% owned by BOVAL S.A. and trades in the Athens Stock exchange.
