VAFO PRAHA -Private Label Production in Eastern Europe

The pet market in Eastern Europe (and the Gzech Republic) had not been developed at all prior to the year 1990. the growth of the pet market during the 1990s, however, was enormous. The overall sales of pet food in the Gzech Republic (CR) in 1990 had been estimated at approximately 1000 tonnes annually, and by 2000 it had already exceeded the 50,000 tonne mark. Established in 1994, VAFO PRAHA s.r.o. was one of the first Gzech dry pet food producers. The company's growth followed the market trend as did the expansion of its product portfolio from its first product ASTOR (still one of the best-selling independent market brands in CR) to the complete line of premium dog and cat nutrition, BRIT. The overall production at VAFO PRAHA s.r.o. grew from a couple of hundred tones at its inception to over 7000 tonnes annually by 2003. the company has been active in exporting since 1997; VAFO products are currently sold in 12 European countries. The company has been offering its customers private labeled products since 1997. the cat litter products were added to the company's assortment in 2000. the quality control system ISO 9001 and HACCP were introduced into the company's development, production and distribution programmes in 2001. in 2003 the company opened a new factory that was required in order to be able to comply with all of the EU pet food production requirements.

The pet food production and technology environment in the CR has developed together with the growth of the production companies and a growing market. At present, manufacturers operate using modern production and packaging technologies. The highest quality standards and the newest technologies are applied in the new VAFO production factory. As was previously mentioned, the quality of production and products is guaranteed thanks to the ISO 9001 quality assurance system and HACCP technology. VAFO products are produced using the original recipe which calls for fresh chicken which gives the products their exceptional taste and smell. No soy, beef, pork, of GMO products are used in production. VAFO is one of the first Gzech producers that has changed the method of closing the bags from sewing to sealing to strengthen the packaging to protect the products from the environment. Due to the high production capacity and a wide variety of formulas and packaging, VAFO is able to offer individual and flexible solutions for nearly every customer. As far as the level of production and packaging technology, storage and logistic capacities are concerned, it may be ranked as one of the most advanced production facilities in Europe.

The term private label was introduced into pet market with the onset of the super and hypermarket channel development in the Czech Republic. VAFO began to satisfy this demand even in its early stages. Private label pet foods became very successful in Eastern Europe. It was more the rule than the exception that all of the major companies were selling 10 kg. Packaging of dog food under private label. As the competition increased, the availability of private label products expanded as well. At present, they offer a variety of types of packaging of dog and cat food, cat litter, and pet accessories.

VAFO offers full-service in private label production. The company provides the costumer with services at all stages of private label development – from product specifications to the type of packaging, graphic design, product formulation, production, logistic solutions, and delivery. Since the company operates in twelve Central and Eastern European markets, the knowledge of the pet market environment is applied to the private label concept. VAFO brands include different quality levels, from economy to premium, which aids the customer in choosing the design and packaging solution which is ideal for them. The formula may be selected from an existing variety found within VAFO's range, or may be developed on the basis of specific customer demands.

VAFO's optimal geographic location right at the Prague city limits, combined with excellent cooperation with logistics firms enables the company to deliver the products flexibly to meet a variety of customer needs to simplify VAFO private label offering, the range includes all types of dry dog and cat food, bentonite cat litter, and pet treats such as chew sticks. The type of packaging comprises all sizes from 400 g to 15 kg, and using a variety of packaging materials such as paper bags, paper boxes, combination PP/PE bags. In general terms, VAFO's product range includes approximately 100 products of different brands and packages.

As was previously mentioned, VAFO's first private label customers were supermarkets whose demand was targeted mainly to the economy segment. The further development of Eastern European markets has been accompanied by new trends in the demand for private labels. The company started to collaborate with several companies which are active in the specialized market segments (veterinary distributors, pet shops) and require premium or super-premium products under their own brand. To summarise, the trend in private label is to offer a wide variety of products to different market segments as well as to expand the know-how available within private label development.

For further information:

www.vafo.cz

 PETS International Magazine ISSUE 4-2004