Among the important business developments of the first nine months, the new organization of distribution operations stands out through two main zones, Zone East and Zone West, following the process of the intensive internationalization and strengthening of distribution functions outside the region, which is also reflected in the establishment of our own distribution companies in Austria and Germany. In this period, the contract with the new principal Philips Croatia extended the distribution portfolio on the Croatian market. Also, after less than a year since the beginning of its construction, the newly built factory in Nova Gradiška for the production of energy bars from the sports nutrition assortment, in which HRK 100 million were invested, began its operations. The latest acquisition of Atlantic Grupa – the Foodland company – is completely and successfully integrated into the business system of Atlantic Grupa and, together with the brand Granny’s Secret is today a new business unit, Gourmet. Finally, according to the latest research by Euromoney, the leading global financial magazine, in the third quarter Atlantic Grupa was declared best managed company in Croatia and best managed company in the food and beverages sector in the Central and Eastern Europe region.

An analysis of the sales revenues structure shows that the greatest contribution to the overall growth of Atlantic Grupa in the first nine months of 2015 was made by the Strategic Business Unit Savoury Spreads with a 12.9% growth, the Strategic Business Unit Snacks with a 5.0% growth, the Strategic Business Unit Coffee with a 4.7% growth, the Strategic Distribution Unit Croatia with a 10.6% growth, and the Strategic Distribution Unit Serbia with an 8.3% growth. With a 19.5% share in the total sales, coffee stands out as the largest individual category with sales of EUR 102.2 million in the first nine months.

Analyzed by markets, the highest and equal growth of 9.6% was achieved on the markets of Bosnia and Herzegovina and Serbia, which is Atlantic Grupa's second largest market with a 22.6% share in the total revenues. In the Croatian market, which has the largest share in sales revenues of 26.8%, the growth was 9.4%.

The own brands of Atlantic Grupa participate in sales with 65.3%, the distribution of principal brands with 19.2%, the pharmacy chain Farmacia with 6.3%, while the products that Atlantic Grupa produces as private brands for large business systems in the country and abroad participate in the total sales with 9.3%.

1.How did your career develop before you became the Director at Atlantic Grupa Representative Office for Serbia?

My first job after university was at the Economics Institute, which, at the time, in the mid nineties, had a strategic contract with Deloitte and Touche. In the beginning, I carried out market analyses and after a year I started performing financial analysis and projection and estimate of capital value. At the time, the first privatizations were under way and they were performed by distributing free shares to employees, and Deloitte and the Institute were absolutely the largest consulting companies on the market. Besides that, I was involved in projects of financial modelling, strategic advising, and company acquisitions in Serbia and in the region.

After engagement at the Institute and at Deloitte, at the beginning of 2001, Aleksandar Vlahović, Minister of the Economy and Privatization in the government of Zoran Đinđić and my former manager, invited me to assume management of the Privatization Agency. At the time, it was a pioneer venture. After two years of work at the Agency, I decided to change my job. Foreign banks had only just started working on the Serbian market and I was hired by Hypo Alpe Adria bank, where I spent the next 10 years as Deputy Executive Board Chairman and from 2006 as the Chairman. After so many years in Hypo bank, I realized that it was time to make the next step and I accepted the invitation from Mr. Kostić, Management Board Chairman, and became the AIK bank Executive Board Chairman with responsibility to design and implement a comprehensive company reorganization and modernize the bank work mechanisms and market performance.

After finishing that work, at the beginning of 2015, I received an offer from Atlantic Grupa to take over the management of the Representative Office in Serbia with the goal of providing better positioning of Grupa in Serbia, improving relations with the institutional environment, and helping to coordinate activities on the Serbian market. Thus, since May of the current year, I am privileged to work for one of the best companies in the region.

2.Mr. Čupić, since you are an economist and a manager with rich experience in the economic and social life of Serbia and from May this year you have been the Director of the Representative Office of Atlantic Grupa, one of the most powerful companies in the region, could you please tell us why the regional development and strengthening of its international position is important for Atlantic Grupa? What can we expect in this area and what kind of development is under way?

Atlantic is a truly regional, and I may say, multinational company, with around EUR 700 million of revenue, EBITDA of nearly EUR 70 million, and over five thousand employees. The largest number of its products are not only sold, but also produced on the Eastern European market, that is, the market of the former Yugoslavia. The largest percentage of Grupa’s revenue is also generated on this market. In this domain, we are near the maximum on this market. However, our ambitions do not end there. I would rather say that they are only just beginning. We believe that there is no reason we should not achieve in the territory of the European Union and on other markets what we have already achieved in the territory of the former Yugoslavia. This is a great challenge, but we are convinced that we posses the quality and knowledge to compete side by side with the global players, first on the European and then on the global market. We also have proof for such claims.

The participation of our products, like Argeta, on the markets of Austria and Switzerland is already at around 30%. Our sports nutrition products are leaders on the German market. Brands like Granny’s Secret, Donat Mg, and Cedevita posses a great potential on the European markets.

If you add a bit of Balkan audacity and combine it with a lot of European knowledge, a readiness to accept challenges, and a passion for winning, I believe success will follow. By internationalization we refer mainly to increasing our presence on the markets where Atlantic Grupa is already present, but also to opening new perspective markets, with parallel organic growth of business and innovations in product categories, active brand management, and cost optimization with fulfillment of financial obligations by meeting the current needs and observing the current market state as much as possible. Whether this will happen through the acquisition of companies abroad or through investment into distribution in another way, it depends on the circumstances and opportunities, but Atlantic Grupa certainly has a potential and plans for further internationalization.

3. Atlantic Grupa has been present on the EU market since 2005, and great business balance in all countries can be seen by looking at your distribution and production capacities. How do you achieve this and on what markets do you earn the greatest revenue?

Atlantic is todayalready international, since it has production plants and distribution centers in the whole region, but, besides that, it is also a great exporter into other markets. The brands we took over were produced in the territory of the entire former Yugoslavia, but they were localized. We made regional brands out of local ones. Now great business balance in the region can be seen by looking at our distribution and production capacities.

We have 19 production plants in six countries, 16 distribution centers, and we are present on over 40 markets.Argeta is produced in Slovenia and Bosnia and Herzegovina, Cockta is bottled in three countries, coffee is produced in Serbia, Slovenia, Bosnia, and Macedonia…

Atlantic Grupa generally is very able to integrate differences. Therefore, it is not important which of our factories the products come from, because we use the same principles and standards and we completely respect each local market, which makes us into domestic companies on the markets where we produce our reputable brands. We provided uniformity of the production we have in Germany, Serbia, Bosnia and Herzegovina, Macedonia, Croatia, Slovenia, etc. by adopting the production, quality, and distribution standards valid in the EU. Although Serbia and Croatia stand out in terms of revenue as the most significant, almost 50% of the revenue is earned on all other markets. Atlantic Grupa’s functioning and business diversification are executed so as to minimize the impact of negative economic factors on the company business. We compensate for any stagnation by means of other areas, manage risks to a maximum level, and are motivated to react appropriately, because those challenges are viewed differently through our business and we are, perhaps, more aware of everything that happens in the region.

4. The fact that you are present on different markets and that you have different products makes you more open and much more efficient in realizing your business interests. Is this the greatest differentia specifica of Atlantic Grupa?

I would say that diversity is the basis of our company’s genetic code.

Atlantic is different from other companies because it openly accepts diversity and because local business environments do not present it with a problem. There is a local view, but also a broader view directed towards new markets. This kind of management system creates a diversity culture and produces good results. The readiness to have the company conduct business on different markets is at the same time the readiness of the company management to accept the influences coming from this.

Different opinions, different habits, different system concepts, and different legal environments are challenges to which we should respond. We are focused on products, the mechanism of their distribution and sales, and marketing, and not the location of the production capacities or of the decision makers. We are more aware of the events in our surroundings together, and when rational business interestsare brought to the fore and social and political differences are respected, the problems become only challenges for us.We solve them by taking into account all the possible alternatives, all of which are equally valuable to us. We have built a common culture and value system and it is that flexibility which makes the base of the managerial communication on every level, and gives us the chance to leverage all the benefits from the exchange of knowledge and experience. When a company operates in that manner, by understanding the differences, the value it creates shows a much higher level of synergy and is much quicker to adjust to change. Moreover, belonging to this system has enabled us to achieve significant savings as well, based on the common central services and the synchronization of all processes, and the common distribution and sales teams on every market.

5. Atlantic Grupa managed to retain some of the most recognizable brands of former Yugoslavia and improve them as well. Which are the best examples of that?

Atlantic successfully completed several acquisitions,andthe essence is in a well-planned and complementary assortment. Most of our brands have a longstanding tradition, those are the products which you recognise and are familiar with, you know what they are and you are confident about them - there lies the power of a brand and our power as well.I wouldn’t be able to pick just one.

Smoki and Bananica have become generic names for that kind of product. Argeta is the quality standard for meat spreads. Cedevita is not only something you would use at your home anymore. Utilizing the completely new type of packing in plastic bottles, we are now witnessing that Cedevita has achieved the biggest growth in the horeca segment. Grand is already a noteable innovation. Who else makes Turkish instant coffee? How did we do that? Simple. We didn’t hesitate to be innovative and different, and we were smart enough to recognize that the generations before us also knew something, so we didn’t ignore the tradition.

Everything that was good we upgraded with new technologies, we increased the capacities and provided the highest level of product food safety, we invested in people and education, but we have also built a recognizable brand communication, moved it closer to the younger generations, and developed new sub-brands, new tastes...

More precisely, the regional retail panel points to the increase of the market-share for our strategic brands: Smoki master brand is improving its market-share (volume & value) on every local market in the region. Najlepše želje is strengthening its status in the chocolates category on the Serbian market, while Bananica is constantly increasing its share in the consumer basket not only in Serbia, but in BH market as well, while according to the results of the brand power study conducted by Valicon agency, in the category of non-alcoholic beverages (in-home consumption) in 2014, Cedevita is the 2nd brand on the Croatian market and 4th in the region, while according to the same study, Argeta holds an impressive first position in Macedonia and Bosnia and Herzegovina, with a strong presence on the regional and European markets (Austria, Germany, Switzerland, Italy, Sweden, UK, Ireland). Lastly, we also have to mention the Strategic Business Unit Coffee, which accounts for 20.1% of the total income of the Group with the brandsBarcaffe, Grand kafa and Bonito, together with the fact that Atlantic Grupa successfully competes in all coffee segments, with prominent leading market positions on the regional markets. It is the leader in the Turkish coffee category on the markets of Slovenia, Serbia, Bosnia and Herzegovina and Macedonia.

6. The goal of internationalization is to enable the company to achieve higher sales on more markets and to diversify the risk on one hand, and to increase the total income on the other hand. What is Atlantic Grupa’s current focus in the internationalization strategy?

Atlantic Grupa considers all markets as potential sources of growth, of course, not all at once, and that is why we have strategy and focus. As the system is growing, through internal organizational measures we try to focus on those values of a market that we consider critical, and thus support the growth.The company's readiness to operate on different markets represents at the same time the readiness of the management to accept the influences and challenges which come from such developed and highly competitive markets. Of course, in addition to knowledge, it is also necessary to have enough courage and a bit of business arrogance. It is evident that our portfolio contains a group of products with a potential for much wider sales than we are presently achieving. Those are primarily Argeta, Donat mg, Cedevita, Granny’s Secret and Multipower, which is a Western European brand. We are aware that it is not an easy task at all, and that we need to engage all our efforts in order to meet the plan.

We have confidence in the quality of our products, while knowledge and the people are our greatest asset, through which the company is adequately positioned on the markets which are difficult to penetrate, and of course there we also need to have high quality of distribution and marketing.

We don’t try to avoid the ethnic channel, but in the context of internationalization, our goal is wide-scale retail and to have the finished product of high quality with a price that is not exactly low, adequately positioned on the shelves of the European Union.

7. To what extent was the purchase of Foodland important for Atlantic Grupa and did your company recognise the brand Granny’s Secret as something which could potentially have a very high value on all markets?

Atlantic is interested in those products which are considered to have added value and which have clear potential to increase their value. Granny’s Secret is a very good example. It is a brand which created value and reached a level where it had to make a qualitative jump to the next level, requiring additional capital and knowledge which it didn’t have prior to the acquisition. Now it is the best combination - a growing local brand on the platform of a regional multinational company which can bring a brand with potential to the highest level. To us,Granny’s Secret is recognized as potentially having a very high value on all markets in the region, in the European Union and beyond. Therefore, having the internationalization of business and strengthening of the branded assortment as the objective, last year Atlantic Grupa signed a contract on the 100% acquisition of the Foodland Company. Foodland’s products are the best ambassadors of the quality and the possibilities which authentic regional food production has in the world. The most important part of the assortment under the brand Granny’s Secret includes delicacy spreads, sauces and sweet spreads, as well as natural syrups and fresh fruit and vegetable juice with 100% traceability, and prepared in home-made style. The “star” of the assortment is by all means the home-made style ajvar, which is already recognized as a delicacy by global retail food chains such as Swedish Coop, Australian Woolworths or American Ross, as well as the upmarket store chains such as French Lafayette and Le Bon Marche, Swiss Globus…

In this category we recognize that our ajvar has the potential to become not only a regionally, but also a globally recognizable product, the same as pizza or hummus are today.During the next four years, we expect to increase the production and placement of Foodland products five or six-fold and to make planned investments in order to keep the continued quality of production with the increased volume which is planned for the next several years.

8. Do you have separate organizational unit within Grupa which is focused on developing this brand, and is it possible for Granny’s Secret to become the base for the further buildup and introduction of new products?

A leap of such significance to wider markets outside the region requires internal organizational adjustments. Therefore the operation and portfolio of Granny’s Secret, as one of the key brands for driving growth, are as of September organized as a separate business area (BA) Gourmet, with teams which should implement expansion strategy onto brand new markets. The expectations on Granny’s Secret in the context of expansion and strengthening of our portfolio on the markets outside the region of Southeast Europe, require special attention dedicated to a relatively small business area with a major global potential. Several awards also recognize that potential.

In its collection, Granny’s Secret already has a number of Great Taste prestigious awards, for its ajvar, apricot juice, sour cherry preserve, apricot jam, natural apple juice, and orange jam. This award is an Oscar in the world of food andit is awarded by the British organization Guild of Fine Food based on the evaluation of 400 experts from different branches of the food industry.

As for further creativity, the skills and capacities of knowledge developed are becoming dominant in the functioning of companies, and these are not only production, technical or distributive capacities anymore, but also the possibility to perceive a brand new, wider perspective, so that the next level might also be the introduction of new local products of regional origin within the strategic Gourmet business. But, let’s not rush. To begin with, our primary goal is to give our full support to the Granny’s Secret brand, in which we have special confidence, in the further development and further strengthening of its position on international markets, through investments, through marketing investments, and through investments in people. There is no reason for ajvar or raspberry jam not to be positioned on the developed European markets, from Austria to Sweden, Denmark, etc.

9. Atlantic Grupa regards all markets as potential sources for growth. What are the long-term, primary, and strategic goals of the group for the next period?

Taking into account the main strategic goal of Atlantic Grupa, which includes internationalization and the most efficient organization of the entire company business, in order to continue our development and growth on quality foundations, during 2015 we reorganized our distribution business through two main zones, Zone East and Zone West, which is reflected in the establishment of our own distribution companies in Austria and Germany. In order to use the local knowledge and the experience gained in the best way possible, each distribution area will have the local function of managing brands.

In the new organization, Zone East will include Southeast Europe, the Baltics and the CIS region, while Zone West will include Central and Southwestern Europe, Nordic countries, as well as all markets overseas. As I already said, the ultimate goal is wide retail, and not just ethno-channels.

In that way, Atlantic has imported several important things – control of purchase, control of raw materials, control of production, control of final quality, design, distribution, logistics, marketing – and having the finished product of premium quality, and therefore premium prices, and positioning on the European Union shelves on an equal footing with its competition.

10. Another important part of the business strategy of Atlantic Grupa is the corporate social responsibility. What projects have you already realized, and what are you preparing for the next period when it comes to corporate social responsibility?

Responsibility is an integral part of the company’s development strategy, and by growing and expanding the business, the range of responsibility towards the internal and external environment also broadens, as well as the awareness of the opportunities and needs for our own impact on improving the general conditions around us. Because of this, the activities in all countries in which Atlantic operates are developing at several different levels in accordance with common corporate principles. In our relationship with employees, we strive to provide them with more than a job – there are many programs developed within the system which are intended to develop human potential and careers in the company, as well as performance management and appropriate rewards for the achieved results. The confirmation of transparent and ethical business is the fact that since its founding Atlantic Grupa has based its activities on the Code of Corporate Governance and is a signatory of the Code of Business Ethics, as well as the UN Global Compact initiative. When we talk about caring for the environment, we can say that it has spread in our system with a consistent EMS (Environmental Management System) from local access to the corporate level, with a focus on sustainability and protection of the future. When we talk about the relationship with the communities in which we operate, in addition to a wide range of donor projects, sponsorship activities, that is, the investment in the promotion of sports and a healthy lifestyle, especially in BC Cedevita, is also significant.

Atlantic Grupa is an active participant in and organizer of a number of humanitarian actions, and has been continuously helping a number of organizations and associations engaged with the protection of and assistance to vulnerable social groups. For the second year in a row, we are reporting our activities in the field of corporate social responsibility through an internationally recognized non-financial report according to the GRI methodology. In the end, I would especially like to point out that Atlantic has dedicated one working day each year, called the Value Day, to the volunteering of its employees. The now traditional annual gathering of employees has united a record 1,206 Atlanticovians this year, who year after year leave a positive mark through activities they suggest themselves, with their positive energy, harmony, and humanitarian efforts. This year, in 10 countries and 24 cities, and through more than 70 activities, we have seen see Atlantic employees creatively, responsibly, and passionately helping local communities by revitalizing, painting, and cleaning public spaces, as well as retirement and nursing homes, shelters and schools, but also participating in organized blood donation events.

12. During the first 9 months of 2015, Atlantic Grupa realized revenue from sales of EUR 522.9 million, which is a 4.8% growth compared to the same period in 2014. What revenue growth do you expect in 2016?

In the business, we follow the rules that say we should always be ready to adapt to new conditions, so we can freely say that our business is stable and in line with expectations even in a crisis, which is confirmed by the results of the first half year, that is, nine-months of business.

In regard to the sales revenue structure, the greatest contribution to the overall growth of Atlantic Grupa in the first nine months of 2015 was made by the Strategic Business Unit Savoury Spreads, that is, the Argeta brand, with a 12.9% growth, the Strategic Business Unit Snacks, which includes Štark assortment, with a 5% growth, and the Strategic Business Unit Coffee (Grand, Barcaffè) with a 4.7% growth. In regard to markets, the highest growing markets were the ones in Croatia with 10.6% and Serbia with 8.3%.

Given the current economic situation, we plan to maintain a stable operation, while also continuing to grow.Of course, we as a company have to think about how to do business on the market in a region where there is a decline in purchasing power, where the crisis continues, which is why one part of the internationalization strategy is directed towards placing the Atlantic product portfolio outside ex-Yu markets, which should in the end bring somewhat greater security, that is, less risk, with, of course, a permanent improvement of efficiency, taking into account costs, and without unreasonable debts.

13. How do you spend your free time in Belgrade? What are your leisure activities? What do you do to relieve everyday stress?

It is very difficult to achieve the right balance between business and private life, and perhaps that is exactly where the real answer lies, because it seems to me that stress is most easily eliminated when you can relax with your loved ones or devote yourself to your friends and enjoy a beautiful setting, or travel to a new destination. When you have given your best in your business, but also in your private life, then you have that rounded sense of fulfillment and satisfaction. Besides that, my hobby is swimming and I use every free moment to dedicate myself to it.

14. If you could, would you change anything in your career, up until now?

As they say: wouldn't change a thing.

According to the latest research by Euromoney, the leading global financial magazine, Atlantic Grupa was announced as the best managed company in Croatia and as the best managed company in the food and beverage sector in the Central and Eastern Europe region.