''In recent years we’ve invested €170m in new product innovation'', said Jordi Gallés, Europastry CEO and ESADE alumni at the latest Matins ESADE talk sponsored by Bluecap in conjunction with Spanish daily La Vanguardia. He highlighted his company’s major drive to innovate and go global. ''In this respect, in recent years we have inaugurated Cereal, our new international R&D centre in Sant Joan Despí (Barcelona)''.
He also underlined that ''logistics complicate the international arena''. ''Logistics account for 40% of the cost of bread so we cannot aim for sales more than 500 kilometres away from our factories'', said Gallés. As a result, the firm has factories in Spain, Portugal, Holland, Turkey and the USA, ''so we can sell doughnuts in Nueva York and croissants in Paris,'' said the Europastry CEO.
100% frozen pastry
During his talk, Jordi Gallés emphasised that Europastry ''is the only firm dealing exclusively in frozen pastry'' and that ''we want to keep it this way''. Gallés went on to explain that ''a few years ago we sold El Molí Vell in order to focus more on this sector in the regions where we operate''. At the moment, as Gallés pointed out, ''50% of our turnover is from bread and 50% from pastries. ... The Frida buyout was essential in achieving this. They make basically frozen pastries and one decisive decision taken during the merger was to make the managing director of Frida the head of Europastry.''
The importance of innovation and growth
''Our firm’s first product (frozen baguettes) now accounts for just 8% of our sales. Five per cent of our sales are products launched less than a year ago'', explained Gallés to show how important innovation is.
Gallés said that the company’s growth was sustained (€521m last year) and that its sales were now distributed amongst traditional outlets (neighbourhood bakeries and company associates) 29%; food outlets, 39%; and horeca outlets, 32%.
Jordi Gallés (Lic&MBA 95), President of Europastry, will feature this new session of Matins ESADE entitled ''30 years of innovation in a traditional industry''.
A fascinating business story and insight into one of Spain’s most traditional industries: from a small neighbourhood bakery to a big-time company with a turnover of more than €500 million. A company based on constant innovation, sustainability and the desire to offer the same top quality as the family’s first baker. Europastry specialises in the manufacture of frozen pastry.
Chairs and closing: Xavier Sanchez (Lic&MBA 97 / AMP 08), Director of ESADE Alumni
Introduction: Pedro Parada (PhD 03), director of ESADE's Department of Strategy and General Management and member of the executive board of ESADE Alumni
Lecture: Jordi Gallés (Lic&MBA 95), president of Europastry
Discussion: Xavier Sanchez (Lic&MBA 97 / AMP 08), Director of ESADE Alumni
Degree and MBA in Economics (ESADE). CEMS Master (HEC, Paris) and ADECA Program (Instituto San Telmo, Seville).
Jordi learnt about the world of bakeries as a young man from his father. In 1994 he joined Le Bon Pain De France where Cristian Denys taught him about the up-and-coming business of deep-frozen, uncooked bread and deep-frozen pastries in France. In 1996 he entered Europastry, where he has spent most of his career in a variety of posts in finance, operations, marketing and sales. In 2004 he was appointed managing director of the company and in 2010 he took over from his father as executive president of Europastry.
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