An entrepreneur's story about his experience with the "Ideas Powered for Business” SME fund administered by the Latvian Patent Office.
Engure has more than a hundred years of history of industrial fish processing. The first processing factory commissioned by "L.W. Goegginger", a world-known at the time manufacturer of confectionery and canned fish, was built there already in 1907. It turns out that fishermen originally smoked their catches at home, and at the factory, they skilfully packed fish into cans. In 1931, Engure fish canning factory became the owner of the trademark "Diplomats", which was created to export sprats to the USA more successfully.
Even now, the trademark "Diplomats", attracting by its elegant retro feel and renewed in 2017, provides for the recognition of the fish processing company "Unda" both at home and in more than 20 foreign markets. The nearest markets are in Poland, Germany, Ukraine, and the farthest ones - in Israel, Japan, New Zealand, Australia, USA, etc.
"Relatively recently, in the early 2000s, we exported almost 90% of our production to the East - Russia, Kazakhstan. These are big markets where our products are well known, and we could not meet the demand working even in two shifts. However, it is undeniable that such a market proportion is not safe," says Artūrs Bubišs, Chairman of the Board and co-owner of the company "Unda". In 2014, he started working as a sales manager for the company, which was then headed by his father. Artūrs admits that his previous work experience in banks helped him identify the risks and initiate changes.
The shy Latvian delicacy
The very first participation in the international exhibition "SIAL Paris" led to a bit disappointing but very useful insights. "This is one of the largest exhibitions for food professionals in Europe, which gathers representatives from around 200 countries. It is a great opportunity to show yourself, make contacts with serious distributors, as well as evaluate the performance of colleagues from other countries. And there was one thing that we noticed there at once - our products with its traditionally restrained grey design were invisible among the temptingly colourful and eye-catching labels of canned food products from other countries.
We have never doubted the quality of our products, we can compete as a global player, be interesting for the western market. But to operate successfully, we needed to create an expressive, attention-grabbing, and strong brand. The renewal of the trademark "Diplomats" and its visual solution - a cozy, solid man from the boom times of Latvia at the beginning of the last century - created an opportunity to become distinctive and noticeable on new markets. The sign is visually laconic but content-rich, as it refers to our rich historical heritage, traditions and, at the same time, to the high standards of modern production," proudly emphasizes the head of the company.
Some tricks of the canned fish market
Another historical feature of fish processing in Engure is the orientation to export. It developed steadily in the 1930s and continued even in Soviet times, when sprats and other canned goods produced by Engure fishermen kolkhoz were popular in the then East Germany, Czechoslovakia, and even the faraway Mongolia. Also, after the establishment of a limited liability company "Unda" in 1992, it exported almost everything it produced. In Latvia, the company was well known to industry professionals, but less noticeable to consumers. The renewal of the trademark "Diplomats" also marks a change in the domestic market policy of the company. "Challenges are an integral part of any business, but in recent years, the
increasing intensity and impact of global and local crises have been strongly felt in export markets. You must learn to work in rapidly changing conditions. It gives you grey hair, but also very valuable experience and hardiness.
After the annexation of Crimea, exports to Russia stopped, and it was necessary to quickly find new distribution channels, gain the trust of western distributors and consumers, but it takes time. We are producing canned goods with customers’ trademarks - the so-called private labels. However, we want to be irreplaceable, so the priority is, of course, the development of the "Diplomat" product line. It means that we are constantly developing our product range, focusing on the demand in various markets as precisely as possible. For example, canned fried "Brisling Sardines" have ten different sauces. When our product has so much pepper that it brings tears to your eyes, we expect that the Israeli distributors will say that everything is fine, just a bit more spiciness should be added, but the Germans will choose the mildest option," Artūrs smiles while giving some tips of the canned fish market.
An expressive trademark as an incentive for choosing a workplace
Last summer, the company opened its first canned fish concept store in Engure. At the sight of more than 60 types of products lined up on the shelves, even the long-time company employees were taken by surprise and were feeling proud about the variety of flavours and colours that they had created. The idea was partly borrowed from Portugal, where such concept stores are widespread, and there is no need to convince the customers that canned fish is a tasty and healthy product that can be used daily and put on the festive table as well.
The variety of "Diplomats" flavours is appreciated by Latvian consumers. Recognition and demand is growing in local trade networks. Artūrs stresses that an expressive trademark is not just a marketing tool: “In our industry, there is serious competition in attracting employees. Undeniably, the company’s recognition is an important factor in choosing a workplace, and our reliable "Diplomat" reflects such company’s values as respectful treatment and proper fulfilment of obligations towards the employees." The company has got the protection for the trademarks "Diplomats" and "Unda", and for the packaging designs and the concept store’s design. Their registrations went smoothly, because the company's management decided to engage a professional consultant, patent attorney Anda Briede. "We work in export markets, and trademark registration has quite a lot of important legal nuances to be taken into account. It is better to entrust such work to a professional in the field. We made use of the "Ideas Powered for Business" SME fund administered by the Patent Office, and the registration costs were not high," Artūrs Bubišs welcomes the cooperation with the patent attorney.
"Diplomat" news
Revealing the plans for the "Diplomats" brand, Artūrs emphasizes three directions of development. “The first is classic. These are well-known and popular products of ours, starting with the national treasure (and this is not an exaggeration!) – sprats and continuing with different variations of canned fried fish. The second line - "Diplomats Gourmet" – is appreciated by gourmets, because we use even more qualitative and exotic raw materials for these products. The third line - "Diplomats Active" - is a new one that has not been on sale yet, since we continue to develop it. It will be ready-to-use, healthy and balanced, high-quality food. These products are intended for enthusiasts of an active lifestyle, who go for long hikes, take part in endurance competitions. It is a good way to restore the lost energy quickly, easily, and deliciously. We will also try to participate in military procurements with the products of this line.
This spring, when our online store opens, buyers will be able to choose and evaluate the products of all the three "Diplomats" lines, just like in the concept store, and make sure that we create healthy and tasty products in tasteful packaging here in Engure," invites Artūrs Bubišs, Chairman of the Board of the limited liability company “Unda".