7 minute read 29 Nov 2018
With respect for our customers and love for the bees

Logar Trade, d. o. o.

By EY Slovenia

Multidisciplinary professional services organization

7 minute read 29 Nov 2018

With respect for customers and love for the bees

Slovenians are naturally sympathetic to the art, craft and business of beekeeping. For centuries, they have been familiar with the health and nutritional benefits humans can derive from bees and have diligently nurtured these industrious insects. Therefore, it comes as no surprise that successful production of products related to beekeeping should develop right here on our soil.

Logar trade is a family company which commenced this pursuit 40 years ago and today, they are among the finest producers of beekeeping equipment in Europe. They supply state-of-the-art, stainless steel beekeeping equipment, such as honey pourers, storage containers, cookers and accessories for melting and sterilizing wax, plus honeycomb uncapping containers, strainers and filters. Currently, the company is managed by the second generation and they hope that one of their children might decide to continue the tradition.

The work in our company takes place in symbiosis with the needs and the wishes of our customers.
Zdravko Logar
Locksmith turned beekeeping innovator
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Chapter 1

Locksmith turned beekeeping innovator

The company’s story began in 1979.

The company’s story began in 1979, when Zdravko’s father Anton decided to embark on an independent entrepreneurial journey with the support of his wife Ivica. “Before that, he worked as a locksmith, but he found his niche as distributor of a company that marketed beekeeping equipment, which did not exist in Yugoslavia back then, since import opportunities were limited. There were enough orders and enough work for the entire family, remembers Zdravko.

Unfortunately, however, this opportunity did not last, since the market collapsed when Yugoslavia disintegrated. As a result, the Logar family instantly lost all their orders. “It was a huge shock for my father, since he had to fire all eight of his employees. We were facing a challenge, since nobody knew if we would still have the possibility to make a living with our business, explains Zdravko. Luckily, the Austrians invited them to a fair during that period and some buyers were interested in their products. These buyers, however, were mostly focused on quality, which was sometimes pushed aside in Yugoslavia. “All of a sudden, quality became the main characteristic of our products. In the beginning, we were selling in Austria but soon after, demand for different products began growing in Slovenia as well.”

In the mid-1990s, they also began producing stainless steel containers for storing wine and juices, which coincided nicely with the beekeeping season. As they were regularly present at beekeeping trade fairs, they continuously learned about new foreign markets and their demands, with the main breakthroughs being their show at the World Beekeeping Conference in Switzerland, where they acquired their first German buyers, and Slovenia’s entry to the EU. “Before that, customs formalities were the deal-breaker for our buyers,” explains Mateja. Nowadays, they export 80% of their products, mostly to Germany and Austria, but Logar products are used by amateur and professional beekeepers in more than 40 countries all over the world.

Beekeeping equipment for amateurs and professionals
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Chapter 2

Beekeeping equipment for amateurs and professionals

Logar trade is an extremely niche-oriented business.

Logar trade is an extremely niche-oriented business. It deals mainly with the production of beekeeping equipment, first and foremost among which is a range of honey pourers made from stainless steel. “Pourers are devices that allow beekeepers to extract honey from honeycombs by using centrifugal force. We offer 55 different models of pourers that can be used by amateur and professional beekeepers alike. Beekeeping differs from one region to another, and the size of beekeepers’ honeycombs is different as well.” They also created a custom-made honey pourer for an extremely special customer: “We made a pourer for the former Ukrainian president Viktor Louchtchenko, who is an avid beekeeper.”

Between 2012 and 2017, they recorded enviable growth of 70%; last year alone, they created turnover of €3.5 million and profit of €0.5 million. One of the company values is sustainable growth, as they are aware that growing too quickly can have associated issues. According to Zdravko, the greatest leap forward occurred at the beginning of the century. “In 2001, we bought land, and in 2005, we moved to new locations in the Šenčur Business Park. Here, we constructed a building with over 2,000 m² of usable area. Moving to a new location granted us the possibility of growing and increasing our production, which is actually taking place in symbiosis with the needs and the wishes of our customers.” Key ingredients for speedy growth are quality, responsiveness to customers’ needs, promotion in foreign markets, innovation, and focus on products with a higher added value that are sold abroad. There are 25 people working in the company, the majority of them from the surrounding area.

Symbiosis of the company and the family
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Chapter 3

Symbiosis of the company and the family

Since its inception, the Logar family’s lives have been interconnected with the company.

Since its inception, the Logar family’s lives have been interconnected with the company. “We, the family members, continue the business started by my father. My wife Mateja and I are employed by the company – she is the Financial and Commercial Manager, whereas my brother Stane is the Production Manager and we continue the work. My brother and I are used to the company, since we have been a part of it ever since we were little. Our sister Vesna chose to continue her life path in another career. We are counting on the fact that our children will also wish to continue leading the company. However, they are absolutely free to make their own way in their future,” says Zdravko. Mateja and Zdravko have three children who have been accompanying them on international and domestic fairs since they were small. Eventually, Stane’s children might want to join in as well, but again, it is their decision.

“My son Gašper finds working in the company gratifying. He wanted to start up his own little business when he was only 12 years old. At that time, a business partner from Greece, whose products we represent in the Slovenian market, applied to run a stand on a fair we attend every year; however, he cancelled his participation at the last minute. We didn’t have a member of staff who could take over his stand. Gašper stepped in and decided he wanted to sell by himself – with some technical assistance, of course. Ever since, he’s got a part of the stand to himself every year, because he wants to be independent. Even our Greek partner said that, thanks to Gašper, he no longer needs to come to Slovenia to attend such events,” says Mateja, describing her son’s affinity for the business.

Quality always comes first
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Chapter 4

Quality always comes first

The company puts a strong emphasis on quality, which is one of the main reasons for their success.

The company puts a strong emphasis on quality, which is one of the main reasons for their success. The other key element is the systematic construction of their own internationally recognizable brand. “Each one of our products has our logo etched on it. We created a good brand with our quality, responsiveness, innovation, being present at international fairs, and constantly implementing the agreed-upon tasks.”

Zdravko pays a lot of attention to respecting buyers, suppliers, and employees. “All suppliers need to be respected, and since the beginning, we’ve been paying our bills on time. If a payment deadline is agreed upon, the issue must be settled on that date. The same goes for our relationship with employees. They have to be paid fairly and rewarded for their work; only then can you expect a sense of loyalty, creativity, and innovation from them.”

Beekeeping tourists prefer to see the company rather than visit Bled
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Chapter 5

Beekeeping tourists prefer to see the company rather than visit Bled

Beekeepers from abroad like to visit other countries and see our beekeeping methods and the country.

The company puts a strong emphasis on quality, which is one of the main reasons for their success. The other key element is the systematic construction of their own internationally recognizable brand. “Each one of our products has our logo etched on it. We created a good brand with our quality, responsiveness, innovation, being present at international fairs, and constantly implementing the agreed-upon tasks.”

Zdravko pays a lot of attention to respecting buyers, suppliers, and employees. “All suppliers need to be respected, and since the beginning, we’ve been paying our bills on time. If a payment deadline is agreed upon, the issue must be settled on that date. The same goes for our relationship with employees. They have to be paid fairly and rewarded for their work; only then can you expect a sense of loyalty, creativity, and innovation from them.”

Zdravko Logar, owner

Company Name: Logar Trade, d. o. o.
Number of employees (2017): 25
Net sales revenue (2017): €3.5 million

 

Interviewees:

Zdravko Logar, CEO

Mateja Logar, Financial and Commercial Manager 

Stane Logar, Production Manager 

Gašper Logar

 

Summary

Logar Trade in five words: quality, entrepreneurship, diligence, tradition, integrity.

About this article

By EY Slovenia

Multidisciplinary professional services organization