20 Nov 2019
Kodila cover

Kodila, d. o. o.

By EY Slovenia

Multidisciplinary professional services organization

20 Nov 2019

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  • EY Family Business Slovenia 2019 (pdf)

When you know what you are eating and can impress your guests with a gourmet experience

I will not make frankfurters, said Janko Kodila, Director of the Kodila family company, to his father when he became its owner in 2000. His father was surprised at his son’s idea of becoming a butcher unwilling to make frankfurters. “Instead, I started to produce pork rinds and carried the name Kodila throughout Slovenia,” explains Janko. Today, everyone has at least heard of the Kodila brand and its products, from pork rinds and pâtés, to hams, and recently also some non-meat products. Furthermore, the mouths of true gourmets and lovers of traditionally-praised Prekmurje cuisine start to water when they hear the name Kodila. 

From a simple local butchery to a large estate

The owner, a former wrestler and true workaholic, explains that his grandfather from Dolenjska and his father, both butchers, were employed in the Pomurka meat processing plant, just like Janko's mother and sister, and possessed entrepreneurial spirit. “My father always pondered the question of how to improve our family budget, says Janko. In his spare time, he pursued many activities: from beekeeping and selling honey, growing cabbage and onions on his land and selling the harvest to Pomurka, to cultivating a vineyard. Thanks to his father, Janko is today a successful entrepreneur: “My father had a nose for these things, he travelled the world and took me with him, he was very enterprising and strove for innovation.” However, all did not go smoothly; Janko is also a little bit rebellious by nature: “I established my own company called Kodila, which dealt with pet food and later I sold garden furniture. I imported it from Asia and travelled to Malaysia and Indonesia for several years.” He says that he had courage and good luck as well. The Asian experience helped him to generate his own capital, and above all, gave him the necessary entrepreneurial confidence. In addition, because he was operating alone, he learned about the importance of sales, marketing and branding. 

There is no success without taking risks. If you walk the paths already taken, you’re just a follower and you can’t really succeed in business. But if you go your way, others will follow you.

Janko Janez Kodila

 

 

Blood is thicker than water, but different generations have different views on business

And why was it that after he successfully trod his own path Janko returned to his family roots and traditions? On one hand, it was a combination of circumstances, while on the other he felt a duty to try. “I sensed that this business could be a springboard for a success story, and I also had a lot of respect for my father. You know, blood is thicker than water, and I simply couldn’t let the family tradition fade,” says theEntrepreneur of 2014” and winner of many other awards. For this reason, he sold Kodila Trade in the late 1990s and invested the money into buying a house and continuing his family tradition. His sister withdrew from the family business of her own accord and was replaced by Janko’s wife, Helena, but it was difficult, admits Janko today. After he took over the business, the company was not in the best shape, food standards had to be harmonized with European legislation, they needed new investment and a new impetus. “I didn't want to be a typical butcher, my arrival in the plant meant a real revolution for my father and he didn’t talk to me for a while. I also heard behind my back that he thought I would destroy everything. When today people see what we’ve done, they understand what my goal was.”

There is no success without taking risks. If you walk the paths already taken, you’re just a follower and you can’t really succeed. But if you go your own way, others follow you,” are Janko’s words worth remembering. 

This year they have built a new, state-of-the-art warehouse

There is no business without taking risks

The Mesarstvo Kodila brand was replaced by Kodila - When you know what you are eating. They wanted to avoid the term “butchery” because they saw their mission as a culinary business, for the pleasure of food. In the past, fresh meat represented 90% of sales, and now 90% is represented by meat products, including processed meat. After seven years of hard work, when all Janko’s skills, experience and personal qualities, such as stubbornness, tenacity and courage, have paid off, the company has managed to penetrate the shelves of wholesalers and other selected stores. They have won more attention and expanded their production and number of employees. But in 2008, when it seemed that the company had taken the bull by the horns, crisis struck again. However, Janko was not to be stopped. “We focused all our energy on a European call for tenders launched by the Agricultural Market Agency. Of the investment estimated at €2.5 million, we received something less than half from Europe, says Janko, who did not settle for a normal production hall. Between 2012 and 2014, in Markišavci, a stone’s throw from Murska Sobota, he built a magnificent structure in traditional Prekmurje style using wood, clay and a thatched roof, unique not only in Slovenia but also in this part of Europe: “It is a building that breathes and visitors can actually feel and smell our products.”

This was the whole philosophy behind Janko’s pursuit of a food business; to create an integrated story related to the local environment and a story based on quality, regionalism and the brand. Their batch production always provides a quality product to the customer: “Our products are free of additives and allergens, and only salt and spices are added to the quality meat. The quality is confirmed by numerous certificates and recognitions from product assessments conducted abroad and in Slovenia.” A customer can see the production, taste and feel the product on-site and then find it in a local store. Recently, a touch of tourism has been added to the entire range: “There are four pillars: production, delicatessen, tourism and restaurant. We wanted people to come to us, where the soul of the product is, because in this way they can really feel us. People want to visit us for a real culinary experience,” explains Helena, primarily responsible for visiting guests. Since she is also from an entrepreneurial family and quickly found her way in the business of her husband. They perfectly complement each other in business, although Janko treads his own, unconventional path. “When I tell him ‘no’, he only gets extra motivation,” says Helena smiling, while Janko defends himself by saying that he is also cautious, but risks must be taken from time to time. 

This year they have built a new, state-of-the-art warehouse

Prekmurje ham is the most noble product of Kodila; they produce and sell around 3,000 hams a year. Like the “Prekmurska Gibanica” cake, the ham is protected in the EU as a culinary specialty from Prekmurje. 

We cannot rest on our laurels, the next target: foreign markets

Today, Kodila employs around 50 people and will achieve €5.5 million revenue this year, with 17% growth. The story of success, as Janko points out, cannot be attributed only to his own family. “This story is not my work, it is our work. The family is also our collective of employees. Therefore, we also include employees who perform well in the business, as they are the ones who create the quality. And even if we stop investing, we can operate for at least another five years. But we have worked hard to achieve this, it is the pinnacle of our project, Janko adds with a smile.

Will his successors, 22 and 15-year-old sons, continue the family business? They are talking about succession in both future and conditional terms agree Janko and Helena. Probably because Janko hasn’t finished his computer science studies himself yet, he does not want his sons to enter entrepreneurial waters too early. After all, he also decided to take over a family company only at 33, and has been pursuing entrepreneurship since the age of 23.

What next? “Our capacity is full, our brand is well-recognized in Slovenia and people trust us. So, our challenge now lies now in foreign markets. I know that our products and philosophy can also be sold beyond the Slovenian borders.” The objective is to penetrate the surrounding 250 km area: Vienna, Budapest, Zagreb. They want Kodila to become known in these areas as well.

The company is not interested in increasing production, but in products with even greater added value: “We raise standards for our breeders and introduce selected raw materials. We work on meat, and cooperate with winegrowers. Today, people want only selected, top products; food does not just mean survival, food today is seen as a pleasure. We’ve been able to do this before but let’s now take another step forward,” says the Director. This also includes digitization and logistics. The trend is the growth of online sales, different marketing channels, a boutique approach: “If you want to have a good steak or dry-cured ham at your home on Friday afternoon, you will get them,” they assert. 

Janko Kodila was born with entrepreneurial spirit but decided to become more than “just” a butcher. His wish has come true, he has adapted to modern trends and is a modern man who finds interest in culinary hedonism.

 

A proud local resident who connects Prekmurje and brings it closer to the rest of Slovenia 

Janko is not only a patron of Prekmurje ham, but also of all things of Prekmurje flavor. He is in his fifth term of office as the President of the Association for protection and promotion of food of Prekmurje, a founding father of the Diši po Prekmurju brand, which today already includes nine producers. There is also Gourmet over Mura, a brand consisting only of top-class Prekmurje entities. Every year in September, they hold an event at the Murska Sobota Castle which attracts gourmets from near and far and also visit Ljubljana once a year. “This is very important for the development of the whole Prekmurje region, since we are aware that we are only as strong as the whole region and thus providers must also work together,” says Janko. “Prekmurje must focus on what it has, and who will do it, if not us, Helena adds. 

Awards persons

Rather than quantity, Kodila sees quality, added value and premium standard as its driving force. They turn food into an unforgettable experience for a visitor who wants to come back to have more -not necessarily to Kodila, but surely to Prekmurje.

This year they have built a new, state-of-the-art warehouse

Janez Kodila, owners

Company Name: Kodila, d. o. o.

Number of employees (2018): 50

Net sales revenue (2018): €4.7 million

Summary

Kodila in a nutshell: innovation, boldness, quality, integration, local experience.

About this article

By EY Slovenia

Multidisciplinary professional services organization