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Ice cream innovations from Ajdovščina conquer the world
Afamily-owned business from Ajdovščina, Incom has experienced its fair share of difficulties since it began in a garage in 1989, but is now reaching for the stars. It is Slovenia’s largest producer of ice cream and frozen confectionery, under its own brands Leone and Leone AL!VE. As an innovator and producer of ice cream for other brands, the company exports more than two million ice cream cones, lollies, pots, tubs and other varieties all over the world every day. It has more than 400 employees and invests profits into innovation and development. “We are currently in the initial phase of the ‘Smart Factory’ project, which introduces a high degree of automation into the production process. This year’s revenue will reach €66 million, which is €11 million more than last year. Already in the first six months, we have achieved €10 million gross surplus compared to last year,” explains owner Andrej Slokar, who values development, innovation and interpersonal relations with family members and employees more than profits alone.
From a garage to freezers all over the world
As a chemical technology engineer, Andrej first began working for the Fructal company, where as a 35-year-old production manager, he realized that he wanted to create something of his own. Although his idea did not attract much enthusiasm at home, together with a friend he established a business in their garage in 1989. “At the beginning, we were just playing around a bit, but it was enough for a living for my family and me,” explains Andrej, who had learnt a few things about entrepreneurship in his previous job. “I started to produce small amounts of ice cream – just enough for one point of sale – and found that I was very good at it. My wife helped me at first, while others did nothing but laugh. I soon started gathering other people around,” adds Slokar. They started with the production of regular ice cream in tubs. Today, they produce more than two million ice cream and frozen products every single day and export them to 36 countries across the world. Despite the success, Andrej remains modest: “I wanted to be a manufacturer, as I don’t know how to be anything else. I’m not a craftsman. I’m an entrepreneur because I’m not skillful with my hands despite the fact that at the beginning, I would fill the tubs in the morning, pack them in the afternoon and load them in the evening.”
“Andrej SlokarWhen running a business and hiring people, I’ve always asked myself two questions: ‘Why should customers buy from us and not from someone else?’ and ‘Why would someone come and work for me?’. If I didn’t have the answer to that, I went looking for it.
The essence of their philosophy was to build a company
Incom is not particularly well-known in Slovenia, as their products are mostly exported abroad. Ice creams and other frozen products are sold under their own brands Leone and Leone AL!VE. They are also offered as private labels under other brand names. “Our philosophy was not only to penetrate the market, but to set up a thriving company,” explains the Director. He also adds that if they focused only on their own brand it would take decades for it to establish itself on the global market. With private label products, the company was able to develop much faster, with their products sold under the aegis of well-established brands and a well-oiled marketing machine. However, Andrej hasn’t been resting on his laurels. He is developing new and innovative products for multinational companies. “Such a development is not easy.
We don’t only run our own production but also our own engineering, development and building production lines ourselves. We have hardware and electrical project designers and also programmers. Everything we do is aimed at being exclusive,” he describes.
Passion is of utmost importance
For them, the recipe for success is to trust in people. When Andrej started to build his own company, he motivated people so that they believed in achieving success: “I’m the kind of person who is easily inspired. I very much like this child-like trait and if I don’t see passion in a person, I don’t hire them.”
He tried to inspire his children to work in the family-owned business. “I never understood why people kept telling me to let the kids themselves decide what they want to do. Children should be inspired, helped and guided so many doors are open for them,” he adds. He never pushed them to work for the family business but he kept telling them how lovely it would be if the family-owned business could be continued by them. In the factory, which manufactures ice cream in the shape of unicorns, pandas, soccer balls and ladybugs and produces licensed products under the brands Frozen, Paw Patrol, Star Wars and Peppa Pig, his son Rok works as head of the entire production-technical department. Daughter Andreja, who is still a college student, has found her interest in accounting and finance.
Rok, who is an electronics technician, started working for the company as a “jack-of-all-trades” and then slowly specialized in different areas. He is enthusiastic about his work as it constantly presents new challenges: “We never get bored, we innovate on a daily basis.” Following the clearly-defined path his father has created certainly isn’t easy, but he manages to stay on it with a passion for challenges. “The job is interesting but also bears great responsibility, both towards society and the environment. Our company is the largest in town and therefore has an important social role to play. Many locals work here – entire families even,” he explains. The company is strongly-connected to the environment in which it operates. It also provides scholarships to local athletes, supports sports in general and particularly the basketball club. In addition, it also provides support to the local choir and other institutions.
“If I don’t see passion in a person, I don’t hire them. When we cease to find enthusiasm and passion, we’re old.
Quality is their ID
Andrej says that he built the family business on three core values: integrity, trust and respect. “Quality is our ID,” he adds. This is also facilitated by responsible leadership: “I set up the company in a way that is professional and well-managed. It has a director and heads of departments, whereas I withdrew from management five years ago.” The company has been reorganized and adjusted to its rapid growth and development. While many experts have been hired, even greater investment is devoted to employee training. “Organizing people is one of the key ingredients for success,” Andrej adds. In his opinion, employees should be motivated and when they face problems, communication is very important. “You have to trust them and give them tasks that are a bit more complex than they believe they are capable of dealing with. Income is not the major motivator, it’s merely the result. It is important to be enthusiastic, happy and satisfied doing this job,” he tells us. “When running a business and hiring people, I’ve always asked myself two questions: ‘Why should customers buy from us and not from someone else?’ and ‘Why would someone come and work for me?’ If I didn’t have the answer to that, I went looking for it,” he adds.
A family-owned business, according to Andrej, has its advantages. “If you manage to impress your family, in the long-run it can also become something important at the national level when you take a look at how much family-owned businesses contribute to GDP,” he explains. The company’s capital is constantly in circulation: “With us, relations are easier and faster, goals are clear and we do not take money out of the company. Hence that is why we grow so fast,” the owner adds and warns that economies of scale are dangerous and need to be managed wisely. “I don't want to live from economies of scale, but rather from the price difference that rests on knowledge and less on pure muscle,” he points out.
“People and knowledge run a business. People need to be inspired, motivated and encouraged to do more than they believe they are capable of. You have to trust them and give them tasks that are a bit more complex than they believe they are capable of dealing with.
They wish to sell knowledge in the future
Currently, the company is focused on its five-year Smart Factory project. Increased automation through robotics was approached with caution as they want to maintain their identity. “Too high a level of automation can to some extent infringe flexibility,” warns Andrej. Another challenging project is the creation of new products and the introduction of new technology into development. The owner does not want the company to constantly increase its gross product turnover but rather to reach its optimum size and then aim for strong development potential: “I also wish to make profit from our know-how. The company is full of smart people so we ought to start selling knowledge. It makes no sense to sell only hands-on products and nothing else.”
Andrej Slokar, owner
Company Name: Incom, d. o. o.
Number of employees (2018): 369
Net sales revenue (2018): €57.1 million
Summary
Incom in five words: passion, quality, integrity, trust and respect.