Beer production The Croatian beer industry is a significant exporter generating a surplus of around €10 million Ivan Miloloža In the area where Munja is located many companies operated; now there are none. It should not have happened. Virovitica-Podravina county entrepreneurs The county enhancing the picture of trade in goods and services ANALYSIS INTERVIEW ENTREPRENEURS SUCCESS PAGES 2-3 PAGE 4 PAGE 5 2010 Croatian Business & Finance Weekly Established in 1953 Monday / 30th May / 2011 Year IV / No 0155 www.privredni.hr S U P P O R T E D B Y T H E pvinternational pv international C R O A T I A N C H A M B E R O F E C O N O M Y 15TH NATIONAL CONSULTATION ON ECONOMY AND ENTREPRENEURSHIP How to achieve ethical business The main problems for entrepreneurs remain illiquidity and payment Krešimir Sočković lliquidity and mutual non-payment remain the biggest problems of entrepreneurs. As they themselves revealed at the National Consultation on Economy and Entrepreneurship, held recently, before the crisis only 30% of entrepreneurs ‘lied’ to their business partners about when they intended to pay for delivered goods. Now, 90% do that, according to entrepreneurs. They all agree creditors need to be protected, but no one is sure how to do it. The Minister of Economy, Labour and Entrepreneurship, Đuro Popijač, evaluates that for the past several years institutional and financial support for entrepreneurs significantly increased, whereas subsidies were changed and adjusted parallel to reforms in institutions. The most recent changes, however, will acclimatise all to the situation that can be expected within the EU. Popijač opines that according to state sources almost €95.9 million of non-repayable funds were invested into the infrastructure of 325 entrepreneurial zones. Over 2,500 entrepreneurs now work in these zones with over 42,000 employees, and the value of the allo- I cated state property exceeds €0.14 billion, says Popijač. Through guarantees worth €123.29 million, it was possible to secure €0.23 million of credit, and investment worth over €0.41 billion. Small and medium sized enterprises as well as craft companies now employ 580,000 workers or 67% of total number of employees, and they account for 45% of Croatian exports. Strengthen the position of creditors Despite the favourable figures, many problems still persist, mainly regarding illiquidity and non-payment. The number of short-term blocked accounts is in decline, but there are still a vast number of overdue debts exceeding one year. He stated the need to strengthen the position of creditors and increase their protection, secure rapid forced settlements using all means, including bankruptcy and distrait. He also mentioned that payment deadlines of public companies have been considerably shortened, amounting to 42 days, which is half the length compared with last year. How- ever, the problem is that certain contractors of large-sized works for state companies still do not pay their subcontractors. By freezing the size of the budget to two years, the sum actually saved was €1.37 billion, which must be found in the redistribution of funds amongst the budget items, and the Operational Plan of Subsidies secured €54.8 million for entrepreneurs, added the Minister of Economy. Regarding the lack of business ethics, the solution cannot be found in new laws which will demand creditor protection. “Creative” entrepreneurs will always exist, says Popijač. Laws must be implemented. Time-consuming payment processes open the possibility of speculation and so we need to work on changing our mentality. We need honest, smart and moral business people, and we must get rid of other models, concludes Popijač. The two-day consultation also included a discussion on the development of SME’s, entrepreneurial infrastructure, EU accession and challenges as well as possibilities awaiting small and medium-sized entrepreneurs on this market. 2 Privredni vjesnik Year IV No 0155 ALEN RANILOVIĆ, VIPNET BUSINESS CUSTOMERS MARKETING DIRECTOR Operating in the clouds Analysts are anticipating the global cloud computing market value growth of $40 billion over the next three years e have recently been witnessing trends constantly imposed by the telecommunications and information technology significantly impacting on the concept of modern business operations. Cloud computing is a concept of online management where the term cloud is used as a metaphor for the Internet, which a third party uses as a medium for the service of hosting on its internet domains for data and software access, without the need for investment into IT infrastructure. The most in demand Vipnet service and the first to have been presented on the market is the Vip vehicle tracking system. It includes a system of vehicle fleet tracking that allows vehicle owners to track their vehicles on a map, monitor vehicle use statistics, total distance covered, duration of the journey, maximum speed, stops and use of vehicles out of the allowed time. It provides a detailed insight into the activities of drivers as they are being monitored by a cloud. In addition, these services can be applied in order to abide by legal rules and regulations. Companies that do not monitor employee working hours or do it in an inadequate way, are breaching the law and can face considerable fines; the Vip time management service advantage is a simple and easy way to record working hours and attendance at work, whilst Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 [email protected] www.privredni-vjesnik.hr/ subscription beer consumption per capita in Croatia BEER PRODUCTION THE CRISIS SL The Croatian beer industry is a significant exporter generatin Krešimir Sočković W IMPRESSUM: ( 73.8 litres per year ccording to statistics, each year each Croatian drinks as much beer as they weigh. Even though the trend is negative in these critical times (and everyone has lost weight and tightened their belts), Croatians still consume an average 73.8 litres of beer per capita. The Croatian market is mainly dominated by the big players. The brewery Zagrebačka pivovara holds 40% of the market and its strongest brand Ožujsko pivo is predominantly consumed by Croatian beer-lovers, a beverage produced by the partial fermentation of the water extract of malted barley with added hops. The second market player, with a 25% share is the brewery Karlovačka pivovara with their strongest beer brand Karlovačko pivo. Pan beer from the Carlsberg brewery in Koprivnica is the third Croatian beer brand with a market share of 17%. Other significant players on the market include the brewery Daruvarska pivovara with their well-known brand Staročeško beer, the breweries Osječka pivovara and Buzetska pivovara with Favorit – the leading beer in the Istrian market. The recession took its toll in Split, where the brewery, owned by the Slovenian Laško pivovarna, shut down production. A manual data entering is history. Internet access and a card reader satisfy all the legal requirements for monitoring attendance without additional investment and it enables companies operating over several locations to monitor employee arrivals and departures from work much more easily. Several analysts anticipate the growth of cloud computing on a global level to about $40 billion over the next three years. There is some scepticism among experts with respect to business operating beyond the physical borders of companies, nevertheless there will be a variety of services, interests and requests for innovative technology which enables time and money saving. One of the consequences of cloud computing will be greater emphasis on services and lesser on hardware and the accompanying technology, which bring into focus business operations. FOR PUBLISHER Nikola Baučić +385 1 4846661 [email protected] IMC MANAGER Dea Olup +385 1 5600028 [email protected] EDITOR IN CHIEF Darko Buković +385 1 5600003 [email protected] TRANSLATION Lučana Banek [email protected] Mirjana Cibulka [email protected] EXECUTIVE EDITORS Andrea Marić [email protected] Vesna Antonić [email protected] INTERNATIONAL OPERATIONS Ray Fletcher [email protected] Room for small players There are many other Croatian small-sized breweries, such as Velebitska pivovara, which annually produces between 10,000 and 15,000 litres, or micro-breweries, for example Medvedgrad, which produces and sells beer exclusively in its pub. Combined together, they produce under 1% of beer per year or less than Zagrebačka pivovara produces in one day. However, potential exists since these small breweries are very 3 ( 513,400 hectolitres exported last year worth $36.6 million LOWED EXPORT GROWTH ng a surplus of around €10 million flexible and new ones appear occasionally. In 2009, the beer market registered a decrease of 6.5% and this trend has continued. According to data provided by the Group of Beer, Malt and Hop Producers of the Croatian Chamber of Economy, the market declined by a further 5.8% in 2010. However, this year the trend is ticking up. During the first four months of this year sales increased by 3.2% on a year-on-year basis. If the positive trend maintained until the end of the year, which depends on weather conditions and the tourist season, this year might mark an upturn for the beer market. Pero Ivanković, president of the Group of Beer, Malt and Hop Producers of the CCE points out the weather as the constant factor in the brewery business. “When we look at the changes in the market during the past several years, we see they were significantly affected by the weather. This year’s growth of 3.2% indicated the downward trend has stopped, and we are slowly exiting the recession. However, beautiful weather greatly influences this trend,” points out Ivanković. This is supported by the fact that the best year for the beer industry in Croatia was 2003, when 3.87 million hectolitres of beer were consumed, and this was also a very warm year. A good tourist season is anticipated. If the weather serves us well and the trend continues, we can anticipate a 3% rise compared with last year, adds Ivanković. We drink too little For the past several years breweries have been worried by the decrease in consumption of their products. In 2007, 86.3 litres of beer was consumed per person. A year later the consumption decreased to 82.6 litres, only to plummet to 77.8 litres in 2009. Last year, 73.8 litres of beer were consumed per capita. Notwithstanding the fall in consumption, breweries, especially the large ones, are pleased with their position since they either preserved their share or increased it. The smallest of the three biggest breweries, Carlsberg Croatia, had a 17.02% share of the beer market last year, compared with 2009 which they finished with a 16.3% share. According to Carlsberg, there are several reasons behind the positive trend. Firstly, consumers participate in the activities of brands and secondly, their demands are taken into consideration. One such example is the introduction of a new brand, Zlatni Pan. Together with 600 Croatian beer experts, the company developed a new Croatian beer. In order to attract new customers, Croatian breweries have started to accept western trends, beer with a lower percentage of alcohol, alcoholfree beer or flavoured beer. Fruity flavours and cider Carlsberg point out that the second reason behind their growing share concerns innovation. For example, a new category was created for the local market with the launch of Somersby cider. This year they will start the production of Holsten, German beer brand, which will be offered in a PET two-litre bottle. At the beginning of the year, consumers participated in the selection of a new flavour of Somersby, selecting from pear, cranberry and elderberry. They selected pear. They also launched a new advertising campaign for the strongest brand, Pan. This year they anticipate no great changes regarding the consumption figures. Karlovačka pivovara is also introducing new products, but above all they are extremely satisfied with the gold medal for their strongest ‘weapon’ on the market – Karlovačko beer. At the international competition Monde Selection in Brussels they won a gold medal. They intend to build their position on the market with their premium beer Heineken and other brands, including the new Karlovačko Radler beer. Radler is a combination of lager (2% alcohol) and refreshing nonalcoholic lemon juice. At the same time Zagrebačka pivovara launched its Ožujsko lemon beer, a low-alcohol beer and lemon juice. High level of exports The Croatian beer industry is a big exporter. During the past five years, exports amounted to between $32 million and $42 million, and imports between $23 million and $36 million. A considerable surplus was achieved, and only 2007 was marked by a deficit in the trade balance, when beer was exported with a value of $32.5 million and imported by $3.6 million more. In 2006, 544,380 hectolitres of beer, valued at $32.6 million was exported, whilst 461,050 hectolitres or $23.8 million was imported. In 2008, 575,840 hectolitres of beer ($42.4 million) was exported, and 405,110 hectolitres were imported, achieving a surplus of $12.2 million. A year later the surplus totalled $15.7 million with even less beer being exported - 538,510 hectolitres worth $40.6 million. Last year ended with a surplus of $13.5 million, with 513,400 hectolitres of exports, valued at $36.6 million. 4 INTERVIEW Privredni vjesnik Pri Year IV No 0155 Yea “There is no time wasting in industry. In other countries things are moving faster ” IVAN MILOLOŽA, DIRECTOR AND MAJORITY OWNER OF MUNJA The difficulties of market return In the area where Munja is located there used to be many production and similar companies. Now there are none. It should not have happened. Igor Vukić e filed a lawsuit in Russia against the powerful Oleg Deripaska and we won after three years. Proceedings and appeals in Russia have five instances, whilst in Croatia there are two. Nevertheless, we managed to win the lawsuit and receive $5 million in damages. In Croatia we have filed lawsuits against several state companies and they still have not been concluded after 10 or 15 years. Ivan Miloloža, Director and Majority Owner used such examples to illustrate the business environment in Croatia. He is President of Croatian Employers Association Council and spoke with Privredni vjesnik about the situation in industry and the broader economic and political environment. Miloloža strongly supports reforms that would be an incentive to significantly restructure the neglected public administration and modernise ossified working and legal relationships as well as an incentive increase the dynamics of society overall. The government has presented a programme for economic recovery and this is satisfactory, yet this programme is being implemented rather slowly. I am aware of the fact that it is not easy to achieve results in a short period of time, since a lot has happened over the last 15 years. Nevertheless, I believe reforms could be implemented more quickly. There is no time to waste in industry. The current situation is highly chaotic, whilst in other countries things are changing for the better and a way towards recovery has already been found. W What have other countries done to recover from the crisis? What should Croatia have done? It is difficult to compare countries with different traditions. Nevertheless some have been braver in making some serious moves. Several countries, such as Hungary and Serbia, have put more effort into giving greater impetus to the real sector. Croatia is currently paying its dues for indecisiveness. We have a legacy of socialism, we have too much tolerance of laziness and, in addition, we have piled up many new transitional problems. It looks as if the whole of society has fallen into lethargy and has been waiting for someone else to solve the problems. No one is going to do this other than us, not even the European Union. How has all this impacted on the industrial sector? In the area where Munja is located, there used to be dozens of production and similar companies. Now there are none. It should not have happened. People also anticipated a similar future for us, but we managed to survive. We managed to recover from two strong blows – after the gas crisis there was the global financial crisis. The gas crisis caused us considerable damage. The funds we retained and intended to use for the relocation of our factory had to be used for the restoration of our plant. We did not receive any help except for HBOR funds. How did you manage to survive the financial crisis? We focused on exports. We are lucky to have a competitive product of high quality and also that our business partners abroad were willing to wait for us until we managed to recover. We were not able to produce anything for about 18 months. We expended a lot of effort on convincing our partners that we would continue with production. We extended our sales in former Yugoslav countries, Russia and Ukraine. Did you have to talk to your business partners in person and explain the situation your company was in? Market return is far more difficult than market penetration. I spent months travelling through all European countries. It took a long time to convince our partners that we would succeed in overcoming all difficulties. When you sell someone a storage battery, you must commit to be on the market for at least two years, at least until the warranty expires. This is one of the reasons that should make you work incessantly. I strongly hope my efforts will bear fruit also in Croatia. www.privredni.hr Business & Finance Weekly 5 VIROVITICA-PODRAVINA COUNTY ENTREPRENEURS The county enhancing the picture of trade in goods and services The County could become one of the leading counties in terms of positive export-import trends and profitability The share of food products in exports is the highest with the value of food products in 2010 being over $50 million (39% of County exports), followed by furniture and wood products ($28 million or 24.3% of exports) and tobacco ($26 million or 19% of total exports). Igor Vukić irovitica-Podravina County has made a considerable impact on the total trade of goods and services in the Croatian economy with a positive result of $83.8 million in 2010. Exports totalled $134 million, whilst imports came in at $50.2 million. Out of the public spotlight, Virovitica County is top of the list of five Counties (Vukovar, Varaždin, Požega and Sisak County) which are enhancing the overall export-import picture. According to the export-import ratio, Virovitica County is certainly the leading county. With an $83.8 million trade balance, Virovitica is sixth, preceded by Istria, Varaždin, Sisak, Vukovar and Krapina. Exports results are below those for 2006 when the value of exports was over $140 million. 2007 and 2008 saw even higher figures of $158 million and $172 million; nevertheless, after the plunge due to the crisis, there is an upward trend to exports V once again. Virovitica-Podravina County also holds supremacy with respect to gross profits from its entrepreneurs in 2010 with an index of 238 over 2009. It is followed by Vukovar-Srijem County at 226.3 with the Croatian average standing at 73.5. According to Vukovar County Chamber data, investment in processing, food and the wood industries generated largest profits. The share of the processing industry in total entrepreneurial revenue was 48.3%, trade 21.8% and agriculture 14%. COMPUTER CONTROL SYSTEMS The downside to success The best exports results were achieved by Tvin, an Ikea supplier for many years, and in wood processing Pan Parket from Čačinci, Ciprijanović, Paneli Matasić, INPO from Slatina as well as small craft businesses such as Hrastica from Pitomača which is currently penetrating the international market with its modern design of furniture. Viro, Hrvatski duhani, wine producers and agricultural products producers from PP Orahovica hold supremacy in agriculture. In addition, there is Jan Spider, the largest regional manufacturer of high quality herbs. In the processing industry there are RS metals, metal casting producers, brick and construction material producers, builders such as Croming and several others. The Vidra Regional Development agency has this year been nominated as the best agency in this category in Croatia. The downside to success can be illustrated by data indicating that results were accompanied by pressure to reduce expenditure by 4.1% over 2009. Average salaries, which were already lower than the Croatian average, were additionally lowered by 3.4% (to an average of €433). The crisis accounted for a steep drop in long-term asset investment of 38%.Virovitica entrepreneurs quickly adjusted to the crisis, reducing their unsettled liabilities by 16.7%. The number of insolvent companies increased from 254 to 295. Nevertheless, with respect to positive export-import trends and growth, the economy of Vukovar-Podravina County could again see the end of 2011 as one of the Croatian leaders. CONSUMER PROTECTION From trams to wind turbines The price of diapers In conjunction with the international assembly MIPRO, dedicated to information and communication technology, electronics and microelectronics, Končar ICT Day was held for the first time in Opatija. Regarding energy, the first computer control system was used in the hydro-power plant Varaždin in 1984. Digital technology in industrial plants was applied in the ironwork Zenica in 1984, in transport this company developed a train heat transformer for diesel electric locomotives in 1994 and initiated the modernisation of Bulgarian locomotives in 1999. Projects by Končar are based on personal research, development and production and above all their application in systems and plants, which the company delivers based on the turnkey principle of individuality, points out Renata Godek, Marketing and Information Director at Končar-Elektroindustrija. The companies KončarElektronika i informatika, Končar-Inženjering za energetiku i transport and Končar-Institut za elektrotehniku are developing computer control systems for hydro-power plants, trams, trains and wind turbines. They are also developing dispatch centres, local and remote control systems in plants for production, transfer and distribution of electricity, IT systems for corporations and the public sector, IT equipment, devices and systems for measuring, protection and monitoring. (B.O.) From May 6 of this year, all stores over 50 m2 must state prices for units of measure – kilogram, litre, metre, square or cubic metre - of the product or other quantity unit which is used or includes VAT. This is due to the Regulation on the method of stating retail price and price of the measure unit of products and services, which has recently entered into force and derives from obligations under the Act on Consumer Protection. The price of uniform products must be stated in the same units of measure. Therefore, each package of children’s diapers will also contain the price of one diaper. What will be new is that the price must be stated on food (for humans and animals), detergents, children’s diapers, paint and polish, care products, products for washing face, body, hair, teeth and mouth. It will not be necessary to state the price of the unit of measure for products weighing under 50 grams or 50 millilitres, gift packages or sets, discount products, products on sale, treats for pets, cakes, alcohol beverages in packages up to 100 millilitres, frozen desserts up to 50 millilitres as well as fruit and vegetables sold per piece or in bundles. (K.S.) 6 Privredni vjesnik Year IV No 0155 CROATIAN FOREIGN CURRENCY MARKET Currency AUD CAD JPY CHF GBP USD EUR Source: HNB EUR Kuna exchange mid-rate 7.45 5,584564 5,352275 6,459547 6,104335 8,60426 5,234006 7,437522 Public debt at 58.8%of GDP The consolidated general state debt increased due to government guarantees and HBOR debt and totalled €26.90 billion or 58.8% of GDP at the end of 2010. Public debt increased 8.4% over a one year period. Government guarantees stood at €6.09 billion (15.4% up over 2009). Public debt could see an increase of €1.5 billion in guarantees to shipyards, which the government decided to transfer to public debt during the process of restructuring the shipbuilding industry. Jadranka Boban Pejić ‘entrepreneur of the year’ The European Bank for Reconstruction and Development awarded Jadranka Boban Pejić, the Director and Owner of the company Biovega, with the Entrepreneur of the year award. The results of the competition were announced at the ceremony ‘EBRD Women in business’ held in Kazakhstan. The Croatian entrepreneur is the director of a company with 130 employees, exporting and distributing ecological products. Conferences generated €4.88 million 1153 business conferences were held in the first quarter of 2011 in Croatia, generating a turnover of €4.88 million, according to Croatian Bureau of Statistics. Conferences hosted 81,860 participants, of which 90.7% were local. The average duration of conferences was two days. 505 conferences with overnight stays generated profits of €3.55 million or 72.8%, whilst 648 conferences without overnight stays generated profits of €1.33 million (27.2%). 5.3 25.5. 26.5. 27.5. 28.5. CHF 6.15 7.44 5.30 6.10 7.43 5.28 6.05 7.42 5.26 6.00 7.41 5.24 5.95 7.40 24.5. WEEK MAY 28, 2011 ::: news USD 5.22 24.5. 25.5. 26.5. 27.5. 28.5. 5.90 24.5. 25.5. 26.5. 27.5. 28.5. Entrepreneurs results in 2010 €0.23 billion nett loss Exports up 11.5%, imports down 8.9% in 2010 ecords covering some 96,758 entrepreneurs as well as other reports and documentation submitted in compliance with the Labour law R 2010 compared with €0.33 billion nett profit in 2009, according to data presented in annual financial reports. 55,541 entrepreneurs generated profits of €3.86 bil- In 2010 numbers employed fell by 2.9%, total revenue was down 2%, total expenditure fell by 1.5 %, whilst profit surged by 13.8% over 2009. at the Register of annual financial reports maintained by the Financial agency (Fina). These show a nett loss of €0.23 billion (profits less losses) in lion, whilst 41,217 entrepreneurs showed losses of €4.09 billion. Total revenue was €81.95 billion and total expenditure was €81.34 billion. In 2010, VAT-paying entrepreneurs exports to foreign markets were €12.34 billion and imports totalled €12.15 billion, creating a trade surplus of €0.19 billion. Entrepreneurs increased exports by 11.5% and imports decreased by 8.9% over 2009. In 2010 numbers employed fell by 2.9%, total revenue was down 2%, total expenditure fell by 1.5 %, whilst profit surged by 13.8% over 2009. After-taxlosses soared by 33.6% and the consolidated financial result was a nett loss, whilst 2009 saw a nett profit. Entrepreneurs invested €5.18 billion in long-term assets in 2010, 25.2% down over 2009. The average employee monthly salary was €638.9, 0.2% up over 2009. (V.A.) www.privredni.hr Business & Finance Weekly WE PRESENT BAKINE PITE, ZAGREB 7 EFFECTUS MANAGEMENT & CONSULTING, ZADAR An address by the sea Help with permits and location Little Red Riding Hood back in trend Pies are made based on grandmothers recipes, without oil, preservatives and emulsifiers, with pastry being hand-made and-made baking of grandmothers’ pies, without preservatives and emulsifiers, with fresh and natural ingredients (no oil, only home made butter is used) is the project which started three years ago by a team of young educated people The team includes 15 people, and the mixture of youth and enthusiasm as well as the experience of the older generation creates an ideal combination, said the director of the Zagreb company Bakine pite, Rene Gami, a graduate economist. We wished to eliminate the prejudices according to which home made pies are unhealthy and fatty as similar bakery products are, stressed Gami. He pointed out that they developed a new business area of low-cost catering by gradually developing processes and operational business. In other words, pies should be ordered at least one day before. Free delivery is through a branded vehicle and the delivery woman is dressed as Little Red Riding Hood. In this sense, ordering from the company Bakine pite represents a new experience of ordering food for celebrations, graduations or birthdays. H Worst timing They started in 2008, with one venue when most people were discouraged by the forthcoming crisis. Their advantage was that they needed only tables for rolling out the pastry, and baking ovens. Otherwise, capital investment and large loans were not required. Venues with red chequered table cloths sprouted one by one across Zagreb. Each was studied and designed carefully, which made each future venue even better. The attractive and high qual- ity hand made products were the main reason why they were approached by business partners offering a franchise. Soon two new franchises will be opened in Zagreb under the name Štrukleraj. The goal of Gami and his associates is to create more, similar partnerships. “Our greatest competitors are big industrial systems, but we will not give up on our vision of an identifiable quality and real competitive advantage,” opines Gami. He added that their pies are made from rolled pastry according to traditional grandmother recipes, directly before baking. Furthermore, they constantly develop their existing products as well as prepare new ones so that customers may experience something completely new and different. (J.F.) ffectus management & consulting is a Zadar company specialising in management services, business and strategy consulting, transportation and services closely related to tourism. At its inception it was a small family business was a small business at its inception but with a deep experience in tourism, with mobile houses for tourists as its uniquely distinctive feature. Effectus sells them on both the Croatian and international markets, particularly in Slovenia. “Our services of business consulting and management are mainly to the Croatian market and we operate along the Adriatic coast and in, E Between 600 and 800 units produced in the Labin factory are sold to Italian and European markets for example, Finvest Corp Hotels Njivice. We are anticipating projects which will include some international companies”, stated the director and the joint owner of the company Zvonimir Tudorović. Their mobile homes from Address by the sea product range is merely a fragment of this successful project. According to Tudorović, they offer a complete package and, in addition to mobile houses, they assist clients in obtaining permits for transportation and placing at one of the chosen locations on the Adriatic coast, from Istria to Southern Dalmatia. A new approach to Croatian tourism The mobile homes are produced by the company Shelbox. One of its three factories is located in Labin and they are of the highest quality amongst European producers. Between 600 and 800 units produced in the Labin factory are sold to Italian and European markets, whilst between 200 and 300 are produced to meet the needs of the Croatian market. The demand for mobile homes is increasing with changing standards and needs of tourists. Many smaller, private camps also have an increasing demand for these products and Effectus offers them also the know-how essential for the organisation and effective functioning of camps. Tudorović pointed out that most operating problems are related to judicial problems as well as communication and co-operation with local government. Nevertheless, he mentioned a positive example of a project of the repositioning of the Njivice camp with professional co-operation between Omišalj municipality and local government. Their future plans are currently focused on devising a new approach to Croatian tourism through a different evaluation of tourism areas, their uniqueness, cultural heritage and natural variety. (S.P.) 8 Privredni vjesnik Year IV No 0155 KUĆA SRETNOG ČOVJEKA, MIMICE (THE HOUSE OF THE HAPPY MAN, MIMICE) Liqueurs and dessert wines a recipe for future happiness 9 vines of crljenak (a Zinfandel wine) have been found in a small vineyard and its revitalisation is under way Jozo Vrdoljak ikša Mimica is the owner of a winery known as Kuća sretnog čovjeka, managed to revitalise a once important family farm where his ancestors had exported wine to Austria, Italy and France. He will be remembered for the 9 vines of crljenak have been found in his vineyard. Experts from the Faculty of Agronomy have proved that this crljenak is in fact zinfandel which is probably the most famous wine varietal in America. N That find was the inception of the revitalisation of crljenak in Croatia. Now, ten years later, there are some 500,000 vines of this varietal. Kuća sretnog čovjeka has recently starting exporting three of its wine varietals to Poland. “These are currently minor quantities, but due to high demand, we are anticipating significant exports into that market, given that wine consumption in Poland is increasing”, Mimica pointed out. Višnjak omiški Kuća sretnog čovjeka is also well-known for its liqueur made from the maraska cherry – Višnjak omiški, of which it produces about 20,000 bottles from a traditional recipe. Mimica therefore planted a plantation of maraska cherries to increase the raw material base and thus also production. The fact that in the past, production of višnjak was usually reserved for women, is interesting and various traditional recipes have been preserved. The family owns about 5 hectares of vineyards with 25,000 vines and a plantation with 180 maraska cherry trees. The production capacity is achieved by purchasing grapes and cherries from regular subcontractors. “We will continue planting grapevines and maraska cherries to get top quality raw materials. Our objective is top quality. We have encountered some hurdles in achieving our goals with greater speed, such as small fragmented plots of land in the area of Omiš and Mimice. We are therefore planning to rent and lease land from private owners”, stated Mimica. Co-operation with experts Mimica places considerable hope in crljenak which has significant potential, whilst the quality of his plavac was proved long ago. Mimica has been co-operating with experts from the Faculty of Agronomy since the finding of crljenak in his vineyard. They are currently working on the revitalisation of an ancient varietal – Muscat rosé from which they used to produce the famous prosecco in the Omiš area many years ago. Mimica is anticipating greater liqueur and dessert wine production, as well as sparkling wines. “Sparkling wine and prosecco production, along with višnjak production, which I am planning to take to a higher level than wine production, will be our speciality. I have already sent samples to Ukraine, China and Russia and as soon as I get their feedback, I will commence with more serious project development”, concluded Mimica. Origins of the name Kuća sretnog čovjeka The name of the Nikša Mimica craft may sound unusual to those unacquainted with Omiš history. In the old part of the town, since the Renaissance, there was a famous “house of a happy man” called thus after the inscription on the harbour lintel which in Latin (Gratias Ago Tibi Domine) sent a message to everyone: ‘I thank you, Lord, for having been in this world’. The house was pulled down in 1862 but the lintel is currently preserved on a wall in the main street which extends along the old part of the town. ::: news Končar signs contract for work in HE Rama Electrical Utility of the Croatian Community of Herceg-Bosna and Končar-energetski transformatori signed a contract on the delivery of new transformers for the hydro-power plant Rama in Bosnia and Hercegovina. The transformer unit will be delivered in 2013 and it is has a value of €3.1 million. Total value of work on the upgrade of HE Rama amounts to €39 million. In addition to Končar, the companies Geotehnika and EnergoControl will also work on the upgrade. Đuro Đaković to produce goods wagons for HŽ Cargo The company Đuro Đaković from Slavonski Brod signed a contract with HŽ Cargo for the delivery of 100 goods wagons. The value is estimated at €9.32 million. At the beginning of May Đuro Đaković also signed a contract for the delivery of goods wagons with the French company Nacco. It has also been published that this company from Slavonski Brod was selected by Janaf for the construction of tanks for the terminal on Krk. The deal, worth €29.86 million, will be confirmed after the expiration of deadlines for appeal on this public tender. Osijek received the highest amount from Eurofunds During the past 15 years, the County of Osijek and Baranja has been the most successful county in terms of pooling funding from pre-accession funds. The County managed to pool €46.5 million. It is followed by the County of Zagreb with €15 million and Zadar with €14.6 million. The bottom positions are occupied by the County of Sisak and Moslavina with €9.3 million, the County of Virovitica and Podravina with €2 million and the County of Lika and Senj with only €0.5 million.
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