An East German Traditional Company on a Path of Success and Expansion
Interview with Thomas Schulz, Managing Director of Ostthüringer Nahrungsmittelwerk Gera GmbH
The brands of the margarine manufacturer Ostthüringer Nahrungsmittelwerk Gera GmbH are widely known especially in East Germany. Now Managing Director Thomas Schulz is also targeting the old federal states and other markets as additional distribution areas. He discussed with Wirtschaftsforum the grown strengths of his traditional company, current consumer trends, and the most important lessons from the company's long history.
Wirtschaftsforum: Mr. Schulz, your brands might be a little less known in the market than the name of your company: the Ostthüringer Nahrungsmittelwerk Gera GmbH, also known as Othüna. Which products are included in your portfolio?
Thomas Schulz: As a traditional manufacturer of margarine, we have always remained true to our brand core and continue to focus on a comparatively small range of products, which we cover with even greater expertise and experience. We primarily offer 250-gram margarine cubes for cooking, frying, and baking, where our brands Sanna and Marina have been able to make a name for themselves in our distribution area.
Both varieties are also available as 500-gram containers in the form of spreadable margarine, as is our brand Goldina, which is made entirely from rapeseed and is therefore completely lactose- and gluten-free. Due to our history and location, our products are much more widely distributed in Eastern Germany and are consequently better known than in the former West German states, although we plan to expand our presence in other regions of Germany and beyond in the future.
Wirtschaftsforum: The roots of Othüna date back to 1902: To what extent does the long company history still play an important role in your day-to-day business?
Thomas Schulz: The fact that we are still successful in the market after such a long time is certainly a testament to our quality awareness, which we continue to steadfastly uphold: to this day, we only offer margarine with a fat content of at least 80% and will not diverge into the spreadable fats market like other market participants in the future. At the same time, we want to offer our customers high-quality margarine at affordable prices, which is why price reductions are not taboo for us, as long as they can be realistically represented in the market; moreover, we would never reduce the sold product quantity through hidden price increases. This consistency and reliability certainly distinguish our self-understanding in a special way - this applies to end consumers as well as our partners in retail and among large consumers.
Wirtschaftsforum: At the same time, preferences in the food market can change rapidly. Doesn't your company have to adapt to this?
Thomas Schulz: Yes, of course! Because especially younger consumers sometimes ask for products in a different configuration or set different priorities in their consumer behavior, which must be reflected not only in our product range but also in our communication: The issue of conscious nutrition is much more important today than it was a few years ago, many people eat vegan out of a deep conviction – a claim that all our products meet, and which we should perhaps underscore more clearly in the future. We have also noticed that especially younger consumers prefer simpler dosage options, which can for example be well represented through squeezer bottles – this presents an interesting development for us.
Wirtschaftsforum: In recent years, on a macroeconomic level, various crises have led to many changes. How has your company adjusted to this – and what central themes will dictate your actions in the coming years?
Thomas Schulz: The COVID-19 crisis and disruptions in supply chains were certainly a particular challenge for us: With 38 employees, we are relatively small team, thus we rely heavily on each individual in our company – illness-related absences are particularly significant. General availability problems with our raw materials have led to a rethinking throughout the industry: whereas in the past the goal was to keep inventory levels as low as possible to tie up as little capital as necessary, sufficient stocking has now become indispensable to ensure proper production processes. But that's not all in terms of change, as digitalization will also be clearly on our agenda over the next two years: This will involve both our manufacturing processes and our administrative procedures, and will also be reflected in our external representation with a more consistent approach to addressing consumers. With these steps, along with our outstanding team in Gera, we have laid the foundation to further strengthen our brands and establish ourselves as a high-quality nationwide player in Germany.