Mr Kotronis, we often read about new products or changes in management in company news releases. But you recently reported on the hiring of a person with disabilities. What is behind that?
Augustinos Kotronis: We have always maintained a close connection with our local community and society as a whole, and we have already successfully hired disabled employees in various departments. But recently, for the first time, we hired someone from the Alkioni association, a local nonprofit organisation dedicated to supporting people with disabilities. This organisation has done exceptional work over the past twenty years, and we have been supporting them financially for a long time. After overcoming some bureaucratic difficulties, we were able to hire Soula, who quickly demonstrated an extraordinary level of dedication and professionalism. The entire team is thrilled to have her with us, and we see this experience as a first step towards further hirings from this community. This initiative even earned us a Gold Award at Greece’s Packaging Awards 2024. We were pleased to be recognised for our contribution to strengthening our local community and are proud of this award.
How did your employees respond to their new colleague? Did you offer any specific training sessions before she joined?
Augustinos Kotronis: We have a strong culture of acceptance and support within the company, which made Soula’s integration easy. We informed our employees about her background and they welcomed her with open arms. We believe this initiative contributes significantly to strengthening our company’s culture.
In addition to your social commitments, you are also strongly focused on digitalisation. You recently launched a project called Praccis. Can you tell us about it?
Augustinos Kotronis: Praccis stands for “Plastic Resin Automatic Central Conveying Intelligent System”. It’s a fully automated raw materials supply system that we have developed and installed. Our internal and external silos are now connected to the processing machines, automatically providing them with raw materials as needed. While such systems are not uncommon in the industry, in our case the implementation of this project had to overcome two major challenges. First, we had to install pipes and special equipment in existing buildings that were not designed for these purposes. And second, and most important, we wanted to maintain the high degree of production flexibility that we think differentiates us from our competition. The result is probably the most sophisticated central conveying system in southeastern Europe. We think this will help us achieve our goals effectively for many years to come.
You belong to the second generation at the helm of Kotronis. How has the company evolved since its beginnings?
Augustinos Kotronis: In the late 1950s, our father founded a company that produced traditional sesame bars. In 1970, he purchased his first injection moulding machine in order to manufacture a polystyrene container that would better preserve his products. This opened up many new possibilities and led to the decision, in 1971, to focus exclusively on plastic food packaging. This set us on a path of continuous growth over the following years, with the involvement of and contributions from all family members. Today, we are a second-generation family business, with the third generation already starting to get involved. We focus on thin-walled packaging for the food industry and operate our plant on a 34,000-square-metre site, whereby 15,000 square metres are roofed. We employ around 250 people and produce approximately 600 million containers and lids annually.
What specific products do you offer?
Augustinos Kotronis: We mainly produce thin-walled containers for foods such as yogurt cups and packaging for deli products. Our portfolio includes containers in various sizes and shapes from small-portion packs to larger containers for yogurt or spreads.
In addition to product development, you are also very active in design. Kotronis has won several design awards in recent years. What’s the secret to your success?
Augustinos Kotronis: Design plays a central role in our business. It’s not just about aesthetics, but also about functionality, practicality and food protection. Our design and development department works closely with our customers to create customised packaging that stands out not only for its appearance but also for its efficiency and durability. This combination of attributes has earned us several awards in recent years.
Lefteris Antonakakis: Design is a challenge because there are many technical aspects to consider. We also need to meet our customers’ demands for high quality, practical and recyclable packaging, and their wish for distinctive designs. Our ability to understand each customer’s specific needs, the market trends and the capabilities of current technologies enables us to design unique and efficient packaging solutions with high added value. The key to our success is the close collaboration between the different departments and the integration of our expertise into every step of the design process.
Kotronis is one of the leading providers of food packaging in Greece. How is the export business doing?
Augustinos Kotronis: Approximately 50% of our packages are consumed abroad. About 15% of our production is exported directly, mainly to the Balkans and the Middle East. Another 35% is considered indirect exports and refers to the packaging of food products made in Greece exported to the international markets. We see an annual growth of around 10% in our export business, which is gratifying. However, we export fewer larger packages, as transportation costs play a significant role in that regard.”
How do you choose the markets for your export products?
Augustinos Kotronis: We focus on the compatibility of our products with the needs of the respective market. Logistics costs are crucial, as is the market’s potential. In some cases, it makes more sense to produce the products locally rather than to export them from Greece. However, many of our customers appreciate our flexibility and quick delivery times, which keeps us competitive even in more distant markets.
You have a variety of certifications, including IMS/FDA for the US market. What other certifications do you have?
Augustinos Kotronis: Our company is committed to providing the highest quality products for food packaging. Therefore, in addition to IMS/FDA certification, we are certified according to several international standards. We hold both ISO 9001 and ISO 22000 as well as the BRCGS Packaging certification, which ensures food safety and product suitability for food packaging. Furthermore, we are certified to ISCC PLUS - an International Sustainability & Carbon Certification. This is based on the principles of the circular economy and recognises that we produce sustainable and environmentally friendly products and use certified renewable raw materials.
What exactly is the SMETA/SEDEX certification that you also hold?
Augustinos Kotronis: SMETA stands for Sedex Members Ethical Trade Audit, and SEDEX stands for Supplier Ethical Data Exchange. These certifications confirm that we act responsibly, ethically and transparently. We obtained this certification at the request of a customer, and the auditor was impressed by our standards. We attach great importance to treating our employees fairly and adhering to ethical business practices. This is deeply rooted in our business culture, meaning that we always pursue a balanced approach in all areas. We inherited these values from our family, so it’s natural for us to act ethically. Whenever an issue arises, we find the right and ethical solution to handle each situation appropriately.
You also mentioned the EPD, the Environmental Product Declaration. How do you benefit from it?
Augustinos Kotronis: The Environmental Product Declaration allows us to accurately calculate the ecological footprint of each of our products. We conduct lifecycle analyses that are reviewed by external experts, and we create reports that help our customers make informed decisions. For example, we can say that for a particular product, about 70% of the emissions come from raw materials, 9% from the label and 8% from energy consumption during production.
This data allows us to determine the crucial parameters affecting the carbon footprint, which then enables us to make appropriate decisions and provide our customers with concrete and sustainable solutions. Additionally, the EPD is the formal environmental declaration on which our customers can base credible sustainability claims without the risk of greenwashing. Therefore, it is important for us to deliver reliable and verified information.
Your company describes itself as based on the pillars of leadership, innovation and development. Have these values changed over time?
Augustinos Kotronis: Leadership is always a personal matter. There are fundamental principles that we follow, but they must align with one’s own beliefs and personal philosophy. In our company, we pursue a quiet leadership style. We maintain a close relationship with our employees and prioritise their confidence in their roles. It’s important to us that our team feels comfortable sharing their ideas and concerns openly, knowing they can bring them to the table at any time.
Innovation and development are central components of our company and, as a family business, we want to grow together with our employees. We are always striving to identify areas of improvement – with a particular focus on our processes. When you internalise this mindset, development and progress come naturally. However, without continuous growth, the necessary resources and economic strength to implement all these ideas would be lacking.
KIMA 4.0 is another of your current projects that I discovered while preparing for this interview. What’s that about?
Augustinos Kotronis: KIMA (Kotronis Interconnection of Manufacturing Assets) is a project that belongs to the Industry 4.0 era. We had already started working in this direction before it became a trend. Essentially, it’s an advanced planning system that we have installed in all our machines, and it is already running successfully. It monitors in real-time all phases of the production process, significantly improving our production planning.
Since we have thousands of different labels, planning can be very demanding. Without accurate real-time information, it is challenging to combine all orders efficiently. KIMA helps minimise communication between departments and ensures that we know exactly when something will be completed. The system also takes maintenance requirements into account, further optimising our operations.
You strive to build stable and long-term partnerships with your customers. To what extent does this also apply to your suppliers?
Augustinos Kotronis: Long-term, stable relationships are of great importance to us, both with our customers and our suppliers. Producing thin-walled packaging is a very complex process, with many special requirements that vary from customer to customer. When you work with a new supplier, it takes some time before you can collaborate efficiently.
Having trust in your partner is crucial. Without trust, you can’t take risks, and remaining on the safe side will not lead to progress. However, if we work with a company that has solid technical expertise and proposes new solutions, we can be confident that good solutions will be found. You can’t afford to buy expensive equipment while also risking that a project will fail.
You have been working with Otto Hofstetter AG for about ten years now. How did this come about?
Lefteris Antonakakis: We have been manufacturing many moulds ourselves since 2006, but to grow further, we decided to purchase moulds externally as well. Otto Hofstetter AG was known to us for its technical expertise and precision manufacturing. What was particularly important to us were the open discussions and the competent staff that facilitated these conversations. I attended the first meetings in Uznach and was very pleased with the technical details they shared with us. In 2016, we put the first mould from Uznach into operation, and now we have seven moulds from Otto Hofstetter AG. We enjoy a trusting relationship with the company and we value their technical support, as well as the opportunity to discuss sensitive issues and special solutions. Maintenance by Otto Hofstetter AG is essential for us, since it is complex and must be carried out by experts.
To what extent is it relevant for you as a family business that Otto Hofstetter AG is also a family-owned and family-run company?
Augustinos Kotronis: It is particularly important for us to have a supplier that is also owned and run by a family. This ensures a shared commitment to values and long-term objectives, as well as direct communication with the owner, fostering a close connection that positively impacts the communication between our teams. Benefits such as much faster decision-making and greater flexibility are also highly valuable to us.
How could Otto Hofstetter AG better support you in achieving your goals?
Lefteris Antonakakis: For one thing, it would be interesting for us to receive information about the ecological footprint of the moulds so that we can factor this data into our calculations regarding the environmental impact of our own products. For another, reducing delivery times would be advantageous and would provide us with a significant competitive edge. We also greatly appreciate the technical support and consulting expertise of the company, so it’s important to us to have regular exchanges of ideas and technical know-how.
Where is our industry and plastics in general heading?
Augustinos Kotronis: I believe it’s important to establish a solid foundation of data by accurately calculating the carbon footprint and emissions of our processes and comparing them to alternatives. At Kotronis, we are doing our part by pursuing sustainability targets and striving to contribute to our society and our industry. Nevertheless, we cannot influence the central issues in a meaningful way. We still believe that PP plastic packaging has excellent properties in terms of its overall footprint and functionality.
There are interesting initiatives now underway that promote the mechanical recycling of food packaging and improve its recyclability and reprocessing. Our industry is working to ensure we don’t switch to alternatives only to find out that they are impractical or inappropriate. In some cases, there may be better alternatives, but in the realm of food packaging, we believe plastic remains the best solution. It is also crucial that consumers recognise the true value of plastic and improve their handling of it. If they are well informed and encouraged to do so, they will certainly make an effort.
In conclusion, where do you see Kotronis in the next five to seven years?
Augustinos Kotronis: Our goal is to continue growing and to be there for our customers over the long term. We intend to invest in talented young people that will accompany us on this journey, and we remain open to pursuing new business opportunities. Sustainability and close collaboration with our customers will continue to be at the core of our work.
Thank you very much for the interview, gentlemen. We wish you and your team continued success and look forward to more positive news from Kotronis.
