Energy - Model Holding AG

KÄGI SÖHNE
Biscuit packaging revival
Toggenburg in Switzerland has now
been home to Kägi Söhne AG for 70
years. Initially a producer of bakery
and confectionery, the company has
now grown into a medium-sized SME
manufacturing speciality biscuits and
chocolate bars. Many of its processes
are automated. The famous Kägi-fret
and Kägi-fretli products – chocolate
bars covered in the company’s own
chocolate – date back to 1952.
Interview with
Rebecca Willi, a Key
Account Manager with
Kägi Söhne AG.
It was in 1958 that you made
your big breakthrough with Kägifret.
What made this such a significant
development?
The combination of chocolate and
superb biscuit products required
a great deal of specialist technical
expertise. But after much experimentation
with recipes and the
installation of a machine to apply the chocolate
coating, we were ready – and the Kägi-fret was
born.
Where are your products available?
Switzerland is still our most important market,
though we are exporting an increasing proportion
of our production. Germany, Austria, the
Middle East and Asia are among our main export
markets.
Don’t the products simply melt away in the
sun?
We make heavy demands on our international
distributors. For example, the storage temperature
has to be maintained exactly – all the way
from our factory to the point of sale in the
hottest countries.
The Kägi brothers sold their life’s work to
the Valora Group in 1996. What effects did
this have on Toggenburg and the workforce?
The takeover had no effects on Toggenburg at
all. In 2001 and 2002 the company spent about
CHF 14 million on modernizing and enlarging
the existing production building. Efficient manufacturing
processes and increased production
capacities are a firm foundation for sustained,
future-oriented growth.
Our low staff turnover rate shows how little
has changed for the workforce. Some of our
employees have been with us for more than
40 years. Their close association with Toggenburg
– and hence with Kägi – is naturally an important
contributory factor. The Valora takeover
made no difference to their love for our products,
their attention to detail or their quality
awareness.
Is it important to develop new products?
Innovation is hugely important in the confectionery
market. In fact it always has been. The
consumer wants variety. We must identify
trends, or – even better – create market momentum
by developing new products ourselves.
This year we launched Kägi-Hazelnut in
Switzerland – the first product in our new line
of biscuits with a chocolate base.
But flavour is not the only field in which we’re
working on new directions. We also constantly
seek out and test new packaging possibilities.
This year you selected a new design for
your products. What do you hope to gain
from this? How has the market reacted to
the change?
Our objective was to create a unified image,
but without abandoning our traditional roots.
The resulting design embodies both tradition
and our association with Toggenburg, but without
looking at all passé. We commissioned a
well-known market-research institute to test
our new packaging on a representative basis.
The results confirm that we are on the right
track. The initial market reaction has been very
positive.
A number of packaging manufacturers were
involved in this redesign. What were the
challenges to them?
Our products are available in several different
packages, not all of which are printed in the
same way. We had to make sure that the
colours look exactly the same on all of them:
the new Kägi shade of red, for example.
Our displays had to be changed as part of the
redesign. We collaborated closely with the
Model company on a new display concept that
meets the product presentation requirements
of Sales and Marketing, and also
satisfies logistical needs. The first
new display will be on show in
Swiss retailers from January 2007.
New Design
Packaging from 1958, 1968, 1998, 1999 and 2006
(from bottom to top)
What will you concentrate on in 2007?
We’d like to make our new Kägi-Hazelnut product
even better-known, and strengthen its distribution.
The new point-of-sale displays will
attract a certain amount of attention.
In addition to your demanding professional
activities, you have also taken on teaching
duties as well. Where do you get your
energy from?
I love what I do! I get the energy I need from
my work, the inspiration of my team – and of
course from my great affection for our
products.
Being able to pass on something of my love
for sales and marketing to my pupils, who are
always eager to learn, is a source of great
pleasure to me.
I also spend at least an hour jogging every
evening in the fresh air. That’s when I get
some of my best ideas.
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