“There is Great Potential in Turkey”

Thomas Körmendi is Tetra Pak General Manager for Turkey. He says that in 2003 the group produced 105 billion pieces of packaging worldwide and that in Turkey it sold 1.63 billion. He notes that these figures represent per capita sales of 16 worldwide and 3 in Turkey. He says that this picture clearly demonstrates the fantastic potential of the market.

“THERE IS GREAT POTENTIAL IN TURKEY”
Turkey is one of 165 markets in which Tetra Pak is active and, in terms of packaging produced, it ranks 15th. Some of the packaging produced in Turkey is exported to 16, mostly neighboring, countries. In 2003 Tetra Pak Turkey had a turnover of €130 million. We spoke with General Manager Thomas Körmendi about the company and the Turkish market.

How much packaging did Tetra Pak produce in 2003 and what was the company’s turnover?
Last year the group produced 105 billion items of packaging worldwide. This represents 16 items of packaging per person. We had total sales of €7.2 billion. In Turkey we sold approximately 1.63 billion items of packing and had a turnover of €130 million.

What are your forecasts for 2004?
We think that the market will grow by a minimum of 8 percent this year. The number of items of packaging produced will rise by about 8 percent. We expect our turnover to increase by even more. Our customers’ forecasts are similar to our own.

You mean that you predict that the growth in the sector will parallel that in the economy as a whole?
True. Higher than the countries of Eastern and Central Europe. The Turkish market is growing faster than the markets in those countries.

Do you see Turkey as more advantageous compared with the new EU members in Central and Eastern Europe?
In countries such as Hungary and the Czech Republic some things have been completed. This is how things are when one looks at them from the perspective of foreign investment. Foreign investment has already entered these countries. The level of new inflow is continually falling. I think that next year and in the following years the volume of foreign capital inflow into Turkey will rise considerably. The granting of a date to Turkey by the EU will attract foreign capital. Economic stability will also rise.

THE LATEST TRENDS IN PACKAGING
What are the most striking trends in packaging and the other sectors in which you work?
DIFFERENTIATION HAS BECOME VERY IMPORTANT Companies all over the world want their packaging to include something which is unique to them. This is how they break away from the crowd and come to the fore. For example, there are a lot of attempts at differentiation in fruit juice. For a large number of brands it has become very important to differentiate.
THE RETURN OF CARDBOARD PACKAGING Another common feature is that, following the rise in plastic packaging, cardboard packaging has been on the rise again for environmental reasons. We can call cardboard packaging recyclable. In some countries, for example in Germany, there are legal regulations on this subject.
TREND TOWARDS SMALL PACKAGING Another trend is the appearance of small packaging. This is partly related to demographic change. The number of people living on their own is increasing. These people prefer small packaging because their refrigerators are small. This is also happening in Turkey. However, because purchasing power in Turkey is low, one would normally have expected the opposite. On the other hand, there is an increase in demand for large packaging.