Abraham on course for growth with increased quality management

For the past year 2003 Abraham again reports a very successful business development. The market leader for raw ham increased sales by 11 percent to 147 million euros. With 3,4 million hams produced, the Seevetal company set a new record, a volume increase of 13 percent compared to the previous year.

The Abraham management

Image: Abraham

The positive development also continued unabated in the export sector. Sales here increased by 11 percent and, at EUR 14,8 million, accounted for around 10% of total sales. Abraham's ham specialties have been enjoying increasing popularity abroad for years. The most important customer countries are the USA, Holland, Belgium, France, Denmark, England and increasingly Russia.

By far the market leader

With a market share of 22% in the German raw ham market, Abraham clearly sees itself as the market leader. According to the Seevetaler, the next competitor (Reinert, Versmold) has about 8%. The sales volume is the basis for calculating the market shares.

"We have continued to grow in all areas, in sales, production and sales",
says the managing partner Jürgen Abraham. The growth was achieved in all forms of retail sales, with the classic food retail trade growing somewhat more than sales via the discounters. It is the Seevetaler's strategy to increasingly remove the "Abraham" brand from the discount sector and replace it with retail brands.

Also with service goods Plus

An increase can be seen not only in the self-service area, but also in the so-called service goods. Head of Sales Heiner Zajonc sees this as confirmation of Abraham's intensive training work for retailers and the many on-site campaigns that are carried out together with individual stores.

The success is also reflected in the employee balance sheet. The Abraham Group was able to create additional jobs in its production facilities and hire 55 new employees in addition to the around 500 previously.

55 more employees hired

"Run behind without subsidies," as Jürgen Abraham emphasized. The investment of 2003 million euros made in 7,5 is also characteristic of growth from within. Abraham has thus invested around 10 million in the further development of the business over the past 40 years. Even if the Abraham brothers could not get any figures on the development of earnings, it was at least possible to hear that the company's equity ratio was 40% of the balance sheet total and that the planned investments of a further 3,5 million euros for 2004 were covered by the cash flow.

After several years of double-digit sales growth, Abraham describes 2004 as a year of consolidation with moderate sales growth of 3 to 5%.

Brilliant results in quality audits. 

Last but not least, thanks to the ambitious quality management, the leading position of the full-range supplier of raw ham could be further expanded.

The implementation of quality assurance measures is increasingly gaining in competition
in weight. The Abraham Group shines here with excellent results: QS seal in 2002 for the four German companies. Further certifications passed with top marks in 2003. Also in 2003 IFS certification audits (International Food Standard) with the highest rating "Higher Level" and thus award for the quality management in all five plants of the group including the new plant Recogne in the Ardennes.

In their statement, the auditors expressly confirmed that the technical condition, quality management, documentation and hygiene status were of a very high standard.

In this context, it is worth mentioning that in 2003 the Abraham Group again succeeded in obtaining the US permit for the import of raw ham products, which was issued according to extremely strict test criteria.

In the company, these results are seen as proof of special performance, especially against the background of the growing importance of export markets and the constantly increasing demands of trade - especially in international business.

Another step forward in quality control.

The company has had its own microbiological laboratory since the beginning of 2004 and after obtaining the appropriate approval from the responsible authorities. The incoming raw material controls and the intermediate product or process checks are carried out here. With this step, Abraham has gained further speed and flexibility and at the same time it means an additional level of security. External controls by well-known experts will also continue to be used.

Incoming goods inspection at Abraham

Image: Abraham

In addition to the physical-chemical and microbiological analyzes in the laboratory, including salt and water content or the pH value, the controls on the packaging lines are important. The following are monitored here: Values ​​such as the residual oxygen content, legibility of the EAN code or the completeness of the traceability data.

Computerized traceability system.

The tools for traceability represent a special security element. Rolf Abraham: "In the event of any damage, we can access the respective batch in both directions - back to the pre-supplier to the customer who was supplied". This traceability applies to units of 500 kg per batch.

Each product is given information about the batch in coded form. The data determined in this way is stored in the merchandise management system. Every batch can be traced back to the packing day and the respective shift, computer-aided.

Like the contents, the packaging material has to meet the highest standards. Proof of safety in the form of analysis reports is required from all film suppliers before the corresponding packaging materials are used. The tests apply in particular to the structure of the (composite) films suitable for the packaged goods, the density of the oxygen barrier layer, the UV protection and the tear and impact resistance of the packaging.

Authentic products from typical ham regions

The product authenticity is considered to be the outstanding feature of the Abraham range.
Rolf Abraham explains the company philosophy of the ham specialist as follows: "We bring products typical of the region to the consumer's table. Our products are manufactured exclusively on site, in the respective region of origin, in the traditional local way. In principle, our production facilities are located where the product is to be produced home. And that's where we're investing too".

Products with a protected origin are particularly valued by consumers. Abraham can refer to three protected designations of origin for: Ammerland ham, Black Forest ham and Ardenner core ham from Belgium (Jambon d'Ardenne).

Coaching for the sale of raw ham.

In addition to the activities at the point of sale, one of the mainstays of sales are the in-house training courses for the employees of the trading partners. Everything you need to know about raw ham - production, characteristics, possible uses, sales arguments - is taught here in training courses.

Sales Director Heiner Zajonc: "As the market and quality leader in the raw ham sector, we see it as our particular duty to pass on our specialist knowledge. This gives sales over the counter valuable support. That's us - together with our partners - the quality of the product and owed to the consumer".

Customer proximity - pioneer for innovations.

With new forms of offer included in the program, Abraham is increasingly doing justice to both the needs of retailers and consumers. The full-range retailer demonstrates customer-oriented market behavior and assortment competence, among other things, with the new trend product Abraham "Leichter Genuss" with only three percent fat. The product is cut from the low-fat top shell - without the fat edge.

In order to be able to experience customer wishes as "up close" as possible, consumers are regularly invited to tastings and discussions. The events make a significant contribution to being able to adapt to emerging trends.

Medium-sized dominant culture as a determining factor.

"The continuity of our business success is based not least on the superiority of a corporate guiding principle that is characterized by a flat hierarchy, short decision-making processes, customer proximity, speed and flexibility," says Jürgen Abraham. The structures in the company have been continuously adapted to market requirements and trimmed for efficiency. The high motivation and qualification of the employees should be emphasized in particular. Entrepreneurial responsibility is borne by the owners. This is a clear commitment to the principles of medium-sized corporate culture. With all the growth, you remain true to these principles.

Source: Hamburg [ Thomas Proeller ]

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