Dan Virag (Fluxus): After frozen pizza, the logical step was to offer the oven in which it is baked

Encouraging entrepreneurial stories from the Sveti Nedelja and Samobor area are not lacking, but there is always room for surprise. We are used to reading and hearing about large manufacturers of screws, construction materials, medical equipment, and even socks – but in Rakitje, there is also a manufacturer of frozen food that achieves excellent results in the HoReCa sector. They specialize in the quick preparation in hospitality of raw, pre-baked, and baked frozen dough products with fillings, as well as fresh delicatessen salads, all produced manually, without additives, colorings, and preservatives.

– The company Fluxus has been active since 1997, and production started in 2016 within our factory in Rakitje. Initially, we focused on the production of frozen pizzas, and our vision from the start was to create products of the highest quality, which would ensure users quick preparation without the need for skilled labor – just put it in the oven. After we developed pizzas, we decided to deal with their preparation, considering that my business partner’s company has been engaged in electronic engineering for thirty years – explained Dan Virag, the owner of Fluxus.

He added that he and partner Zoran Suzanić developed their own pizza oven that, in semi-automatic mode, practically ensures uniform baking of products without oscillations in quality and preparation. With its two initial programs for frozen and/or pre-baked products, it allows preparation in just a few minutes, without the need to defrost the products – explains Virag.

Collaboration with Professionals

After discovering the secret of making quality frozen pizzas, they embarked on the development of several production lines and today produce more than 100 products in Rakitje, primarily intended for the HoReCa sector, so today, among other things, they also offer soparnik, Viška pogača, štrukle, fritule, Komiška pogača, as well as popular empanadas, quiche, spring-rolls…

– We are guided by four basic principles. None of our products require pre-manipulation, each is quickly prepared without calibration, skilled labor is not needed for their preparation, and the composition of our products is of domestic origin, thus contributing to the domestic economy, and we will continue to do so – commented Virag and noted that the HoReCa sector has always been a very challenging segment of business that requires a polyvalent approach, both to the market as a whole and to customers and their demands.

Their desire was, he says, to create and maintain quality collaboration with professionals, some of whom also participated in the creation and development of products for their specific needs.

– Each of our products is created and produced in accordance with world practices in production and food safety, which is confirmed by regular analyses, certificates, and many awards received. I am convinced that we have no competition among domestic producers considering that we do not work with a classic bakery assortment but delve deep into the segment of ready meals, with a special focus on caterers. All our products are enriched with top-quality spices and are created from ingredients according to the highest standards of HoReCa quality, but unfortunately, this does not allow financial adjustment for every customer. However, for those customers who value quality, we are a reliable and quality business partner. Our key advantage is precisely that we do not offer our customers just a product and service but also a solution – explained Virag.

High Costs

Competition in this industry has been present from the very beginning, but for every market, there is an adequate customer, so there is no reason for fear, believes Virag, whose Fluxus employs about twenty people, and in 2022 achieved a total annual revenue of 707,150.04 euros. They have been exporting products to Slovenia for some time, and they plan to expand into the Austrian, German, and Dutch markets.

– As for the products, there is nothing we do not produce, but it is our great desire and plan to export indigenous Croatian products such as soparnik, štrukli, Viška and Komiška pogača to foreign markets. I believe that the upcoming year will bring us final positioning in the domestic market and an adequate selection of partners in the HoReCa segment, as well as retail, so that from 2025 we can actively engage in entering the European market. Given the ease of preparation of our products, we are also considering creating a franchise-type business in the form of hospitality – adds Virag.

He explained that the frozen food sector is very specific in relation to the ambient mode of operation due to the high costs of almost everything – from production and storage to distribution. The advantage of working with frozen food products is durability, and the entire sector of such food is growing at the EU level, partly due to the accelerated lifestyle, i.e., the lack of time for food preparation. Therefore, in the HoReCa sector, it is almost unimaginable to operate without relying on quality frozen products, believes Virag.

– The biggest problem is still that retail customers do not recognize the quality of some products, both due to high prices on the shelf and due to the eternal taboo topic ‘frozen is not good’, which is the biggest untruth presented to customers since time immemorial. Being an entrepreneur is certainly challenging, especially in these times of constant change, but being a manufacturer on top of that is a much more complex spectrum of responsibilities and challenges – he explains.

Changes in the HoReCa Channel

As for the indispensable sustainability in business, Fluxus plans to set up a solar station within the factory premises, and for some time now, they have been packaging their products in recycled cardboard boxes. His products within gastropulses or bakeries within retail chains are always easy to recognize – because they are also displayed in packaging made of recycled cardboard for serving. In production, they try to minimize plastic as much as possible, using it only in the packaging of fresh salads for retail chains.

– The biggest advantage of a small company is that it has the opportunity and ability to adapt to its customers. When you exclude all the modern terms commonly used in corporate business – CRMs, agile projects, and the endless terminology taught in higher education – at the end of the day, it all comes down to the relationship with the customer and the promise of the quality of the product you deliver. Fluxus has always followed trends in the food industry, but we have focused on products that we believed would contribute the most to our customers and how we can produce them without oscillations in quality – explained Virag.

The HoReCa sector is undergoing significant changes, primarily due to the new paradigm of clients, i.e., customers. The pandemic may be a thing of the past, but it has definitely left a mark on consumer preferences in the form of new trends and ways of consumption. Nevertheless, Virag believes that such moments in the market are the most exciting because new opportunities for product development and new business projects arise.

– Innovation is certainly one of the main drivers of business in our segment. The advantage is that we are small enough to react quickly to changes and are able to achieve excellent results in a short period, especially when it comes to creating a specific product, and on the other hand, we are large enough to handle it without any delays. Currently, we are focused on creating the Croatia Heritage Table for our customers in HoReCa, primarily hotels.

It is Important to Listen to Intuition

– We are working on a designer table for serving traditional domestic products from our assortment such as Viška and Komiška pogača, soparnik, fritule, and štrukli, as well as an interactive user experience where they could learn about the history of the dish, the method of preparation, and the region from which the dish comes via a touchscreen on the table… This directly contributes to domestic cuisine and presents the rich history of our gastronomy – lists Virag, whose company is currently working on redesigning the well-known brand Brzo&Slasno in collaboration with domestic producers. They are in the phase of creating products with specific Croatian local ingredients intended for placement in foreign retail chains.

– I am only 33 years old and there are many matches ahead of me, but I suggest to everyone who wants to engage in production to first follow their intuition. There is no analysis, market research, or any adequate data that can give you a feeling of whether something is for you or not. If you feel that you need to embark on something, then you simply have to try, even if initially the circumstances or people are not on your side. It is important to be smart enough to listen to yourself at the beginning, and in the end, to the team of people with whom you will build your story – concluded Virag.