CEOs of Croatian Companies: We Have Learned to Operate in Crisis

Leaders of Croatian companies are surprised, but not discouraged by the current trade disputes and political decisions. It seems that the last five years of operating under conditions complicated by the coronavirus pandemic, supply chain disruptions, inflation… have given them a sort of immunity to abnormal occurrences and they are ready to adapt their business.

Ivan Artuković (Franck): We have secured stable supplies and maintained business continuity

– The business environment in which coffee producers operate today has never been more challenging. Geopolitical instability, trade wars, climate change, and adverse weather conditions in producing countries, along with disruptions in global supply chains, have resulted in record prices for raw coffee. Raw coffee prices on the world market have been steadily rising since the beginning of 2021, reaching their highest levels in 2025 since coffee trading began.

In just the last year, the prices of arabica and robusta have increased by 90 and 70 percent respectively (based on exchanges on April 2, 2025). The coffee market is facing serious challenges, but Franck remains active, adjusting its strategy to ensure supply stability and minimize the impact of market disruptions on consumers. In such a complex environment, long-term sustainable business requires a clearly defined strategy and a high level of adaptability.

At Franck, we have actively responded to challenges: we have secured stable supplies, maintained business continuity, and continued to invest in modernization, people, and innovation. In the context of the European business community, many employers clearly state that stability, regulatory predictability, and support for digital transformation are key to further growth. In this sense, the domestic framework should provide more understanding for industries that, like ours, create value and employ – especially regarding tax burdens that diminish competitiveness.

Although the special tax on coffee, which raises the tax burden on coffee in Croatia to as much as 35 percent, may not seem fiscally significant for the budget, its effect on the market, consumption, and investment potential is not negligible. In today’s uncertain global context, we respond consistently: by investing in innovation, sustainability, and top quality, we create value not only for today but for generations to come.

Ivan Čulo (Hrvatska pošta): Thanks to technology, we successfully cope with challenges

– Political changes and trade wars can affect the entire economy, including the postal sector, primarily in terms of the flow of certain goods or limiting services in specific areas. However, trade wars are just a fragment of the challenges our industry faces. Climate change, intense market trends, the breakthrough of new technologies, and geopolitical upheavals are particularly impacting the postal and logistics sector. Although they may seem insurmountable in scope, we see these challenges as a great opportunity because the postal service has always created new ways to connect people throughout centuries of social and civilizational changes.

When it comes to political and trade changes, Hrvatska pošta actively participates in the work of international organizations such as the Universal Postal Union (UPU), PostEuropa, and the International Post Corporation (IPC). Our activities and initiatives are not limited to Croatia. For example, we chaired the PostEuropa working group to ensure uninterrupted postal traffic in Eastern Europe so that war-affected Ukraine could have continuous postal service and a flow of humanitarian aid.

Political decisions and legal changes require rapid adjustments of processes and the application of new technologies. Hrvatska pošta is on an upward trajectory in technological terms, and in the last eight years, we have invested 230 million euros, the majority of which has gone into modern infrastructure and digitalization. Thanks to modern technology, we successfully cope with market challenges, and the company is more flexible and adaptable to unpredictable situations.

The world is changing extremely quickly, and therefore it is difficult to predict what will affect business and in what form, but we are aware of our role and importance to the local community, and the experiences of the past five years give us strength for new challenges. We are also aware that our users and business partners have high expectations of us, and thanks to their trust, Hrvatska pošta is today a driver of e-commerce growth in Croatia. Challenges that transcend business boundaries should not prevent us from realizing our vision but should serve as an incentive to strengthen resilience, as this contributes to the betterment of our economy.

Dejan Turk (A1 Hrvatska): In uncertain market conditions, it is important to have a clear vision for company development

– It is hard to imagine a sector that would be immune to an unstable environment. Sometimes changes bring opportunities, and sometimes challenges, but there is no doubt that social and macroeconomic turbulence can significantly impact the telecommunications industry. They primarily affect the security and stability of supply chains, especially in the procurement of telecommunications equipment and network infrastructure. In uncertain market conditions, it is important to have a clear vision for the company’s development and its role in society.

The telecommunications sector will continue to play a key role in strengthening the resilience and competitiveness of the economy, ensuring connectivity, digital security, and smart infrastructure – the foundations of modern society. A1 Hrvatska will therefore continue to invest in its gigabit fixed network, which will soon be available in almost 70 percent of Croatian households, the mobile 5G network that will cover 99 percent of Croatia by the end of the year, as well as cloud services and digital solutions. Our goal remains unchanged. We want to provide users with top service, ensure long-term growth and stability, and continuously improve the user experience. We are strongly investing in our own network capacities, cybersecurity, and employee expertise.

In this way, we increase the independence and flexibility of our business, which will prove crucial in the period ahead. At the same time, by developing sustainable and energy-efficient networks, we actively contribute to the green transition. With further market consolidation, we expect even faster implementation of modern technologies such as 5G networks and artificial intelligence. There will be an increasing focus on network security, data centers, data protection, and cybersecurity, in which A1 is one of the market leaders. With this in mind, we see 2025 as an opportunity for A1 Hrvatska to further strengthen its market position and, through investments in infrastructure, AI, and ICT development, as well as portfolio expansion, help create a more connected, safer, and technologically advanced future.

Zoran Mitreski (Konzum): We have successfully faced many challenges

– Over the years marked by intense inflationary pressures, Konzum has proven to be a stable support for customers, partners, employees, and the community in which it operates. We have successfully faced many challenges that have affected our business. On one hand, the Trade Act has affected the distribution of working Sundays, and its full effect was only felt in 2024. Global events such as the war in Ukraine have continued to have a significant impact on supply chains, causing delivery disruptions, increased energy costs, and inflationary pressures.

This has been compounded by security issues in the Red Sea, which caused delays in transport and increased insurance and fuel costs, further burdening our business. In light of these challenges, Konzum has ensured an uninterrupted supply to the market through timely reactions, focusing on the tourist season and key seasonal periods such as Christmas and Easter. Through quality planning and logistics adjustments, we have responded to challenges regarding product availability, ensuring a high level of service to customers. When it comes to strategic development, Konzum is focused on digitalization, making us a technological leader in retail.

We are developing a multichannel service, making technological breakthroughs, and developing advanced solutions that enable customers to shop more comfortably and easily while also facilitating the work of employees. With around 10,000 employees, we are the largest company in the Fortenova group in Croatia and one of the leading employers in the country. Over the years, Konzum has shown that it has the strength, knowledge, and ability to successfully cope with all challenges – from restructuring, the pandemic, and earthquakes, to the war in Ukraine, global disruptions, and unprecedented inflationary pressures. Price advantages remain our primary focus, as well as good cooperation with Croatian producers, offering quality domestic and fresh products. This is the direction in which we will continue to grow and develop sustainably.