KoRo | Updates

By Constantinos Calios

€12,000 daily net revenue: KoRo stabilizes its supply chain and expands its partner network


Dear Companists,

First, we want to welcome our new Companists: Thank you for your investment and confidence in KoRo!


I. May starts off strong

While others have to close on public holidays, KoRo closes the first (holi)day of May with a daily net revenue of over €12,000. In order to continue on this growth path, we continue to focus on our mission to be Europe's No. 1 supplier of non-perishable food. We have no doubt that we will achieve this goal sooner or later.  A prerequisite for this is a strong supply chain management (SCM). It determines the operational flow of goods. Only a stable, process-oriented supply chain, in which all chain links know and assume their responsibilities, allows KoRo to continuously expand its product range and thus ensure long-term scalability to a relevant portfolio size.

Vertical integration is an integral part of our vision. On the way there we skip trade levels and come across suppliers - mostly importers and wholesalers - who are unable to adapt their sales units to our customers' requirements despite a certain degree of flexibility on our part. Even for us, it is difficult to sell our customers a 22.68kg bag of cashews for €420.

In such cases, we involve a packaging provider until we achieve sales volumes that are exciting for own imports and direct cooperations, which in turn allow us to influence the size of the original containers.


II. Strong packaging partners

Our goal is that a product is packaged directly by the manufacturer and is no longer opened or processed until it reaches the consumer via our warehouse in Berlin Falkensee. We are already successfully doing this with some of our products, such as our dried pineapple from Costa Rica and our dried mango from Burkina Faso.

However, not every supplier has the same conditions for packaging the goods on site. This can be due to a lack of local personnel or technical structures or because our purchasing volumes are so small compared to the market volume of the product in question that self-import and direct cooperation with the manufacturer are not lucrative for us or the manufacturer.

We always discuss and decide when and where we should carry out the packaging at the product level.

Examples of products that fall into this category include some nut varieties that are harvested in one country but then cracked in another, or our pistachio mousse, which machines can only fill into large 25-liter buckets and which we then refill into 500g jars.

In recent months, we started tests with several packaging companies in order to establish fast and stable processes. On the one hand, there is a need for a comprehensible technical process in the merchandise management system with which both companies can work automatically. On the other hand, the packager must be certified organic, be able to accommodate different packaging types and sizes, and meet product-specific challenges individually (e.g. seeds that may trickle vs. dusty powders such as turmeric).

We found a partner in the Berlin area close to our warehouse who is prepared to keep pace with our growth and who meets all the above-mentioned requirements.

To reduce the coordination effort and reduce costs, we supply the partner with the labels by thermal transfer printer on site. This lays the foundation for a stable supply chain. Now nothing stands in the way of further expansion of the product range.


III. First listing in food retail

Besides establishing stable production processes, we have succeeded in achieving an initial listing in food retail. The first KoRo products are now being tested in an EDEKA store in Berlin-Wilmersdorf.

We are also negotiating with the central purchasing departments of other retail chains interested in listing our products.

When selling our products through retail chains, we strategically focus exclusively on products whose unique position is achieved through the product itself: Either through significantly better quality compared to the market or through the fact that we are the sole supplier of this product.

Potential examples are pistachio mousse or coquitos - but not red lentils.

The broader market access should offer the product a larger presentation area in order to gain brand awareness. We will offer the small packages exclusively in retail stores.


IV. Outlook

Finally, we would like to give a short outlook on the next updates. We have added more new products to our product range in the last 2 weeks and will report about them in the coming weeks. 


Best greetings,
Constantinos Calios


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