FAMILY IS NOT JUST A SLOGAN

‘The biggest challenge is emotions. They cannot be turned off in a family, and sometimes it can be hard to separate your personal life from your professional one.  That is why CLEAR RULES, EMPATHY AND EMOTIONAL INTELLIGENCE ARE NECESSARY. And, of course, a professional approach is also necessary to ensure that emotions do not interfere with business’, SAYS DR SYLWIA MOKRYSZ PROXY OF MOKATE S.A.

SZYMON KRAWIEC, “WPROST”: Mokate was included in our 35^th anniversary ranking of the 35 most successful Polish companies. Over the past 35 years, you have survived 31 finance ministers, 18 prime ministers, and several major crises in the Polish economy. Is there any recipe to stay in business for so long?

DR SYLWIA MOKRYSZ: There is no single recipe. It’s more of a philosophy: in a family business, you don’t think in terms of quarters or annual reports, but in terms of generations. This gives you resilience. There have always been challenges – transformation, the collapse in Russia, the global financial crisis, the pandemic – and there will certainly be many more in the future. We have learned to treat them as lessons. Even in challenging times we stayed the course, focusing on development, investing in new technologies, export and expanding our product range. Thanks to this approach, we have emerged stronger from every experience.

Of the hundreds of thousands of companies established in 1990, only 26,000 remain in business today, including Mokate. Many went bankrupt, while others stopped growing. So, how did Mokate grow from a small company to one with revenues of over a billion zlotys in just 35 years?

I believe the key was a combination of courage and consistency. The early 1990s presented great opportunities, but also uncertainty. I remember creating the first cappuccino campaign in 1992 with the slogan “Mokate Cappuccino – a star among coffees”, which introduced our new product to the whole of Poland. Launching a product that was completely unknown at the time was a big risk.    

We created an advertising campaign, which NOT ONLY PROMOTED THE NEW PRODUCT, BUT ALSO SERVED AN EDUCATIONAL PURPOSE by showing consumers how to prepare that coffee. This breakthrough moment established our strong position in the coffee category.

In the following years, we made several strategic decisions, such as entering the tea segment in 2002 by acquiring Consumer, followed by further acquisitions including Dukat from Zlín, Timex from Moravia and Marila Balírny from Prague. Each of these steps expanded our portfolio and strengthened our presence in Central European markets. At the same time, we developed our exports, and today around 80% of Mokate’s revenue comes from abroad.

In retrospect, we can say that our growth was driven by our ability to combine a willingness to take risks with a consistent implementation of a long-term strategy.

What were the most difficult moments in the past 35 years? What do you remember as the biggest crisis?

The early 1990s were the most challenging period, marked by transformation, galloping inflation and an absence of stable rules. Later, the economic collapse in Russia hit us hard because the Eastern market was very important to us at the time. The pandemic presented another challenge, with supply chains, logistics and teamwork changing overnight. Each crisis tested our resilience in a different way. Paradoxically, however, it was these crises that strengthened us – they taught us to prepare for change and to be flexible in our approach.

And what are your greatest successes? What was the company’s most significant milestone?

Without a doubt, it was the cappuccino campaign – it made Mokate synonymous with this category and secured its permanent place in the history of the Polish coffee market. Another major milestone was the development of teas – the LOYD brand conquered foreign markets, while Minutka found its way into millions of Polish households. Next came the construction of a modern plant in Żory that specialises in semi-finished products for the food industry. Other successes include the expansion of the Ustroń plant, investments in automation, renewable energy sources and eco-friendly packaging. I also consider the establishment of the Coffee & Tea Market Research Institute to be a huge success, as it combines passion with science to create value beyond business.

Has being a family business helped you over the past 35 years, or has it made no difference?

It has helped enormously. In a family business, decisions are made with the future of the next generations in mind. This changes the perspective – instead of looking for quick profits, you build something lasting. At the same time, family ties provide a sense of rootedness and responsibility towards employees, partners and consumers.

What is it like to manage such a large family business?

We have professional structures, but the family is involved in key decisions. Everyone is responsible for their own area, whether that’s coffee, tea, marketing or expansion. This prevents chaos. And when it comes to strategic decisions, we sit down together and agree on a common position. It’s a combination of professional management and family trust.

What do you most often argue about?

I wouldn’t call it arguing – it’s more a case of having different opinions. Everyone has their own perspective and experience. THERE ARE STORMY DISCUSSIONS, BUT SUCH DISPUTES CAN BE CREATIVE – a clash of ideas leads to better decisions.

The foundation is respect and an awareness that we are all working towards the same goal.

What are the main benefits of running a family business?

Stability, authenticity and a sense of community. Consumers know that Mokate is backed by real people, not anonymous capital. Employees, in turn, feel that they are part of a community. The fact that several generations of the same families work in our plants is the best proof of our company culture.

And what are the biggest disadvantages?

The biggest challenge is emotions. They cannot be turned off in a family, and sometimes it can be hard to separate your personal life from your professional one. That is why clear rules, empathy and emotional intelligence are necessary. And, of course, a professional approach is also necessary to ensure that emotions do not interfere with business.

You label your products with the phrase “Mokate – A Family Business”. Does this slogan really have an impact on customers?

I came up with this slogan. I wanted to clearly express that Mokate, from the very beginning, has been founded on the principle that we are a family business, with real people, values and history behind our products. “A Family Business” is not just a marketing slogan; it’s a declaration of authenticity. And indeed, customers can sense this.

They know that THEY ARE BUYING SOMETHING NOT CREATED IN AN ANONYMOUS CORPORATE LABORATORY, but in a company that has grown over 35 years thanks to the passion and commitment of successive generations.

Of the tea brands that are still family-owned, only German Teekanne and English Ahmad Tea remain. All the others now belong to giant food companies.

I am therefore all the more pleased that LOYD, Minutka and our other brands are still family-owned. We are proving that it is possible to be a global player while retaining independence and a family character. This is a unique value.

A popular form of running a family business is through a family foundation. You have not yet opted for this solution. Why not?

Because the current model works well. We have established rules, a clear division of responsibilities and mutual trust. A foundation could be a natural step in the future, but it is not necessary today. The more so that it lacks flexibility and the legal rules are overly complicated.

In Poland, only one in ten business successions is successful. Do you have any advice for other family entrepreneurs?

Above all, succession is a process, not a one-off event. It needs to be planned years in advance, allowing the next generation to join the company gradually and familiarise themselves with it from the ground up, while also finding their own niche.

And importantly: NOT EVERYONE HAS TO JOIN THE FAMILY BUSINESS – it’s better if someone who is truly convinced does so, rather than someone who is forced to.

And what would family businesses expect from the government?

Above all, they need legal stability and predictability, since businesses develop over the long term. They would also benefit from greater support for innovation and export, as these are areas in which Polish family businesses could become truly competitive on a global scale.

We have 35 years of Mokate behind us. How do you imagine the next 35 years? Where do you think Mokate will be in 2060?

I would like Mokate to remain a family-owned business in 2060, while also becoming more modern and global, yet staying true to its values. I envisage us being among the leaders in the coffee and tea market, developing new categories, functional products and science-based innovations. We continue to delight consumers with our products. However, the most important thing is that we remain authentic, because family values are our most valuable business asset.