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Łukasz Chałaczkiewicz, LIPTON: Market position is not everything

What truly matters is having a people-centred organisational culture that fosters respect, encourages entrepreneurship, and brings out the best in all of us, says Łukasz Chałaczkiewicz, General Manager for East Europe at LIPTON Teas and Infusions.

Publikacja: 10.09.2024 04:28

Łukasz Chałaczkiewicz, LIPTON: Market position is not everything

Foto: Paweł Woźniak

As a representative of a global company thriving in the world market, one might argue that an organisation’s strong reputation alone guarantees success. But is that really the full picture in today's market landscape?

Of course it is not enough. Consumer demands are rising across numerous areas, especially with Generation Z, soon to surpass 2 billion people, increasingly making its mark on the market. Their approach to life and their expectations from brands and product categories are far more elevated than before. They seek authenticity and innovation, craving deeper emotional connections with brands that resonate with them personally, offering real engagement and meaningful experiences. Adapting to these new expectations is a significant challenge for all of us,

Technological innovation plays a key role in building and reinforcing market position. But what does innovation look like for a producer of teas and other beverages?

We are dedicated to expanding our product range to meet evolving consumer preferences. Whether it is green tea enthusiasts or those who enjoy a variety of fruit tea flavours, our innovations are crafted with them in mind. It is equally important to highlight that our innovations go beyond product variety – they extend to the technological processes as well, including packaging. At LIPTON, we’ve made significant strides in making our packaging more eco-friendly, eliminating plastic and non-biodegradable materials from our tea bags. This allows consumers to enjoy their favourite teas while knowing they're contributing to a positive environmental impact.

It is also worth noting that we have one of the most advanced factories in Europe, located in Katowice. What makes it truly special is that the cutting-edge technology we have implemented is managed by Polish engineers and technicians, all trained at Poland’s top technical and creative schools. I can proudly say that this state-of-the-art facility ensures every cup of LIPTON tea meets the highest standards of quality.

Is cutting-edge technology and efficient production enough for success, or is there more to it?

Effective branding and strategic positioning of our brands, portfolio, distribution, and retail partnerships are crucial. However, at the heart of it all is our communication with the consumer. It is not just about selling tea – it is about building communities and sharing meaningful stories. We are gradually shifting away from television, which once dominated communication, and leaning increasingly toward social media. The nature and intensity of this connection, the role of influencers, and the way we tell stories have evolved significantly from traditional media methods. Consider this: today’s communication often takes the form of a short reel on platforms like Instagram or TikTok, lasting just a few seconds, rather than a 15-second TV commercial. While television remains a relevant medium, particularly in Poland, the shift we are witnessing reflects broader global changes in how we engage with our audience.

The true strength of an organisation lies in its people, who complement its operations.

In fact, we should begin with the people, because everything revolves around them – every initiative starts with people and ultimately depends on them. As LIPTON, we find ourselves in a unique position, one that many may not be aware of, so it is worth highlighting. Four years ago, we separated from Unilever, a major global corporation, and, with the support of our partner, the private equity fund CVC – known in Poland for companies like Żabka and Stock – we formed the world’s largest tea producer. Today, we are a fully independent company. What makes our situation interesting is that while we possess major brands and significant sales, we also have the spirit of a start-up. In this “corporate start-up”, if I may call it that, our organisational culture is crucial. It is a culture that prioritizes people, fosters respect, and encourages entrepreneurship, drawing on the best qualities within us.

Is this approach solely global, or are you applying it at the LIPTON plant in Poland as well?

Absolutely, this is a global approach, but I’m proud to say that Poland is leading the way. I believe many other markets and factories are looking to us for inspiration, which is incredibly motivating. Our Polish factory and market are setting the benchmark, driving innovation and excellence on a global scale.

While we emphasize the importance of a people-cantered approach and cultivating a strong organisational culture, ultimately, business performance remains key. How does everything you have mentioned translate into the day-to-day operations?

The impact has been overwhelmingly positive, and we have seen this reflected over the past three years. We are experiencing consistent growth in results, improved margins, and increased retail sales across numerous areas. Our market share is expanding, and our innovations, such as our fruit teas and now green teas with Ania Lewandowska as ambassador, are being very well received. All of this has strengthened our market presence, positioning us as a distinct, leading brand in the category – one that is responsible for driving its continued growth.

Everything we do is ultimately focused on enhancing the consumer experience with LIPTON. From elevating product quality to ensuring sustainable operations, we are dedicated to making every interaction with our brand satisfying and inspiring. With ambassadors like Ania Lewandowska, we are not just offering great tea – we are promoting a lifestyle that resonates with the consumers’ values and aspirations.

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As a representative of a global company thriving in the world market, one might argue that an organisation’s strong reputation alone guarantees success. But is that really the full picture in today's market landscape?

Of course it is not enough. Consumer demands are rising across numerous areas, especially with Generation Z, soon to surpass 2 billion people, increasingly making its mark on the market. Their approach to life and their expectations from brands and product categories are far more elevated than before. They seek authenticity and innovation, craving deeper emotional connections with brands that resonate with them personally, offering real engagement and meaningful experiences. Adapting to these new expectations is a significant challenge for all of us,

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