ManufacturerTDR
TDR
The TDR is one of the oldest and most successful Croatian firms and where business is vertically connected; from the production of commercial packaging materials and tobacco to the production of cigarettes and retail trade, besides other associations affiliated to the TDR, which has a payroll of more than 2,200.
TDR is a division of the ADRIS Group.
The Rovinj Tobacco Factory was founded in 1872 as a small factory to supply the Austro-Hungarian Army with cigarettes. Consequently, the Rovinj Tobacco Factory became an important cigarette producer over a relatively short period of time. Until the end of the First World War, the factory was a part of the Austrian tobacco monopoly, and between the two world wars it was a production unit of the Italian tobacco monopoly.
After the Second World War, 1952 was of major importance to the development of the Rovinj Tobacco Factory. For the first time, the factory became completely fitted out with new machinery, which resulted in enriching assortment production and a noticeable modernization of its distribution network.
At the beginning of the 1960's the management of this corporation was rigidly involved with the then extremely popular "Primorka" cigarette. The corporation would eventually achieve more important gains in the establishment of business relationships with Austria Tabakwerke AG, the true inheritor of the royal tobacco monopoly, whose role was formerly held by the Rovinj Tobacco Factory. The corporation, together with its Austrian partner, assisted the experts of Rovinj in mastering modern technology and marketing, which would also be reflected in its business results.
In a technological sense, the most important period in the development of the factory was the 1980's. At that time, the factory entered the computerization era, and performed its transactions according to marketing principles - as a business strategy in which the needs of the consumer are paramount.
Having gained such business experience, the Rovinj Tobacco Factory would enter the significant 1990's as the leading tobacco company in Croatia and as one of the most important representatives of our economic community.
In 1997, before the concentration of the Croatian tobacco economy, its market share was 63% of the national market, and more than 95% of the total export of tobacco manufacture.
When Christopher Columbus, the famous explorer, arrived in America with his caravel "Santa Maria", he had believed that it was the western route to India. On Monday October 15, 1492 he wrote in his diary: "When I was on the way between the island of Santa Maria and the other large island that I called Fernandina, I found a canoe with only one man in it. Inside the canoe I found a little bit of bread, a pumpkin full of water, some red clay from which grits were made and some dried leaves, which were very valued among the natives, those leaves I already received as a gift in San Salvador." Although he didn't know what kind of leaves they were and what they served for, Columbus' words should be taken as the first record of the existence of tobacco.
The plant nicotiana has come a long way from the Indian passion for smoking to fishermen and farmers of Rovinj whose way of life had completely changed 127 years ago when tobacco became the initiator of industry in Rovinj.
Everything began in a modest way - anno domini 1872 - in the redecorated barracks of San Damiano street, not far from the town hall.
During that time, Rovinj had many manufacturing and industrial factories although the foundation of the factory was a significant event in the industrial history of Rovinj and its socio-cultural development.
History states that the first female workers in the factory were Maria Longo, born Carlevalis and Maria Devescovi, born Abba. According to records, both of these two women commenced employment on June 4th, so we can assume that they worked on the decoration of the business interior which opened on August 16, 1872. However, the man who was the most influential person during that rich historical period in Rovinj, was Dr. Matteo Campitelli who was the mayor at that time.
Due to difficult socio-economic conditions, Dr. Campitelli was forced in October 1871 to contact the Royal-Majesty's Minister of Finance, in order to ask for permission to open the factory for the production of cigarettes. His initiative was supported by the State Advisor.
Merkl von Reinsee made a suggestion to the Minister of Finance to establish a new tobacco factory in Rovinj. This proposal was, of course, accepted and at the same time fulfilled the needs of Navy officers in that area.
A part of the Austrian Tobacco Monopoly
From its very beginning until the end of the First World War, the Rovinj Tobacco Factory was one of the components of the K.K. Tabak-Regie of the state monopoly where all the manufacturing and tobacco trade of the Empire was concentrated. That huge tobacco imperium consisting of 35 factories spread over the area of today's Austria, Czech Republic, Slovakia, Croatia, Poland, Romania, and Italy which produced cigars, tobacco for pipes, chewing and snuffing tobacco as well as tobacco extracts out of tobacco leaves from Brazil, Cuba, Portorico, Java, Sumatra, Turkey and Herzegovina, which were highly valued during that agricultural period.
By the end of the First World War, the Rovinj Tobacco Factory became a part of the new Italian state monopoly thus sharing the destiny in that part of Croatia. Nevertheless, the Rovinj Tobacco Factory wasn't spared from Italian economic and political interests. In exchange for small factories, the Tabak-regie moved to Austria during the war- which meant that the factory didn't function during the war -when the Italian monopoly bought old and used machines, so they reduced the number of employees to 740. Those and many other facts in this brief glimpse through the history of the Rovinj Tobacco Factory are lead us to the conclusion that the years spent under the Italian monopoly were quite gloomy.
After the Second World War
The Second World War would completely change not only the political and economic relations in the world, but also the relationship in the global tobacco industry.
American companies emerged from the war as convincing winners, for them war also meant a huge expansion of the tobacco market, while at the same time the European tobacco industry was almost ruined. The tobacco industry of Rovinj shared with the European industry a common postwar destiny, although it came out of the war almost physically unscathed.
It is true that the warehouse was almost full of cigars and cigarettes ( though those intended as raw materials were empty). In this kind of situation, the first days following the end of the war , 7-8t of tobacco waste was manufactured which was found inside the factory.
Out of those raw materials they made a mixture for the new and first cigarette produced after the war called "Stella Rosa". The decision to halt the production of cigars was made; that decision was justified considering all the changes in the tobacco industry.
Liquidating the factories in Pula, Senj and Rijeka, the Rovinj Tobacco Factory received seven machines for the production of cigarettes in spite of their worn-out state, which is the reason that the increase in production didn't last very long.
In 1952, two machines for manufacturing cigarettes were procured and in 1953 another machine for packaging a package of 20 cigarettes which was in the history of the factory the first time it was equipped with new and modern machines. This created a new period of growth due to the revival of tobacco cultivation in Istria. In that way, a foundation for the cultivation of raw materials was established.
The development of tourism and urbanization would eventually lead to the extinction of villages and the production of tobacco. Tobacco would be completely forced out of the fields of Rovinj so it would be difficult to get raw materials and production materials together with the unresolved problem of sales which lead to the very existence of the Rovinj Tobacco Factory.
Fortunately from 1953-1963, the factory made a huge effort in the improvement of the assortment of cigarettes, with the creation of a distributive net, and in the modernization and replacement of used with new equipment. A well-known cigarette called "Primorka" was created at that time.
During the period from 1960-1967 the success of the factory was tightly connected with this cigarette which would completely disappear from shops in 1980.
The investments from 1969 to 1971 were of major importance for the Rovinj Tobacco Factory where the preparation of tobacco and production of cigarettes was automated as well as the graphic plant which was modernized.
At that time, 100 years after its establishment, business relationships from the past were reestablished.
With the Rovinj Tobacco Factory, the ex-production unit of the Royal Majesty's Empire tobacco monopoly and the Austrian Tabakwerke AG were the real inheritors of that same monopoly.
The result of that reunion of old partners was the sale of the ATWAG license to the Rovinj Tobacco Factory for the production of a prestigious trade mark and certainly one of the leading cigarette brands in the Croatian market.
As is often the case with extremely demanding market competition, this respectable brand of cigarettes wasn't immune to the process of obsolescence and the Rovinj Tobacco Factory was forced to look for a brand.
In the beginning of the 80's the Rovinj Tobacco Factory opened a new chapter in its history with a development that guaranteed the factory long-term prospects for dynamic growth. Technologically, the factory approached a new era of computerization and automatization of its production.
Besides, the Rovinj Tobacco Factory directed its business to marketing principles and business strategy, taking into account the needs of the consumer. The "Ronhill" cigarette is the result of this innovation of assortment and it has proven to be very successful on the market. We are actually talking here about the authentic creation of the experts in Rovinj.
Finally, inspired by a 100 year old experience in production, the demands of modern technology and a modern business perspective, the factory assessed that it was capable of entering into competition with international markets.
Based on the above-mentioned factors it is important to emphasize the creation of the Ronhill family brand, because it was the one which paved the path for the expansion of the factory's market.
Prior to its appearance was the first detailed scientific research of consumer attitudes followed by an entire system of launching a new brand name, so success couldn't be anything but forthcoming.
But, we have to mention once more that it was the result of the integral quality of the total venture which consisted of modern technology, dynamic politics of innovation of the assortment of production, and marketing strategy which played the role of a permanent challenger in the Croatian cigarette market.
The TDR is currently one of the largest producers and exporters of cigarettes in Croatia. Ever since it was founded as a Joint-stock Corporation it has operated as an increasingly successful business, which also confirms the fact that, as a result of the most severe economic measures, it has been in a permanent state of competition with the best Croatian enterprises. Before the Croatian tobacco industry was concentrated, TDR market shares amounted to 63% of the national market and to more than 95% of Croatian tobacco manufacture exports. Consequently, the TDR contributes 5.5% of the total revenue of the State budget.
Business results
Since 1990 until the TDR has reported a permanent growth in production, which is constantly above the 7,000 t of cigarettes sold in the period from 1995 to 1997. During the same period the TDR witnessed a remarkable increase in its market share on the Croatian cigarette market. From 1991 to 1997 the shares of the TDR increased from 35% to 63%, which represents an almost two-fold increase.
If we consider exports - which have also increased - and the structure of factory sales, the relationship may be regarded as being even more favorable for the TDR.
With the utilization of the most advanced technology, the TDR has been able to cut costs and to increase overall production. In addition, systematic investment has been made in more modern machinery. In 1985, for example, a staff of 397 produced 3,394 t of cigarettes, whereas in 1997, a staff of 362 produced 7,792 t, which suggests that the TDR plays a significant role in European cigarette production. The TDR keeps abreast of world trends in reduction, which means that year after year the experts employed by Rovinj produce new cigarettes containing a lesser proportion of the main ingredients (nicotine and tar) normally found in cigarettwes.
Due to the quality of products, which is the result of a strategy of constant innovation, first-class technical and technological equipment, and a relatively good organization of overall business, the TDR is witnessing an ongoing increase in total revenue and profit, so that in 1997 it had achieved a respectable before-tax profit, totaling 148 million Kunas.
Creation of the foundations for the future of tobacco production.
To increase the quality of its own production, a prerequisite for successful presentation on the world market; it is necessary to keep pace with worldwide achievements in production, as well as ancient plants, from cultivation of seedlings, tillage, protection, pruning of blossoms, picking, drying, to final preparation of tobacco for the market.
Taking into consideration all of these facts, the TDR renewed its contract with the Faculty of Agriculture in Zagreb with regard to the production and selection of tobacco, aspiring to capture the spirit of time. The success of the ennobling work on the cultivation of new sorts of tobacco soon became apparent in climatic conditions that were suitable for growth These sorts already demonstrate a great step forward in production.
The target is to emerge on the global tobacco market, and also to create the conditions whereby prestigious tobacco corporations may be attracted to Croatia in the near future.
Development of the Quality Control Department in the TDR.
The quality of products such as cigarettes is monitored from the very beginning of the production process. With the development of technology and through the use of ever more modern machinery, the method of quality control is being changed and upgraded. In addition to the physical characteristics of tobacco and other production materials,we also analyze the chemical structure of tobacco and cigarettes in the factory's chemical laboratory.
In the analysis of the chemical structure of tobacco and cigarettes at the Rovinj Factory, since 1987 we have made ongoing investment in more modern, precise laboratory techniques. For the purposes of the analysis of nicotine, sugar and other tobacco additives, we have procured a spectrophotometer, and in 1989 we also procured a smoking machine for the purpose of determining their content in cigarette smoke. All methods currently applied in the TDR laboratory conform to CORESTA or ISO standards.
Commercial-distribution centers.
The first of the country's warehouse-distribution centers was built in Zagreb, and and preparations for similar centers in Osijek and Split have now been completed. The basic purpose of these centers is to provide a fast service and quality products to the consumer.
Factory address:
TDR d.o.o.
Obala Vladimira Nazora 1
HR-52210 Rovinj, Croatia
Phone: +385 52 844-000
Fax: +385 52 844-470
e-mail: tdr@tdr.hr
www: http://www.tdr.hr/
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