Charting Garanti’s growth

There are many measures that can be used to chart a company’s growth. Annual revenue can paint a picture of financial success, although figures don’t tell much of a rich story. Numbers of customers and employees are always a welcome insight into the path an entrepreneur has taken, but most companies will keep this information close to their chests. For Garanti, a leading manufacturer of coffee processing equipment, its growth is perhaps best measured in square footage. In 1951, less than three decades since Turkey was born as an official Republic, Mustafa Umsu started up a tiny atelier of seven square meters. Here, he manufactured what would today be considered very rudimental coffee and spice grinders and roasters. The machines were sold domestically, at a time when Turks knew little of a coffee culture beyond the traditional Ibrik. Over the course of a decade, Umsu’s fine craftsmanship become well recognised and sought after among coffee and spice manufacturers. As he gained popularity, he needed more space. The company moved to a 300-square-metre facility in 1961, and started exporting equipment to Macedonia, Greece, Bulgaria, Cyprus, Armenia, Albania, Algeria, Libya, and even Germany – what is today a powerhouse in the construction of coffee machine manufacturing equipment. With each new market, Garanti experienced a new level of growth. It soon outgrew what once seemed a spacious manufacturing floor. In 2000, the company moved to an aptly sized 2000-square-metre factory, a space Garanti still works in today. The size and reach of modern-day Garanti is something the company founder would never have imagined. In addition to coffee processing, roasting and grinding equipment, Garanti also produces cacao processing equipment; malt, wheat and black rice roasting machines; nut roasting machines; spice, sugar, mineral and chemical grinding machines; and loading and mixing equipment. It’s a beautiful journey that has been followed by the generations of the family. Umsu’s son Suleyman now runs the family business along with his daughter Sinem, as the second and third generation.
Speaking with GCR Magazine, Sinem says a set of core values has helped the company achieve the success it enjoys today. In addition to its long history, Garanti is known for the latest technological advancements. “We understand our customers. We update the production process and our products with consideration of our customer requirements,” she says. “We’re looking to make improvements to make higher quality products.”  Sinem is proud to say that Garanti’s equipment, inspired by her grandfather’s craftsmanship, can now be found all over the world. In addition to making direct sales from their Turkish office, Garanti has agencies in South Korea, Australia, the United Kingdom and Ethiopia. In the coffee space, Sinem says Garanti has made a name for itself among a satisfied clientele. “We’re known for timely delivery, customer satisfaction, and after-sales support,” she says. In the coffee space, Garanti offers a full range of equipment to suit any level of operation. This includes roasting machines and afterburners, grinders, destoners, loaders, silos (both café and industrial sizes) and mixers. With this range of equipment, Garanti is set up well to partner with a roasting operation to design and install a full plant. Sinem offers this advice to roasters who are starting up shop: “First of all, they must decide what they want to do,” she says. “Then, they must decide the capacity, both daily and monthly. After making these decisions, and sharing the plan of the location, we can prepare a coffee processing line. Our customers can customise according to their requirements.” In the journey of setting up a new plant, Garanti offers full support, from installing the equipment through to training staff, step-by-step, on the coffee processing line. It is services like this that Sinem says roasters should be looking for. “They must consider [a supplier’s] years of experience in working with coffee and equipment when they choose an equipment supplier. They must also consider after-sales service,” she says. Although the company supplies to roasting companies all over the world, Garanti is well placed to have watched coffee trends in Turkey change significantly over the past six decades. Allegra Strategies recently identified Turkey as one of the strongest growth markets of the 23 European countries the UK-based research firm analysed. With an impressive 19.5 per cent growth rate in 2013, the country now has an estimated 1331 branded coffee shops units. This represents a significant change from the traditional Turkish coffee drinking of the past. “Before the 2000s, Turkey mainly just knew about Turkish Coffee. In the past 14 years, coffee trends are growing up, with the introduction of espresso and filter coffee,” says Sinem. “Most young Turkish people are tasting and drinking Turkish coffee, but also espresso and filter coffee instead of tea. The coffee trends continue to develop day by day.” Allegra’s latest report confirms that the most potential for increased coffee consumption in Turkey will be from these converted tea drinkers. The report credits the nation’s tea culture to a low coffee consumption per capita of just 0.5 kilograms per year. “Turkey has a strong tea culture, but with the rise of specialist coffee shops, coffee is becoming part of the daily routine,” reports Allegra. “While traditional cafés continue to cater to an older crowd, the specialist coffee shop culture is being embraced by a younger urban population.” Outside of Turkey, Sinem says similar demographics are driving and directing consumption all over the world. “Coffee market trends change according to people’s cultures and also what they can afford,” she says. “However, people’s tastes are also affecting the market.” As the company continues to increase its sales around the world, it may be ready for an even bigger factory in the near future. In any case, Sinem sees ample opportunity for growth, saying more countries will be opting to roast coffee within their borders. “[In the future] we think that all streets will have a local coffee roaster,” she says. “So that all people can drink and buy fresh-roasted coffee.” GCR