BUSINESS: 381 PRACTICES
Papastratos, in 2017 turned the page in its long history and, with a significant €300-million investment, transformed its factory in Aspropyrgos into an exclusive heated tobacco sticks production unit for IQOS.
The goal of the program is to contribute to the sustainability of the 21,0000 businesses in the sector that are the heart of every neighborhood. At the core of the program is the provision of liquidity of up to 10 million euros, through interest-free credits from the exclusive distributors of Papastratos, to the thousands of companies in the sector.
At the same time, the program aims to reduce operating costs and modernize the operation of traditional Small Retail outlets, through the provision of significant discounts and preferential offers from important companies in the market, as well as educational opportunities and consulting for small retail representatives.
The program is addressed to all businesses in the Small Retail sector.
The program started in September 2020 and its first phase was completed in the summer of 2021.
Papastratos recognizes in practice the valuable contribution of Small Retail (kiosks, convenience stores, etc.) to the Economy and employment, but also the significant blow it has received due to the COVID-19 pandemic. This is the backbone of the Greek economy whose businesses are under pressure, with liquidity being their main problem.
Some numbers to get the point across:
Papastratos announced the launch of an integrated support program for businesses in the historical sector based on a study prepared by the Deloitte company, regarding the effects of the Covid-19 pandemic on Small Retail, as well as the ways to support it.
The relevant Press Conference was held on September 9, 2020, in Zappeio, in the presence of the Minister of Development and Investments, Mr. Adonis Georgiadis, who emphasized that "This is an initiative that is a bright milestone and a model in the context of corporate social responsibility. The signal emitted today by Papastratos, which makes a product that complements the efforts of the state, is extremely welcome. We want to invite other large companies to imitate this initiative because we will all fight this battle together. In this crisis we must not let anyone be left behind alone."
The axes of the program were announced, which works in addition to the measures of the State, not only to provide "oxygen" to businesses, but also to contribute, through important actions, partnerships and initiatives, to ensuring a sustainable future for the entire industry.
The program is based on three axes:
1. Direct liquidity enhancement
2. Reduction of operating costs
3. Training and modernization of Small Retail
The Project team is made up of representatives of various departments:
Commercial department: stakeholder communication management, dealer briefing, Small Retail trainings
Deloitte: Research, Dialogue with the Ministry of Development
Communication: Content production and information campaign, Internal Communication
Digital: Social media
Commercial: Securing discounts for Small
Retail Financial Department: Ensuring and managing liquidity of €10 million
Joining the program is done in easy and simple steps, without time-consuming procedures, through the Papastratos Open platform (www.papastratosopen.gr).
The company developed a platform that enables the world of Small Retail to register, to be informed about the benefits of the program and to have privileged access to the offers from the partners (affiliated companies) of the program. More information here.
To date, more than 6 million have been made available through the granting of interest-free credits (guaranteed by Papastratos) to businesses in the sector to strengthen their liquidity.
The results of the program are reflected as follows:
At the same time, aiming at the reduction of operating costs and the digital modernization of traditional Small Retail outlets, Papastratos proceeded to enter into central agreements, to provide special discounts and preferential offers to Small Retail businesses:
Papastratos has also proceeded to finance educational programs in collaboration with a university institution and a business consulting company with the following objectives:
The program is spread throughout the country, with more than 5,000 small retail businesses nationwide participating (3,500 in the region and 1,500 in Attica).
Partners:
No
Papastratos has been experiencing a radical transformation over the last four years, transforming from a traditional tobacco products industry into a science and technology company. We recognized that the problem was our product itself and decided that we would be part of the solution by replacing it with a better alternative, IQOS, which has been recognized by the US Food and Drug Administration (FDA) as a differentiated risk tobacco product, suitable for the promotion of public health. It is about the recognition and validation of more than 12 years of research, and an investment of more than 8.1 billion. Dollars in research and development, as part of our overall effort to implement a model of sustainable development for the company as well as for society as a whole.
In the context of the suffocating time pressure imposed by the pandemic, the biggest challenge for PAPASTRATOS was in the formulation of a comprehensive and not piecemeal plan. The aim was to contribute to the solution of liquidity with a mechanism for the allocation and disposal of credits that would be immediate and easy to use, with the parallel development of the other two pillars of the program, which is the reduction of operating costs, as well as digitization and training. The credits will be granted with guarantees of Papastratos from its exclusive distributors - partners, while the mechanism of their allocation and disposal is designed to cover as many businesses as possible in need of liquidity.
The innovation of the program lies equally in the sense of security that the program provides to industry professionals. This feeling that in the difficult times we are going through, a cushion of liquidity is available, even if there is no intention to use it.
An important innovation element of the program is also the cooperating companies: In the context of reducing operating costs, Vodafone business provides preferential prices for mobile telephony, landline and internet, IRON provides reduced electricity prices, PUBLIC offers special offers on a variety of products for business and personal use and finally Intale preferential prices for the upgrade of the Retail Point of Sale technology.
In terms of communication and image of the company, the benefits are significant, as it achieves:
