Meeting with the CFO of Kri Kri – Konstantinos Evangelou Sarmadakis

(conducted in April 2025) 

After a conversation why one of you about Kri Kri, I thought I could share a bit more about my conversation with Konstantinos Evangelou Sarmadakis earlier this year. 

For the ones who missed the introductory article about this company, I encourage you to check it out here. 

Ice cream vs Yogurt

Kri Kri currently generates €245 million in annual turnover, with the majority of its growth coming from yogurt. This growth is primarily export-driven. While ice cream remains the company’s most profitable segment, yogurt has become the core focus due to its strong margins and strategic positioning. The company made a deliberate choice to avoid low-margin, capital-intensive categories such as milk and feta cheese, concentrating instead on high-quality, high-margin products that require less capital and support stronger profitability. 

Kri Kri entered the yogurt business following its IPO, which raised €6 million. These funds were used to build its first yogurt production facility. During the early years, the company struggled to establish a strong market presence. However, consistent product quality and competitive pricing eventually enabled it to gain a solid position in the Greek market.

Ice cream remains the company’s most profitable segment. Kri Kri ranks as the third-largest player in Greece, behind Unilever and Nestlé. The category benefits from limited competition and strong margins. As an impulse product, sales are closely tied to the number of available points of sale. The company currently operates around 20,000 points of sale and plans to add approximately 1,000 more in the short term. Only 20 percent of ice cream sales are made through supermarkets; the majority is handled by a network of local distributors serving kiosks and convenience stores.

Frozen yogurt, positioned between indulgence and health, is now a major focus in export markets. In the United States, Kri Kri has established distribution through UNFI and has secured listings with retailers such as Albertsons in Texas and along the East Coast. The addressable market for frozen Greek yogurt in the US is estimated at €360 million. Kri Kri believes its product compares favorably with existing brands such as Yasso and sees this as a significant opportunity to expand market share.

Exporting Private Label Products Across the World

The company was the first to introduce private label yogurt in Greece. Today, it controls approximately 85 to 90 percent of the domestic (Greek) private label market. This market segment has proven resilient, particularly during inflationary periods. Between 2022 and 2023, private label market share in Greece increased from 27 percent to 36 percent. Private label products have lower gross margins than branded ones due to lower pricing. However, because they require no marketing or selling expenses, the EBIT margins end up being comparable. Private label contracts are profitable from the first day and do not require a traditional product life cycle to break even.

Export development began in 2013, when Kri Kri entered the UK market through a private label partnership with Waitrose. The Greek yogurt category had already been introduced to UK consumers by Fage, and Kri Kri was able to undercut existing prices by approximately 30 percent. This pricing strategy led to contracts with all major UK retailers. A similar approach was applied in Italy, where Kri Kri now serves about half of the country’s major retailers. There is still room for expansion in that market.

In the Greek domestic market, growth potential is limited. However, the company continues to benefit from its high private label penetration, which provides a buffer in difficult economic environments. The strategic focus is now shifting toward niche segments such as high-protein yogurt, functional products, and offerings for children. These categories offer higher price points, better margins, and lower competitive intensity. At the same time, Kri Kri is reducing its exposure to the strained yogurt segment, which faces more aggressive competition.

Innovation as a Backbone 

Innovation is central to Kri Kri’s strategy. Product recipes are adapted to local preferences; for example, in the Nordic countries, fruit yogurts are offered without sugar. The company has also developed a proprietary process that increases protein content by 20 percent. In collaboration with the University of Athens, Kri Kri is working on a line of functional yogurts designed to help prevent hypertension. This aligns with global trends prioritizing preventive health through nutrition.

Capital Allocation & Future Operational Efficiency

Capital allocation remains disciplined. The company prioritizes high-margin products with low working capital requirements. This allows Kri Kri to generate strong operational cash flow, which in turn supports self-financing of growth investments.

Until now, operational efficiency has not been a major focus due to strong demand growth. However, Kri Kri is now targeting improvements in cost control, waste reduction, and digitalization. These efforts are expected to support margin expansion and streamline production.

To meet increasing demand, the company is investing heavily in production capacity. In 2024, Kri Kri allocated €25 million to capital expenditures. Over the next three years, an additional €52 to €55 million has been earmarked for further expansion. The company will receive a state subsidy, which will result in a €23.5 million tax relief as approved under the “Strategic Investment” scheme supported by the government. 

Leadership 

Leadership remains stable and clearly structured. Panagiotis Tsinavos, who took over the business in 1995, currently serves as CEO. A succession plan is in place, with his son George Tsinavos—who holds an MBA from New York—already involved in the business. Andreas Milonas, who joined the company in 2010, leads export operations. He brings prior experience from other Greek companies and is considered a strong cultural fit. The R&D function is led by a former ice cream production manager, now responsible for innovation across all product lines.