This is Matt Reustle and today we are breaking down Polish grocer, Dino Polska. This wasn't a name on our radar at Colossus but the more we dug into the story, the more intrigued we became. It starts at the macro level in Poland, a country that transitioned away from communism in 1990 so the oldest private businesses are just north of 30 years old. And on a micro level, Dino operates a rigid playbook where they target small towns and replicate the same format store, which drives better efficiency and allows them to reinvest into new locations.
To break down Dino I am joined by Jon Cukierwar of Sohra Peak Capital Partners. Jon wrote an extensive presentation of Dino which can be found on our website. We break down the unique dynamics of the Polish consumer, how Dino differentiates from its competitors, and Dino's founder of mystery Tomasz Biernacki. Please enjoy this breakdown of Dino Polska.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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[00:03:21] - [First question] - The fall of communism in the 1990s and how it shaped the business landscape of Poland today
[00:05:43] - Dino’s unique and differentiating characteristics as a grocery store
[00:08:55] - The current market landscape of superstores, proximity, and mom and pop grocers in Poland
[00:12:36] - The size and scale of Dino as a business today
[00:14:01] - Key players and main events in Dino’s history
[00:20:03] - Where Dino’s margins fall relative to their competitors
[00:22:47] - Their relationship to the construction side of their business
[00:26:34] - The payback period of a new Dino store and how long until they reach maturity
[00:29:09] - Owned land and other factors in their real estate strategy
[00:31:10] - How much of their accessible market opportunity has been seized and their potential growth rate over the coming years
[00:34:20] - What their growth rate would have to be to ensure they reach their projected scale
[00:36:23] - How he values grocers as an investor in both Poland and the US
[00:38:12] - Cyclicality in revenue streams and what impacts them
[00:40:26] - Ways Dino finances their growth and if any capital has been given back to shareholders in dividends
[00:42:13] - Potential risks and threats to their business
[00:45:10] - How he grew and built conviction with risks in an emerging market
[00:47:48] - The main lessons he’s learned from studying Dino Polska