Frigocaserta: vision, perseverance, and strategic evolution

November 21, 2023

Frigocaserta, now part of CubeCold group, is one of the main players in the cold storage sector in Southern Italy. The company operates refrigerated warehousing facilities with a total capacity of 78,000 pallets, including 25,000 pallets that are part of a newly built semi-automated temperature-controlled warehouse.

We talked to Domenico Razzano, the Managing Director of Frigocaserta about how the company became an industry leader in Italy, their future expectations and ambitions, and, of course, Domenico’s own journey in the industry.

“I entered this business in 2008 without any prior knowledge of it,” says Domenico. “I joined as an accountant. I became the Chief Financial Officer because there wasn’t one at the time. During my role in accounting, I saw the need for management accounting analysis. I started analysing costs and revenue to understand the margins for each line of business. By autonomously implementing this management accounting approach, I realized that I really enjoyed this sector.”

During Frigocaserta’s 30+ years of operations, the company has seen some considerable changes and challenges, including technological advancements, market expansions, and shifts in consumer demands.

But its path to success was paved with a clear strategic vision, unwavering perseverance, calculated risk-taking, and exceptional customer service.

“We should never assume that failure is a possibility no matter how things turn out,” adds Domenico. “We should always understand that there’s room for improvement, and we should never take anything for granted.”

From humble beginnings to an industry leader

Frigocaserta was first established in the late 1980s as a small 5,000-pallet warehouse in Gricignano d’Aversa, Southern Italy.

“Back then, the frozen food industry was completely different from what it is today, and the business was quite straightforward – storing raw materials for clients for next year’s production,” Domenico underlines.

But as customer demands grew, so did Frigocaserta.

The turning point occurred in the mid-1990s when the number of frozen seafood importers operating in the port of Napoli grew significantly.

By the end of this period, Frigocaserta expanded its services to the retail sector and began functioning as a transit hub between supermarkets and retailers.

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Local partners

Over the years Frigocaserta primarily worked with national companies, yet collaboration with local manufacturers has also contributed to its growth.

Among them producers of a regional specialty – buffalo mozzarella.

“Buffalo mozzarella began to gain popularity not only locally but also nationally and became a staple in large retail companies’ offerings,” adds Domenico.

“As a result, we engaged in this sector by storing the raw material, milk, which was frozen and used by companies when the market demanded higher production, typically during the summer.”

Taking calculated and strategic risks

By the end of the 2000s, Frigocaserta had reached a saturation point.

However, Paolo Sanzillo, the majority shareholder and sole administrator, saw further growth potential in the market. With the support of neighbouring companies and a steady cash flow, Frigocaserta decided to take the risk and invest in 12,000 additional pallet spaces.

This turned out to be a sound decision.

“When I joined the company, I quickly realized that there was room for growth in the seafood sector,” Domenico notes. “In a short period of three to four years, the extra 12,000 pallet spaces were almost entirely used. To be accurate, we had about 40,000 spaces before the new investment in 2008. With the new investment, we increased to around 50,000 pallet spaces. The company consistently had high capacity levels.”

Excellence in client service

Solving their clients’ problems quickly and efficiently was always a key priority for Frigocaserta.

When one of their customers, Dolciaria Acquaviva asked them to manage all their storage and distribution, Frigocaserta accepted the challenge.

“At first, this new partnership faced some obstacles. With a big increase in size of daily operations, issues may arise with the employees, as well as with our software systems, which led to misplaced products and a lot of confusion.”

“However, we at Frigocaserta, were determined to make things work,” recalls Domenico. “We put in extra hours, often working late into the night and on weekends, with our IT team and project managers to fix the issues. We knew we had to solve these problems quickly and show Dolciaria Acquaviva that they could rely on us.”

This hard work paid off and in six weeks Frigocaserta fixed the issues and proved that they could handle the challenge.

This experience strengthened their relationship with Dolciaria Acquaviva and, today, they are one of Frigocaserta’s best clients.

First automated warehouse

In early 2020, Frigocaserta recognized the need for additional space and specialized areas to accommodate the types of services they offered. This prompted serious consideration towards an automated warehouse.

Despite lacking experience in building automated warehouses, Frigocaserta embraced the challenge once again.

The new automated warehouse was completed and launched in May 2023.

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“To maximize the capacity level of this warehouse, we continued to bring in new customers,” adds Domenico. “Their goods were relocated to external warehouses that we rented, which required substantial financial efforts. However, this prepared us to reap the benefits of the automated warehouse once it was operational.”

“We’ve been operating the automated warehouse for approximately four to five months now. We haven’t quantified the potential savings as it’s an ongoing process. However, we’ve already filled over 50% of the capacity, confirming the sector’s growth.”

Joining Cube Cold Europe

Now that Frigocaserta is part of the CubeCold platform, the company is looking forward to embracing all the opportunities this partnership brings.

“We are pleased to join a larger platform where there are different visions and different growth opportunities, not just from an economic perspective but also in terms of organizational structure and mindset,” Domenico comments.

“To achieve certain goals, you can’t stay on your own; you can’t remain in a fragmented market. You have to act as a national and European player and provide your customers with a different vision.”

Further expectations and ambitions

“Italy is an important market in the temperature-controlled storage sector. Today, goods are exchanged with Central, Northern, and Southern Europe.

Our medium to long-term vision is to play a key part in developing a network within the Italian market, seeking specialized companies in certain sectors that can provide CubeCold with a unique presence in the market for specific types of services.

When you’re almost unique in the market, it’s meaningful. When you have a large market share, added values, and good profitability, you can also initiate further developments, including greenfield projects.

I anticipate that our scale, not just as Frigocaserta, but as a group in Italy, will expand and will gain greater recognition in the market.”