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Friday, November 19, 2004

Pepsi-General Mills buys Star Foods

Snack Ventures Europe (SVE), a joint-venture between soft drinks producer PepsiCo and milling and bakery industry player General Mills (US), has bought the leading distributor of snacks on the Romanian market, Star Foods, which was previously Greek-owned. Industry sources say the deal was worth 20 million euros.

Star Foods last year made 40 million euros in turnover. Officials from Star Foods confirmed that the deal had been closed and that changes at the top of the company ladder had already been made.

"This is a solid and well structured business that has a tremendous potential. This gives a significant strategic platform for us to serve our clients in Romania and in the entire Balkan area," said Mike White, the PepsiCo International chairman. White said the acquisition would provide SVE with a foothold in Romania, the largest market in the Balkans, which is characterised by a fast growth.

Star Foods owns a factory in Popesti-Leordeni near Bucharest that has a staff of 850 people. It has four warehouses around the country: in Timisoara, Bacau, Constanta and Cluj. Star Foods makes potato chips (branded as Star Chips), maize flakes (branded as MR. Snacki) and maize & tomato chips (branded as Krax). The company also distributes the Chipita products on the Romanian market: Flipper (Fiesta), Gallina Blanca, Axxon and Tip Top (the Conty line).

Market research company MEMRB surveys for the April-May 2004 period show that Star Foods accounts for 64 percent of the chips market, 28 percent of the snacks market, and 53 percent of the extruded foods market.

The company completed an investment of over one million euros this year, which involved boosting its production capacity. It can now make 3,300 tonnes of chips and 3,300 tonnes of snacks a year. Total investments made in the Popesti-Leordeni facility are in excess of 15 million euros. Star Foods is part of the Mitzalis international group, which deals in production and distribution of consumer foods.

Posted by Mihai : 11/19/2004 03:46:00 pm