Croatian food producer and distributor Atlantic Grupa has signed an agreement for the purchase of Serbian company Foodland. Foodland's main activity is the production of natural health food from selected ingredients.
Production facilities are in Igros, located 250km south of Belgrade, at the foot of Mt Kopaonik.
The product range includes savory spreads and sauces, sweet spreads and natural syrups and juices made from fresh fruits and vegetables.
All products are made with the highest percentage of fruit and vegetables and prepared in a traditional way, without additives or preservatives.
It's "Granny’s Secret" brand is the only one in the region to have won the UK quality Great Taste Award, the Best Innovative Juice award in Foodnews magazine, as well as the international award for the best packaging bestowed by the World Packaging Organization.
The crown jewel is the homemade red-pepper chutney (ajvar), recognised as a delicatessen product by international food retail chains such as Coop, Woolworths and Ross, as well as premium retailers such as Galleries Lafayette, Le Bon Marché, Globus, Hemkop, Selfridges, Azbuka Vkusa, Fairway, and Fressay.
The Foodland range is present in over 20 countries, while approximately a third of its total production is exported to markets outside the region (Western Europe, US, Australia, Russia and Japan). The acquisition will enter into force upon the approval of the Serbian Agency for Protection of Market Competition, expected at the beginning of next year.
Once the acquisition is approved, the product range of Foodland will be incorporated in Atlantic Grupa's business unit Savoury spreads. Atlantic Grupa is a leading producer and distributor of food and hygiene products in the former Yugoslavia region with a presence in over 30 countries.
Key brands include Argeta, Cedevita, Grand Kafa, Najlepše želje and Cockta.
The acquisition of Foodland will enable the Croatian company to achieve two strategic goals: expand the current brand portfolio and continue with its internationalisation policy.
According to data from the Serbian Business Registers Agency, Foodland had RSD 1.2 billion (€10 million) in revenues in 2013, while profit was slightly above €100.000. Although Atlantic Grupa did not reveal the cost of the acquisition, it said that Foodland’s sales revenue in 2014 would reach close to €8 million.
