|
EBRD supports Serbian confectionary-maker
€10 million to Stark supports regional cooperation
The EBRD is lending Stark, the leading Serbian confectionery producer, up to
€10 million to support its modernization programme to upgrade and renew its
machinery, as well as to develop new products and to further support its brand
and market development.
Stark’s performance and sales have in the past been affected by lack of
investment. In 2005 Grand Kafa, a local company majority owned by Slovenia’s
largest food and beverage company, Droga Kolinska, became the majority
shareholder. Soko Štark has made and intends to make significant additional
investments to support restructuring, which, with the EBRD investment, will be
further extended.
Gilles Mettetal, EBRD Director for Agribusiness, said this deal will help
continue the transformation of this company with a long tradition in the
region to build on its success as a leading sweet and savoury-producer in
Serbia. The loan also reflects the EBRD’s strategy of supporting projects that
have a regional dimension and that demonstrate the benefits of cross-border
investment, said Mr Mettetal.
Established in 1922 as the leading confectionary producer in Serbia, Stark
employs 1419 staff at its offices in Belgrade. Its main products include
sweets, biscuits and savoury products. Droga Kolinska Group is a global
company that sells leading brands such as Argeta, Grand kafa, Soko Stark,
Donat, Cockta Barcaffe, Bebi, Maestro and Zlato Polje world-wide.
Droga Kolinska Group has been successfully implementing a strategy to grow
internationally by investing in acquired companies in Serbia, such as Grand
Prom and Soko Štark, and completing investments in its Greenfield factory in
Bosnia and Herzegovina.
These investments, together with the EBRD’s support, are crucial to helping
Droga Kolinska Group achieving its goal of becoming the largest food company
in the region, said Robert Ferko, CEO of Droga Kolinska. In the first nine
months of 2006 Group sales reached €240 million, with a net profit of €13.5
million. The current performance of Grand Prom and Soko Štark also indicate
that their sales and net profit targets in 2006 will be met, which are both
significant also for increasing the sales of other Droga Kolinska brands in
the market of Serbia.
This deal is important as it supports the restructuring and the immediate
modernisation of the leading Serbian confectionary producer following its
privatisation process, said Dragica Pilipovic-Chaffey, EBRD Director for
Serbia. It further demonstrates the opportunities available to other strategic
investors who want to develop their business.
The EBRD signed its first projects in Serbia in 2001 following the Yugoslav
conflict, and has to date invested almost €1.07 billion in 63 projects in the
country. In the Agribusiness sector the Bank has committed €4.3 billion in
over 304 projects across central and Eastern Europe and the Commonwealth of
Independent States.
|
