|
EBRD loan refreshes Serbian fruit juice company
€10 million to assist Nectar expand operations
Nectar, the leading Serbian juice and soft drinks producer, is to expand its operations with the help of a €10 million loan from the EBRD.
The EBRD financing will help the company further expand on the Serbian as well as neighbouring markets, develop new branded products and strengthen its direct distribution network.
After eight years of operation, Nectar has become the leader in the production of fruit juices and fruit products in Serbia. Operating in one of the most competitive industries in Serbia, Nectar is the only juice manufacturer which has fully vertically integrated production, from processing of fruits and vegetables to production and packaging of final products at its own facilities which then get distributed directly to individual retailers. With substantial cross-border operations, Nectar is one of the leading fruit juice companies in the Western Balkans.
With the help of the EBRD finance, Nectar will be able to increase its purchases of local produce, thus supporting primary production of fruit in Serbia. The loan will also help the company develop at least two new products over the next couple of years and enter export markets with niche products, such as anti-stress and fitness drinks, which it has successfully developed on the local market.
Gilles Mettetal, EBRD Director for Agribusiness, said Nectar would use the loan to continue strengthening its market position through premium branded products and strong direct distribution channels. The finance will act as an important signal that other private companies in Serbia with solid management and with successful business development plans can attract adequate long-term financing, Mr Mettetal added.
Slobodan Radun, Nectar’s President, said that the EBRD support will assist Nectar in enhancing its position in Serbia and in penetrating regional markets. “The funding will enable us to support farmers in the Western Balkans through increased and more efficient purchase of their locally grown produce, thus helping the economy,” Mr Radun said.
The EBRD is the largest investor in Serbia, having committed more than €1.2 billion in 74 projects. In the agribusiness sector alone, the EBRD has committed €4.8 billion in 335 projects across central and Eastern Europe and the Commonwealth of Independent States.
|
