ZF English

170m-euro deals on food & beverages market

11.12.2007, 20:33 16

How much does entrance onto the Romanian market cost global food & beverage giants? The answer is at least 100 million euros, according to the value of deals carried out over the past 2 years. The various transactions (worth around 170m euros) sealed on the Romanian food & beverages sector in 2007 have strengthened the foothold of multinationals on a market Euromonitor estimates at almost 20bn euros.
The deal of the year cost British firm Cadbury, one of the world's largest chocolate producers, almost 100 million euros after it acquired Kandia-Excelent. Last year, US giant Pepsi Americas paid more than 100 million euros to establish complete control over the Pepsi bottler in Romania and the Republic of Moldova after it acquired a 49% stake in the company for 42m euros.
The record deals Pepsi Americas and Cadbury forged on the Romanian market indicate the world's major players are watching the Romanian market, not missing any opportunities to enter market segments with a high potential. The market's growth rate, which is way above the average of the European food industry, and also the size of the Romanian market are just two reasons why foreign investors have become involved in deals worth tens and even hundreds of millions of euros.
Six months after the almost complete takeover of confectionery producer Kandia-Excelent, company representatives believe it is still too early to talk about strategic changes brought by the new shareholders.
After it retained its management team, Kandia-Excelent also expanded its domestic product portfolio and will count on the brand it has developed over the past 2 years. However, market players also anticipate heavy competition from the British on the gums & candies segment, which is currently around 80% dominated by Wrigley. The deal has propelled the British company among the top 3 players on the domestic market.
On the market of bottled water for watercooler systems, 2007 was the year of transactions. La Fantana, the biggest player, was almost entirely acquired by Innova Capital investment fund, in a deal worth around 40 million euros. In its turn, Cumpana (ranked second on the market) bought a smaller rival, Aqua Regis, for around 1m euros.
In 2008, La Fantana is likely to seal further acquisitions, but on regional markets, in line with previous statements made by company representatives. The pasta market saw the first acquisitions of domestic players by foreign companies in 2007, after Italian-based Foodco acquired Pangram, whilst the producer of Tymbark juices acquired 80% in Arnos (ranked fourth on the market).
The acquisition of vegetable oil brands Ulvex and Soreanca from Agricover, a company developed by Iranian investors, aided US group Bunge to gain a further 10% of a market increasingly dominated by multinationals.

Top 5 deals
Cadbury-Kandia-Excelent: the deal cost the English company almost 100m euros
La Fantana was almost entirely acquired by Innova Capital investment fund in a deal worth around 40 million euros
Italy's Foodco took over Pangram for 10 million euros
Bunge purchased Ulvex and Soreanca vegetable oil brands from Agricover for 8-10 million euros
Tymbark juice producer bought 80% of Arnos (ranked fourth on the pasta market) for 6-7 million euros

Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels

AFACERI DE LA ZERO