Croatian companies discuss consortium
retailers have confirmed that they have started the first round of
discussions aimed at promoting the industry in the face of stiff
competition from foreign imports.
Agrokor, which is Croatia's largest privately owned company and a key player in the food and beverage sector, is thought to be one of the chief players in the discussions, which have also involved executives from companies such as Atlantic Trade, Franck, Badel 1862 and Kras. Podravka, all of which were present at the initial meeting held in Jastrebarsko, near Zagreb, last week.
A spokeswoman for Agrokor confirmed that the meeting had taken place and that the discussions were at a preliminary stage."As yet nothing concrete has been formed amongst these companies," the spokeswoman said. "We are expecting discussions to be ongoing, however, and we would anticipate that some sort of action will be taken in the coming months. At this point in time, no official body or consortium has been formed though."Agrokor was represented by group president Ivica Todoric at the meeting.
Many consider that the acknowledgement of the discussions could be a turning point for the industry, which in recent years has been hard hit by large foreign multinational food and beverage companies making a bigger push into the country. A logical next step might be to form a consortium, which would form an umbrella under which Croatian companies would have more opportunity to expand.
One big issue that the group is certain to address is the privatisation of the agricultural sector, which the government is currently in the final throws of selling off. A consortium would be in an ideal position to play a major role in the privatisation of this all-important part of the supply chain.
The amalgamated value of Croatia's leading food and beverage companies is estimated to be in the region of €1 billion, a figure that is said to exceed that of Nestlé, one of the biggest western companies in the market.
