Danone buys up Russian biscuit maker
that its it to buy the Russian company Chok and Rolls, which
currently belongs to Spanish confectionery company Chupa Chups.
Danone said that the cost of the transaction would remain undisclosed and that the it was still subject to agreement from the Russian antitrust authorities.
In a press statement, Danone said that the deal would help to consolidate its leading position in the Russian biscuit market as well as helping to reinforce its presence in the Eastern European region - particularly in Siberia and the Urals.
Danone has been present in the Russian biscuit market since 1993 when it bought out the Russian producer Bolshevik. In 2003, Danone's operations in Russia had a total turnover of some $60 million. Last year Chok and Rolls had annual sales of around $20 million, giving Danone projected sales in 2004 in excess of $80 million.
Currently Danone jointly leads the world's global market for biscuits alongside US company Kraft Foods. Kraft is number one in the US market, whilst Danone holds the number one positions in both Europe and Asia.
The Russian snack market in general has shown phenomenal growth in recent years, particularly in the area of cereal-based snacks, which includes biscuits. Between 2000 and 2001, the value of the overall market for snacks more than doubled from $230 million to $500 million, although the growth rate has slowed in the last couple of years as the market shows signs of maturing.
Analysts have identified changes in lifestyle patterns amongst the younger population, as well as a growing disposable income, as the main driving forces behind the growth.
