Denofa eyeing growth from new Member States
to the FI-CEE show at Berlin to test the water after accession.
Simon Pitman spoke to the company to find out what the show
had bought after the second day of its opening.
"So far things have been very quiet at the FI-CEE show with regards leads from eastern Europe," said Kurt Ove von Husby, market and sales director for the Denofa's aroma division. "In fact most of the people I have been speaking to so far have been from western Europe, many of whom are existing customers."
Husby explained his belief that for many manufacturers in the CEE region, Berlin is an expensive destination, which could prevent interested parties from attending the show. He did add that there could be more faces showing up in the course of the next two days, as he believed that many companies would be sending representatives for a very quick visit by car.
Despite the slow start to the show, Husby believes that the CEE region will still provide significant growth in the course of the next five years. Although he says that the company's operations are still relatively small there, he said that now is the perfect time to become more involved. "Primarily we are looking to grow our market share in the larger of the new Member States, centring attention on Hungary and Poland," he said. "Now that these countries are a part of the European Union it is a lot easier for us to do business there, with customs, distribution and marketing becoming much simpler processes. On top of that we envisage that more and more multinationals will be moving operations to the region in the coming years, providing us with even more opportunities."
Denofa, which currently has a turnover of €200 million, has three main divisions - Aroma Products, Edible Oils and Yeast Specialities. Husby says that the company's operations in the CEE region are strongest for aromas and edible oils, a factor that is being driven by significant growth in demand from finished product manufacturers.
The company has been present in the CEE region since 1990 and has built its business up to become a leading supplier in a number of segments, particularly in countries like Poland, Russia and Hungary. It deals with all sorts of companies in the region, but the multinationals are generally its mainstay.
Denofa Ingredients is a part of the Borregaard group, which also consists of a fine chemicals company and a speciality chemicals company. Borregaard itself is a part of Orkla, Norway's leading food and beverage company.
