Norwegian Orkla looks to CEE region for growth

- Last updated on GMT

Related tags: Sauce

Norwegian firm Orkla says that its subsidiaries within the CEE
region have shown the greatest capacity for growth, and as a result
the group is planning to expand its operations here further,
writes Bogdan Tudorache.

"All of the national food markets that Orkla Foods is active in are growing, but the biggest growth has been seen within the CEE region,"​ Alis Kosza, general manager of Orkla Foods, told www.ceefoodindustry.com/.

"For example, in Hungary and the Czech Republic the most spectacular sales growth was registered by the frozen pizza sector, accompanied by a slightly smaller rise within the ketchup, sauces and mustard segments."

Kosza went on to say that Orkla Romania posted a year-on-year sales increase of 55 per cent in November 2004, out of which 28 per cent came from newly-launched products. The company recently expanded its presence in the country through the acquisition of a new fruit and vegetable and ketchup processing plant in Targoviste.

This underlines the company's faith in the Romanian economy, and brings Orkla's overall investment in the country to $20 million.

In fact this is the most significant investment Orkla has made in Romania since it entered the market through the acquisition of a Topway Foods margarine factory in the city of Craiova in 2002.

"Orkla Foods Romania was, in fact, the most dynamic subsidiary of the group regarding the launch of new products and new product categories, so a solid development platform was ensured for 2005,"​ said Kosza.

Kosza says that the subsidiary plans to focus on consolidating new categories and products in 2005.

"We expect a significant growth for categories such as jams, liver pate, mayonnaise, tomato sauce (all of which will bear the brand Bunatati de la Bunica,) and the home cooking margarine brands Wiesana and Fruhstuck."

Orkla's Romanian subsidiary has already launched two new ketchup brands, a new mayonnaise brand, four jams and three liver pate brands this year.

Related topics: Market Trends

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