Royal Cosun pierces potato flake market

Related tags European union

Subsidiary of Dutch ingredients and foodstuffs group Royal Cosun
expands potato flake and granulates activities, acquiring Nestlé's
potato activities in Venray, the Netherlands.

Aviko Rixona, a member of the Aviko group that falls under the Royal Cosun umbrella, said the deal should be completed by 31 January this year.

The new plant, in southern Netherlands, expands output for the firm that currently one other potato flake facility, located in the northern part of the country.

"The takeover will strengthen Rixona's position as European market leader in potato granulates and flakes for the industrial, foodservice and retail markets"​ the firm said in a statement this week.

One of the largest manufacturers of potato products in Europe, the firm currently has a 20 per cent slice of the European market, particularly dominant in potato granules for the snack industry.

The snack industry continues to thrive in Europe, with UK consumers leading the league.

UK snackaholics, far from slowing down, are tipped to spend £10.3bn on snacks by 2008, says market analysts Datamonitor.

Brits consume £143 (€212) - €4 per week - worth of snacks per person per year, a figure set to rise to almost £158 by 2008, compared to £141.5 in the US, and £109 in Europe.

Aviko Rixona said this week that the firm has signed and agreement with Nestlé Nederland on the production of potato products for Nestlé, which will remain responsible for the marketing and sale of potato products under its own brand names.

Nestlé's other culinary production activities in Venray are not included in the transaction.

With group sales of about €1.3 billion, Royal Cosun is also the owner of inulin and sugar ester supplier Sensus.

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