AGROKOR GROUP NEW OWNER OF FONYÓDI AND BALDAUF
Jul 12, 2004
At the press conference held today on the vessel Spoon in Budapest in the presence of numerous representatives of the City of Budapest and leading Hungarian companies, Ivica Todorić, President of the Agrokor Group, presented the company Agrokor and its two acquisitions in Hungary, the mineral water filling plant Fonyodi and the ice-cream factory Baldauf. After gaining an excellent strategic position in the ice-cream and water business on the markets of Croatia, BH, Serbia and Montenegro, the logical further step for Agrokor was to approach the neighboring markets of EU member states. This time again, in approaching the Hungarian market, Agrokor opted for the strategy of approach by acquisition mainly for the reason that this shortens the time required to gain a certain market share on the one hand, while on the other by gaining the status of a domestic company and investing into the market Agrokor wants to create a base for more advanced forms of cooperation with the Hungarian market and demonstrate its indisputable interest to remain on this market on the long term. Agrokor's first acquisition in Hungary was the company Baldauf, located near Budapest. So far the production and sales of the company Baldauf were focused on the segment on family ice-cream, where it held the third position on the Hungarian ice-cream market. In 2003 more than 7 million liters of ice-cream were produced and sold. The company currently employs around 50 people. The entry of a partner of Agrokor's size will enable a new investment cycle mainly in the market and marketing activities. Baldauf will be able to extend its assortment by completing the range of impulse ice-cream, which will certainly improve the company's competitive edge, ensure the growth of market share and finally enable it to conquer more significant positions on the Hungarian ice-cream market. Therefore, in the following period the activities of Agrokor and Ledo shall primarily be focused on introducing best standards in market operations and restructuring the assortment, which Ledo is already very proficient in. Through significant investments in development and distribution, the implementation of Agrokor's and Ledo's know-how in the ice-cream business and conquering a more significant market share, the presence in the EU shall provide the whole ice-cream group with the possibility of using a number of synergies. Agrokor also acquired the mineral water filling plant Fonyódi, located at the Balaton lake. Fonyodi is a mineral water of exceptional quality and long tradition and represents a true potential for the realization of Agrokor's long-term objective to become one of the three leading mineral water producers in Hungary. In order to achieve this aim, Agrokor shall make significant investments in the following period both in new technologies and in the distribution network, as well as in marketing support.
Concurrently with investing in the Hungarian mineral water filling plant Fonyodi Agrokor also started exporting its Jana spring water, today's leading spring water brand in Croatia, to Hungary. The market has been approached through the distribution channel of the Hungarian company MOL. Today Jana can be found at MOL's petrol stations and the first excellent sales results show that the Hungarian consumers have recognized its quality and special taste awarded the first price at the Paris waters fair AQUA EXPO, the so-called EAUSCAR, in a competition of around 20 leading water brands. With its entry on the markets of Bosnia and Herzegovina, Serbia and Montenegro and now Hungary, Agrokor as one of the largest food producers in Croatia has realized one of its strategic objectives - regional markets expansion and becoming the leading regional company in the businesses it engages in.