News

AGROKOR PARTNER FOR GREAT SUCCESSES IN THE REGION

At today's ceremony held at Sarajevski Kiseljak in the presence of numerous journalists and guests Nikola Grubišić, Director of the Privatization Agency of the Canton of Central Bosnia, presented Ivica Todorić, President of the Agrokor Group, with a Certificate confirming that Jamnica and Agrokor have met all obligations from the privatization by tender of Sarajevski Kiseljak. It has thus been officially confirmed that more than KM 23 million were invested into the development and reconstruction of Sarajevski Kiseljak and 68 people employed. Sarajevski Kiseljak d.d. is the biggest, oldest and currently most state-of-the-art mineral water filling plant in Bosnia and Herzegovina with a bottling tradition of more than 110 years. By Jamnica's acquisition of Sarajevski Kiseljak in December 2000 and its joining the Agrokor Group, Jamnica becomes majority shareholder of the company. This was also the turning point in the development of Sarajevski Kiseljak, now modernized by new technologies, softwares and up-to-date marketing methods. Since its entry Jamnica has reconstructed the production facilities with a view to increasing production capacities and modernizing the production process. Investments included the construction of a new office building, new production halls and lines, the opening of distribution centers in Sarajevo, Bihać, Tuzla, Banja Luka and Grude, the expansion and strengthening of the distribution network by purchasing new vehicles, the employment of 68 people and large investments into marketing and packagings. The investment totalled more than KM 23 million. Besides increasing sales by more than three times and achieving a market share of 50.5% in mineral waters, as a result of the above investments Sarajevski Kiseljak at the end of December 2002 extended its product range launching new products such as refreshing non-alcoholic drinks under the SKY brand on the markets of Bosnia-Herzegovina and Croatia. The strong growth and development of Sarajevski Kiseljak is also substantiated by its operating results for the first nine months of the year, according to which Sarajevski Kiseljak achieved record production and sales, with a year-on-year increase of more than 35 per cent in the placement of mineral water. Exports grew as well, and total sales revenues exceeded those from the same period of previous year by 35 per cent. By privatizing Sarajevski Kiseljak Jamnica, already leader on the Croatian mineral water market, made a step forward to the region creating preconditions to conquer the regional mineral water market as well. This investment is part of Agrokor's broader strategy of strong regional cooperation and expansion of its own core businesses throughout the region.

Agrokor was thus the first to prove, still in the circumstances of high business risks, that leading Croatian producers have to seek their chance in concentrating congeneric businesses in the region, while making room for products from the region at the same time. Agrokor does so by placing products of Sarajevski Kiseljak on the Croatian market and other markets of the region. This is the only way to continuously increase product competitiveness throughout the region, and on the long term only a strategy so consequently applied can create the preconditions to maintain the relatively high market shares even against strongest global competitors.