News

Agrana expanding in the Balkans. The EUR 40 million plant recently opened in Brcko, Bosnia is a joint project with the Studen sugar factory. Agrana has recently acquired a 50 per cent share in the Studen group, which has subsidiaries in Slovenia, Macedonia, Croatia, Serbia and Bosnia.

Wal-Mart sees exceptional potential for growth in Russian market. It has been announced at the shareholders’ meeting of the world’s largest retail enterprise that definite steps are to be taken to enter Russian and Central eastern European markets.

Stricter conditions defined for fusion of Nettó and Plus. Plus will only be allowed to own less than 25 per cent instead of the originally planned 30 per cent of the joint venture to be established under the leadership of Edeka. 370 Plus units out of 2900 will have to be sold by Tengelmann. The two companies will not be allowed to form a joint purchasing venture.

Nestlé spending EUR 10 million on modernisation of its Bulgarian chocolate factory. Sense, the low calorie version of Kit-Kat is manufactured in the plant. The new chocolate has been available in the UK since April and sales will also start in Germany and France by the end of the year.

Tesco achieving lowers supply prices in Ireland. The Irish organisation of Tesco has been negotiating with English suppliers about reducing prices for two months in order to eliminate extra profit generated by changes in the EUR/GBP exchange rate. As a result of continuous negotiations, the prices of 1250 products have been reduced in Irish Tesco stores during the past six weeks.

A.S. Watson adding private labels to the Marionnaud range. This step is intended to promote the Watson brand which is not very well known in the European market yet. Watson private labels appeared in Italian, Austrian and Spanish Marionnaud stores in the spring. These are targeted at younger age groups.