Sun, Nov 22 2009

Kraft's coffee grows stronger

Thu, Apr 12 2001 15:00 CET byNickolay Grigorov 297 Views
Last week, Kraft Foods Bulgaria announced that it had completed the acquisition of Nova Brasilia coffee. The company acquired 100 per cent of the coffee business from IFJ SAL, a Beirut-based distributor, in a deal brokered by PricewaterhouseCoopers.

At the time of the acquisition, Nova Brasilia was a leading brand on the Bulgarian market. According to research conducted by A.C. Nielsen and BBSS Gallup - market research firms - the Nova Brasilia products held a 70 per cent market share. Products sold under this brand name include, roasted coffee, soluble coffee, and decaffeinated coffee.

Despite the publicity of the deal, its financial terms were not disclosed. In a separate announcement, PricewaterhouseCoopers said that it was one of the largest private sector deals in the country. The deal's review by the Competition Protection Commission lends support to that claim.

"We are very happy to complement our existing confectionery business with this strong coffee business," said Michel Boon, Kraft Foods International Area Balkans director. "Coffee is a core business of Kraft Foods worldwide, and this acquisition fits perfectly into our overall portfolio. We believe that we will be able to build upon a leading position in this coffee market."

In the first three months of 2001, Kraft Foods International has been on an acquisition spree. On February 6, it acquired the second largest coffee business in Romania. Supreme Imex Romania, commonly known as Nova Brasilia (no relation to the Bulgarian brand), sold all its brands to the multinational.

"These businesses will give us a much broader presence across all segments of the category," said Boon. "Our current position in the premium sectors of these markets will be complemented and enhanced with the higher volume and everyday popularity of these products."

Kraft Foods Bulgaria currently produces and markets Svoge, Moreni and Suchard confectionery products, and imports the Milka and Tang products. It is a subsidiary of Kraft Foods International, part of Kraft Foods, the global business of Philip Morris Companies Inc.

Write comment

Name:Comment:

Generate new code
Send your comment

More in this category

Bulgarian MPs resurrect proposal to raise spirits excise

Strong public opposition to price hikes prompted Prime Minister Boiko Borissov to axe the Finance Ministry proposal to increase the excise duty on spirits, but MPs have put it back on the agenda.

Back to the future

Bulgaria’s Cabinet seeks to reverse recent changes in the telecommunications sector

At a crossroads, again

Kremikovtzi’s prospects for a recovery plan appear increasingly distant

Cash or card?

Bulgarians are getting the hang of debit and credit cards, MasterCard says

Bulgarian telecom Spectrum Net acquires local peer Orbitel

The two telecoms, both set up to challenge former fixed-line state monopoly BTC, will merge operations and expect to report 20 million euro in revenue and a gross profit of five million euro in 2010.

© 2000-2009, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.