TURKEY: Ferrero "in discussions" over Oltan Gida buy
Ferrero "in talks" with hazelnut co Oltan Gida
Italian chocolate maker Ferrero is "in discussions" over a potential acquisition of Turkish hazelnut group Oltan Gida, just-food understands.
Turkish press reports this weekend suggested a deal has been reached that would see the Nutella maker take control of Oltan Gida. Representatives from Oltan Gida and Ferrero were not available for comment at time of press.
However, a source close to the situation told just food: "Something is under discussion. Nothing has yet been secured."
Oltan Gida supplies various hazelnut products - including roasted, bleached and chopped hazelnuts as well as hazelnut kernels, meal and paste - to overseas food manufacturers. The majority of its revenues are generated in the chocolate sector. According to its website, Oltan Gida's largest markets are Italy, England, France and Germany. The group also exports hazelnut products to the US, Japan, China, Australia, South Africa and Egypt.
Oltan Gida's annual turnover is "more than" US$500m, the company revealed. It operates five cracking plants, two hazelnut kernel selection plants and an integrated hazelnut processing plant in Turkey.
According to FAO figures, Turkey is the world's largest hazelnut producing country, accounting for 70% and 82% of the world's production and export respectively. However, this year Turkish production has been hit by cold weather, with severe frosts at the end of March causing prices to spike by around one-third.
Ferrero has made steps to increase its investment in securing hazelnut supply lately. Earlier this year Ferrero made a commitment to invest in hazelnut cultivation in Serbia in a bid to create a European "centre for hazelnut production". The company signed a memorandum of understanding with the Serbian government that saw it start its own hazelnut production on 1,000 hectares of land and establish co-operation agreements with local growers.
Ferrero has performed well with its core brands. Although the company is perhaps still too focussed on Western Europe, it has made gains in fast developing markets such as Brazil and China. An area of...
Chocolate is one of the most popular food product among all age groups of people. It is made up of cocoa liquor, cocoa butter, sugar, and lecithin. It is consumed in between meals and as a desert duri...
- Nestle catering for an ageing global population
- What post-Brexit trade with the EU could look like
- Unilever is "working harder" in tough environment
- What next for Nestle under new CEO Schneider?
- What delay means for UK child obesity strategy
- Kerry Foods sets its sights on C-sector
- Tesco drops John West products over sustainability
- Greencore pays GBP15m for Cranswick sandwich unit
- Job cuts imminent as General Mills restructures
- New Quaker Oats range targets wellness trend