Blog: Barilla looks to growth on Lieken disposal

Michelle Russell | 31 May 2013

The deal by Italian food group Barilla to sell its German bakery group Lieken to Czech food maker Agrofert looks to be a positive one for all involved.

For Agrofert, the company will use the Lieken deal to push its own range of products into Germany. For Barilla, the sale will allow it to focus its attentions on growing its core business, the primary intention for the disposal, the food group said at the time of the deal.

Now approved by the European Competition Authority, Barilla believes the divestment will strengthen its financial soundness. Indeed, the Italian pasta sauce maker saw its profits slide in fiscal 2012 as continued economic uncertainty and rising raw material prices impacted earnings.

With the disposal now done and dusted, the Parma-based company will have its sights set on developing its core business, consolidating its position in the European and US markets and potentially taking advantage of opportunities in emerging markets. And one in particular: Brazil.

In Brazil, Barilla recently launched a range of locally-produced Barilla pasta and sauces. Here, it hopes to increase revenues from EUR18m in 2012 to EUR200m by 2020.

"Our strategy," chairman Guido Barilla said today, "focuses on developing pasta, sauces and ready meals on a global level - from the Americas to the Far East - and strengthening the bakery products that carry our own brands in Italy and in the main European countries."

Barilla is hoping to double group revenues by 2020, taking its Italian-style main course "to every corner of the globe", in addition to consolidating what it says is its leadership in the bakery segment.


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