View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 20, 2020

German food business Meggle to exit Croatia dairy market

Meggle Group, a food business headquartered in Germany, plans to permanently close a plant in eastern Europe by the end of the year.

By Dean Best

Meggle Group, a food business headquartered in Germany, plans to exit the Croatian dairy market by the end of the year due to challenging business conditions.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The company will close its only manufacturing plant in Croatia, located in the city of Osijek, with the termination of 160 jobs. The facility produces dairy products such as fresh and UHT milk, yogurt, cheese and butter, a spokesperson confirmed, adding manufacturing will be switched to other plants in Europe.

As a group, Meggle also manufactures dips, spreads, chilled baguettes and food ingredients. 

The company explained the departure from Croatia is linked to the “process of optimising its overall business operations and strategies, which includes setting up long-term sustainable business models in all markets in which it operates”.

Meggle put the restructuring in Croatia down to the “challenges and crises we have continuously faced over the last several years”, such as the impact from coronavirus and the demise of Agrokor – what was the largest company in the Balkans before it went into state administration in 2018 and was later renamed Fortenova.

It said it will offer severance packages to the employees losing their jobs and will honour its existing milk-supply contracts.

Meggle added: “The decision to shut down the production facility has been postponed several times in recent years in the hope that business conditions and circumstances would improve, and it was made only when all other options were explored.”

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food