Greek snack producer Chipita has taken a further step in expansion strategy to capitalise on the larger markets of eastern Europe with the buyout of ZAO Eldi, a bakery plant in St Petersburg, Russia, and its subsidiary handling distribution plant ZAC Krasnoselskaya.
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The company already produces packaged snacks in Poland, Romania and Bulgaria, and is focusing distribution on the neighbouring Balkans, the Ukraine and Russia.
The deal, worth US$9m, is expected to enable the company to attain revenue of US$8m in Russia this year. Managing director Constantine Apostolides added that a further investment of US$6m would be made in order to launch production of packaged croissants.
