Atlantic Grupa earns about 12 per cent of its €400m annual turnover from functional foods and supplements, and is the owner of the sports nutrition brands, Multipower and Dietpharm. They are popular in eastern European markets and increasingly in western markets like Germany, Spain and Switzerland.
Atlantic Grupa spokesperson Fedja Hudina said the deal was primarily motivated by the company’s expansion ambitions in eastern European markets but there would be direct benefits to its functional foods business.
Production of chocolate ingredient-based bars and supplements used in sports nutrition products would be produced in the Serbian production facility of Droga Kolinska, rather than being outsourced as was the current situation.
Droga Kolinska is focused more on the mainstream food industry with its main venture in value-added foods being in infant nutrition and functional waters. About 70 per cent of its sales come in the Balkan region in its core businesses of coffee, savoury spreads, confectionary, savoury snacks, carbonated soft drinks, functional water and baby food.
It has other production facilities in Croatia and Bosnia with Serbia and Slovenia being its strongest markets.
The new conglomerate is expected to have turnover of upwards of €600m making it one of the largest food groups in eastern Europe.
Atlantic Grupa also acts as a distributor for Wrigley, Ferrero, Hipp and Johnson&Johnson.
“With pleasure we can state that we have been recognized as a worthy investor with a well thought strategy of streghtening our common positions and realisation of mutual synergies on all the markets on which we are present,” said Emil Tedeschi, chief executive officer of Atlantic Grupa.
This month Atlantic Grupa also signed a licensing deal with Lonza for the long-term supply of L-carnitine to its Multipower range.