Molochnyi Zavod “Rodich” enjoys a strong market position with its Rodich and Vesely Pastushok brands, and posted sales of 10 million euros in 2005. As a result of the acquisition, Danone will benefit from significant additional local distribution capabilities, as well as access to a strong milk sourcing network and production platform.
The completion of the transaction is subject to the fulfillment of certain conditions including regulatory approvals.
With annual per capita fresh dairy consumption in Ukraine averaging 4 kg, compared with 22 kg in Western Europe, the Ukrainian fresh dairy market offers promising scope for development. The average annual growth for the last three years has been in excess of 15%.
With around EUR 13 billion of total sales in 2005, Groupe DANONE is the world leader in fresh dairy products and bottled water (in volume terms), and n°2 in the biscuit market worldwide.
In Eastern Europe, Groupe DANONE posted sales of EUR 1,2 billion with strong positions in Russia (n°1 in fresh dairy products and biscuits), Poland (n°1 in fresh dairy products and bottled water), Czech Republic (n°1 in fresh dairy products and biscuits), Hungary (n°1 in fresh dairy products and biscuits), Romania (n°1 in fresh dairy products), Bulgaria (n°1 in fresh dairy products).The Rodych company was founded in 2001. It markets its products basically in South Ukraine. Its production facilities allow making 120 tons of dairy products on the daily basis. In 2005 its sales totalled 10 M. euros (12:8 M. USD).
The Anti-Monopoly Committee has allowed the Paris, France-based Produits Laitiers Frais Est Europe to buy the over 50%t stake in the Rodych, the Cabinet press office informs.
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