Nestle takes over Centroproizvod

Nestlé today announced that it had agreed to acquire the business of Centroproizvod A.D. Company, a leading food and beverage producer in Serbia.

The Centroproizvod business - expected to reach sales of almost RSD 2.5 billion in 2011 - includes culinary products such as dry spices and seasonings, soups and dressings; beverages such as chocolate drinks and tea; and confectionery products. The terms of the deal, which is subject to regulatory approval, include the acquisition of Centroproizvod’s iconic C brand, as well as the company’s factory in Surcin, in the Serbian capital Belgrade.

- We have brought Centroproizvod to the very top of the food industry and, after a long consideration of the development strategy, we have made the decison that this step is the best solution for the company, as well as for the entire development of the food sector in Serbia. With its experience, know-how and long tradition, Nestle will make sure that C brand continues to develop and becomes even bigger and more significant in the region - said Centroproizvod Director General Nemanja Popov.

According to Centroproizvod's statement, more than EUR 30 million have been invested in the company over the last few years.

Marco Travaglia, Head of Nestlé’s Adriatic Region, explained the importance of the investment:

- This acquisition is a strategic move to strengthen Nestlé’s presence in the region. Centroproizvod’s product portfolio is complementary to ours and the local production in Surcin with its distribution capabilities is a great asset for us.

Nestle is present in the Adriatic region since 2003 and it currently employs about 500 people and runs the plant in Stara Pazova, in Serbia.