The Chips group took over 100 per cent of the Russian Snack Company last week, in accordance with the contract signed on 22 March 2003.
The takeover means that the Chips group is on target to further expand its European business interests. The group will now be able to penetrate the Russian market with its own production and sales of crisps and snack products.
The Russian Snack Company, which started business in 1998, has a market share of around 10 per cent of the crisps market and 6 per cent of the total crisps and snack market in Russia. It is estimated the company's turnover for 2003 will be €12 million.
The Russian chips and snack market has great growth potential. Per capita consumption is only about 0.3 kg a year, while the equivalent figure for the Baltic countries is around 1 kg and that for Finland 2.3 kg.
The Chips group's business is divided up into two business areas: snacks and food. In 2002, turnover was €268.6 million, €196.1 million of which was within the snacks market. Last year's operating profit was €29 million and the profit per share was €0.90.