Rieber group to sell off Polish cake facility
The company stated that it is well positioned in Poland through the Delecta brand, which today has strong market positions within baking, cake mixes and desserts but that it will divest of the ‘Anja Cake’ factory as the shelf-stable cakes are not aligned to the firm’s market differentiation focus championing local tastes.
“Products specially tailored for each market, distinguishes us from our international competitors who often have identical products in many countries. It is a strategy which creates strong product association among the consumers, while bringing a good turnover and earnings for our customers,” states the company.
The group said that local firm Master Group Spolka will acquire the factory and continue the production of the ambient cakes.
The plant, said Rieber, had a turnover of approximately NOK 7m in 2009, and it added the assets related to the facility were subject to market value adjustment at year-end 2009, which, it claims, means that the sale will have a neutral effect in the accounts in 2010.
Last September, the group sold its Sopps brand and its portfolio of pasta products, such as spaghetti and macaroni, to bakery giant Lantmännen Cerealia.
In January this year, Rieber & Son, in its financial results, announced an increase in operating profit by NOK 68m from 2008 to 2009, and it said that turnover had remained stable over the last two years to end just short of NOK 5bn in 2009.
Rieber CEO Patrik Andersson, commenting at the time, said that the group’s operations in Denmark, the Czech Republic and Russia all delivered strong performances in a challenging market environment with strong competition.
A spokesperson for Rieber & Son was not available for comment prior to publication time.
