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Chipita Ukraine
🏢 Бизнес 🌍 Россия

From its establishment in 1973
until 1990 Chipita produced only extruded snacks (corn curls) and
distributed its products only in the Greek market.

In 1991 Chipita started the production of long shelf-life
croissants, initially for the Greek market and later through
exports for foreign markets



In 1995 it started its international expansion establishing the
first two factories in Bulgaria and Portugal (1996). In 1997 it
established a croissants production factory in Cairo-Egypt, and in
1999 it bought two croissant manufacturing facilities in Romania
and Poland. In 2001 it bought a factory which manufactured swiss
rolls in St. Petersburg in Russia, in which it has in addition
installed two croissant production lines.

Growth strategy

In 2001, realising that in most of the markets Chipita was active
its market share was between 70% and 100%, it developed a new
strategy for the decade 2001-2010, which is currently
implementing.

This strategy by geographic region is the following:

Greece

The core business of the company is the production and distribution
of flour-based snacks (croissants, bake rolls, bake bars, other
dough products such as strudel, treccia etc) as well as salty
snacks (potato chips, corn curls).

Salty snacks are considered domestic products and are only
distributed locally in the Greek market due to lack of any
international competitive advantage.

On the other hand, all flour-based products are considered as
trans-national products and are produced, marketed and distributed
in a large number of countries from Eastern Europe to the Middle
East and Central America.

The company has also decided to divest itself of all activities
that are not within its core business or do not involve
trans-national products.

In Greece, management aims to develop the local market further
through increase in sales of exiting products and through the
introduction of new products. Concentration of the R&D
department activities in the Lamia factory and distribution of the
new products initially only in the Greek market.

The company’s target is to gradually introduce new products already
successfully sold in the Greek market, to its factories abroad,
with the aim of increasing the number of products sold in these
markets.



By applying this strategy during the years 2001-2003, the
production of corn curls in the factory of Bulgaria ceased and the
equipment for this activity has been sold. The line for the
production of sliced bread and buns has been sold, as well as the
participations of the company in the Makedoniki Sfoliata, Emporiki
Synthesi SA, Panem S.A. and Olympic S.A., thus accomplishing the
re-orientation of the company’s participations.

It should be noted that, the exit from the above participations was
profitable in all cases. 2003 was a year of particular significance
for the commercial activities of the company, as preparations got
under way for the creation of a new nationwide direct distribution
network to medium and small shops (MSD). It consists of a sales
force of about 300 which visit about 33,000 outlets, in which snack
products are sold, on a weekly basis.
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5.0
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★★★★★
2013-12-18 20:09:35
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