Milliyet – Having acquired 51 percent stakes in local chocolate producer Balaban Gıda, Swiss food and beverage group Nestlé aims to penetrate into Turkey’s low-cost sweet and chocolate market, according to the Business Executive Manager of Nestlé Turkey’s Confectionery Business Unit, Devrim Cobek.
The company invested TRY 4 million (approx. USD 2.1 million) for capacity increases following the partnership deal that includes Nestlé’s taking over of 2 chocolate, biscuit and wafer factories. The total worth of the partnership deal that took place in December 2010 had not been disclosed.
“The company has grown at an average rate of 15 percent for the last 5 years”, Cobek said in a press event yesterday, adding that expanding of their product range entails a new growth target of at least 30 percent in 2012. “The new acquisitions show our focus on Turkey which we consider an important production base for Nestlé”, Cobek noted. “Partnerships and acquisitions that suit our growth strategies will be considered”, he added.
One of the long-standing sweet and confectionery brands in Turkey, Nestlé’s recent investments in Turkey include a USD 55 million cereal factory in Bursa, announced early this year.