Aviko acquisition permits European potato expansion

The business plan will increase Aviko's potato sale, and the company hopes it will considerably strengthen its position in the market for potato specialties with high added value over the next few years. Wim Gerritsen, chairman of the board of directors at Aviko, said: "Aviko is a major European player, but it regards maintaining and even improving its close-knit customer network as a prerequisite for continuing to offer both its big international customers and its local customers an excellent service." The product range is also a major consideration in its business strategy, as is its scale of production. Gerritsen said: "Aviko is characterised by its wide, deep and innovative range, but it is always interested in improving and extending it. "Scale is crucial on both the purchasing and the sales sides. The correct distribution of specialities amongst its subsidiaries enables Aviko to guarantee top quality yet still maintain a competitive price." Eurofreez produces a range of potato specialties at its site in Proven, Belgium, including a wide assortment of frozen mashed potatoes and portioned gratins that it exports to 65 countries. It considerably increased its production in 2007. Seru & Annoot is a potato trader that buys potatoes, many of which are processed by Eurofreez, from more than 400 farmers in West Flanders and northern France. No one from Aviko was available to comment on by how much the acquisition will increase production, or the cost of the acquisition. Eurofreez and Seru & Annoot have a joint turnover of approximately €65m and a joint workforce of 170. The company insists the business move will not result in a loss of jobs. Aviko currently has 12 potato processing facilities in Europe and processes 1.7m tonnes of potatoes into a varied range of products each year. Last year, it sought to strengthen its manufacturing capabilities in Asia, entering into an agreement with the Zhangye city and Minle city authorities to construct a potato processing plant in the Chinese province of Gansu. The plant is expected to come into operation early this year, and Aviko plans to use the plant to manufacture products such as potato flakes and granules. Aviko is a subsidiary of Dutch international group Royal Cosun, which produces and sells natural foodstuffs and ingredients. In its home market, it achieves a turnover of €1.5bn per annum.

Aviko acquisition permits European potato expansion

Aviko will be acquiring potato processing company Eurofreez and potato trader Seru & Annoot in its bid to boost its market share in Europe.

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