30 October 2007 - The Greek dairy market has an estimated annual turnover of about 2.1 billion euro. Yoghurt and ice cream are seen as key products in an industry that grows approximately 5% each year. Of the 2.1 billion euro, around 300 million euro can be attributed to yoghurt and 250 million euro to ice cream.
The industry has significantly changed over the past few years, especially since the end of the merger between Delta and Danone, which left the French company operating alone in the Greek market. Meanwhile, Friesland Foods also entered the Greek yoghurt market with its Noynoy brand.
A major event which occurred during the FY 2006, was the merger between two of the largest food Groups in Greece, Delta (full range of dairy products) and Chipita (snack products), creating significant synergies in the distribution network.
“The new Group decided however to withdraw from the ice-cream market selling the operation to Nestle. This decision, created opportunities for smaller Greek companies like Kri-Kri that are more flexible and have long experience in the domestic market. In addition, even though Nestle brand name is well recognized for many dairy products, it is not however linked with ice-cream and yogurt products in Greece”, says Greek ice cream and yoghurt manufacturer Kri Kri in a statement published earlier this year.
Kri Kri – A Growing Company
With the new scope for opportunities, Kri Kri plans to boost its activities in Greece and abroad, i.e. the Balkans.
Kri Kri’s expansion in the Balkans will be undertaken by Macedonian subsidiary Kri-Kri d.o.o. Kumanovo. The company will also strengthen its distribution network in Albania in co-operation with a local logistics company.
The firm also wants to enter new product markets, such as the catering industy, as well as develop its private label product division, which currently accounts for 12.5% of the company’s business.
The Company has already signed agreements with multinational companies in order to produce products (mostly ice cream) for their account. Kri Kri’s partners include retailers and food giants Unilever and Masterfoods.
Kri Kri is also hoping for success with its newly branded yoghurt “Yogood”, which is expected to attract the interest of Western European markets. The yoghurt, which can be found in supermarkets in Italy, should be finding its way to shop shelves in Spain, the UK, and France.
In a statement sent to FLEXNEWS, Kri Kri says it expects to grow its sales by 63% over the next 3 years – from the 33.6 million euro estimated for 2007 to 54.9 million euro in 2010.
Kri Kri saw its 2006 turnover amount to 28.3 million euro, up 11.5% from 2005. The group expects to record 33.6 million euro in turnover for 2007.
In order to achieve this growth, the Greek firm is aiming to establish an extra 1,500 sales points for its ice cream products during the period 2008-2010 by being present in new regions and retail chains.
Kri Kri currently has respectively 6.5% and 6% shares in the domestic ice cream and dairy products markets. The company foresees a 7% share for its ice cream segment and a 6.5% share for the dairy division by the end of this year.
In 2006, ice cream and yoghurt represented 56% and 36% of the firm’s activities respectively. In Northern Greece, however, Kri Kri has a 13% share of the local ice-cream market.
“In addition, the company plans to launch and distribute new products, mainly ice-creams and yoghurts as the distribution of fresh milk does not form a strategic target despite the experimental launch of a new fresh milk brand in selected supermarkets in Greece”, the company said in the earlier statement.
Investment Programme Ends in 2008
Kri Kri is also close to completing two investment programmes worth a total 12 million euro, which consist of a production capacity increase in both the ice-cream and dairy product segments, and the construction of storage facilities. The investments will be completed by mid-2008.
The Greek firm will receive a state subsidy of 5.7 million euro for its investment programme and plans to issue 4 million euro bonds in December this year for raising additional funding for the programmes.
Established in 1954, Kri Kri has a workforce of 251. The firm offers 52 types of ice creams and 19 types of yoghurts.