Croatian private label potato chip manufacturer Kanaan has expanded its production capacity after being awarded HRK 4.95 million (€646,800) in IPAD funds.
The company has invested the resources in one of the most advanced production lines for chips on the market, with a capacity of 750 kilograms per hour.
The capacity of Kanaan’s plant in Donji Miholjac now amounts to 1,100 kilograms of potato chips and about 400 kilograms of its Flips snacks per hour.
In 2013, the company invested around €1.5 million in the construction of a new 8,000 tons potato storage capacity, and last year invested the same amount in the purchase and installation of new chip production lines.
Kanaan is the largest exporter of salty snacks in Croatia, exporting its products to Serbia, Hungary, Bosnia and Herzegovina, Macedonia, Slovenia, Slovakia, Montenegro and Albania.
Kanaan also produces chips for numerous private label brands such as Metro, Spar, Lidl, Billa, Coop, CBA, Konzum, Plodine, Tommy, NTL, Ultragros, Meta Grupa, Real, Foody, Stark, Privat, Univerexport, DIS, Malisic and Fructa Trade.
In Hungary Kanaan has a 10% share of the local market, selling over 800 tons of chips and registering an annual growth rate of 25%.
Kanaan ended 2014 with a net revenue of HRK 84 million (+10%) and a net profit of HRK 3.38 million.
Although there have been rumours of a possible takeover by Croatia-based FMCG producer and distributor Atlantic Group, no concrete agreement has been reached so far.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.