Food Union delivers innovative products and higher profits

Date: 22.12.2020Source: Food Union

In 2020, Food Union operated in nine European countries and launched 117 new products based on local consumer insights with innovations based on consumer demands and preferences, always giving their customer what they want. This constant product development allows the company to keep pace with its diverse and growing consumer base. The group’s assorted flavours and products have helped it boost sales in key markets.

Food Union (Europe), a global ice cream and dairy producer and distributor, ends 2020 with strong financial results and superb commercial performance. The company’s innovative products helped the group excel amidst global uncertainty caused by the COVID-19 pandemic.

Said Normunds Staņēvičs, CEO of Food Union Europe: “I am pleased to announce that we are on track to achieve our goal of reaching a 5% increase in sales in 2020. This is very encouraging, given the unprecedented market dynamics this year. Strategically, it’s worth noting the increase of Food Union’s ice cream market share by an average of 0.5% across markets where we sell our products. In Food Union’s core ice cream business, profit margins increased by an average of 1.8%. This is a significant outcome given the challenging times. Our Group will start 2021 strongly positioned for growth.”

Not only was Food Union Europe operating in nine different countries, but it also increased exports into South East Asia, with total exports soaring from near-zero in the first months of 2020 to €2.1 million in sales by the end of 2020.

Added Staņēvičs: “Our current position speaks to the resilience of our global business. We have emphasised flexibility and agility in responding to the current global crisis, and ensured that local market factors were central considerations in our most crucial business.”

Throughout 2019, the Group invested €18.8 million in new technologies across every part of its business and in each geographical region.

Said Staņēvičs: “These investments were prescient and positioned Food Union to both withstand the impact of COVID-19 and to increase revenues and profitability in 2020.”

The Group’s shareholders include its founder and executive chairman, Andrey Beskhmelnitskiy, an entrepreneur with a track record of transforming an array of assets in the food products into a robust and profitable enterprise. Hong Kong-based investment company, Meridian Capital Limited, together with one of Asia’s largest private capital firms, PAG, provide Food Union with financial backing. Meridian Capital Limited and PAG became Food Union shareholders in 2015 and 2018, respectively, to finance the Group’s growth and its expansion into the Chinese market with Food Union China.

Concluded Askar Alshinbayev, founder and principal of Meridian Capital Limited: “Even in the extraordinary circumstances that have characterized 2020, Food Union has managed to wrap up a successful year. The Group has made significant investments and undertaken fresh initiatives with the goal of delivering more innovation and enhancing operational agility in the FMCG market even in the middle of market headwinds and challenges.” For more visit foodunion.com

David Cox / IDM

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