Contract between Podravka d.d. and Nestlé World Trade Corporation on sales, logistics and distribution

On 24 April, in the Hotel Opera, Podravka d.d. and Nestlé World Trade Corporation officially signed a contract on sales, distribution and logistics. The contract was signed by Jacques EPARS, Director of Operations for Central and Eastern Europe, Nestlé S.A., and Darko MARINAC, President of Podravka d.d. Management Board.

According to this agreement, Podravka d.d. obtained the right to distribute and sell specific products of the Nestlé Group in the territory of Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Kosovo and Macedonia. The term of the contract is 5 years, and the contracted commitments of both parties begin on 1 January 2003. It has been foreseen that in 2003, trade with Nestlé brands could reach a total exceeding 500m kuna.

Within its own distribution network, Podravka will distribute a broad range of Nestlé products in the following categories: milk powder (NIDO), baby food (NAN, ALFARE, ALPREM, AL110, NESTLÉ), instant coffee (NESCAFÉ Classic, NESCAFÉ Gold, NESCAFÉ Cappuccino), cocoa powder (NESQUIK), culinary products (MAGGI, THOMY), and chocolate and confectionery (NESTLÉ, NESQUIK, KIT KAT, LION, NUTS, YES, SMARTIES).

A special contract, which will include a different range of products, is being prepared for the distribution of Nestlé products on the Slovenian market.

The significance of this contract for Podravka is much broader that just ensuring a growth of revenues. Namely, Podravka will gain the chance of acquiring new know-how from a company which is the world leader in food production. This contract also offers the opportunity for additional co-operation between the two companies, such as common production and distribution outside the markets of South-East Europe. Besides this, through the distribution of Nestlé products, Podravka will reduce the costs of its own distribution network and improve profitability.