Podravka from Koprivnica is a real economic giant from the North-Western part of Croatia. Every sixth resident of Koprivnica is employed by Podravka. The company's most recognizable product, Vegeta, which is exported to 70 countries, can be seen from every part of town.

However, the sale of Podravka's food products is stagnating, mostly due to the economical crisis in the region. The purchase of the Slovenian Žito company was vital, as Podravka doesn’t have a bakery industry in its offer. Managing director Mrsić says Žito was purchased in order to make more money and not losses. The bakery industry is said to have room for expansion.
»Bakery is an industry which is being consolidated, that is why we see opportunities in it. Especially regarding products for hotels and restaurants. That means in the tourist sector, which will grow in this region,« he explained. According to Mrsić, Podravka is a low debt company and is able to provide the money for the purchase of Žito’s shares. “We can cover the purchase of 100% shares, with a bridge loan,” he assured.

Podravka demands a more ambitious Žito
Regarding the employees in Slovenia, Mrsić promises to respect the new collective agreement, which is valid until 2019. Workers have nothing to fear. He was less clear regarding the purchase of Slovene wheat. Supplier contracts which have already been signed will be respected, but he was not clear about the future. His words generate fear: “We purchase large amounts of wheat and process it into added-value products. We also sell large amounts of flour in Croatia and other countries.”

The head of Podravka added that the current Žito management board has his full support. However he does expect them to come up with a more ambitious business plan. Podravka, as its strategic partner, will provide the funds for it.

Vanja Vardjan, RTV Slovenija; translated by K. J.