Podravka - exclusive distributor of the Heinz brand in Hungary

A contract will be signed in Budapest today between Podravka and Heinz, making Podravka exclusive distributor for Heinz in the Hungarian market. The contract will be signed by Pavel Herman, CEO of Heinz for the markets of Central Europe, and Dražen Pros, CEO of Podravka International in Hungary. Podravka will distribute Heinz's ketchup, sauces and a selection of the ABC range of products.

A contract will be signed in Budapest today between Podravka and Heinz, making Podravka exclusive distributor for Heinz in the Hungarian market. The contract will be signed by Pavel Herman, CEO of Heinz for the markets of Central Europe, and Dražen Pros, CEO of Podravka International in Hungary. Podravka will distribute Heinz’s ketchup, sauces and a selection of the ABC range of products.

For a long number of years Podravka has been present on the Hungarian market with its own products, and eventually established a company there – Podravka International Budapest – in 1993. At the very beginning, it functioned as a commercial-distribution company, However, due to high customs tariffs and the relationship of Hungary with CEFTA countries, the decision was made to build a Vegeta factory in Mohacs. The construction began in 1995 and the factory started production in 1996. During the first six months of 2002, Podravka’s revenue from the Hungarian market amounted to 31.3 million kuna, which is 8% more than in the same period of the previous year.

Heinz is the largest producer of ketchup in the world and of individual brands in the USA. In 2002 (the fiscal year begins in June and lasts until June of the following year) Heinz sold products to the value of nearly $ 9.5 billion. You can find more information on Heinz at www.heinz.com.

Dražen Pros, CEO of Podravka International Budapest, claims that such co-operation between Podravka and Heinz benefits both partners: “In the last ten years Podravka has built a respectable position on the Hungarian market with its brands Vegeta and Podravka, and developed a distribution network of food products. The branded goods and products of Heinz complement our current range of distribution, and I am convinced that such co-operation will be to the interest of both parties.”

The participation of Heinz’s branded good in the range distributed by Podravka, widens the customer supply, reduces distribution costs, and opens further opportunities for co-operation on other markets.