Droga Kolinska
Media
Žito to be the new owner of tea, rice, milled products, spice and spice mix programmes
Droga Kolinska and Žito in Ljubljana have agreed that as of 1 March 2009, Žito d.d. Ljubljana will assume ownership of the programme of teas sold under the 1001 CVET brand name, the programme of rice and milled products sold under the Zlato Polje brand name and the programme of spices and spice mixes sold under the Maestro brand name. Žito will assume control of all the brand names and the relevant resources, including all 95 employees associated with these programmes.
Iztok Bricl, President of Žito's Management Board, had the following comment: "By purchasing the tea, rice, milled products, spice and spice mix programmes, Žito has taken a new step in implementing its business strategy of developing the company through product programmes outside the baking sector, where we are encountering declining sales volumes due to the opening of in-store bakeries at our largest buyers."
Milena Štular, member of Droga Kolinska's Board of Directors, added: "Droga Kolinska is pleased to have found an owner such as Žito for our established brand names. Žito is a well-known Slovenian company that will ensure the further development and growth of these brand names. It is also gratifying to know that these popular products will be available to consumers on the shelves of Slovenian stores in the future."
This sale marks the fourth in a series of sales involving small programmes, announced by Droga Kolinska in April of this year. The decision to make this sale was driven by Droga Kolinska's recognition that it does not have sufficient resources to ensure the long-term future of all its product programmes and brand names. Droga Kolinska expects to transfer its remaining smaller programmes to new owners by the end of March 2009.
Product programme sales revenues will be used for investments in key product programmes and to decrease the Droga Kolinska Group's debt.
Droga Kolinska will inform the public as each agreement with new products programme owners is reached.
For additional information:
Droga Kolinska: Polona Vagaja, Public Relations Director, 01 4721 695; polona.vagaja@drogakolinska.si
