Sokolow planning expansion in European Union countries

2010-09-04

Sokolow, a Polish producer of cold meats, plans to expand in the European Union countries. At present, the products under the Sokolow brand name are available in Germany and Great Britain. Until 2012, however, the company intends to introduce its cold meats in other EU member states. The expansion project will be supported by Sokolow’s owners, i.e., Danish Crown and HK Scan, which have a wide network of distribution in Europe.
In order to enter the European markets, Sokolow has decided to enlarge its plant in Sokolow Podlaski. The investment will be completed in 2012 and will cost around PLN 50m (€12.5m). Thanks to the enlargement, the factory’s capacity that currently totals to 18,000 tonnes of sliced cold meat a year will be doubled. Moreover, implementation of new technologies will allow to prolong the expiry date of products from 28 to 40 days, which is required by large retail chains in the EU.
Sokolow also plans to strengthen its position on the Polish market, mainly in the salami segment, where it has around a 45% share in terms of volume. By 2015, the producer aims to control 65% of the salami market in Poland. In order to increase a production of salami from 3,500 to 5,000 tonnes a year, the firm will invest PLN 10m (€2.5m) in its Debica-based plant.
Moreover, Sokolow considers acquisitions in the segments where it does not yet have a leading position.