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EBRD supports Macedonian health food producer Vitalia
Bank invests €1 million to support company’s expansion
Vitalia, a leading branded health food producer in FYR Macedonia, is to expand its operations with the help of an equity investment from the EBRD. The Bank is investing €1 million in the company.
The EBRD financing will help Vitalia further expand on the Macedonian as well as new, regional markets, develop new branded products and strengthen its direct distribution network.
From a small shop selling imported healthy food products in 1993, Vitalia has grown to become a leading producer of 145 different specialised health food products, including sugar-free and low-calorie products, natural bio-products, cereals and food supplements. With its high-quality products, competitive prices and intensive cross-border operations, Vitalia is one of the leading brands in this niche market, competing successfully with Western producers locally and across the region.
With the help of the EBRD finance, Vitalia will be able to fund the expansion of its production capacity and enhance its export potential, providing the opportunity to create new jobs in the company.
The new investment will increase the share of domestically procured raw materials with a significant benefit for Macedonian farmers who typically experience difficulties in placing their production.
The EBRD is providing the equity finance under the recently established EBRD-Italy Western Balkans Local Enterprise Facility (WB LEF*) which provides individual investments in the range of €1-4 million.
Claudio Viezzoli, EBRD Director for the Western Balkans, said Vitalia would use the EBRD finance to continue strengthening its market position through premium branded products that will help company also enter new regional markets. This finance will act as an important signal that other private, export-oriented companies in FYR Macedonia can attract adequate long-term financing, Mr Viezzoli added.
Nikola Vetadzokoski, Vitalia’s CEO, said that the EBRD support will assist Vitalia not only by enhancing its production capacity but also developing a wide range of new products to meet increasing demand. With EBRD’s support, Vitalia will strengthen its leading brand position in the health food sector in the region and will expand operations by offering its products to new markets in Europe and further afield, Mr Vetadzokoski added.
The EBRD is one of the largest investors in FYR Macedonia, having invested more than €412 million in 36 projects. The Bank has mobilised another €525 million through other – mainly private – sources. In the agribusiness sector alone, the EBRD has committed €4.9 billion in 345 projects across central and Eastern Europe and the Commonwealth of Independent States.
*WB LEF is an investment facility established by the EBRD with financial contributions and support from the Italian government. WB LEF is contributing to the economic recovery of selected Western Balkan countries (Albania, Bosnia and Herzegovina, FYR Macedonia, Serbia, Montenegro and Kosovo) through the provision of mainly equity and quasi equity financing to small and medium local enterprises.
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