BUSINESS

Which Companies in Herzegovina earn Billions on the Import of foreign Brands?

distribution-companiesAccording to some estimates, the fast-moving consumer goods (FMCG) market in BiH is worth around six billion BAM.

As one of the most profitable sectors for doing business, the sales of FMCG products like food, juices, alcohol, cigarettes, hygienic supplies and everything that an average ship sells is subject to major competition.

A battle is being led for the acquisition of an exclusive representation of every foreign brand that sells fast and the most, and personal connections and behind the scenes agreement play and important role here. Crucial role is played by distributors of FMCG, who act as a link between producers and major retail chains like Bingo and Konzum. Distributer, who was granted the right of representation, assumes the obligation of distribution and sale of brands to buyers in the country, while the producer or another company deal with marketing.

Research indicates disproportionally high presence of distributors from West Herzegovina, who represent the majority of popular brands. Many owners of these companies have also opened production plants from the money they earned and thus expanded their business. Income from sales of 30 major distributors on annual level amounts to around 2 billion BAM, and almost two thirds of that amount are earned by companies from Herzegovina.

Ten of the largest distributors in BiH who earn around 1.5 billion BAM per annum are Ataco (Široki Brijeg), Boreas (Kreševo), Dukat (Laktaši), MCI (Široki Brijeg), Mepas (Široki Brijeg), Nelt (East Sarajevo), Orbico (Sarajevo), Planet (Posušje), Violeta (Grude) and Megamix (Sarajevo).

Major brands first entered Croatia in 1992. Since the war was raging in the largest part of BiH and that certain parts of Herzegovina connected to the sea were not affected by war events to a major extent, already during that period the companies from that area established contacts with official representatives of brands from Zagreb. This connection went on after the signing of the Dayton Peace Agreement, when famous brands enter BiH in 1996.

Majority of cards have already been dealt and representative rights were granted ten to twenty years ago, and changes happen rarely. For example, distributer MCI from Široki Brijeg distributes Nivea products, as well as KitKat and Lion chocolates and other Nestle products, trademarks like GlaxoSmithKlein, including Aquafresh toothpaste, Jaffa cakes and many others.

Distributor company Mepas from Široki Brijeg is a distributor of the company Storck, which produces famous chocolates Merci, Toffiffee, Knoppers and others. In addition, Mepas distributes trademarks of the companies Kandit, Koestlin, Gavrilović, Saponia, and many others.

Company Boreas from Kreševo, member of the Stanić group, is an exclusive distributor of Juicy juices, alcoholic beverages like Baileys, Johnnie Walker, MB Beer, Amstel, Heineken, Smirnoff, as well as Phillip Morris cigarettes, including Marlboro.

The mentioned companies and products are only a part of brands that companies from Westn Herzegovina distribute.

(Source: faktor.ba)

Leave a Comment