Following their acquisition of Knjaz Milos, PepsiCo and the Czech Karlovarske Mineralni Vody (KMV) now occupy the leading spot in the Serbian mineral and spring water market, with a share of almost 28 per cent.
Alongside Coca-Cola, which was also interested in acquiring Knjaz Milos and owns the Rosa water factory, the two non-alcoholic beverage corporations in the world have almost half of the Serbian water market. The price that Mid Europa Partners got for Knjaz Milos has not been officially announced, but the media speculate that it ranges between 200 and 250 million euro.
Karlovarske Mineralni Vody, the biggest distributor of soft drinks in Central Europe, and PepsiCo, a global food and beverage company which operates in more than 200 countries and territories around the world, have agreed on a joint venture, that is, buying 100 per cent of ownership in Serbia’s Knjaz Milos.
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This transaction entails purchasing the production capacities of Knjaz Milos in Serbia, as well as well-positioned brands such as Knjaz Milos, Aqua Viva, Guarana, Remix. It is expected that the transaction will be completed in the third quarter of this year, after the approval of the Commission for Protection of Competition.
PepsiCo and KMV successfully cooperate in Central Europe too. The Czech company is a producer and distributor of PepsiCo drinks in the Czech Republic, Hungary, Slovakia and Bulgaria, as well as a distributor of their snacks in the Czech Republic, Slovakia and Hungary.
Mid Europa and its partner in Serbia, businessman Andrej Jovanovic, have already sold the Serbian confectionary and snacks producer Bambi to Coca-Cola for 260 million euro. In 2015, Bambi was acquired by Danube Foods Group together with Knjaz Milos and Imlek for 575 million euro. Interestingly, in 2008, businessmen Andrej Jovanovic and Bojan Milovanovic sold their company Marbo, a successful manufacturer of snacks, to Pepsi for 200 million euro.
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