A day after Forbes Serbia reported that a company ultimately owned by Aleksandar Kostić intends to acquire the Crvenka sugar factory, confirmation of this information followed. In a statement, MK Group said, among other things, that this acquisition would enable “a broader implementation of Sunoko’s strategy for the sugar production sector…”
They also stated that preserving the independence of the national sugar industry and ensuring the security of sugar production as a basic foodstuff is in the general interest.
However, it is notable that MK Group’s statement also points out that, unlike almost all countries in the region, Serbia is a net exporter of sugar and has production sufficient to meet domestic demand.
“A potential merger represents a development opportunity that would enable further expansion into foreign markets and increased sugar sales in the region and Europe.”
A potential monopolist
In other words, if it obtains approval from antitrust authorities and completes its intended purchase of the Crvenka sugar factory, MK Group will become a stronger regional – and even European – player in the sugar market. At the same time, however, it would effectively become the only domestic producer of this commodity. As Forbes Serbia has reported, the only entity remaining outside this system would be a small factory in Vrnjačka Banja, Mega Plus d.o.o., which primarily produces sugar cubes.
MK Group would thus become, in effect, a monopolist in Serbia, with no real competition in sugar production – even if the Commission for the Protection of Competition were to grant conditional approval, for example, by requiring the closure of one of the sugar factories it would own.
It should be recalled that, in addition to Sunoko, MK Group has, since the end of March, also owned the Šajkaška factory, which it purchased from the Greek fund Novus Symmetoches M.A.E., the current owner of the Crvenka plant.
MK Group did not respond to Forbes Serbia’s questions before publication. The outlet had asked whether the company expects a favourable decision from the Competition Commission and what guarantees there would be, in the event of acquiring the Crvenka factory, that it would not abuse the dominant market position it would hold.
Impact on future sugar prices
Those familiar with the sector say that any such acquisition would inevitably give MK Group a near-monopoly. This, in turn, inevitably increases the likelihood of changes in sugar prices – in other words, potential price rises – since there would effectively be no competition in production.
On the other hand, as sugar imports are liberalised, it is not impossible that, should MK Group abuse its future market position, sugar imports would increase. This would also raise pressure on the producer to lower prices.
Sources say that acquiring an almost monopolistic position does not automatically mean higher prices, although the risk of such an outcome would increase.
They explain that the Greek owner of the Crvenka factory has almost certainly decided to exit the Serbian market – particularly as this company is not primarily engaged in the sugar industry. Until February 2023, the factory was owned by the Greek company Hellenic Sugar Industry. At that point, Novus Symmetoches M.A.E. acquired 100 per cent ownership.
Due to the ongoing crisis in the European sugar market, which has persisted for years, even traditional companies in the sector are exiting – especially those for whom sugar production is not their core business.
On the other hand, MK Group has emerged as the logical buyer – although media reports suggest that other companies from Europe and the region have also shown interest in Crvenka. MK Group, it should be noted, has been in this business for more than two decades and today owns the country’s largest sugar producer.
Consolidation as an inevitability
Sources say it is not inconceivable that MK Group itself, if and when it acquires Crvenka, will implement some form of consolidation. The reason lies in the fact that the number of sugar factories in Europe – and the region – has long been declining. They do not rule out the possibility that the company might propose closing one plant as a condition for obtaining approval from the Competition Commission.
An example is the offer by coffee producer Atlantic Grupa, which proposed shutting down its factory in the Belgrade neighbourhood of Ledine in order to secure approval for a merger with Strauss Adriatic.
Whether this will happen in the case of sugar remains uncertain… What is clear, however, is that the Commission for the Protection of Competition must examine all relevant documentation and assess the extent to which competition in the sugar market would be affected – and, consequently, the potential risk of price increases should Serbia effectively be left with a single producer.
Industry insiders believe that MK Group will attempt to achieve its aims by presenting evidence to the antitrust authority that, in this case, the relevant market is European or regional rather than Serbian. On the one hand, sugar imports are liberalised, creating potential competition; on the other, neighbouring countries are largely sugar importers, so consolidation in the domestic market could enhance competitiveness abroad.
However, the question remains whether such reasoning will be accepted by the national Commission, whose remit concerns the domestic market rather than the European one.
Conversely, one factor that could tip the balance in favour of approving the concentration is that the factory would come under the umbrella of a larger, proven company in the sector, potentially preventing further deterioration – especially given that the sugar factory’s revenues have halved compared with 2023 and that it has operated at a loss over the past two years.
Crisis in the sugar market
Both the European and regional sugar industries are facing one of the most severe crises in recent decades. Sugar factories are closing not only in the region but also in EU member states. The reason is a decline in sugar prices due to weaker demand, driven by changing consumer habits and reduced use of sugar in the food industry.
Around twenty years ago, Serbia had 15 major sugar factories; today, it effectively has four, two of which can be classified as smaller. A similar trend is visible across the region.
According to agro-economists, the European Union had more than 250 sugar factories at the beginning of the century; today, there are around 90.
Experts expect further consolidation – that is, a continued reduction in the number of sugar production facilities. Some even suggest that within a few years Serbia could have just one large sugar factory.
This is particularly likely given the sharp decline in sugar beet production. In Serbia alone, according to official data, production in 2025 was about 26 per cent lower than in 2024. The slightly more than 34,000 hectares recorded last year represent the lowest level in the past 20 years.
(Forbes Serbia, 06.05.2026)