Turkey's Kervan Gıda taps KPMG for market entry strategy

26 May 2021 Consultancy-me.com 2 min. read

Turkey’s largest soft candy producer Kervan Gida has made a strategic entry into the European market by acquiring a majority in sweet and confectionary company ZPC Otmuchów and its subsidiary PWC Odra. KPMG Turkey provided strategic advisory to the expansion. 

Since launching in Istanbul in 1995, Kervan Gida has grown into a global soft candy powerhouse – supplying to 90 countries worldwide and employing 2,000 employees across the UK, US, Germany and Russia. Products include jelly, licorice, marshmallows, gum and lollipops – distributed via flagship brands Bebeto and Dexters. 

The family business floated shares on the Borsa Istanbul in December last year – a successful initial public offering that raised $60 million. A release informed shareholders at the time that 55% of the raised capital would be deployed for a European acquisition within three years. KPMG’s Strategy Group was called in to support the process, which provided the fundament for a successful deal. 

Turkey's Kervan Gıda taps KPMG for market entry strategy

“We signed a financial advisory agreement with KPMG Advisory to evaluate organic growth opportunities in the European Union in line with our long-term growth strategies,” explained Kervan Gida group head of sales and marketing Oğuz Ay. 

With its growth ambition, Kervan Gida aims to strengthen Bebeto’s footprint, enter the European market and diversify its portfolio to mitigate geographical risks, said Ay. The first step of this process has now been completed, following the purchase of a majority stake in ZPC Otmuchów and its subsidiary PWC Odra.

Umbrella company Otmuchów Group specialises in a wide range of soft candy – distributed through popular brands Odra and Freeyu. Odra is a confectionary brand with a 70-year history of producing delicacies such as halva, duetki and a traditional blend of marshmallows and jelly in chocolate. Freeyu operates at the cutting edge of consumer trends – with a focus on health foods and wholesome breakfast products.

The brands have a high market value in Poland’s landscape: ZPC Otmuchów and PWC Odra clocked a consolidated turnover over €50 million as of December last year – presenting a strong business proposition for Kervan Gida in addition to the target company’s strategic geographical value. 

“We hope to further strengthen our operational capabilities with ZPC Otmuchów. Benefitting from European Union customs duty advantages, diversifying our income sources and strengthening our brand awareness globally are among our other goals,” concluded Ay.