Valeo Foods Group, a European sweets and snacks leader, has acquired the independent maker of wafers, biscuits, and confectionery based in Central and Eastern Europe. The company operates under the IDC Holding brand. This acquisition will help strengthen its position in this rapidly growing niche market.
Valeo Foods Group announced in September 2024 that it aimed to buy IDC Holding.
Over a century ago, in Slovakia, IDC Holding was founded, generating annual revenue of about €200 million.
Its diversified portfolio comprises well-known brands such as Horalky, Mila, and Lina, among others.
It's going to be a really good acquisition to make Valeo's platform for sweet snacking even stronger and give it a rock-solid foundation on which development of operations in Eastern Europe can be based.
Ronald Kers, CEO of Valeo Foods Group, commented: "The acquisition of IDC Holding introduces complementary brands and opens the door to significantly strengthening our position in the Central and Eastern European market and solidifying our leading position with our international retail partners".
He further added that "We have optimistic market plans. We can provide profitable growth in the light of better distributions, deeper penetrations, and low-cost logistics." He hoped the strength in union of two powerful organizations shall lead to an improvement in a considerable amount for the long haul.
The acquisition accords with the overall strategy for Valeo's position as leader in the confectionery industry in Europe. With more than 80 brands in its range and revenues higher than €1.6 billion, Valeo is well suited to take benefit from IDC Holding's market existence and product supply.
IDC Holding has about 1,150 employees in three production halls in Slovakia and other subsidiaries exist in the Czech Republic, Hungary, and Poland.
This is because it would make the units within Valeo's operations work more efficiently, thus expanding its presence in the region.
CMI Research: Essential Snack Products Market Intelligence
The snack products market will grow at a significant CAGR during the forecast period of 2024-2031. It is due to an increasing demand for packaged and ready food. Market is expected to cross over the forecast period.
The North American market has dominated the market for snack food products. The S. has been the primary contributor to the aforementioned market.
Analyst Opinion: Strategic Role in Snack Products Market Growth
According to senior management consultant Yash Doshi, snack products are defined as a portion of food, which is smaller than a regular meal and is consumed between meals.
Conclusion: Business Takeaways
Getting IDC Holding brings together more market share for Valeo Foods Group to increase diversification in snacks. This is a strategic move to ensure that the company accounts for the increasing demand for a variety of snacks available in the market besides acquisition benefits. Other firms must take the chance to diversify and maintain competitiveness in an increasingly changing industry.
