THE strategy of taking a minority holding in joint ventures is the most appropriate one for Irish food companies looking to expand into eastern Europe, according to Price Waterhouse Corporate Finance.

This route offers the least risk for Irish food companies, which are relatively small by European standards, according to Mr Aidan Walsh, corporate finance partner at the firm's Dublin office. It also allows the company to familiarise itself with the new market and culture before committing further investment.

A market and deal survey of the European food and drink industry by Price Waterhouse has shown that the major growth in investment has been in eastern Europe notably Estonia, Latvia, Hungary, Romania, Ukraine and the Czech Republic. Establishing brands and market positions is relatively less costly in eastern Europe, the report points out.