Russia and Ukraine targeted

Kerry Group hopes to expand into the Russian and Ukrainian markets over coming years by establishing manufacturing operations in the region.

The company's deputy managing director, Mr Denis Cregan, said yesterday that Eastern Europe in general held significant opportunities for the firm.

He said Kerry was "on a serious growth path" in the region, but highlighted political instability as a barrier to investment in the very near term.

The company is likely to firm up its expansion plans for Eastern Europe over the coming two years, with investment probable within a five-year horizon.

Mr Cregan said no "vehicles" for expansion into Russia or the Ukraine had yet been identified but described the countries as "growth territories" where appetite for Kerry's offerings was growing.

The company reported particularly sound growth in snack foods in Eastern Europe over the first half.

Kerry already operates fruit preparation and seasoning plants in Poland and Hungary and has a sales presence in Russia through an agent.

Any further expansion would be likely to come as a pure Kerry initiative rather than a joint venture, according to Mr Cregan.

The company's history in new markets such as Brazil and Mexico would suggest that entry into Russia and the Ukraine would come through the acquisition and development of existing manufacturing operations rather than through "greenfield" investment.