After the takeover of Žito by Croatian food group Podravka, there is a question of whether the new owner will withdraw or make changes to some of Žito's famous brands. Foto: BoBo
After the takeover of Žito by Croatian food group Podravka, there is a question of whether the new owner will withdraw or make changes to some of Žito's famous brands. Foto: BoBo



Žito's brands have a powerful presence on the Slovenian market, but they're not quite known outside the country. At the same time Podravka is one of the most renowned food corporations in the region. The Vegeta brand is one of its three most famous products. With the purchase of Žito, Podravka has strengthened itself on the market. It now also has better access to suppliers, buyers and distributers. It has acquired trademarks and Slovenian expertise. The company doesn't say what it plans to do with Žito's brands. Zenel Bagatelj, a developer of top brands from the Valicon marketing company, says Podravka probably already has a plan.

Žito had perhaps kept alive certain brands of which Podravka will no longer have any use. Bagatelj named certain products from the Šumi brand as an example. He added that Podravka, as the new owner, will certainly specify in its business plan which brands and assets it would sell.

With Podravka's purchase a whole new sales market also opens up for Žito. One thing has to be pointed out though: A new capital investment management strategy is in the making, according to which companies with internationally recognizable brands would rather be kept under state ownership than sold. If the strategy were already in place, the sale of Elan, or maybe even Žito, might not have even happened.