Drinks growth boosts SIG in Hungary
the continuing growth of the soft drinks market in Hungary is
likely to support a period of growth that will last well into next
year.
The division says that it has been rushing to fulfill a series of major orders as beverage companies race to upgrade their facilities in an effort to comply with EU regulations on safety and hygiene, as well as to meet an anticipated boom in demand once Hungary becomes an EU member after 1 May.
One of the biggest orders the division has carried out to date has been for the Hungarian fruit juice processor Sio Eckes. SIG installed a state-of-the-art carton packaging and filling line at the company's production facilities in Siofok, southwest Hungary.
"This is a major new customer for us and gives us reason to believe that the growth SIG experienced in Hungary last year can be sustained throughout this year," said SIG Combibloc Hungary CEO Tamas Ruboczky.
In 2003 the division posted total sales of HF4 billion, 12 per cent up on the previous year's results. Ruboczky believes that the continued growth of the domestic market can be sustained at similar levels during 2004.
SIG's operations in Hungary specialise in the premium soft drinks area, mainly for fruit juices and nutritional drinks. This segment remains relatively small in Hungary, but Ruboczky believes it still holds plenty of promise.
"Although overall growth for the soft drinks market in Hungary ran at around 17 per cent by volume last year, the market is polarised. Most of this growth was fed by the lower end of the market, whereas we are specialising in the premium end of the soft drinks market. Having said that, this small market segment is showing rapid growth that we expect will be sustained for some time to come."
