Aviko Rixona Cement Acquisition of Nestle Nederland Potato Activities

Nestlé Nederland and Rixona have signed a multiyear agreement on the production of potato products for Nestlé, which will remain responsible for the marketing and sale of potato products under its own brand names.

25/01/05 Aviko Rixona, and Nestlé Nederland have reached agreement on Rixona’s acquisition of Nestlé’s potato activities in Venray, the Netherlands, which was originally announced in May 2004. Rixona will acquire all the potato processing activities. Aviko Rixona Director O van der Gronden would not reveal the fee. Van der Gronden told FoodIngredientsFirst that the move will help them gain a 10% share in the potato flakes business and give them an outpost into the retail industry, especially considering Nestle’s position in this area.
Nestlé Nederland and Rixona have signed a multiyear agreement on the production of potato products for Nestlé, which will remain responsible for the marketing and sale of potato products under its own brand names. Nestlé’s other culinary production activities in Venray are not included in the transaction. All staff engaged in Nestlé’s potato activities in Venray will be transferred to Rixona. Rixona’s and Nestlé’s works councils have advised positively on the transaction. The activities are expected to be transferred on 31 January 2005.
Aviko Rixona is part of The Aviko group, a member of Royal Cosun. It is one of the largest manufacturers of potato products in the world, commanding 20% of the European market. Aviko Rixona exports across the world but has 80% of its business in Europe.