The idea of forming a consortium or a holding company outside the borders of Croatia has experienced a revival in the business community, with the primary objective being to strengthen market position in the region and encourage export.

The initiating and lead companies are Podravka, Kraš and Franck and further credibility to this idea is the upcoming sale of the Slovenian company “Droga Kolinska,” with each of the above-mentioned companies having a specific interest from the “Droga Kolinska’s” wide corporate portfolio – Franck towards the coffee brands (Bar Caffe, Grand Caffe), Podravka towards the brands Argeta and Cocta, Kraš towards Soko Štark. All three companies have unofficially confirmed the existence of this initiative and, as we have discovered, it is presently being led by Mr. Zdravko Šestak, the President of the Board of Podravka. Mr. Damir Polančec, Deputy Prime Minister and the Minister of Economy, is familiar with the initiative and should be able to provide it with the necessary government support. Although the details of the initiative are not yet formalized and contractually agreed, the idea rests on forming a joint venture company within which the Government would have its share, possibly even the majority share. The companies are expecting that this sort of joint venture ownership model would be of greater interest to creditors and more financially strong than each company individually.
(AmCham)