November 7, 2012

Following the acquisition of two biggest Latvian milk processing companies and merged them into Food Union concern, Russian businessman Andrey Beskhmelnitsky, will try to gain a foothold in Lithuania as well.

According to the Verslo Zinios business daily reports on Tuesday (Nov.6), the concern, which seeks to conquer 40% of Latvia's dairy product retail market, has already come up with the brand Rasa, which is suitable for both markets.

"Nobody will stop Beskhmelnitsky. He has experience and money. He has upgraded the technologies at the companies he has acquired and is producing high-quality products. Our grocery chains will be happy if he enters our market as they will get one more tool to put pressure on local producers," Raimondas Karpavicius, chairman of Marijampoles Pieno Konservai (Marijampole Canned Milk, or MPK), told the daily.

"Our home markets include the Baltic countries and the Kaliningrad region. Any new competitor will trigger changes but we have our own course and will not change it," Gintaras Bertasius, CEO of Vilkyskiu Pienine (Vilkyskiai Dairy), told the daily.

According to Forbes' estimations, Beskhmelnitsky's net worth is US$700 million. The businessman racked up his personal fortune by developing Unimilk, one of the biggest Russian dairy processing companies, a stake in which was sold to Danone in 2010.