AB "Kauno grūdai" announces the expansion of its fast-prepared products business, investing 32 million euros in a new production facility in Alytus. This marks the company's second fast-prepared products factory in Alytus. The new facility, covering 11,000 square meters, is expected to start operations in early 2024.
According to Andrius Pranckevičius, the CEO of AB "Kauno grūdai," the existing factories are already producing maximum possible quantities, necessitating these investments to meet the current and future demands of customers.
"The market for fast-prepared pasta and cereals is promising and growing both in Europe and globally. Export volumes are constantly rising, and we export about 96 percent of our production. Currently, we have fully utilized all available production capacities, so with the increasing demand for this type of production, we see opportunities for expansion," commented A. Pranckevičius. "Moreover, due to the changed geopolitical situation, there is a clear trend of shortening supply chains – more customers are looking to move their production to Europe to have reliable partners, quality products, and simpler logistical solutions."
The company currently operates two fast-prepared product factories in Kėdainiai and Alytus. The Alytus factory, in operation since 2019, produces approximately 120 million units of fast-prepared pasta in cups annually. The Kėdainiai fast-prepared product factory, operating since 2011, produces and sells 105 million units of fast-prepared pasta in pouches and 40 million units of fast-prepared cereals in cups annually.
The new Alytus factory is expected to produce about 240 million units of fast-prepared products annually – 120 million units in cups (pasta and cereals) and 120 million units of fast-prepared pasta in pouches. The factory's opening is expected to create about 250-300 new jobs.
According to Ignas Gucevičius, the Head of the Food Business at AB "Kauno grūdai," fast-prepared food products remain a popular choice among consumers. The majority of the company's production is exported to the UK, Scandinavia, Southern, and Western Europe. Approximately 4 percent of the total production is sold in Lithuania. Among the popular "Kauno grūdai" brands are fast-prepared pasta "Sun Yan" and fast-prepared cereals "Activus."
"The fast pace of modern life dictates consumer choices, and people constantly seek more convenient, quickly prepared products. This trend is very clear and pronounced, so our goal is to offer high-quality and innovative products to this market," said Ignas Gucevičius, Head of the Food Business at "Kauno grūdai."