Consolidation is underway in the Lithuanian bakery sector
There is a clear consolidation in the Lithuanian bread sector, notes Artūras Kokoškinas, the head of Vilniaus Duona. Without the backing of investors, bakeries have a harder time withstanding competitive conditions.
"Today, there is probably the last bakery left on the market from the times of consumer cooperatives, but it is also looking for a buyer. This shows that historical, local market participants are finding it increasingly difficult to withstand the current market conditions without their backs. This requires investors. Competition in the bakery sector is extremely fierce. Some players are applying aggressive low-price strategies," said the head of Vilniaus Duona.
On the other hand, it is the size of business that allows the sector to modernize and maintain competitiveness. Investment in technology, automation, energy efficiency and innovation is becoming a necessity.
Last year, Vilniaus Duona invested EUR 3.2 million in innovation and automation. This year, a similar amount will be allocated to sustainability, heat recovery and automation projects.
The transformation of the sector is taking place all over Europe – we are no exception. It is gratifying that Lithuanian rye bread does not give up its position in the basket of Lithuanian buyers.
Read more about the changes in the bakery market in the article Verslo žinios.
