An acquired taste

North Coast, an importer and distributor of gourmet Italian food, has signed a purchase agreement worth around zł.3.25 million for Rzepin-based dairy producer Latteria-Tinis. The newly acquired firm, previously owned by Spółka Rolna Kalsk, will produce Italian cheeses for North Coast.

Last year Latteria-Tinis generated zł.9.45 million in sales revenue. North Coast hopes to increase that figure to zł.15 million in 2007, zł.28 million in 2008 and zł.40 million in 2009.

Earlier this month the firm also announced its intention to try and acquire Malma, a pasta manufacturer, in a joint bid with Colussi Group. This bid faces competition from firms including Alpina Savoie and Goldman Rosenberg-Polska.

Will these moves mean a change in company strategy, switching the focus from organic growth to growth by acquisition? Giorgio Pezzolato, North Coast deputy CEO, does not believe so.

"Last year the [Latteria-Tinis] opportunity arose," says Pezzolato, "and we are open to new opportunities. We have a three-year strategy [of organic growth] which we have been realizing consistently. We do not want to change the company's main activity from import and distribution. This move is just to broaden the offer," assures Pezzolato.

North Coast's ambitions have encountered some obstacles. The firm had intended to open five own-brand shops in 2006 as well as open a network of stores within larger stores,  but neither proposal was realized. This year could prove more successful on this front, but no concrete plans have been made. "The greatest problem has been finding a proper location, as well as skyrocketing real-estate prices," explains Pezzolato.

All in all, Pezzolato remains optimistic and declares that the firm's projection for 2007 - zł.116.5 million in revenue and zł.14.1 million in net profit - will definitely be met.