Ice-cream producers Ekko and Augusto to merge for greater market strength

Przedsiebiorstwo Produkcji Ch3odniczej Augusto from Kalisz and Ekko from Szczecin, both specializing in ice cream and frozen food production, have announced their merger, a move intended to strengthen their market position and enhance opportunities for development. After merging, Augusto and Ekko will control 18% of the Polish market of ice cream and frozen goods. According to a previous agreement, Ekko will transfer its processing equipment to the Augusto plant in Kalisz and the two companies will unite distribution networks and warehouse capacity in order to achieve substantial cost reductions. Artur Z3otnicki, president of Ekko, maintains that since there is such great competition on the Polish ice cream market, only major producers with at least 15% of market share, or small firms operating only on a local scale, have a chance to remain in business. Enlargement of the new group with yet another ice-cream producer has not been ruled out of the question, but Augusto had no official comments to give in that regard. (Rzeczpospolita, p. B2