KG Group Invests 20M EUR in New Plant in Lithuania European demand for instant noodles,
the existing production capacity and at
an Asian food staple, is increasing,
the same time allows to maintain the
while the Covid-19 pandemic is
same level of quality control.
leaving many supply chains broken. As
The 6.5 thousand square meter
European instant food buyers, such
production facility houses state-of-
as supermarket chains, are looking
the-art equipment, which the company
for local producers, Lithuanian instant food company invests 20M in a new
acquired from leading German, French,
local production facility. This is the
Swiss, and other manufacturers in
second company’s production facility in
today will be increased up to 180 million
Europe, complying with the latest
Lithuania.
units per year.
quality standards (the highest AA
September 7, 2020. Global Instant
KG Group is already operating in the
Noodles market, according to a new
UK, producing noodles, pasta, oatmeal
report, is growing despite the Covid-19
porridges and rice for this market. In
The commercial range of instant foods
crisis, and is estimated to reach USD
2019 more than 34 million units were
produced by KG Group includes instant
32.1 Billion by 2027. Up till now, most of
sold in the UK, while in 2020 this number
noodles and porridges in cups and
this instant food has been produced and
rose to 56 million units (sold until July,
pouches labeled with brands well-known
bought from different Asian countries.
2020). The products of KG Group may be
in Lithuania and abroad, such as Sun Yan,
found in most large supermarket chains
Activus, Dorea, and Just Inn. More than
of the UK. The new production facility is
forty major foreign companies, including
expected to fill a significant portion of
large supermarket chains trust their
demand for instant noodles in the UK
private label production with KG Group.
grade according to BRC Global
However, the coronavirus pandemic is affecting the market of this Asian staple food, among many others. As many companies are looking to alter their supply chains to be less dependent on
and to decrease the country’s reliance on
Standards Version 8).
Asian suppliers.
The technological features of the
Covid-19 crisis, they are exploring the
“We are glad we will be able to meet the
competencies and knowledge of the
options of local production. Exclusive
increased demand of local buyers, many
R&D Department even more effectively
reliance on Asian suppliers has shown its
of whom are European supermarket
introducing new products. KG Group
drawbacks as supply chains were cut or
chains. A new production plant in Alytus
produces new categories of instant
unreliable during the pandemic.
city is our response to the rapid growth
products in cups such as pasta, cereal
of consumer demand, and changes in
mixes, granola mixes, and couscous.
In order to satisfy the need for instant
global supply chains,” said Tautvydas
Private label services are available as
noodles and porridges in the European
Barštys, Chairman of the Board of KG
well.
FMCG retail market, including the
Group. He added that Alytus city is
UK, KG Group - one of the biggest
strategically favourable from a logistical
KG Group started the instant product
agriculture and food groups in the Baltic
point of view, as KG Group exports 95
business eight years ago, when the
States - is launching a modern instant
percent of instant food production.
first production facility, operating
Asia, especially China, in the wake of the
noodles production facility in Alytus city, Lithuania, after having attracted 20M
The new facility is an important addition
EUR investment.
to the KG Group chain of production.
The newly introduced technologies
quality the group exerts control over and
will not only increase the production
takes responsibility for all processes of
capacity, but they will also enable a
production from field to table. KG Group
greater variety of products and speed up
buys grain from Lithuanian farmers,
the production process by 4-5 times. The
selects it with care and uses the group-
capacity of forty million units of instant
owned mill to ensure the highest quality
food in cups that KG Group produces
of flour. The new local facility expands
To ensure the highest standards of
production facility help to embrace the
to date, was opened in Kėdainiai city. Further plans of the company include the development of products and the range of items, an increase of sales volumes, a supply of new products to consumers, development of export volumes. The main focus is on exports to Western Europe, Spain, Great Britain, and Scandinavian countries. www.kggroup.eu/en
FDPP - www.fdpp.co.uk 23
