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Leading Mineral Water and Juice Enterprise Aiming to Expand
Kozhuvchanka Ltd., located in Kavadarci, southern Macedonia, in the best way displays the dynamism and potential of Macedonia’s beverages sector. This is the first company to produce bottled natural mineral water in Macedonia, and further on, it not only produces and distributes mineral water, but it also has the official license for the production of Sinalco brand soft drinks and juices; Sinalco is Germany’s oldest soft drink brand. Furthermore, Kozhuvchanka has been growing rapidly in Macedonia where it has a 35% share of the local mineral water market, and a 35% market share of sales of Sinalco juices and soft drinks. All in all, Kozhuvchanka achieves an annual turnover of around €9 million, out of which around 6% to 8% is profits. In addition, Kozhuvchanka also exports its products to Kosovo and Serbia.
General Manager Mitko Janchev says that Kozhuvchanka can produce around 15,000 litres of mineral water per hour and 16,000 liters of juice per hour. He also adds: “Our annual production peaks at about 25 million liters of mineral water and about 23 million liters of Sinalco soft drinks, both produced for the Macedonian market. Kozhuvchanka is profitable but we have chosen to reinvest our profits to make the company stronger. We are taking advantage of Macedonia’s tax breaks on reinvested profits in order to expand our business.” What is more, as part of its expansion plans, Kozhuvchanka aims to acquire a
brewery that will produce a German beer brand.
New brewery and expanded juice line
Kozhuvchanka obtains its mineral water from a high quality spring located only 3 km away from the company’s production facility in Kozhuf mountain. While Kozhuvchanka’s mineral water sales are being strong, Mitko Janchev is ready to sell the mineral water production part of his company to a larger mineral water enterprise, so that he can focus on other projects, including the new brewery, as well as expanding Kozhuvchanka’s line of juices. Kozhuvchanka has already established a very strong brand recognition in Serbia, and any new project undertaken by the company can benefit from this.
Kozhuvchanka is committed to support Macedonia’s economic development and is actively involved in a number of corporate social responsibility projects. It has around 140 employees and a further 150 employees in its distribution channels, and aims to create even more jobs. Mitko Janchev urges European investors to look for opportunities in Macedonia. He says: “Investors should target Macedonia because the Macedonian people are friendly and the government is very supportive of business. This is a good country with good people.”