KTG Agrar SE: High international demand for food made in Germany

28.10.2014  |  DGAP

- Internationalisation an opportunity also for medium-sized food producers
- Interest from China, South America, France and other countries
- Much larger quantities of potato and vegetable products delivered in Germany

Hamburg, 28 October 2014. "Made in Germany" enjoys great international popularity not only in the industrial sector. Food produced in Germany is also in high demand. This is the conclusion drawn by KTG Agrar SE (ISIN: DE000A0DN1J4) after the Sial food exhibition in Paris, the premier event of the food industry. Between 19 and 23 October, more than 6,000 exhibitors and some 150,000 visitors from all over the world converged on the French capital. "Internationalisation is a genuine growth opportunity also for medium-sized German food producers and a possibility to diversify their distribution channels," said Siegfried Hofreiter, CEO of KTG Agrar SE. "Consumers all across the globe attach more and more importance to quality and control. The German food sector has the highest standards, giving us an important competitive advantage which we will exploit even more in future."

At the Sial exhibition, the KTG Group for the first time presented its "from field to plate" strategy and its integrated brands to an international audience. Says Siegfried Hofreiter: "Takeovers and investments have helped us build up a unique business model over the past years. Today, we supply produce from a single source with a unique origin and producer concept. We are very pleased that this strategy receives great recognition also on an international scale."

KTG Foods comprises Frenzel Tiefkühlkost, Bio-Zentrale Naturprodukte, Ölmühle Naturöl Anklam as well as the "Die Landwirte" brand and the fresh produce facility in Linthe.

KTG presented a selection from their range, which comprises over 400 conventional and organic products from frozen vegetables to soy oil at the exhibition. "We received a lot of positive feedback for our brand portfolio, whose products are available in nearly all package types," said Reinhard Meißner, CEO of KTG Foods SE. "We are very confident that the talks held will result in deals being closed in the coming weeks." KTG welcomed numerous Chinese delegations, importers and trade agencies from the country's different provinces and conurbations. They were particularly interested in Bio-Zentrale's range of organic products and the "Die Landwirte" mueslis. Retail chains from South America and Eastern Europe also showed great interest in products from organic cultivation. The company has just signed the first cooperation agreement with a leading retailer. Potential customers from France were very much interested in mueslis and convenience food.

Overall, KTG Agrar's food segment is performing very well and will continue to grow in the coming years. Having contributed approx. EUR 56 million to KTG Agrar's consolidated sales revenues in 2013, the segment is expected to generate revenues of as much as EUR 100 million this year. The segment will also make the first contribution to the Group's growing profits. Germany will remain the main market of KTG Foods. For the 2014/2015 season, KTG has signed delivery contracts for much larger quantities of potato and vegetable products with the retail sector. This applies to all brands of the Group


About KTG Agrar SE

With cultivable land of more than 43,000 hectares, KTG Agrar SE (ISIN: DE000A0DN1J4) is one of the leading producers of agricultural commodities in Europe. As an integrated supplier, the company produces agricultural commodities and renewable energy and food. The Hamburg-based company's core area of expertise is the organic and traditional cultivation of market products such as cereals, potatoes, soy and rapeseed. For organic market products KTG Agrar is the European market leader. The company mainly produces in Germany but has also operated production in the EU member state of Lithuania since 2005. As a result of the takeover of Frenzel Tiefkühlkost and Biozentrale Naturprodukte, KTG has expanded the value chain by the production of food since 2011. In the year 2013, KTG achieved a total output of EUR 205.3 million and EBIT of EUR 23.9 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and had 775 employees at year end 2013. Further information can be found at www.ktg-agrar.de.


About KTG Foods SE

KTG Food SE is a single-source supplier of natural foods from the field to the plate. The company based in Linthe, Germany, is a wholly owned subsididary of KTG Agrar SE, a publicly listed company. The KTG Group farms more than 40,000 hectares of land, operates its own processing plants for fresh produce, frozen food, cereals and edible oils, and markets its products under a number of powerful brands. This value chain underpins the company's unique guarantee of origin. Regionally harvested and produced with great care, the Group's unadulterated conventional and organic products are marketed under the Bio-Zentrale, Frenzel Tiefkühlkost and Die Landwirte brands.



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