November 13 2007, 09:42

Sypko will create family agri-holding based on "Sandora" sales revenue

Sergey Sypko, the former co-owner of large Ukrainian juice producer of "Sandora" company (in Nikolayev) is intended to create family business in agri-industrial complex. He provided this information to the journalists of Ukrainian News. "We plan to create family business related to the development of agri-industrial complex", he said. Mr. Sypko specified that this holding will be of vertically integrated structure - it will produce and process agricultural crops. The company won't be involved in the sales of ready products to final consumers. "We won't do the only thing we did in "Sandora" - we won't sell product to final consumers. We will do business for business", he said. Mr. Sypko did not mention the products to be produced by the company, because the business plan had not been ready yet, it was just on the development stage. "It is too early to speak about final cost of the project, because the business plan has not been ready yet. When it is ready, we'll have clearer understanding about the funds needed for this business", Sypko emphasized talking about the investments to this project. The project costs around $ 60 mln. on the first stage.

The farm "Integrated Agrosystems", owned by Sergey Sypko and his son Andrey (former brand-manager of LLC "Sandora") has constructed a plant for tomato paste production this year. The owners of the farm refuse to mention the construction cost of this plant. Today's capacity of the enterprise is 750 tons of products/day (around 45,000 tons in season); the plant will produce up to 1 thousand tons of tomato paste per day next year. Taking into account a serious deficit for quality raw materials on the national market, the businessman will primarily develop a raw material base to load processing capacity. According to Maria Kolesnik, the Chief of Analytical Department, "AAA" consulting company, the average tomato yield can be increased 10 times, up to 100 centners/ha by means of drip irrigation system and transplants planting. Tomatoes do not need crop rotation. "Integrated Agrosystems" farm rent around 3,000 ha of land in Khersonskaya and Nikolayevskaya regions. This year the enterprise prepared 220 ha of land for tomato planting; it plans to increase tomato cultivation areas for another 500 ha next year. Andrey Sypko has earlier said that the farm planned to sell tomato paste in Ukraine and Russia.

Earlier Sergey Sypko occupied the position of General Director of "Sandora" LLC; he owned 10% of the company. We'd like to remind that the companies PepsiAmericas and PepsiCo concentrated 100% of "Sandora" company in November. The total cost of the purchase amounted to $ 678.7 mln. "Sandora" LLC was founded in 1996. The production capacities of the company include the plant for fruit, vegetable processing and juice production (Nikolayevskaya region), juice production plant (Nikolayevskaya region), two fruit & vegetable processing plants (Crimea and Khersonskaya region). "Sandora" produces juice products under brands: "Sandora Exclusive", "Sandora", "Sandora Classic", "Sandora Fresh Berry", "Dar", "Sadochok", "Sandorik", and also cold tea SANDAY and two wine brands "Golden Olvia" and "Celebration Collection".