Lithuanian Food Manufacturing Company Acquires Range of Organic, Ready-Made Products

Kauno Grūdaugai, one of the largest food manufacturing companies in Lithuania, has acquired shares of Auga Group, one of the largest producers of organic products in the Baltic States. Kauno Grūdai will acquire the shares of Auga Group’s soup and canned products production unit Grybai LT.

Grybai LT’s main products include ready-to-eat organic soups, curries, cereal meals and organic vegetables in packets, totaling about 70 product names. The annual production is 8 to 9 million packets of products that are exported to more than 30 countries. In 2022, Grybai LT's revenue totaled $7.5 million.

“We have agreed that for 18 months, we will be able to use the Auga brand for ready-to-eat soups, stews and cereals,” said Andrius Pranckevičius, CEO of AB Kauno Grūdai. “Afterward, we will replace it with our own brand — Activus, which is aimed at active and busy people who take care of themselves, especially the younger generation.”

Offering customers a line of organic and eco-conscious soups, stews, cereal dishes and organic vegetables in packets will not only help meet growing interest in sustainable products — an entirely new segment for Kauno Grūdai — but will also lead the company to previously unexplored markets such as North America and Asia, the company said. Grybai LT has already established itself as a market player in the UK, Sweden, France, Spain and Germany, where Kauno Grūdai aims to assume leadership and continue expanding its operations.

“Our goal is to expand by diversifying our activities, and the most appealing option appears to be expansion in the ready-made food segment,” said Pranckevičius. “Following the acquisition of Grybai LT, three new product groups will be added to our portfolio.”

The company’s line of instant noodles products is already established in the EU market, having partnered with 30 of the EU's top supermarket chains. Kauno Grūdai hopes to expand manufacturing to 24 hours a day and sell additional goods to clients who already buy its instant porridges and instant noodles in the EU.

To accomplish these goals, Kauno Grūdai plans to invest an additional $4.6 million over the next five to six years to boost its maximum manufacturing capacity to 33 million packets per year.