Organic baby food processing and marketing
A well-established food processor used investment support from the Estonian RDP to expand the range of baby food products it offers and thus maintain its dynamic growth.
‘AS Salvest’ is a fruit and vegetable cannery located in Tartu with a long history dating back to 1946. The company is now a major food producer and exporter. Among its range of products are organic baby food products sold into the Estonian and global markets.
In order to continue its dynamic expansion, the company decided to apply for investment support from the Estonian Rural Development Programme (RDP). A new vacuum-boiler production line was installed along with new bottling lines for making plastic-bottled mayonnaise and ketchup for kids, as well as, the PÕNN juices in glass bottles. Previously, the company had to outsource these production processes.
The project enabled the company to consolidate its position as market leader in the Estonian baby food market, where it has more than 40 % of market share.
The investment allowed the company’s exports to grow with new categories of products, such as its organic smoothies.
Its production capacity increased to about seven million kg per year (all products combined). In 2012, the company’s total volume of production was two million kg.
All organic products have a special trademark and have been awarded several times.
Based on studies conducted by AC Nielsen, in October 2012 the market share of Salvest Põnn was 17.2 %. By October 2018, following this successful investment, it had increased to 41.6 %.