Podravka’s Slovenian subsidiary, Žito Ljubljana, has sold its entire confectionery business to UPI Star from Sarajevo. The purchase price is 8.6 million euros, plus adjustments for inventory levels and net cash on the closing date, which is expected to occur at the end of 2025. Podravka officially announced this.
Podravka Group is actively managing its business portfolio to focus more on core operations. Accordingly, Podravka and Žito decided to sell the entire confectionery segment, which includes leading Slovenian brands such as Šumi, Gorenjka, Herba, Mistica, and Bali. The goal is to concentrate Žito’s business on its core bakery activities.
The sale agreement was signed in Ljubljana between Žito Ljubljana and UPI Star Sarajevo. UPI Star will take over the confectionery business entirely, including the employees, brands, and factories in Šumi, Krško, and Gorenjka, Lesce. The new owner intends to continue developing and strengthening these brands. Before closing, UPI Star will establish a company called UPI Star SEE Ljubljana, which will be the ultimate owner.
According to Martina Dalić, Podravka’s CEO, Šumi and Gorenjka are strong Slovenian brands that have been associated with generations of consumers in Slovenia and the region. She expressed satisfaction with finding a partner committed to investing in and developing these brands to preserve their value.
A condition for completing the sale is the separation of the confectionery business from Žito into a new company named Šumi Gorenjka, which UPI Star will then fully acquire. Podravka’s companies will continue to be distributors of the confectionery portfolio in the markets where they already operate.
UPI Star is owned by the family of Rusmir Hrvić, a businessman from Bosnia and Herzegovina, who is also the co-owner and CEO of AS Holding, one of BiH’s leading business groups. Hrvić gained extensive experience in building and expanding food brands, particularly in confectionery and the fast-moving consumer goods (FMCG) sector. This expertise will be key in strategically overseeing the further development of Šumi and Gorenjka. The brands will continue to be led by Slovenian and international management teams aiming to expand business into regional and foreign markets.
In summary, this transaction marks Podravka’s strategic realignment to focus on bakery products while ensuring that beloved Slovenian confectionery brands continue to grow and thrive under new ownership with regional expertise and investment capacity. The deal strengthens regional cooperation between major food companies from Croatia, Slovenia, and Bosnia and Herzegovina.
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