EBRD offers loan to Kervan Gida confectionery for production expansion
The European Bank for reconstruction and development (EBRD) has confirmed a five-year loan of US$ 7.5 million to Turkish confectionery business Kervan Gıda to expand its production operations.
According to the business, the finance will enable it to develop its domestic market, as well as purchasing a new fast-track jelly moulding line to help increase its capacity within its factory in Manisa, western Turkey.
Last year, Kervan acquired the UK-based confectionery business Dexters, which has a number of renowned British brands of sweets, including Chewits and Fruit Factory, which added to its existing Bebeto line. The company has previously said that it had targeted the UK as a market with particularly strong potential, which has resulted in it increasing its presence within the region.
In addition to its loan, the EBRD is providing Kervan with business advice on potential expansion into new markets in the Balkans and Eastern Europe. The Bank will also help the company enhance its corporate governance and increase the share of locally sourced raw material, strengthening its relationship with local suppliers.
Kervan, which was founded in 1995 by the Basar family, is believed to be the largest jelly exporter in Turkey, and also produces other confectionery products such as liquorice, marshmallows, lollipops and gums. It has three production facilities in Turkey and multiple representative offices abroad. The company employs a total of 1,400 staff.
The EBRD is a major investor in Turkey. Since 2009 it has invested nearly €11 billion in various sectors of the Turkish economy, with almost all investment in the private sector.