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A strategic move by OYAK in the food industry

An important move is taking place in the food industry, which is one of the top strategic industries in the world. OYAK signed a purchase agreement with Sanset Gıda and in collaboration with Sagra, a well-established brand in the Turkish chocolate market, applied to the Competition Authority to acquire Tadelle, Sarelle and Gol brands under the OYAK Group Companies. OYAK General Manager Süleyman Savaş Erdem stated that the significance of agriculture and food industries has increased even further with the pandemic, and said, “We already operate in the agricultural industry. We will also grow in the food industry. We will advance Sagra, an 85-year-old well-established value.”

 

OYAK made an important move in the food industry, which had gained more significance even during the pandemic period, exceeded TRY 120 billion in Turkey, and has an export target of TRY 40 billion in 2023. OYAK continues to contribute to the Turkish economy with its strategic investments and has included the food industry in its sustainable growth plans. OYAK signed a purchase agreement with Sanset Gıda and added Sagra, which was founded in Ordu in 1936 and transformed the hazelnuts from the sack into an industrial product, as well as Tadelle, Sarelle and Gold brands to OYAK Group Companies.

 

Food has been the industry less affected by pandemic

OYAK General Manager Süleyman Savaş Erdem stated that food has been the market less affected by pandemic, and said “With the Covid-19 pandemic, the importance of the agriculture and food industry in the world has increased. We have seen that these non-circular industries are not affected during crisis periods. We have significant investments in the agricultural industry. With this move, we also had the opportunity to demonstrate OYAK’s commitment and innovative perspective in the strategic food industry. According to the data of the Food and Agriculture Organization (FAO) in 2018, 75 percent of the world’s hazelnut production areas are in Turkey, while only 60 percent of the hazelnut production is in Turkey. We aim to increase productivity and grow this industry by using our R&D strength in this field.”

 

Growth in domestic and export markets

Erdem said: “By combining the power of OYAK with Sagra's 85 years of know-how and experience, we aim to further develop the brand, increase product diversity by taking advantage of market opportunities and reach a significant volume, especially in food exports.” Erdem stated that they aim to expand their portfolio by expanding the categories, product range and number of brands in a short period of time with Sagra, and have a say in export markets with the products with high added value abroad.

 

Snacks market has high potential

The food industry OYAK entered with Sagra is one of the most strategic industries in the world and in Turkey. World food giants estimate that the potential of the food industry in the future will be several times higher than the figures already mentioned. Turkey's 2023 targets are set at TRY 40 billion in agricultural and food exports. Even though the agriculture and food industries are complementary to each other, the food industry in Turkey alone grew by 25 percent to TRY 122.7 billion in 2020. In the food industry, the beverages have the highest share, followed by snacks. OYAK Group plans to expand its product range in Sagra to the entire snacks market. Turkey’s snacks market currently stands at TRY 27.5 billion and has a high growth potential in both exports and domestic markets.

 

Turkey is the world leader in hazelnut production and exports

Turkey is the world’s market leader in hazelnut, which Sagra transformed from the sack into an industrial product. According to the data of the Food and Agriculture Organization (FAO) in 2018, hazelnut production in the world reached 1 million tons and Turkey ranks on top by meeting 60 percent of this production, followed by Italy and Azerbaijan. Turkey is the world leader in exports as it is in production. According to FAO data, Turkey accounted for 68 percent of the world's hazelnut exports in 2019. In 2020, Turkey’s hazelnut exports reached US$ 1.9 billion despite the pandemic. On the other hand, with 217,000 tons of hazelnut, Ordu, which houses Sagra’s plant, ranks first among the 39 cities in Turkey, where hazelnut production is made. With Sagra's inclusion to the OYAK Group Companies, we aim to add new products to high added value products range and increase the exportation of shelled and raw hazelnuts.  This goal will be an important breakthrough not only for the industry but also for Turkey.