Prospects for Western Food Companies in Central and Eastern Europe

Most food‐processing companies in the Western world which have international operations are considering the prospects for business development in Central and Eastern Europe, as previously established markets in the West stagnate or decline. The addition of 300 million people to the community of countries operating under Western market economy principles, following the political upheaval in the region in 1989, has been an important factor in this development. Considers the scope of opportunities in the new Europe; the opening up of new markets;new, if at present limited, spending power. Discusses market entry(costs are comparatively low) and further investment; acquisitions and joint ventures; issues to be addressed by any firm contemplating this market; and post‐entry issues. Concludes that Central and Eastern Europe can provide an attractive and enduring route for corporate grant.