Whether it is in developed or emerging markets, Fast-Moving Consumer Goods (FMCG) account for a high ratio of consumer spending. As such FMCG remain one of the key anchors for the retention of value in investment portfolios due to their resilience and brand power. With 20 years of experience of FMCG in emerging markets, the sector remains one of our key areas of focus. Our investments in FMCG have largely been in the dairy and ice-cream sector. Meridian Capital Limited has been in partnership with Food Union CEO Andrey Beskhmelnitsky since 2000. Together, we built Unimilk and sold it to Danone. We continue to work with Andrey to focus on international investments and are currently developing a global dairy and ice cream company in Food Union.

We create value across borders with investments supported by deep country-specific knowledge and high-end operational experience. We actively look at new markets for growth with favourable demographic trends that would help drive the expansion. We strategically invest in state-of-the-art production facilities that can create high-quality products and capture key market share. We consistently reinforce focus on the highest food safety and quality standards at any production facilities.

Since it was established in 2012, Food Union has become one of the largest dairy and ice cream producing companies in Europe. The company has drawn on Northern Europe’s dairy heritage, making high-quality brands and raw milk, sustainability and cutting-edge industrial technologies its hallmarks. This approach has reaped rewards. Meridian Capital’s dynamic investment approach has enabled Food Union to realise ambitious growth plans. Meridian Capital’s investment in 2013 was crucial for Food Union’s acceleration and expansion beyond the borders of Latvia. The company exports to more than 25 countries internationally, with the main markets being the Baltics, China, Poland, the Netherlands, Great Britain, and Azerbaijan. Meridian Capital’s decision to invest further capital – USD$55mln – in February 2017, on top of its existing stake, drove Food Union’s expansion and consolidation in China. PAG, one of Asia’s largest private equity firms, invested USD$170mln alongside Meridian Capital and in 2018 Food Union began production in two newly completed dairy factories in China.