Gebr Heinemann border business shifts east

Gavin Lipsith

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Opportunities in Russia and other CIS countries will drive Gebr Heinemann's border business over the next few years, following the accession of 10 countries to the EU in May this year, the company has told RavenFox.com

Although many of the group's border operator partners have been forced to change to duty-paid offers following the second wave of accession to the EU this May, the company is confident that new opportunities further east will boost sales.

The company is particularly keen to exploit opportunities that will arise when Ukrainian border stores are allowed to reopen. The government closed the stores almost four years ago, and Gebr Heinemann regional executive Pierre Viarnaud told RavenFox.com that, while he had hoped the stores would reopen this year, he was now confident they would open in 2005.

"We have plans for border stores in the Ukraine," he said. "Like other countries in the region Ukraine is becoming richer, the economic situation is improving and the outlook for tourism is positive. We are ready to pounce when the decision is made."

The company also revealed that it is pursuing opportunities on the borders with China. Border business represents almost half of Gebr Heinemann's turnover in Russia and the CIS. The company has about 30 customers operating 100 outlets in the region.

See DFNI November 1 for more on Gebr Heinemann's regional business.