Business
Posted: 3 weeks ago

Georgia’s Kula Acquires Assets of German Baby Food Giant HIPP in $4 Million Expansion Plan

Georgian canning company Kula has acquired the Georgian-based assets of German baby food manufacturer HIPP, including a production facility in the village of Agara (Kareli district) and a warehouse in Khashuri. The acquisition is part of a broader $4 million investment plan aimed at boosting the company’s juice production capacity.

According to Kula founder Vano Goglidze, the project will unfold over four years and is expected to increase the company's output of fruit and organic juices by 50%. The products will be sold under the Kula brand, as the deal includes only physical assets and not the HIPP name or trademark.

“We’ll begin processing apples this year, but the factory is expected to reach full operational capacity by 2026–2027,” Goglidze told Business Partner. “The plant has been idle for nearly seven years, so extensive modernization and repairs are planned.”

Goglidze also noted that Kula is considering launching a baby food line in the future using the newly acquired facility.

Sales of Kula products have grown by 10–12% year-on-year, and the company is planning to enter several new markets in 2025, including Malaysia, Singapore, and Japan.

Founded in 2009, Kula sources 95% of its raw materials from Georgian farmers and currently operates five production facilities—four in Gori and one in Akhaltsikhe. Its products are exported to approximately 28 countries and are known for their eco-friendly production standards.

As for HIPP, the company had long maintained a presence in Georgia, where it operated a plant for processing and exporting raw materials for baby food. That operation had been suspended in recent years due to raw material shortages.