Early Entry and Aggressive Growth: Kraft foods Lietuva

Abstract

The case of foreign Kraft Foods Lietuva illustrates the peculiarities of FDI at the beginning of the transition period – a time when FDI was highly dependent on the privatization process, and the development of a new market economy. Kraft Foods International’s acquisition of Kaunas Confectionery in 1993 was the second-largest foreign capital investment at that time in Lithuania, with the largest being the acquisition of Lithuania’s tobacco industry by Philip Morris, which belongs to the same parent company as Kraft Foods.