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[HONG KONG, 4 June 2004] A.S. Watson (ASW), the retail and manufacturing division of Hutchison Whampoa Limited (HWL), today announced that it has acquired one of the Baltic States' best-known health & beauty retail businesses Drogas. The acquisition further reflects ASW's growing international strength and strategy to expand the Group's presence in Europe. This also marks both ASW and HWL's first entry into the Baltic States.
Drogas is a leading health & beauty chain operating in Latvia and Lithuania. Nicknamed "The Baltic Tigers", Latvia, Lithuania and Estonia are the newest members of the European Union (EU) joined recently in May 2004. With a combined population of 7.3 million, the region is rapidly becoming more affluent.
Ian Wade, ASW Group Managing Director commented on the strategic move, "Latvia and Lithuania is our springboard to the Baltic, Confederation of Independent States and Nordic markets. The region's recent accession to the EU gives it a new powerful impulse to the creation of a free, secure and prosperous economy. We see great potential in the markets.
Drogas carries a range of high-quality and good-value merchandise that is in line with the retail concept of other AS Watson's health & beauty operations. It is the fastest growing company in the region and our plan is to grow the business regionally."
Established in 1993, Drogas has become synonymous with beauty and healthcare and is now one of the best-known brand names in the region. It operates 59 stores in Latvia and has a 30% share of the Latvian market. In 2001, the company was named "Best retailer in Latvia" by the leading business newspaper Dienas Bizness.
Drogas opened its first store in Lithuania in 2001. By May 2004 it was operating 24 stores and had become the fastest growing company in the country. In June 2004 Drogas will open another 3 shops, and the total number of Drogas shops will be 86.
Andrejs Jernevs, General Manager of AS Drogas, said: "This is an important milestone for Drogas as well as the country, being one of the first major foreign investments since Latvia and Lithuania joined the EU. I believe that ASW will inject significant strategic value to the chain and its global strength will bring us to new heights."
Dennis Casey, ASW's newly appointed CEO for Eastern Europe, will take charge of managing the Group's expansion into the region's health & beauty market. Previously based in Asia, Casey joined ASW in 1988 and has been Managing Director of Watsons Singapore, Malaysia, Taiwan and the Philippines. "Though this region's retail market is still developing, its proximity to Central & Western Europe where ASW has established businesses will create significant synergy in purchasing, operations as well as earnings growth."
ASW, in conjunction with the Drogas outlets, operates close to 3,700 retail stores in Asia and Europe. It manages a group of 13 retail brands, being one of the world's largest retail portfolio, while it is also the largest health & beauty retailer in Asia and Europe, covering 18 countries.
ASW acquired the Dutch-based Kruidvat group in 2002 which has significantly expanded its retail portfolio in Europe. This followed ASW's acquisition of Savers Health & Beauty chain in the UK in 2000, being the Group's first entry into the European retail market.
About A.S. Watson
A.S. Watson (ASW) is one of the oldest and best-known trading names originating in Asia. With a history dating back to 1828, ASW has evolved into a truly international retail and manufacturing business with operations in 18 markets across Asia and Europe.
In Europe, A.S. Watson owns and operates six health & beauty retail formulas - Kruidvat, Trekpleister, ICI PARIS XL, Rossmann Central Europe (50% interest), Superdrug and Savers.
A wholly-owned subsidiary of Hong Kong-based conglomerate Hutchison Whampoa Limited, ASW operates 13 retail brands, close to 3,700 stores spanning from health & beauty chains to its food, electronics & general merchandise, and airport retail arms. Also an established player in the beverage industry, ASW provides a full range of beverages from bottled water, fruit juices, soft drinks and tea products to the world's finest wine labels via its international wine wholesaling and distribution. ASW employs over 64,000 people and in 2003, its reported turnover was HKD 63,086 million (approx. US 8,088 million).
The above press release and related photos can be found in our corporate website's News section at www.aswatson.com
Fact Sheet
A new member of the A.S. Watson Group
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