Podravka and Kraš form a strategic partnership to expand Croatian food brands in the United States
Joint effort to penetrate a demanding market
Two iconic Croatian brands, Podravka and Kraš, are teaming up to strengthen their position in the competitive US market. Last week, Podravka and Kraš signed a distribution partnership. Under this, Podravka USA Inc., a Podravka subsidiary, will serve as the importer and distributor of Kraš products throughout the United States.
The collaboration has been described as a strategic step forward. In practice, this means that popular products such as Vegeta, the beloved seasoning blend, will now be available through a single distributor in the US. Bajadera, the famed chocolate nougat treat, along with other items from both companies will also be available.
Simplifying access to American shelves
This move is expected to ease entry into American retail channels. This includes whether through ethnic food aisles or broader mainstream consumption. “Podravka and Kraš are reinforcing the importance of uniting domestic companies in international ventures. They contribute to the competitiveness of the Croatian food industry on the global stage,” stated the companies.
Podravka, in particular, achieved strong sales growth in the US during 2024. The company aims to continue expanding its presence while offering distribution services to other Croatian brands. By including additional Croatian products, Podravka seeks to boost the visibility of its own offerings among American consumers. This will be alongside those of Kraš.
Minimal impact from US tariffs—so far
As for potential tariffs from the United States—previously floated and withdrawn by Donald Trump’s administration—these currently target sectors like automobiles and steel. The food processing industry, which includes companies like Podravka and Kraš, remains largely unaffected. However, future changes remain uncertain.
Trade relations between Croatia and the USA
It is worth noting that US exports to Croatia are primarily made up of liquefied natural gas, which is shipped to the LNG terminal on the island of Krk. Croatia’s key exports to the US include pharmaceuticals and arms. Despite earlier speculation, the Trump administration refrained from imposing tariffs on these goods due to their strategic importance.
This status is unlikely to change. Pharmaceuticals are typically distributed via long-term supply chains that are not easily altered. Among the key players in this sector are Croatian-owned companies like Belupo from Koprivnica and Jadranski Galenski Laboratorij from Rijeka. These operate alongside major international players such as Pliva (now owned by Teva of Israel) and Hospira (a Pfizer-owned company located near Zagreb).
Croatian firearms remain in favour
Croatian firearms, especially pistols and submachine guns produced by HS Produkt in Karlovac, are also expected to remain tariff-free. These weapons enjoy popularity in the US and are marketed under the well-established and influential Springfield Armory brand. This brand is likely to lobby to maintain that status quo.
Other Croatian brands following suit
In addition to Kraš, Atlantic Grupa—owned by Emil Tedeschi and known for producing Cedevita—has already partnered with Podravka to distribute its products in the US. Several smaller Croatian companies have also joined the initiative. They aim to expand their reach beyond the US into other international markets.
Australia may be next on the agenda
Podravka recently announced its expansion plans, with target markets including the US, Germany, Austria, Switzerland—and now Australia. A similar collective strategy among Croatian brands, similar to that of Podravka and Kraš in the US, could soon be launched for Australian consumers as well.
