"The local district attorney in (the eastern town of) Pozega has opened an investigation and is currently looking at the matter," said Martina Mihordin.
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The Novi List daily newspaper reported that officials at a small factory in Pozega have confirmed the sugar packs were produced on their premises.
The incident will embarrass the government which has been keen to play down the country's past links with Nazism.
The Jerusalem-based anti-Nazi Simon Wiesenthal Center said in a statement it had protested the matter to Croatia's authorities.
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