Albalact marketing manager Cristina Miclea said Wednesday the company invested over EUR2 million in a new, fully automated packaging line for yogurt, and EUR1 million in a new packaging line for milk bottled in plastic.
According to Albalact, sales of milk bottled in plastic reached 15% of the milk market in the first quarter of the year, from 10% last year.
“The dairy market increased slightly by value last year, to EUR880 million, and remained unchanged by volume. (…) A lower VAT would be a great booster for consumption ,” said company commercial manager Irina Mandoiu.
The value of the Romanian dairy market, however, is larger, considering only 20% of the milk produced in Romania is industrialized.
According to the company’s own estimations, Albalact is market leader on the pasteurized and UHT milk market with the brand Zuzu, on the butter and cream market with De Albalact, and ranks second on the yogurt segment with Zuzu and the fresh cottage cheese segment with Raraul.
The company’s Zuzu brand generates 37% of its turnover.
Albalact does not export its dairy products and company officials said there are no plans in that respect. Albalact products are sold under six brands: Zuzu, Fruzu, Fulga, Raraul, De Albalact and Poiana Florilor.
In 2013, the company had a turnover of RON423 million (EUR95.7 million), up 23% in the year, and a net profit of RON8.4 million (EUR1.9 million), up 15% on the year.
For 2014, Albalact plans to exceed EUR100 million in turnover.
According to company data, 62% of Albalact’s turnover is achieved through retailers Kaufland, Carrefour, Metro Cash&Carry, Mega Image, Lidl, Real, Selgros Cash & Carry, Auchan, Profi and Rewe. Albalact also makes private brand products for Penny Market, Carrefour, Kaufland and Lidl. Private brands make up for less than 10% of the company’s turnover.
Alabalact is 42.53%-owned by local businessman Raul Ciurtin. Cyprus-registered investment fund RC2 Limited owns a 25.45% stake.
The company has over 800 employees.