“The food and beverage industry undoubtedly has growth potential on the local and export market. The main obstacle for exports is the infrastructure.” Jaak Mikkel said.
This is an industry where product value is low but are transported in large volumes. To be competitive on this market, one must carry the merchandise abroad as efficiently as possible, the executive said.
The food industry is the export driver of the Romanian brands. Multinationals account for 68% of Romania’s EUR52 billion exports. On the other hand, foreign held companies only account for 30% of the food industry, therefore the chance of Romanian brands to export relies mostly on food industry businesses.
It is not easy to build a brand outside its home country. The food and beverage industry brands are all connected to the tradition of the country so to be able to grow as a foreign brand one must offer higher added value to consumers. It is not easy but international examples show it can be done. It takes large investments, but also infrastructure to be able to easily transport products, Jaak Mikkel said.
He is not the only executive in the industry highlighting the need for infrastructure in Romania. Adrian Pascu, the executive who runs the operations of yogurt maker Danone in the region, too, said infrastructure development is necessary in order to boost exports.
(English version by Loredana Fratila-Cristescu)