“We’re investing in technologies that will change half the company’s products and 25% of the local dairy market (…) This technology (KISS – keep it simple and safe) has been used in Europe (France, Spain) for three years. (…) Investments in this technology will help increase our exports in the following years,” said Dieter Schulz, Danone’s general manager for Southeast Europe.
The company will change the packaging and yogurt recipes and the new products will be available in stores in May.
“In Romania, consumption is at 6-7 kilos of yogurt a year, while in Poland and Hungary it’s double and in developed countries, like France and Germany, consumption reaches 24-25 kilos a year,” said Schulz.
The company official said exports rose from 12% to 15% last year and went to Hungary, France, Belgium, Poland, Britain, Greece, Bulgaria, Republic of Moldova and countries around the Adriatic sea.
In 2014, the Romanian yogurt market stagnated for the second year in a row by value and decreased in volume. Schulz said he welcomes the planned VAT cut on food items to 9% as of June 1, which should help boost consumption.
Danone is market leader on the yogurt segment, with a 50% market share.
The company has not release its financial results for 2014. In 2013, it had revenues of RON481 million (EUR109 million), down 5% from 2012.
Danone invested half a million euros in 2014 introduction equipment and a few million in an IT system. Since 1999, Danone invested RON340 million in its Romanian operations and has over 500 employees locally.
Since 2013, Danone made Romania its headquarters for Southeast Europe, a market of 60 million consumers.
The dairy producer’s local competitors include Albalact, Friesland Campina, Covalact and Dorna Lactate.
Danone Romania is part of French group Danone, present in 120 countries.