Interbrands grew because it focused on expanding the organization, the distribution chain, the product range and delivered results. It seems retailers and consumers’ confidence has returned and “we gained market share from other players,” said Rand Sherif, the executive who has been running Interbrands for more than 14 years.
The Interbrands group (Interbrands Marketing & Distribution and Professional Brands Marketing & Distribution) posted 581 million (EUR132 million) net sales last year, an increase of 19% on 2011, according to the preliminary financial results of the group.
Still, Sherif says the growth is not driven by a spectacular consumer spending rebound, considering consumers still do not have much disposable income left. National Statistics Institute data show consumer spending rose by 3.3% (adjusted series) after having dropped almost 20% during the crisis.
“The first quarter of the year was very difficult,” as the company did not grow at the same rate as it did last year. Sales are up, but by much, which is why the company is concerned about what will happen next, Sherif said.
As for 2013, the executive expects modest growth, because of people’s incomes are still low, inflation will rise and Romania will suffer as a result of the economic growth slowdown in Western European countries.
Interbrands has been distributing Kent cigarettes (made by the local market leader British American Tobacco) since 1997 and then added more customers like Kotanyi, Procter&Gamble, Henkel, Nestle Nutrition, Love Plus, Tchibo, 3M, Comceh, Kraft Foods and Angelli.
(English version by Loredana Fratila-Cristescu)