“There is really a good opportunity at this moment. You may buy cheaper next year, or you may not. I’ve learnt that when you get a chance you must not miss it as it may not come back,” stated Tzafrir Granat, the general manager of Mueller Dairy Romania. The company generated revenue of EUR11.6 million last year.
The manager, who previously ran the marketing department of the same company and worked for Tuborg Romania, also has a ten-year experience in the Israeli subsidiary of Prigat soft drinks producer.
He states the German group is permanently seeking companies for sale, but a good opportunity to buy will be when it finds a company matching Mueller requirements.
The German-held company was several years ago interested in buying Albalact, a business controlled by Ciurtin family, but plans fell apart. Albalact, likely to go beyond EUR100 million this year, is the only major Romanian producer in the dairy industry likely to stir the interest of foreign groups.
Also, as many small dairy producers are shutting down on the rising prices of raw material and utilities, as well as on pressures from retailers’ private labels, this is a good time for purchases.
“The market should develop, it should grow, but unfortunately there are small producers unable to survive on the lack of cashflow. This is not quite good for the market, as there is no more competition. Competition brings positive things for market and product development,” Granat believes.
The manager also believes a foreign investor can bring know-how, but a major part of this know-how comes from locals.
The group entered the domestic dairy market in 2008 through a joint venture with Central Bottling Company (CBC), a stakeholder in Coca-Cola Israel, but also of Tuborg beer domestically.
The company this year started collaboration with producer Five Continents, which owns a plant in Botosani, to produce Das Kaskaval yellow cheese brand. With this brand, Mueller targets a 3% market share on this segment by yearend.
“Abroad, there’s variety on store shelves and this is what is needed here, as well”.
(English version by Catalina Apostoiu)