“We earmarked EUR100.000 for the opening of this store, but the initial budget was overshot. This is a new concept for the market of Cluj, but we do not plan to open other stores in Cluj-Napoca or outside Cluj county,” Cornel Caramizaru, sales manager with FrieslandCampina Romania, told ZF Transilvania.
In Romania, the Dutch company currently owns FrieslandCampina Romania, Napolact and Industrializarea Laptelui Mures, with three plants, in Baciu (Cluj), Targu-Mures (Mures) and Carei (Satu Mare).
Friesland group’s portfolio includes dairy brands such as Napolact, Milli, Ok or Dots, but Napolact is the brand contributing the most to the group’s sales.
The three companies had cumulated revenue of around 767 million lei (EUR172 million) in 2012 and over 1,200 employees, according to ZF calculations based on Finance Ministry data. The only profitable company in 2012 was Napolact, which brought the Dutch group a net gain of RON9 million (EUR2 million) amid revenue of RON224.5 million (EUR50.5 million).
“2013 was a growth year for Napolact. While the market did not advance on the brand side, Napolact brand still has growth potential and we hope for a sales advance of as much as 10% in 2014 on the year,” said Caramizaru.
Napolact, together with Albalact, Raraul or Covalact, are among the few domestic brands that endured on the market despite the arrival in Romania of dairy products such as Hochland or Danone.
The dairy market has been on an ongoing decline in recent years, to EUR800 million, with milk and cheese products as the hardest hit.
“Consumption does not seem to be picking up and for dairy products price could be a barrier. I believe cutting VAT for dairy products is a way to revive consumption”.
At present, Dutch group Friesland has around 1,000 employees on the domestic market.
(English version by Catalina Apostoiu)