Aggressive discounts shrink value of FMCG market

Manuela Banu, executive general manager of Orkla Foods Romania, producer of Linco margarine and of Ardealul pâté, says the austerity measures announced by the government have influenced consumers' decisions, causing them to adjust their shopping basket budget.

"Whilst in the first quarter of the year the market was stable compared with the similar period of last year, the effects of the crisis were felt once again after the Eastern holidays. The market is under psychological shock as far as consumption is concerned because in Romania we are only now feeling the impact of the economic crisis," says Manuela Banu, executive general manager of the company, who added that the results of Orkla Foods Romania were in line with the market in the first quarter of this year.

Banu added the first quarter results were driven by the aggressive discounts operated in this period and by the fact that Easter was celebrated earlier.

"Now we are facing a market value decrease. The aggressive discounts, which amounted to price declines between 5% and 20% on the FMCG market bore fruit in the first quarter of the year, but had a negative impact on consumption in the months that followed. The government's measures also contributed to the consumption decline recorded in the second quarter."