Sales of Dorna mineral water have doubled since the Coca-Cola take-over in summer 2002. This comes as the result of massive promotional campaigns and the strengthening of distribution in areas where these products were never previously available.
"Within almost two years of taking it over we have invested 10 million euros in Dorna," the marketing manager of Coca-Cola Romania's non-carbonated drinks division, Bianca Bourbon, told Ziarul Financiar.
Investment so far has mainly been directed at upgrading and purchasing new production lines, Bourbon explained.
The 2002 acquisition by The Coca-Cola Company and its bottler, Coca-Cola Hellenic Bottling Company (CCHBC), was a deal totalling 39 million euros. It included three brands - Dorna; Poiana Negri; and Izvorul Alb.
The bulk of the investments have so far been directed to Dorna and Izvorul Alb, but Bourbon says Poiana Negri will also get its share of promotion.
"At first it was very important to make sure products were available in as many places as possible. Marketing-wise, we had three brands that had never received much support. Our priority was to raise brand awareness and build an image," Bourbon continued.
Several market surveys later, the company noticed that the image of these brands was closely related to the particular spring where the water is obtained, and the health-related benefits.
"But they had nothing else," Bourbon added. "We decided to keep the traditional value base and start building these brands towards a more modern territory, targeting urban consumers leading a stressful, modern life." This is how the first Dorna campaign was born last summer. The campaign for Izvorul Alb, a still low sodium mineral water, followed.
"The still water market accounts for 17% to 20% of the total water market in Romania, but it's growing fast - actually twice as fast as the carbonated mineral water market, which sees double digit growth," Bourbon said. She added that a promotional campaign for the two brands has been scheduled for this summer. Meanwhile, the company is in talks over exporting to a number of countries. Dorna currently reaches as far as the Republic of Moldova and Greece.
CCHBC said its Romanian investment programme in 2004 amounted to 38 million euros. CCHBC Romania had a turnover of 190.5 million euros in 2003, 44.7% more than in 2002. Gross profit stood at 18.1 million euros, twice as high as in 2002.
Four years ago, another foodstuffs giant, Nestle, bought the 'Joe' wafer brand from domestic producer Joe IBC, clearing a path for production in Romania.
claudia.covaci@zf.ro ; ionut.bonoiu@zf.ro
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