Calin Dragan, general manager with Coca-Cola HBC for Romania and the Republic of Moldova, says it is not yet time for a harsh battle with competitors over market shares.
The latest strategic move by Coca-Cola HBC on the Romanian market has been its entrance on the segment of ready-to-drink coffee, through NesCafe Xpress. The new product will help level off the company's sales during the year, as part of the company's cost saving strategy, says Dragan.
"We are trying to wipe out the seasonal character of sales through the new categories we are adding and by executing some activities of the manufacturing process. It is to our advantage to try and avoid very large fluctuations between certain periods of the year as this is hurting us on the entire value chain of the product," states Calin Dragan.
"We are using our distribution system to take the new product where it should get to and we are working to create consumption habits, which takes time. Ready-to-drink coffee is a very little known category on the domestic market at this moment," Dragan also said. The company will prepare the launch of the product nationwide, which is now available in filling stations only.
The ready-to-drink coffee segment is poorly developed on the Romanian market now. Whiteland, the distributor of Hochland, Meggle and Campina in Romania, also tackled this segment last year, with Cafia brand.
Coca-Cola HBC Romania currently includes 6 product categories in its portfolio, with the most important one covering Cola-type products.
"We are highly satisfied with the market's growth pace. It seems extremely right to me, considering the stage the Romanian economic environment is in now, for us to focus on a certain business instead of starting the battle for market share at this moment."
The company will make further investments to boost production capacities for carbonated soft drinks in the following period. "(...) We are investing in technology in Romania and from this point of view we are in full swing," says Dragan, not specifying the value of investments involved.
Carbonated soft drinks and mineral water account for the better part of the turnover generated by Coca-Cola HBC Romania. The company in 2006 posted 18% higher sales, reaching a total of around 873.6 million litres, from 741 million litres in 2005. According to the ZF estimates based on the annual growth pace of the Romanian subsidiary, the company's sales went beyond 350 million euros last year.
Coca-Cola Romania has more than 3.000 employees and operates 7 plants in 6 localities. The company in 2006 finalised a 17 million-euro investment in a new bottling line for the plant of Timisoara. The new line has a maximum capacity of 36,000 bottles per hour and is used for the bottling of Nestea ready-to-drink teas and of some of the Cappy brands.
Coca-Cola Romania
Entered the segment of ready-to-drink coffee in a bid to even out the sales as part of the cost saving strategy
Now includes 6 product categories in its portfolio, with the most important one being the Cola-type products
Will make further investments to boost production capacities for carbonated soft drinks
Last year derived 18% higher sales, to a total of around 873.6 million litres
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