Tzafrir Granat, marketing vice-president of Müller Dairy Romania, the German group that entered the Romanian yoghurt market this summer, says this segment will further witness two-digit growth in 2009 and there will be producers that will start cutting prices of certain brands.
"Romania will be hurt by the financial crisis just like the rest of the world, with 2009 due to be a difficult year. The yoghurt market still has a long way to go until it hits its potential and this is why it will further witness two-digit growth," says Granat.
According to him, the yoghurt market posted 13% growth in volume and 18% in value this year alone, while consumption per capita rose from 3.5 kg in 2007 to almost 4 kg this year.
Even as Müller's domestic subsidiary has been coping with the first crisis effects only three months after it entered the market, Granat maintains the company's plans remain unchanged. "(...) We have a three-year plan we're pursuing, but we're also monitoring all movements in terms of competition and consumption habits. At this moment, we're weighing every step we take, but for the time being we're not changing anything," says Granat.
He adds that the main trends on the yoghurt market are now the rising "on the go" consumption, with soaring sales of drinking yoghurts and innovative products. "Romanian consumers are getting more interested in the brands they're buying. They no longer buy whatever they find on the shelf, they walk through the store until they find their favourite brand," Granat says.
However, the products with which Müller decided to tackle the domestic market are part of the premium segment, which is now rising, but which medium-income consumers are likely to avoid amid the crisis. "(...) The potential of the market will surpass the crisis fallout (...)", Granat says.
Moreover, Müller representatives plan to boost yoghurt sales through traditional stores in the near future. Müller is present domestically with Bianco yoghurt, Froop fruit yoghurt and Müller Mix product range, combining yoghurt with cereals or a fruit product.
The German producer arrived in Romania through a joint venture with Central Bottling Company (CBC) Israeli group in the first half of 2007. However, it started distributing its products domestically as late as this August, after setting up Müller Dairy Ro. The producer now has 80 employees, with their number to reach 100 by yearend.
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