Masterfoods Romania, the domestic arm of Mars Incorporated, one of the world's biggest producers in the food industry, estimates it will consider opening a production facility in Romania at the moment the sweets and pet food market is sufficiently developed to guarantee the profitability of the business.
"The market of our products is under development in Romania and one cannot speak about profitability in the absence of a critical consumption mass, which would sustain the volumes a plant yields at an optimal production level. Our purpose is to bring the market of these products to the optimal development level so as we may go to a higher investment stage," stated Ilinca Burlan, external affairs manager with Masterfoods Romania.
Though chocolate consumption has gone up in Romania lately, it is still at a low level compared with European Union countries, which shows how high the development potential of the domestic market is.
At present, annual consumption in Romania stands at a little more than 1 kilo of chocolate per capita, way below the average of 6-7 kilos/capita in Europe, according to the data provided by Masterfoods.
"These factors are pushing producers on the market to make innovation efforts," commented Ilinca Burlan.
In its turn, the pet food segment could witness considerable growth over the following years.
"The pet food market in Romania is especially made up of imports for the very reason that it is under development," specified Ilinca Burlan. The data released by the National Statistics Institute and quoted by Masterfoods point to a 700% increase of the pet food market during the 1999-2005 period.
The first plant manufacturing pet food in Romania is now under construction in Buftea by the Nordic group of firms, operating on the segment of consumer goods production and distribution.
Investments in this project are put at more than 5 million euros, and the production facility will have an area of 1,600 square metres.
The turnover Masterfoods Romania derived last year is estimated at over 20 million euros, according to the previous statements by its representatives.
On the domestic market, Masterfoods sells chocolate bars, sweets, rice, sauces and pet food. On the Romanian market, Masterfoods owns and sells Pedigree, Whiskas, Chappi, Kitekat, Cesar and Sheba pet food brands.
On the chocolate market, Masterfoods owns Mars, Snickers, Bounty, Milky Way and Twix brands and the Uncle Ben and Dolmio brands on the segment of sauces.
In a bid to diversify its portfolio, the company last year entered the segment of biscuits, by adding a category of sweet snacks, Milky Way Minute, to its Milky Way brand.
Its rivals on the sweets market are Nestle, Kraft, ?lker, Excelent and Elite.
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