Orkla Foods Romania (OFR), a branch of Norwegian giant Orkla Foods (which posts annual turnover worth more than 4 billion euros), in the first eight months of the year registered 21% higher turnover, fuelled both by the company''s traditional products (margarine) and by the new categories (jam and liver pate).
"We are expecting significant increases in the last quarter of this year, when the sales leap is considerable, especially in the case of margarine," said Aliz Kosza, OFR general managing manager.
The company entered the jam segment late last year, currently owning a market share of 14.5%. OFR will also tackle the segment of preserves, aiming for a 6% market share after the first year in business.
"We are witnessing a change in the consumer behaviour, especially in households, given the lack of time. For the time being, 60% of the jam and preserve production is made in households, which means the market has a high potential for growth," specified Kosza.
According to the OFR official, seven months after entering the jam market, the company has already become a market leader in terms of value, ranking second in terms of volume.
"With the new types of jams, we plan to go up from 9.5% to 15% in terms of volume, and from 14% to 20% in terms of value by the end of 2006," Kosza added.
The company plans to invest over two million euros in the plant based in Covasna, with OFR representatives announcing they intend to export their Ardealul brand to EU states.
"Exports will help us grow by 10-15%, but this will not happen overnight," Kosza also said. She specified that requirements imposed on meat and canned goods producers are much stricter than in the case of other categories of the food industry.
OFR representatives also take into account the possibility of merging the two companies, which would boost the efficiency of the management system, of the IT system, not to mention tax perks. "The merger would enable us to have an integrated organisation and a more effective management coordination," Kosza also said.
Whereas margarine has long accounted for the bulk of the company''s sales, the situation is expected to change following the acquisition of Ardealul, with pate to become a sales leader.
The company focused on broadening its portfolio last year, by adding 14 new products, but Orkla''s target is to consolidate its business this year.
dana.ciriperu@zf.ro
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