Adrian Staniloiu, the managing director of Rauch Romania, the importer of Rauch juices, says that since EU integration, the majority of new products have been launched on the low-price segment of the natural juices market.
Rauch Romania, the domestic branch of the Austrian producer of natural juices and tea, is expecting to register sales of 6.4 million euros this year on a market that is estimated to produce around 100 million litres per year (more than 100 million euros).
The company last year recorded sales worth approximately 4 million euros, an increase of 60% on 2005. The company predicts that it will continue to expand at a similar rate in the next few years.
"We expected to benefit from the elimination of custom duties in the wake of EU integration, but this has not happened because prices for fruit concentrates have increased globally over the past year," stated Adrian Staniloiu.
In the wake of Romania's EU integration, there have been visible price drops on the soft drinks market following the entrance of some new imported products, in particular on the low-price segment.
"While other major players have domestic production facilities, the fact that we deal with imports is putting us at a disadvantage. However, at present, considering the current volumes operated in Romania, we believe an investment by Rauch in domestic production would not be justified," stated Staniloiu.
Staniloiu says that in the following years the company is likely to undertake a strategy of more aggressive promotion on the domestic market, in an attempt to grow at a rate several times faster than that of the domestic market.
The manager also adds that the company may devise a way to approach the HoReCa (hotel-restaurant-catering) distribution channel with greater aggression.
Rauch Romania includes three product categories within its portfolio: ice tea, nectars and natural juices, and ready-to-drink coffee. Nectars and natural juices account for the majority of sales at Rauch Romania, generating more than 50%. At present, Staniloiu says the company does not have any plans to enter onto any new market segments in the near future.
The market of natural juices and ice tea is likely to reach 15 litres per capita on medium term, according to the general manager of Rauch Romania. Currently the company's main competitors are Parmalat, QAB, Coca-Cola HBC, Tymbark, Carlsrom Beverages, Pfanner and European Drinks.
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