Shmulik Porre, president of Tnuva Romania Dairies - the localsubsidiary of the Israeli producer of the same name and one of theleading yoghurt producers on the Romanian market, says distributionis done at high costs in Romania, so a more efficient distributionsystem is welcome at this time of crisis.
"Distribution is very expensive because the transportinfrastructure is poor and any delay means additional costs," saidPorre. The company posted 21 million-euro turnover last year andover 22 million-euro losses. Since it entered the Romanian marketin 2007, the company made significant investments in production andpromotion, which have yet to be recouped, and which are reflectedin last year's losses.
In the first half of this year Tnuva sealed partnerships withlocal distributors and producers, and even resorted to outsourcingin an attempt to render the business more efficient and to cutlosses.
"(...) When it comes to Timişoara and south-western Romania, wefound it was much more efficient to resort to other distributors,so we are now working with Dumagas for this part of the country andare considering a similar partnership with a local distributor forthe Moldavia area," he explained.
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