Distribution of Milka and Jacobs goes from Top Brands to main rival

Ziarul Financiar 23.09.2010

Top Brands Distribution, with 308 million euros in turnover in 2009, will turn the division dedicated to Kraft Foods into a separate food division from that of Dar Lactate, the company's own brand launched in 2009.
"Romania joining the EU, the onset of the economic crisis, the clauses of the contract with Kraft Foods Romania and the producer's commercial policy the have been loss-making for our division dedicated to the distribution of Kraft products. After analysing profitability indicators of this division, we decided, together with our partner to suspend collaboration between our companies," said Virgil Munteanu, communication manager of TBD.
He specified that the sale of products in Kraft Foods's local portfolio generated between 5 and 7% of the company's turnover, i.e. around 20 million euros. Kraft's distribution has been taken over by Interbrands, TBD's biggest rival on the Romanian market. Last year the distributor reported 308 million euros in sales.
The company representative says TBD will continue to distribute Kraft products, but through imports and acquisitions from other distributors.
Kraft representatives did not wish to comment. TBD's biggest partner is Philip Morris, producer of Marlboro, the biggest player in the Romanian cigarettes industry.