The general manager of charcuterie producer Angst says he will start restructuring the product portfolio this year, to adjust to European trends.
"If pushed too far, diversification is non-productive, and one of the major issues of the meat industry is the fact that most producers are manufacturing hundreds of product types. We''ve decided to stick to our best products this year," says Sorin Minea.
The general manager of Angst specified that the range of products would be reduced from 120 products at present, to 40-50 products by yearend.
Angst manufactures pork, beef and poultry products, and also sells fresh meat, owning a plant in Buftea (which makes boiled and smoked products) and one in Sinaia, for dry-cured sausages. Angst''s Buftea-based plant has a daily production of 20-25 tonnes. "Our production is mostly based on orders, and the total capacity of the plant can reach 100 tonnes per day," Minea also says.
The company''s sales are largely aimed at the Bucharest market, but Angst also benefits from national distribution through supermarket networks. "The Romanian market is not unitary at all, and consumer preferences depend on the region they live in. It would be useless to bring in Bucharest a type of meat product that is consumed in Ardeal, as Bucharest consumers would most probably not like it," Minea feels.
The Angst official also specified that one of the company''s priorities this year is to develop the store network and approach markets outside Bucharest. According to the general manager, Angst will double its store network, planning to own more than 50 locations by the end of the year.
Angst now has a network of 25 stores, in Bucharest, Buftea and Sinaia. The company is going to open three more stores in Bucharest over the next two months.
"We will never open a single store in a city. When we decide to approach a market on the retail segment, we will do it with at least two or three stores to get the impact we want," explains Minea. He also says the company''s shareholders this year approved an investment budget of 8 million euros, with half of this sum being earmarked for the opening of stores. "We will invest 4 million euros in the plant, in the production centre of Sinaia and we are going to access a SAPARD programme worth around 2m euros," Minea also said.
He specifies all these moves are targeting an "adequate entrance in Europe". Angst store network will be structured along two distinct models, according to Minea. "We will have supermarket-type stores, shelving both food and non-food products, and proximity stores, with a much smaller area," says Minea.
Angst plans to strengthen its position on the Romanian market through a strategy primarily focusing on adjustment to European market demands.
Angst Group
* Will cut its product range from 120 to 40-50 products by yearend
* Manufactures boiled and smoked products in its Buftea plant and
dry-cured products in Sinaia
* Plans to develop the store network and approach markets outside Bucharest
* Has earmarked an investment budget worth 8m euros for this year
* Estimates turnover worth 50m euros for this year
* Last year saw turnover rise by 33% to 40m euros.
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