Ovidiu Wencz, the general manager of Tabco-Campofrio, one of the main charcuterie producers domestically, stated he planned to enter the fish products market in 2008, given that this market is boasting stronger growth than the meat products market.
"We are seriously thinking entering this market and we are considering several forms of collaboration. There are European firms that have a tradition in this field that could produce for us or we could produce domestically," stated Wencz.
Production will be carried out at the plant the company owns in Tulcea.
"For the time being, we are researching the market to determine demand for fish processed products. What we know so far is that major retail chains cannot cover demand for fresh fish since they do not have enough products to sell, but we will not overlook any of the products in high demand," explained Wencz.
At the same plant, Campofrio will shortly start manufacturing a line of vegetal pates to be launched on the market this year.
The investments the group will operate this year will target the construction of a second plant to be located outside Bucharest, in Buftea-Crevedia area. This will have a total area of 8,000 square metres and overall production capacity of 22,000 tonnes annually, that is an average of 100 tonnes daily.
"We are now getting the construction permits, but we estimate weell start construction works in March-April and the plant will become operational in mid 2008," stated Wencz.
In 2006, the meat products market advanced by over 20% against 2005, but the growth pace is expected to slow down to only 10% this year amid rising imports from the EU.
Romanian meat products consumers have been recently switching to categories that are considered healthier, such as vegetal product ranges or bacon and frankfurter ranges. Though consumerse attention to quality and brand has risen in the past year, price is still the main purchasing criterion, according to Campofrioes representative. Another market trend is the strong development of retail chains. In France, 80% of trade is currently carried out through retail chains, and Romania is following the French model.
According to its own estimates, Campofrio now holds 7% of the market and this year expects to derive 40 million euros turnover, with a 9-10% profit margin. The company last year posted turnover worth only 35 million euros, 10% higher than in 2005, but below expectations, and a profit margin of 8-9%.
The company in 2006 invested to boost the marketing budget by 40% against 2005, earmarking 5 million euros (rate-card) for this segment and estimates investments will go up by another 25% this year.
On the charcuterie market, put at some 800 million euros, the main players are CrisTim, Caroli, Aldis Calarasi, Angst and Elit Cugir.
Tabco-Campofrio
Is considering entering the fish products market
Production will be carried out at the plant the company owns in Tulcea
Will soon start producing a vegetal pates range to be launched onto the market this year
Will build its second plant this year, to be located in Buftea-Crevedia area and have an area of 8,000 square metres and overall production capacity of 22,000 tonnes annually
Now holds 7% of the market and puts this yeares turnover at 40m euros
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