Covalact, one of the leading dairy producers on the domestic market, which posted a 10 million-euro turnover in the first six months of the year, up 18% on the same time in 2006, intends to expand its product portfolio in the second half of the year with a range of fresh cheese-based desserts.
"We decided to invest in buying a new production line for cheese-based desserts, which will become operational in September. There is plenty of room on the market for these products, with demand rising lately," stated Ioan Balan, the company's general manager.
Covalact is not the only dairy producer to have decided to begin manufacturing fresh cheese-based desserts on the domestic market. The other players in the same segment include Friesland and LaDorna.
Milk and milk-based desserts were some of the most dynamic categories on the consumer goods market last year, posting 60% higher sales compared with the previous year, according to data provided by the research company MEMRB Retail Tracking Services.
"Production of most fresh products increased in the first half of the year. Cream production rose by 25%, to 3 tonnes per day, while the production of fresh milk went up by 9%, due to an increase in demand from these segments. Butter was the only product that did not witness any growth," added Balan.
According to Covalact's general manager, the production capacity of the factory currently stands at 200,000 litres of milk per day.
The company will invest 3 million euros throughout 2007. Most of the money will go towards increasing production capacities by buying new equipment. Covalact will invest around 200,000 euros in order to promote the products within its portfolio.
Covalact, which accounts for 2% of the market and boasts a portfolio with 16 types of products, posted 33.5 million RON (10 million euros) in turnover in the first half, an increase of 18% on the same time in 2006, and a net profit of 1.9 million RON (around 570,000 euros), up 50% from 1.2 million RON (some 360,000 euros) in 2006.
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