ZF English

Cris-Tim wants to fill gap left by the closing of 600 plants

28.06.2006, 19:45 18

Radu Timis, chairman of Cris-Tim group, the most important player in the charcuterie industry, says the bankruptcy of more than 600 plants that are not compliant with the European standards will create a void on the market of 600 tonnes/day.
"EU integration will lead to the closing of the plants that failed to comply with food safety norms starting this very year. We're considering filling the gap created on the market following the disappearance of these plants," stated Radu Timis, Cris-Tim chairman. He believes any European market holds ten major players and several niche ones.
According to its strategy, Cris-Tim plans to reach daily production capacity of 300 tonnes by 2010, double the current one. "We are not interested in acquiring any domestic players because we want to develop this business by ourselves, especially since we have the capability to do this," Cris-Tim chairman also says.
For the company reach a daily production capacity of 300 tonnes, it needs to double the "current 15,000 square metres used for production (space)" it has in Filipestii de Padure, according to Timis. To achieve this, Radu Timis says investments will reach 10 million euros in 2007, after more than 18 million euros have been allocated over the past two years to boost production and logistic capacities. The company at present owns eight logistic centres in major cities of the country. Cris-Tim chairman says, though, that all investments aimed at production need to be sustained by brand promotion.
"You are nothing without a brand. If you don't have a brand, you have no power to negotiate with supermarkets and this means you cannot enter such a network and you cannot sell," Timis adds. He says Cris-Tim has allocated between 2 and 3 million euros for brand promotion over recent years.
"I've come to understand what branding means and how valuable a brand is. In charcuterie, the idea of doing "random" marketing is works only once, and then you have to build a strategy similar to that of multinationals," he explains.
According to the Cris-Tim chairman, brand value is also a competitive edge it has on multinationals.
"To survive on this market, you have to be aggressive because you are no longer fighting with domestic firms, but at a European level," says Timis.
"I've received offers from several investment funds and from companies operating in the processing industry from Austria, the Netherlands or Germany. I've built this firm for a hundred years, though. We want to stay in this business for another three, four generations," says Timis.
At present, Cris-Tim accounts for a 17-18% share of the charcuterie market in terms of value, according to the company's representatives. Cris-Tim has invested 40 million euros on the domestic market so far.


Cris-Tim

Has 17-18% of the domestic charcuterie market in terms of value
Has made 40m euro investments on the domestic market so far
Targets daily production capacity of 300 tonnes by 2010, double the current one
Investments are expected to come to 10m euros in 2007
Has allocated between 2 and 3m euros for brand promotion in recent years.

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