The Czech Republic's leading PATE and tinned meat producer HAME bought the controlling interests in Romconserv Caracal earlier this month, after its talks for buying the number two on the Romanian market, Prod Ardealul (Covasna), owner of the Ardealul brand, fell through.
HAME had previously been present on the Romanian market only through imports. "Given the current conditions on the market, it is better to be held by a powerful and experienced company. It is only natural that when one reaches a certain level, one wishes to go one step further to a higher level," suggested Florin Chifu, one of the two partners who control Romconserv. Prior to this transaction, Romconserv, which owns the Cara PATE brand, ranked 5th on its respective market, while HAME was number four. Chifu did not care to disclose the value of the transaction at this stage. HAME had previously attempted to strike a production deal with Antrefrig Bucharest, but talks were not finalised in this case either.
Nicolae Vranceanu, chief executive of Prod Ardealul Covasna, says talks have been conducted with HAME with regard to both the acquisition of the controlling interests and on the start of the production of PATE for the Czech company. "We did not reach an agreement on the price of the deal," Vranceanu stated.
Sorin Minea, chairman of the Romanian Meat Association (ARC), which comprises the most important producers in the meat processing industry, says Romania is following the worldwide concentration trend taking place in the food industry. "This move seems only natural to me, considering that the number of acquisitions in the foodstuffs industry has surged in the last two years. Moreover, it is easier to buy a brand on a specific market than build one from scratch," Minea explained.
He added that the multinationals in the food industry would only leave market niches for local producers. "One bad year for the industry can turn the domestic food industry upside down, while merely causing losses for the major multinationals," the ARC chairman said.
Romconserv will keep producing under its own brand Cara and will also make HAME PATEs. "The Czechs are expanding on the Romanian market, partly due to a sustained advertising campaign. We did well in the first half, too, and for this reason we increased our sales team and broadened our product range," Chifu stated.
Romconserv's sales totalled 2.5 million euros last year, while HAME's were 10% higher.
Its production capacity is 24 tonnes/day (about 5,300 tonnes/year), with sales standing at a mere 25% of this figure. "We decided to offer the surplus capacity to whoever may be interested and this is how such an opportunity came about," Chifu explained.
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