Interbrands Marketing & Distribution, the largestdistributor of consumer goods on the Romanian market, saw its salesrise 12% against 2008, to 4.8 billion RON (1.13 billion euros).However, the volumes distributed declined, due to the fall inconsumption and to the restructuring of the distribution divisionof P&G products.
"The value of sales of our tobacco division was up 22% last yearagainst 2008 due to the product mix, excise tax, and the overallpricing, and despite the increased inflows of contraband and theslightly declining volume," specified Rand Sherif, CEO ofInterbrands. Sales in euros, calculated at the exchange rate of theRomanian central bank, saw an around 5% decline during thatperiod.
The excise raise operated in April and in September 2009generated a price rise for these products by an average of over 30%over the course of the year. British American Tobacco, leader ofthe cigarette market, with almost one billion euros in sales, iscurrently Interbrands' biggest supplier, with other big producerson its partner list being Procter & Gamble, Nestlé, andCadbury.
Last year, P&G dropped outsourcing of its beauty careproducts distribution in the big store chains, which affectedInterbrands' turnover. Sherif says the decline in the businessinvolving P&G was partly offset by attracting newsuppliers.
"Our second-largest division after the cigarettes division sawits sales dwindle in 2009 against the previous year for severalreasons: the declining consumption on some categories, therestructuring of part of the business with Procter & Gamble andinflows of contraband products in some categories. The decline waspartly offset by new businesses such as Niran Co Products (Bourjoisbrand) and PSI (Love Plus brand)," Sherif said.
In the first quarter of last year, the decline in Interbrandssales, excluding the cigarette division, was 35% in RON, comparedwith the similar period of 2008, according to the latest availabledata.
Over the last 1-2 years, Interbrands has expanded its portfolioof products distributed by entering small market segments, comparedwith the markets where it derives over 70-80% of its turnover -cigarettes and personal care products.
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