Narcis Mihai, the general manager of Lekkerland distribution company, which entered the market last year, says the decision to operate on the supermarket segment, as well has to do with the potential of this category of outlets.
Lekkerland Convenience has gained a position on the domestic market as a distributor for filling station chains, which currently generates over 50% of the company's turnover.
"We've already started working with a major supplier in the food industry for distribution in supermarkets. This is a project under development within our company, which could be implemented in other countries, as well, depending on domestic market results," states Narcis Mihai.
Lekkerland Convenience is the supplier of over 550 outlets at present, 500 of which are filling stations, and the rest are fast food chains, coffee shops, and small stores. Supermarkets, the company's newest line of development, have been added to the list of customers in recent months.
Nevertheless, the convenience sector Lekkerland focuses on, is witnessing rising sales of consumer goods, following the European trend. "We will expand our portfolio from around 2,000 items to 3,500, after moving to a warehouse with almost three times the capacity of the one we use now. The biggest growth will be registered on the food segment (...)," specifies Mihai.
Lekkerland Convenience will move to a warehouse almost 3 times bigger than the current one late this year, with an area of over 6,000 square metres. The new warehouse is in the same location as the current one, in Chiajna (Ilfov county), and belongs to the same logistic operator Lekkerland signed a rental contract with, Cefin.
According to the company's representatives, the food segment currently weighs around 40% in the company's turnover, with the rest being divided between non-food products (27%) and tobacco products (33%). "I anticipate a bigger weight of food and non-food products, of over 67%, in our turnover," says Mihai.
Investments made and planned by Lekkerland Romania are worth tens of million euros, including the acquisition of Macromex Convenience, according to the company's representatives.
"From Macromex Convenience we took the distribution system and the know-how for the existing customers, and used them as the basis to start the development of our company," states Mihai. The most important customers taken over from Macromex Convenience are filling stations, including most international firms. Lekkerland at the end of last year acquired Macromex Convenience, a unit of Macromex group, with the value of the deal topping 5m euros, according to market information. The turnover Macromex Convenience derived last year, before being taken over by Lekkerland, revolved around 11 million euros.
Change of name and shareholders
2001-Macromex's unit for convenience distribution starts operating for OMV
April 2005-Macromex Convenience is split off from Macromex, becoming an independent company
December 2005-Macromex Convenience is taken over by Lekkerland group
Macromex Convenience reported turnover standing at 11.1 million euros for 2005
February 2006-Macromex Convenience becomes Lekkerland Convenience
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