Albalact, one of the major players on the Romanian dairy market, expects sales worth more than 30 million euros in 2007, after the opening of a new plant that it is planning to build.
Moreover, Albalact will launch a new range of products under the Zuzu brand early next year.
Turnover forecast for 2007 is almost double the level reached this year - 16 million euros.
Albalact will invest up to seven million euros to build a new milk plant, with financing to be secured from SAPARD funds, the company''s own sources, banking loans and from a capital raise.
"On the one hand, rising demand for Albalact products is calling for a bigger production capacity and, on the other, we need to build another plant because the current factory is an older one that we have retooled, but, given the available space and the way machinery is fitted, we are unable to carry out all the projects we have lined up," said Raul Ciurtin, chairman and the majority stakeholder of Albalact.
The new plant will be able to process 200,000 litres of milk daily, double the current production capacity.
"We hope the new plant will become operational by the end of next year. Following its opening, we believe we will achieve turnover worth more than 30 million euros," Ciurtin also said. The Albalact official expects next year''s turnover to reach 22 million euros.
Albalact management has revised the 2006 sales target upwards, also owing to the fact that the company will launch a new product range, under the Zuzu brand, early next year.
"Early next year, we will launch a new product range under the Zuzu brand, on the segment of fresh products, namely yoghurt with fruit and ultra-pasteurised milk.
Fulga has been a success story and we hope to achieve a lot with this new product range, too," says Raul Ciurtin. In 2006 the company will invest more in the marketing campaign, but the bulk of the investments will be destined to promoting the Zuzu brand.
"We have not fully drafted the marketing budget for 2006 yet, but I can say there will be larger investments in the product promotion campaign than this year, when we earmarked 500,000 euros for the promotion of Fulga. We are currently drafting the budget for next year and this is why I cannot give you more details on the net profit we hope to make in 2006," says Albalact chairman.
According to Ciurtin, after the success seen by Fulga, which doubled the company''s sales after its launch in 2004, he realised that brands are a key element in the evolution of a company. catalin.ciocan@zf.ro
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