Jihad Jabra, general manager and owner of the Supreme Group, producer of the Primola chocolate and of the Ulpio biscuits, says the company will start exports to Eastern Europe after Romania's EU accession.
"We feel we can generate higher sales by penetrating the foreign markets that we want to take a closer look at, in order to make business plans. To this end, we will start attending international fairs and we are likely to start exports in 2007," said Jihad Jabra.
The Supreme Group owner specified that the elimination of customs taxes for the trade with EU countries is an advantage, but the competitiveness of exports also depends on elements such as legislation or red tape, which also influence the producer's competitiveness when it comes to imports and which could be simplified after 2007. Currently, Supreme Group imports the bulk of the ingredients it uses in its Romanian-based plant.
Along with starting exports, Supreme also targets robust sales growth on the Romanian market.
"The Romanian market is profitable, but it depends on the angle. Romania's rather big population could be misleading, as there is a significant gap between urban and rural consumption. In terms of number of inhabitants, the ratio between urban and rural is almost equal, but 60-70% of the consumer goods are sold to just 30% of the inhabitants," noted Jabra.
This is the reason why Supreme Group has focused on distributing its products in Bucharest and in the big Romanian cities, which it completely covers through Supreme Distribution, which is part of the group. For the remaining areas, the company also uses regional distributors.
"Bucharest has, in terms of sweets consumption per capita, come close to the average of the countries in the area, therefore the growth potential of the market here is not as big as that of smaller cities or of the rural area. We are waiting for people's income to grow in the rural area and in small provincial towns, before we shift our attention towards them," added Jabra.
Sales on the cheaper segment of the chocolate market, where Supreme Group is present with the Novatini brand, are two times lower in the capital city than the national average, however the premium brand Anidor is much more in demand in Bucharest, according to company data.
"In the last few years, the consumption of sweets on the Romanian market has grown, but so has the number of competitors," Jabra also noted.
"One of the advantages of local producers is the name they have made for themselves in time, through investments in promotion, and this will help them survive after the competition tightens in the wake of the integration," Jabra feels.
Supreme Group
Plans to start exports in 2007
Targets robust sales growth on the Romanian market.
Says 60-70% of consumer goods in Romania are sold to just 30% of the inhabitants
Sales on the cheaper segment of the chocolate market, where Supreme Group is present with the Novatini brand, are two times lower in the capital city than the national average
Says the premium brand Anidor is much more in demand in Bucharest, according to company data
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