Germany's H&E Reinert charcuterie producer, which finalised a 17m-euro greenfield investment near Brasov, is going to invest a net sum of 2m euros this year, to promote its brand domestically.
"The promotion campaign will be carried out until the end of 2007, with the plans for next year to be discussed and agreed in the near future. Investments go beyond 2m euros, being included in the over 3m-euro marketing budget earmarked for this year," stated Ovidiu Bocaniciu, general manager with the company.
Reiner is the first foreign company to have decided to embark on a greenfield investment in the meat processing domain. The company last year concluded the construction of a production facility in Feldioara, near Brasov. The new centre has an area of 10,500 square metres and is the first investment Reinert group has operated outside Germany. According to Bocaniciu, the promotion budget will be adjusted this year in line with market demand and may even top 3m euros. "Our objective is to become well-known," he stated.
Bocaniciu also said the campaign was produced with the aid of Mercury Promotion and Initiative Media agencies and generally targets the people that make purchasing decisions in a family. Reinert is not the only meat product manufacturer to invest in media promotion this year, with companies such as Caroli, Cris-Tim, Campofrio or Aldis also carrying out promotion campaigns on television.
The German company started product distribution in February and is now present in all the counties, according to the information it provided.
"We are in talks with all the major store chains through our distribution partner, Whiteland Sales and Marketing, but our products are already available in several stores of this type," added Bocaniciu.
Reinert had previously announced it put production at 5-6,000 tonnes of charcuterie products this year, estimated turnover would reach 20-25m euros domestically and that it would grab a 8-10% market share allowing it to gain a position among the top five charcuterie producers domestically.
The company's near future strategy also envisages further investments in production capacity, which is set to revolve around 12,000 tonnes per year, as well as in the development and launch of new products. The company's representative previously stated he considered both the possibility of operating exports and of a capacity expansion in 2009.
The biggest investment on the pork segment belongs to Smithfield US group. Reinert ranks third in Germany and is one of the top ten companies in Europe on the charcuterie market. On the domestic market of meat products, worth above 1bn euros (shelf prices), it will compete with producers such as CrisTim, Aldis, Angst, Caroli or Tabco-Campofrio.
Reinert
Finalised a 17m-euro greenfield investment near Brasov; the centre has 10,500 square metres
Is set to invest 2m euros this year to promote its brand domestically
The promotion campaign, produced with the aid of Mercury Promotion and Initiative Media, will be carried out until the end of 2007
Is the first foreign company to have decided to start a greenfield investment in meat processing
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