The commercial manager of the domestic branch of Europe''s largest rice producer says the company will invest more than one million euros in promotion this year, in order to change the Romanians'' perception of this product.
Riso Scotti announced investments of more than 20 million euros for the construction of rice processing factories and for buying farming land until 2007.
"There are no reference systems on the Romanian market, you cannot estimate how sales will go in a specific period, because you cannot forecast anything," stated Cristian Popescu.
He says that on a market 90% dominated by imports and marked by an inaccurate perception of the product, the Italian producer will invest a great deal in promotion campaigns.
"No one has communicated about rice in Romania, and, as far as the Romanian consumer is concerned, whenever you say rice you say pilaf or sarmale. This is what rice roughly means to Romanians," Popescu adds. In his opinion, consumers on the domestic market view the product as an unsophisticated one.
"We have a one million-euro promotion budget and investments are scheduled to increase in 2007," he says.
Cristian Popescu explained that Riso Scotti had spent more than 100 million euros on the promotion of its products in Italy over the last ten years. "The consumer in Italy is completely different from the consumer in Romania. In Italy, you advertise to stand out from the rest of the producers, to promote the brand. Here, however, you need to do this to change the people''s perception of rice producers," Cristian Popescu feels.
The investment of the Italian group on the Romanian market will reach 10 million euros by the end of this year, an amount that includes acquisition of land cultivated with rice and the construction of production centres to process it.
Riso Scotti began construction of a rice processing factory in Vladeni, Ialomita County last year.
"We will begin production in Vladeni in March, with the production capacity to stand at 10,000 tonnes a year. The factory will ensure the necessary amount for Riso Scotti Romania by June," Popescu explains.
He added the factory in Ialomita would also make products for foreign markets, with the entire production capacity slated to increase in line with the demands of these markets. "For starters, we are interested in the neighbouring countries, Hungary, Bulgaria, Serbia, Moldova and Ukraine," said Cristian Popescu.
Riso Scotti''s factory in Vladeni will make four products at first and then its portfolio will reach 10 products by the end of this year.
"We will start construction of a factory to make expanded rice products in Vladeni this year, which will be completed by the yearend," Popescu adds.
dana.ciriperu@zf.ro
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