Adrian Teslovan, marketing manager with Romaqua, producer of the Borsec brand, says the company will strengthen its market position in view of EU accession by entering the medium price segment.
Romaqua, the biggest mineral water producer on the Romanian market according to research mentioned by the group, this year intends to turn Stanceni local brand into a national brand, by expanding territorial coverage. "The first objective for Stanceni is to reach the coverage level of Borsec mineral water, our first brand," stated Teslovan.
Stanceni sparkling mineral water, bottled in 2-litre containers, is meant to complement Borsec portfolio, where the still mineral water is the only product available in 2-litre bottles. Moreover, the two brands are on different price segments, with Borsec on the premium segment and Stanceni on the medium one.
The company plans to sell at least 35 million litres of Stanceni mineral water this year, out of a total volume of 290 million litres to be produced.
"Stanceni will be a guerrilla brand, trying to gain as much of its direct rivals' market share as possible because the market will offer us growth put at only 5-10% this year," Teslovan also said. Borsec is distributed nationwide through 60 companies specialising in this type of services. To get the deliveries to its large customers (key-accounts), Romaqua uses its own means of transportation.
"In addition, expanding our portfolio of products with nationwide coverage by including the Stanceni mineral water will help further develop our distribution system," added Teslovan.
The company currently has 80% coverage in the urban area and 70% in the rural area.
At present, Romaqua holds 25% of the mineral water market, according to surveys carried by CSOP market research company in the first five months of the year.
The company's representatives forecast the market share will go up to 30% this year. Romaqua group has made total investments worth 10.5 million euros over the last 18 months in order to increase the mineral water bottling capacity of its Borsec production facility and to build a new plant in Stanceni, where the second water source the company is exploiting is located.
Stanceni plant production started this May, but the plant will be officially launched in July. For investments, the company used its own financial resources and other raised funds.
In the wake of these investments, the company's production capacities doubled, and the company's representatives expect mineral water production to reach approximately 290 million litres this year.
At present, Romaqua exports Borsec mineral water to 14 countries, including Hungary, Israel, Taiwan, 7 US states. Exports account for about 2% in the group's turnover.
Romaqua
The biggest producer of mineral water on the Romanian market
Intends to turn Stanceni local brand into a national one
Targets sales of at least 35m litres of Stanceni mineral water this year
Currently holds 25% of the mineral water market
Has made investments worth 10.5m euros over the past 18 months
The company's production capacity doubled in the wake of these investments.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
