ZF English

Three euro billionaires from FMCG retail and distribution

19.06.2008, 19:44 10

In FMCG distribution and retail three players-Interbrands, Rewe and Metro, have exceeded the sales threshold of 1bn euros (Metro also derived its second billion after it entered the hypermarket segment), however FMCG production has yet to produce any euro-billionaires.
The only producer that came close to sales worth 1bn euros is the domestic subsidiary of British American Tobacco (BAT), which generated turnover worth 824m euros, up from 560m euros in 2006. In fact, BAT is the only company with turnover worth above 500m euros in the FMCG industry, according to the data compiled in the 'The biggest players in the economy" yearbook for 2008', edited by ZF and available on June 24.
The top 3 FMCG businesses includes another tobacco producer - Philip Morris Romania, which derived 495m-euro turnover, and the domestic bottler of Coca-Cola, whose 2007 sales are estimated at 450m euros by ZF.
In fact, cigarettes and soft drinks are also two markets with top sales in FMCG, according to a survey conducted by market research company AC Nielsen. A top position is also held by beer sales, which exceeds juice sales, but falls way below cigarette sales.
As a result, according to the data provided by Nielsen market research firm, retail sales of cigarettes went beyond 4.1bn RON (1.2bn euros) in the first ten months of last year, up 20% against the same period in the previous year.
According to the Nielsen survey, next comes the beer market in terms of sales value, with turnover worth 1.9bn RON in the first ten months of last year, but with a higher growth rate in RON than the one posted by the tobacco market. Nielsen data reveal that cigarette sales account for over 35% in the value of the best-selling product categories on the consumer goods market, which totalled a retail turnover of above 11.3bn RON (around 3.9bn euros) during the period January-October 2007.
The three multinationals with turnovers worth above 400m euros are joined by another four companies that produce consumer goods, which last year reported turnover that ranged between 200m euros and 400m euros (Japan Tobacco International, P&G, Ursus Breweries and Heineken), while another 16 businesses topped 100m euros, according to company data.
However, FMCG producers are worth less than 50m euros (50 companies), with fields where the sales of the top ten players are still worth less than 50m euros being wine, bottled oil, dairy or cosmetics production.
In the first year after EU integration, the top 125 companies on the consumer goods market reached turnover worth over 8bn euros.
According to the centralised data for 86 firms that provided comparable data, turnover rose by 24% on the entire market, from 5.6bn euros to 7.2bn euros.

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