On a local cheese manufacturing industry estimated at 600 million euros, Delaco, one of the market’s biggest player, targets 40% increase in turnover this year compared to 2008, delivery of new product range and ongoing recruitment process. The most daring plan however, remains the acquisition of a small player in the local market.
Got off the ground as a family business in 1996, Delaco has scaled up among top cheese manufacturers in Romania, reporting 185-mln lei turnover at the end of 2008. The company marked the highest increase of the market, of 55% compared to a year earlier.
“There are several ranges of products that geared significant gains, such as cheese and mozzarella segments, where we hold the leading position in terms of market share. The cheese was the main driver last year, with double sales in 2008 compared to prior year”, Tudor Comaniciu (photo), managing director at Delaco told Wall-Street.
As for the evolution of our business this year, Delaco’s leader sees 40% increase in turnover from 2008. Some of the main objectives of the company are: the acquisition of a smaller local player and the delivery of new product range as well as staff recruitment.
“Out top priorities is business consolidation, improvement of efficiency, keeping the growth pace and above all, overcoming the economic crisis in good shape. We will deliver new products in an effort to enrich our portfolio. The No1 target is fresh dairy product segment”, said Tudor Comaniciu.
Furthermore, Delaco is examining the possibility of acquiring a local fresh dairy producer, earmarking roughly 15 mln euros in this purpose. Comaniciu hopes the deal to be finalized this year.
On the other hand, Delaco will continue its advertising investment policy in 2009, whereas the marketing budget will be more flexible, given the economic conditions, said Comaniciu.
“We focused on TV as promotion medium so far, and we plan to continue this year. The sales hiked 40% in January 2009 compared to a year earlier, due to the promotion campaign for Delaco cheese,” said Tudor Comaniciu.
The evolution of Romanian consumer values
The Romanian cheese industry will record a two-digit growth in terms of value, and a stagnation in terms of quantity, said Romulus Dumitru, marketing manager with Delaco.
“In this period, the consumers will shift some of their spending pattern as to cut their grocery bill. In this purpose, Delaco offers the new range of products, Del (cow cheese, cottage cheese, feta cheese, cheese slice, cream cheese spreads and soy cheese)”, said Romulus Dumitru.
Romanians have shifted focus lately to higher-quality products.
“Romanian consumers’ taste has shifted to high quality products. Today they consume more feta cheese, mozzarella, blue cheese as well as other traditional products such as cottage cheese”, said the representative of Delaco.
According to provided data, the local consumption rate of cheese products is estimated at 4 kg per capita per year, compared to 20 kg per capita in West Europe.
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