Developments in Romania
Developments in Romania
Developments in Romania
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<strong>Developments</strong> <strong>in</strong> <strong>Romania</strong><br />
6/29/2008<br />
1<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Agenda :<br />
<strong>Romania</strong><br />
Dairy market<br />
Delaco<br />
Opportunities<br />
2<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Population : 21.584.365 people<br />
Surface : 238.391 km 2<br />
3<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
About <strong>Romania</strong> :<br />
Lat<strong>in</strong> country<br />
grey or black market became every day more<br />
white<br />
new <strong>Romania</strong>n bus<strong>in</strong>esses grow<strong>in</strong>g fast<br />
lack of <strong>in</strong>frastructure<br />
4<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Necessary <strong>in</strong>formation :<br />
part of EU s<strong>in</strong>ce January 1,2007<br />
November 2008 parliamentary election<br />
policy will focus <strong>in</strong> the short term on health ,<br />
education and <strong>in</strong>frastructure<br />
2013-2014 <strong>Romania</strong> will adopt Euro<br />
5<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Necessary <strong>in</strong>formation :<br />
flat tax of 16% for personal <strong>in</strong>come and<br />
corporate profit<br />
the economy is based on services and construction<br />
which <strong>in</strong>crease the GDP with 8.2 % for first 3 months<br />
of 2008<br />
unemployment rate is 3.9 %<br />
6<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Necessary <strong>in</strong>formation :<br />
5 highways under construction<br />
1 airport under construction (Brasov)<br />
foreign direct <strong>in</strong>vestments 2007 : 7.2 bln.Euros<br />
<strong>Romania</strong>ns who works abroad starts to come back<br />
7<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Key <strong>in</strong>dicators* 2007 2008 2009 2010 2011 2012<br />
Real Gross Domestic Product (GDP) growth (%) 6.0 6.0 5.0 4.2 3.6 3.0<br />
Consumer price <strong>in</strong>flation (av ;%) 4.8 7.5 4.5 3.6 3.2 2.7<br />
General government budget balance (% of GDP) -2.5 -3.0 -2.5 -2.4 -2.3 -2.3<br />
Current-account balance (% of GDP) -13.7 -15.1 -13.5 -12.4 -12.1 -11.1<br />
Commercial bank lend<strong>in</strong>g rate (end-period;%) 15.0 12.6 11.0 9.0 8.0 7.0<br />
Exchange rate Lei : E (av) 3.3 3.6 3.5 3.5 3.4 3.4<br />
8<br />
*National Statistics Institute<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
<strong>Romania</strong><br />
Labour costs 2008 vs 2007 <strong>Romania</strong> vs Hungary<br />
Labour costs 21.6%<br />
M<strong>in</strong>imum salary 140 E 14.0%<br />
Average salary 351 E 22.0% -20.0%<br />
IT sector 30.0%<br />
Project Manager 20.0%<br />
F<strong>in</strong>ancial 14.0%<br />
9<br />
*National Statistics Institute<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
~ 1,0 billion EUR<br />
Divided among lots of local traditional<br />
cheese sort producers<br />
Highly concentrated <strong>in</strong> few categories<br />
10<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
60%<br />
<strong>Romania</strong>n dairy market<br />
12%<br />
11<br />
4%<br />
10%<br />
4%<br />
5%<br />
5%<br />
Friesland<br />
Danone<br />
Hochland<br />
Albalact<br />
La Dorna<br />
Delaco<br />
Others<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
6.8%<br />
2.8%<br />
3.2%<br />
8.2%<br />
1.5%<br />
1.1%<br />
1.3%<br />
Fruit youghurts market share<br />
8%<br />
12<br />
66.6%<br />
Danone<br />
Friesland<br />
Tnuva<br />
Camp<strong>in</strong>a<br />
Albalact<br />
Simultan<br />
Brailact<br />
Zott<br />
Others<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
2.9%<br />
3.0%<br />
4.1%<br />
1.1%<br />
1.9%<br />
Processed cheese market share<br />
10.80%<br />
13<br />
76.1%<br />
Hochland (Hochland)<br />
Gordon (Gordon)<br />
Oke (Friesland)<br />
Del (Rupp Kaseexport)<br />
Apetito (TPK Cehia)<br />
Paulact (Paulact)<br />
Others<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
1.7<br />
Yellow cheese market share<br />
30.6<br />
2.1<br />
2.2<br />
2.8<br />
2.9<br />
3.5<br />
5.1<br />
14<br />
18.1<br />
14.2<br />
16.9<br />
HOCHLAND<br />
FRIESLAND<br />
DELACO ROMANIA<br />
FIVE CONTINENTS FETESTI<br />
LACTO SOLOMONESCU SRL<br />
ROMANIA<br />
DORNA LACTATE<br />
PRIVATE LABEL<br />
GORDON PROD ROMANIA<br />
THEREZIA MURES<br />
SAN LACTA SLOBOZIA<br />
Others<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
Dairy products<br />
annual consumption per capita<br />
France : 33.7 kg<br />
Germany : 33.6 kg<br />
Bulgaria : 16.2 kg<br />
<strong>Romania</strong> : 5.4 kg<br />
15<br />
Prepared by<br />
Romulus Dumitru
The Dairy Market<br />
<strong>Romania</strong><br />
6/29/2008<br />
Growth rate of dairy market : 30 % per year<br />
(the most dynamic sector)<br />
90 % people likes cascaval (yellow cheese)<br />
16<br />
Prepared by<br />
Romulus Dumitru
DELACO<br />
Facts & Figures<br />
Delaco Distribution (DD) located <strong>in</strong> Brasov, the center of<br />
<strong>Romania</strong> -450 km distance to the country border<br />
DD started bus<strong>in</strong>ess <strong>in</strong> 1996 by produc<strong>in</strong>g fresh dairy<br />
products<br />
Start<strong>in</strong>g with 2000, it went on just with cheese sorts<br />
distribution<br />
One of the most important player <strong>in</strong> the <strong>Romania</strong>n dairy<br />
market<br />
6/29/2008<br />
17<br />
Prepared by<br />
Romulus Dumitru
Sales force<br />
merchandisers<br />
sales representatives<br />
supervisors<br />
Own car fleet, refrigerated trucks 1,5t-18 t<br />
Refrigerat<strong>in</strong>g warehouses capacity 4000 pallets<br />
Pick<strong>in</strong>g facility for 350 items<br />
6/29/2008<br />
Delaco<br />
Logistics<br />
18<br />
Prepared by<br />
Romulus Dumitru
24h delivery all over the country, national<br />
coverage<br />
Facility <strong>in</strong> which we make:<br />
slic<strong>in</strong>g<br />
pack<strong>in</strong>g<br />
label<strong>in</strong>g<br />
400 employees<br />
Certified ISO 22000 by SGS<br />
6/29/2008<br />
Delaco<br />
Logistics<br />
19<br />
Prepared by<br />
Romulus Dumitru
350 SKU<br />
Traditional <strong>Romania</strong>n cheese sorts<br />
Cascaval (yellow cheese)<br />
Telemea (white cheese)<br />
Processed cheese – bars, portions, slices<br />
Feta, mozzarella, emmentaller, blue Cheese<br />
UHT Milk ,coffee cream ,butter<br />
Fresh dairy, yoghurts, desserts<br />
Soya dr<strong>in</strong>k, shakes<br />
6/29/2008<br />
Delaco<br />
Products<br />
20<br />
Prepared by<br />
Romulus Dumitru
Own brands<br />
National Exclusive Distributor for<br />
products<br />
Private Label under the brands<br />
Aro, Tip, Clever, No1, Vian ,<br />
Boni, 365<br />
Exclusive brands Mok,<br />
Rustic, Bonnieux etc.<br />
6/29/2008<br />
Delaco<br />
Brands<br />
21<br />
12%<br />
7%<br />
16% 65%<br />
Delaco +Del Zott<br />
Private Label Others<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Delaco<br />
Brands<br />
Rebrand<strong>in</strong>g<br />
Old logo New logo 2007<br />
22<br />
Prepared by<br />
Romulus Dumitru
2500 direct clients<br />
KA such as Metro, Billa,<br />
Selgros, Carefour, Plus,<br />
Kaufland, Cora, Rewe, Penny,<br />
Delhaize, Real, Pic, Artima<br />
SPAR, Auchan, Profi,<br />
Intermarche etc. 67%<br />
6/29/2008<br />
Delaco<br />
Clients<br />
23<br />
Key Accounts Distribution<br />
33%<br />
Prepared by<br />
Romulus Dumitru
The products come from:<br />
Germany, Austria, Holland, France, Hungary,<br />
Bulgaria<br />
<strong>Romania</strong> - EU approved producers<br />
We are distributors for Zott, Bergader , Mona<br />
Naturprodukte<br />
6/29/2008<br />
Delaco<br />
Suppliers<br />
24<br />
Prepared by<br />
Romulus Dumitru
Create new trends on the dairy market<br />
Always new products, new pack<strong>in</strong>g solutions<br />
In store activity - sampl<strong>in</strong>g, tast<strong>in</strong>g<br />
Aggressive price policy<br />
Active <strong>in</strong> all promotional brochures both at<br />
national and local level<br />
Presence at national and local fairs<br />
6/29/2008<br />
Delaco<br />
Market<strong>in</strong>g<br />
25<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Delaco<br />
Market<strong>in</strong>g<br />
More than 2.000.000 Euro <strong>in</strong>vestment <strong>in</strong> market<strong>in</strong>g<br />
activities <strong>in</strong> 2007 (Delaco and Del brands):<br />
TV campaign<br />
Internet<br />
Magaz<strong>in</strong>es<br />
Contests<br />
Outdoor<br />
PR campaign<br />
Branded cars, trucks, clothes<br />
Sampl<strong>in</strong>g<br />
26<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Delaco<br />
Market<strong>in</strong>g<br />
What someth<strong>in</strong>g else about Delaco ?<br />
Let’s see the Delaco commercial !<br />
27<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Delaco<br />
Market<strong>in</strong>g<br />
28<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Delaco<br />
Turnover<br />
Mio.Euro<br />
60<br />
40<br />
20<br />
0<br />
Turnover<br />
2003 2004 2005 2006 2007 target<br />
2008<br />
29<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Opportunities<br />
Delaco 2007 vs 2006 evolution :<br />
+ 96 %<br />
30<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Opportunities<br />
What we have ?<br />
growth potential<br />
less start-up cost than other European countries<br />
possibilities to launch new brands ,new products<br />
and new services<br />
purchase power is grow<strong>in</strong>g<br />
31<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Opportunities<br />
What we need ?<br />
know how<br />
capital<br />
management<br />
logistic knowledge<br />
32<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Opportunities<br />
Just one conclusion :<br />
<strong>Romania</strong> has big bus<strong>in</strong>ess opportunities<br />
33<br />
Prepared by<br />
Romulus Dumitru
6/29/2008<br />
Thank You !<br />
34<br />
Prepared by<br />
Romulus Dumitru
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