developments in romania - iwl ag · pdf filealbalact simultan brailact zott others. 6/29/2008...

6/29/2008Prepared by

Romulus Dumitru1

Developments in Romania

6/29/2008Prepared by

Romulus Dumitru2

Agenda :

RomaniaDairy marketDelacoOpportunities

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Romulus Dumitru3

Population : 21.584.365 peopleSurface : 238.391 km2

RomaniaRomania

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Romulus Dumitru4

RomaniaRomania

About Romania :

Latin country

grey or black market became every day more white

new Romanian businesses growing fast

lack of infrastructure

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Romulus Dumitru5

RomaniaRomania

Necessary information :

part of EU since January 1,2007

November 2008 parliamentary election

policy will focus in the short term on health ,education and infrastructure

2013-2014 Romania will adopt Euro

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Romulus Dumitru6

RomaniaRomania

Necessary information :

flat tax of 16% for personal income and corporate profit

the economy is based on services and construction which increase the GDP with 8.2 % for first 3 months of 2008

unemployment rate is 3.9 %

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Romulus Dumitru7

RomaniaRomania

Necessary information :

5 highways under construction

1 airport under construction (Brasov)

foreign direct investments 2007 : 7.2 bln.Euros

Romanians who works abroad starts to come back

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Romulus Dumitru8

RomaniaRomania

Key indicators* 2007 2008 2009 2010 2011 2012Real Gross Domestic Product (GDP) growth (%) 6.0 6.0 5.0 4.2 3.6 3.0Consumer price inflation (av ;%) 4.8 7.5 4.5 3.6 3.2 2.7General government budget balance (% of GDP) -2.5 -3.0 -2.5 -2.4 -2.3 -2.3Current-account balance (% of GDP) -13.7 -15.1 -13.5 -12.4 -12.1 -11.1Commercial bank lending rate (end-period;%) 15.0 12.6 11.0 9.0 8.0 7.0Exchange rate Lei : E (av) 3.3 3.6 3.5 3.5 3.4 3.4

*National Statistics Institute

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RomaniaRomania

Labour costs 2008 vs 2007 Romania vs HungaryLabour costs 21.6%Minimum salary 140 E 14.0%Average salary 351 E 22.0% -20.0%

IT sector 30.0%Project Manager 20.0%

Financial 14.0%*National Statistics Institute

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~ 1,0 billion EUR

Divided among lots of local traditional cheese sort producers

Highly concentrated in few categories

The Dairy MarketThe Dairy MarketRomaniaRomania

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Romulus Dumitru11

The Dairy MarketThe Dairy MarketRomaniaRomania

Romanian dairy market12%

10%

5%

5%

4%

4%

60%

Friesland Danone Hochland Albalact La DornaDelaco Others

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Romulus Dumitru12

The Dairy MarketThe Dairy MarketRomaniaRomania

Fruit youghurts market share

66.6%

8.2%

6.8%

3.2%

2.8%

1.5%

1.3%

1.1%

8%Danone

Friesland

Tnuva

Campina

Albalact

Simultan

Brailact

Zott

Others

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The Dairy MarketThe Dairy MarketRomaniaRomania

Processed cheese market share

76.1%

4.1%

3.0%

2.9%

1.9%

1.1%

10.80%Hochland (Hochland)

Gordon (Gordon)

Oke (Friesland)

Del (Rupp Kaseexport)

Apetito (TPK Cehia)

Paulact (Paulact)

Others

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The Dairy MarketThe Dairy MarketRomaniaRomania

Yellow cheese market share

18.1

16.9

14.2

5.1 3.5

2.9 2.8

2.2

2.1

1.7

30.6

HOCHLAND

FRIESLAND

DELACO ROMANIA

FIVE CONTINENTS FETESTI

LACTO SOLOMONESCU SRLROMANIA

DORNA LACTATE

PRIVATE LABEL

GORDON PROD ROMANIA

THEREZIA MURES

SAN LACTA SLOBOZIA

Others

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The Dairy MarketThe Dairy MarketRomaniaRomania

Dairy products annual consumption per capita

France : 33.7 kg

Germany : 33.6 kg

Bulgaria : 16.2 kg

Romania : 5.4 kg

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The Dairy MarketThe Dairy MarketRomaniaRomania

Growth rate of dairy market : 30 % per year (the most dynamic sector)

90 % people likes cascaval (yellow cheese)

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Delaco Distribution (DD) located in Brasov, the center of Romania -450 km distance to the country border

DD started business in 1996 by producing fresh dairy products

Starting with 2000, it went on just with cheese sorts distribution

One of the most important player in the Romanian dairy market

DELACODELACOFacts & FiguresFacts & Figures

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Sales forcemerchandisers sales representativessupervisors

Own car fleet, refrigerated trucks 1,5t-18 t

Refrigerating warehouses capacity 4000 pallets

Picking facility for 350 items

DelacoDelacoLogisticsLogistics

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24h delivery all over the country, national coverage

Facility in which we make:slicing packing labeling

400 employees

Certified ISO 22000 by SGS

DelacoDelacoLogisticsLogistics

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350 SKU

Traditional Romanian cheese sorts Cascaval (yellow cheese)Telemea (white cheese)

Processed cheese – bars, portions, slicesFeta, mozzarella, emmentaller, blue CheeseUHT Milk ,coffee cream ,butterFresh dairy, yoghurts, dessertsSoya drink, shakes

DelacoDelacoProductsProducts

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Own brands

National Exclusive Distributor for products

Private Label under the brands Aro, Tip, Clever, No1, Vian , Boni, 365

Exclusive brands Mok, Rustic, Bonnieux etc.

12%7%

16% 65%

Delaco +Del ZottPrivate Label Others

DelacoDelacoBrandsBrands

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DelacoDelacoBrandsBrands

Old logo New logo 2007

Rebranding

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2500 direct clients

KA such as Metro, Billa, Selgros, Carefour, Plus, Kaufland, Cora, Rewe, Penny, Delhaize, Real, Pic, ArtimaSPAR, Auchan, Profi, Intermarche etc. 67%

33%

Key Accounts Distribution

DelacoDelacoClientsClients

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The products come from:

Germany, Austria, Holland, France, Hungary, Bulgaria

Romania - EU approved producers

We are distributors for Zott, Bergader , Mona Naturprodukte

DelacoDelacoSuppliersSuppliers

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Create new trends on the dairy market

Always new products, new packing solutions

In store activity - sampling, tasting

Aggressive price policy

Active in all promotional brochures both at national and local level

Presence at national and local fairs

DelacoDelacoMarketingMarketing

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DelacoDelacoMarketingMarketing

More than 2.000.000 Euro investment in marketing activities in 2007 (Delaco and Del brands):

TV campaign InternetMagazinesContestsOutdoorPR campaign Branded cars, trucks, clothesSampling

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DelacoDelacoMarketingMarketing

What something else about Delaco ?

Let’s see the Delaco commercial !

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DelacoDelacoMarketingMarketing

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DelacoDelacoTurnoverTurnover

0

20

40

60

Mio.Euro

2003 2004 2005 2006 2007 target2008

Turnover

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OpportunitiesOpportunities

Delaco 2007 vs 2006 evolution :

+ 96 %

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OpportunitiesOpportunities

What we have ?

growth potential

less start-up cost than other European countries

possibilities to launch new brands ,new products and new services

purchase power is growing

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What we need ?

know how

capital

management

logistic knowledge

OpportunitiesOpportunities

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OpportunitiesOpportunities

Just one conclusion :

Romania has big business opportunities

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Romulus Dumitru34

Thank You !