Joe IBC, the company making Joe wafers, was taken over last year by Nestle Romania, a subsidiary of the world's leader in the foods industry. Having earned several million dollars, Florentin Banu, a.k.a. Mister Joe, launched another business.
Banu set up Romanian-Austrian company Artima this spring, which is set to build a supermarket chain where customers can buy everything they need for their household in one place.
"After successfully selling Joe wafers for seven years, which brought the company to its current performance level, I decided to try something else. When I left Joe I only took my driver with me and I became a buyer of products which I then sell," Banu stated.
The value of the Nestle transaction has never been made public, but, according to market analysts, it was worth between five and eight million dollars.
Banu's new company has opened three supermarkets since this spring, in Lugoj, Medias and, most recently, in Deva.
"The Deva-based supermarket is also Artima's last investment for this year," says Banu. A new expansion stage will begin next year in the city of Alba Iulia. Artima invested more than 700,000 dollars in the ground floor of the Deva supermarket, Ulpia Shopping Center.
"We decided to invest in Deva due to the local company Quasar, managed by five young businessmen that pleasantly surprised me," Banu added.
According to Florentin Banu, Romania is now ready for modern and civilised commerce, promoted through supermarkets and that is why he has chosen this kind of business.
While supermarket trade accounts for 50% of the total commercial activity in Eastern European countries (and it is on the increase), Romania hardly reaches 12-15%.
German supermarkets gained 90% of the market. Austria has 2,800 supermarkets, while Romania barely has 400. However, several Western supermarket chains have entered the Romanian market lately.
"I believe that Romania is already a temptation for several European national chains, which are planning to expand their business here," Banu added.
"Mister Joe" also says that he is happy with the way things are going in Deva. "Everything went like a charm in Deva, without endless negotiations and, what's more important, without prejudice and bureaucracy. This is due to the local administration which granted us the necessary authorisations without stalling and to the Quasar owners, who knew how to attract many investors in the area. We also chose Deva because it is a great city, a county capital and it had no supermarkets, which was essential for me," Banu said.
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