Parmalat Romania keeps investing and expanding its workforce, despite the financial scandal that its Italian parent group is currently embroiled in.
The company has started importing biscuits, is preparing for an image change and is planning the launch of a new product.
"This year's investments amount to 1 million euros. Part of the money was directed towards a campaign to change the image of the bottled Santal juices, scheduled for early August. Investments in upgrading the factory will then be made, accounting for about one third of the total budget, and a new product will be launched on the domestic market. It concerns a range of special vitamin-enhanced juices," stated Giamparlo Manzonetto, Parmalat's chief executive for Romania.
The promotion campaign for the new image of the juices will also involve the production of a television advertising spot.
What's more, Parmalat also started importing biscuits this year. "We began importing biscuits but in rather small quantities, because they are premium sector products and the price is quite high," he explained.
Manzonetto does not rule out the possibility of more products being included in Parmalat's portfolio.
"I believe the Romanian market will reach maturity next year, which will justify the introduction of new products. It is particularly about diet products, which form a very well developed market in Western Europe. I believe that this sector will be in high demand in Romania. Several producers have already entered the market, such as LaDorna with its Lady Milk. Under these circumstances, we might decide to go for a Romanian launch of our special milk range, which targets people with high cholesterol and people with milk allergies. Even though consumption will not be that high at first, the move would be important for our image on the market," he said.
The cool weather has made a slight impact on Parmalat Romania's sales in the first half of this year compared with the same period of 2003.
"We have not closed the balance sheet for the first six months, but our sales volume was slightly lower than last year. We were hurt by the cool rainy weather in June and in the first half of July. Once the summer season started, sales have began to show signs of a rebound, especially at the seaside," Manzonetto stated.
Parmalat Romania logged 8.5 million-euro turnover in 2003, and its sales went up 40% compared with the year before, according to the Parmalat official.
"We anticipate 20% growth and 10 million-euro turnover. We are now negotiating with the management in Italy to have a similar investment budget allocated for this year," he added. The company is still operating at a loss, but hopes to realise profits as of 2006.
georgiana.stavarache@zf.ro
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