The Salonta charcuterie brand, owned by shareholders of the Murfatlar wine producer, will benefit from a promotion programme worth 3 million euros (rate-card) this year.
"The marketing budget earmarked for the Salonta brand amounted to about 2.75 million euros in 2006, and is set to exceed 3 million euros in 2007," stated Radu Dumitrescu, brand manager with Principal Company.
The Salonta plant in Bihor county is part of Principal Company group of firms, which holds another charcuterie plant in Filipestii de Padure, Prahova county. Salonta last year witnessed a sales increase of 75% to around 1,000 tonnes, as a result of brand promotion and efficient regional distribution, as well as because of an increase in the number of stores that carry its products.
The growth in sales led to a market share increase by 4% from 8% in December-January 2006, to 12.6% in December-January 2007, according to the company's representatives.
"For 2007, we forecast a 50% increase in sales, which will be triggered by continued communication, an increase in the number of stores where we sell our products and the launch of some new products," stated Radu Dumitrescu.
Salonta's portfolio includes premium dry cured charcuterie, with the most popular products being the Padis and Sibiu salamis and Paprika and Plai sausages.
In 2006, Salonta invested over 1.2 million euros in retooling its plant in an effort to expand its production capacities. These investments will be continued in 2007, with the company planning to allot 1 million euros for increasing production capacities.
The production capacity of the two plants owned by Principal Company is 30 tonnes per day in the case of Filipestii de Padure and 140 tonnes per month in Salonta's case.
According to previous statements issued by the company's representatives, the capacity of the two facilities will increase to 80-100 tonnes per day for Filipesti and 200 tonnes per month for Salonta by the end of 2008.
Last year the Principal Company generated a cumulated turnover of 15 million euros, to which, say the company's representatives, Salonta contributed around 50%. The figures are below the company's initial estimates, which indicated a cumulated turnover worth 16 million euros for 2006.
"We plan to double our turnover this year," said Dumitrescu.
Principal Company is 86% controlled by Signus Romania Distribution, with the stake having been taken over in 2005. The company was set up in 1998 in the wake of investments worth 4 million euros. Signus Romania is a distributor of Euroavipo, a shareholder in wine producer Murfatlar.
The main competitors on the meat products market, a market estimated at around 1 billion euros, are CrisTim, Aldis, Caroli, Tabco-Campofrio and Angst.
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