Principal Company, which produces Salonta charcuterie products and is owned by the shareholders of wine producer Murfatlar, registered sales worth 9 million euros in the first half of this year, up around 60% against the same period in 2006.
"The Salonta brand generated approximately 40% of the first-half's turnover. In terms of volume, the company's sales reached 2,000 tonnes during this period," specified representatives of the producer.
Principal's first-half turnover increased due an expansion of distribution, through a 30% increase in the number of stores that retail the company's two brands -Salonta and Principal, amid investments in promotion and the launch of a new product on the premium segment.
The company holds a 1.5% share of the charcuterie market, according to a market survey conducted in May, as quoted by the producer.
This year, the highest growth rate (25% against the first half of 2006) was posted on the segment of dry cured charcuterie products, where Salonta is the market leader with a market share of around 15%, according to company data.
This year, the producer plans to operate investments worth approximately 4 million euros in its two production facilities and also plans to bolster production capacities.
Principal owns a plant that manufactures boiled-smoked products in Filipestii de Padure (Prahova county), with a production capacity of around 30 tonnes per day, as well as a dry-cured charcuterie facility in Salonta (Bihor county), which produces around 140 tonnes per month.
The plant in Filipestii de Padure was completed in 2004 in the wake of investments worth 4.8m euros, which included 1m euros of Sapard funds. The producer plans to double its sales this year against 2006 to some 30m euros.
The majority shareholder in the firm is Signus Romania Distribution with a stake of 86%, while George Ivanescu and Emanuel-Corneliu Dobronauteanu each own 5% in the company's stock. Signus is a distributor for Euroavipo, which owns stock in Murfatlar and is part of Euro group, together with the producer of Biborteni mineral water.
The meat products market, which is estimated to be worth 1.2 billion euros per year, is currently dominated by Romanian companies such as CrisTim, Caroli Foods, Aldis CalarasI and Agricola Bacau.
The latest entrant onto the market is the German-based Reinert company, which last year completed a 17m-euro investment near Brasov and plans to gain a top five position on the domestic market, as well as conduct further investments in new products and production capacities.
An increase in the main players' production capacities and an alignment to European quality standards are likely to lift the overall value of the meat products market this year.
Principal Company
Registered sales worth 9 million euros in the first half of this year, up around 60% against the same period in 2006
This year, the company posted the highest growth rate (25% against the first half of 2006) on the segment of dry-cured charcuterie products
This year, the producer plans to operate investments worth approximately 4 million euros in its two production facilities and also plans to bolster production capacities
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