Zippo selects new local distributor, aims for sales of EUR 500,000

Zippo Manufacturing Company, famous for its windproof lighters, has selected Tonka Distribution as its sole distributor for the Romanian market. The American producer hopes to sell up to 30,000 lighters in Romania by the end of 2011 and reach a turnover of approximately EUR 500,000, according to Andrei Lizar, general manager of Tonka Distribution.

“We have been selling our products in Romania for the past 20 years but we want to expand our local portfolio as part of our global strategy. A quarter of the company’s annual sales come from Europe and Romania is an important market,” said David Warfel, global marketing director at Zippo. He estimates that the local business will grow by 10 percent y-o-y for the next five years despite the current economic conditions.

In addition to lighters and related consumables, other Zippo products that will be sold in Romania include men’s watches and perfumes. The shelf price of a Zippo lighter varies between RON 70 and RON 150 while watches cost from RON 300 to RON 500.

The product portfolio will be further extended from the end of this year based on consumers’ reaction to the brand, added Warfel, who said that the company’s first priority was to select a local partner. Before Tonka Distribution, another local firm, Alb International, was the official distributor.

“The products will be brought from the US, which is home to the only Zippo factory in the world, by ship or courier in emergency cases. We will make use of all the usual distribution channels. Our clients include the Inmedio press distribution network and Mol gas stations as well as tobacco and smoking accessories shops. Negotiations with Rompetrol and Lukoil are also at an advanced stage,” said Lizar.

Tonka Distribution reported a turnover of EUR 4 million last year and estimates that the figure will grow to EUR 6 million in 2011 with the Zippo products generating between 5 and 8 percent of total sales. The business was set up four years ago by Andrei Lizar and Cristi Dumitrescu and includes four divisions. In addition to distributing alcohol and accessories – Zippo is the company’s main partner – Tonka Distribution distributes Nescafe professional machines and has a third division dedicated to Zebrapay payment terminals. The firm also owns two alcohol and accessories shops in downtown Bucharest and Pipera. It plans to open a third shop this year and to add two more outlets each year as of 2012 for the next five years.
The firm’s other shareholder, Cristi Dumitru, owns the Tonka club and the Tonka Jeans clothing store, both located in Romana Square.

Zippo Manufacturing Company produces about 12 million lighters each year, which accounted for about 56 percent of the company’s USD 200 million global sales in 2010. Forty percent of the company’s sales are generated in the US.