Covalact puts another EUR 1.3 million into development

Dairy producer Covalact, owned by US investment fund SigmaBleyzer Southeast European Fund, has announced it is investing EUR 1.3 million in between 2010 and 2011 according to its development plan, covering portfolio diversification, an expansion in production and logistics capacity and increasing the quality of its products. The company has invested EUR 1.5 million for the same purposes over the past two years.

At the same time, the dairy firm has put EUR 1 million into a new communication campaign, covering market research, creation, production, airing and national sampling activities to promote the brand.

Covalact plans to expand its national distribution through the networks of international retailers present in Romania and through distributors. With its current distribution, the company covers the entire country, and is present in the major cities nationwide. By the end of the year it will focus on expanding its logistics capacity. As part of a rebranding process started at the end of 2009, Covalact has also launched a new campaign designed to raise awareness of its Covalact de Tara brand and contribute to an increase in market share for the label. The company’s best sold lines are Branzica de Casa and products made of goat milk. It recently launched the sana and kefir product range under its own brand. The firm’s portfolio covers the entire dairy range: yoghurt, cream, cheese, milk, butter, processed cheese, powdered milk and related comestibles.

Covalact estimates a 10 percent increase in its turnover compared to 2009, when it posted revenues of EUR 25 million.

Read more about

Air Show in Bucharest on Saturday for Aviation Day: dozens of military aircraft to fly over Aviatorilor Square

read more