Muller Dairy Romania reports a 150 percent turnover hike for 2010

Two years after entering the local market, dairy importer Muller Dairy Romania has reported a 150 percent turnover increase in 2010 against the previous year, but continued posting loss. “The results are in line with our five-year strategy for the Romanian market,” explained Tzafrir Granat, (pictured) general manager of Muller Dairy Romania adding that the company plans to reach break-even by the end of this period.

The turnover boost was possible due to large investments in marketing, increasing brand awareness and extending the sales force, explained Granat. Another 25 percent increase of the marketing budget is planned for this year. In 2011, Muller Dairy Romania also bets on a double digit increase in turnover and targets to reach the third position on the yogurt market where it currently holds “the fourth or fifth position”.

After the failed bid for the take-over of local dairy producer Albalact last year, Granat says that the company is open to any opportunity to start production operations in Romania, whether it will be greenfield investment or a take-over.

 The Romanian dairy market reached a value of RON 3.48 billion (approximately EUR 820 million) in 2010, down by 8.1 percent against 2009, according to data from MEMRB, cited by Muller Dairy Romania. The total volume also fell by 5.3 percent reaching 336,000 tones.  For 2011, Granat estimates that the market will grow in value by 1 percent but will decrease in value by 0.5 percent. “A return to the levels posted in 2008, will not be possible sooner than 2012,” he said.

Simona Bazavan

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