Apemin Tusnad forecasts 50m-euro turnover by 2013

Gyarfas Kurko, the manager and majority shareholder in Apemin Tusnad, believes the move towards PET bottling has significantly marked the development of Tusnad brand, which last year reached sales worth around 10 million euros.
In five years, the manager expects turnover to reach 50m euros, from around 13 million euros in 2007. “We want to climb one or two positions in the ranking of top of mineral water bottlers, but remain an independent Romanian-held company,” says Kurko on the company’s medium-term objectives.
In recent years, Apemin Tusnad, one of the five largest Romanian-held companies on the mineral water market, has been a takeover target for investment funds and entrepreneurs interested in entering this sector. Kurko says he has not entered into any talks with potential buyers because he does not want to sell the company.
Future investments in the company’s development could be partially financed with bank loans, but the manager says this year’s sums will not be as large as in 2007.
“(…) Firstly, we want to maintain the sales growth rate, then expand the management and sales team and increase our focus on distribution and boost the weight of still water in our sales,” specifies Kurko.
The manager has budgeted investments worth 1m euros this year to promote still drinks and Florina juices.
Apemin Tusnad estimates last year’s sales growth stands at 40-50% against the previous year, which takes the value of sales to over 43 million RON (13m euros) last year.
At present, investments in Tusnad plant have reached around 16.5m euros. Last year, Tusnad invested 6.5m euros in a new bottling line, with around 60% of the sum being raised from banks.
The company, which employs 220 individuals at present, with 60 working in distribution, split from Perla Harghitei in 1999, a company controlled by the father of the manager of Apemin, Arpad Kurko.
“Perla Harghitei’s break-up in 1999 targeted the development of Tusnad brand independently from Perla Harghitei and the inclusion of the 2 companies in the category of SMEs, for them to benefit from the incentives the Romanian state offered at that time,” says Kurko.
“I remember the first year after we split from Perla Harghitei, we experienced a hot summer, which helped me make my first decisions. I launched Tusnad water in PET bottling and gradually gave up on glass bottles,” says Kurko concerning his first strategies at Tusnad. His decision was not based on intuition, he recalls, but on market research that pointed to consumers’ higher receptivity to PET bottling.
Between 2000 and 2001, Kurko operated the first investments in PET bottling lines, estimated at 0.5m euros. In 2005, the company expanded across several market segments. Kurko also has ambitions to expand his business countrywide.

Apemin Tusnad
In 5 years expects turnover worth 50m euros, against 13 million euros in 2007
Puts 2007 sales growth at 40-50% on the previous year, which takes the value of sales to over 43 million RON (13m euros) last year
At present, investments in Tusnad plant have reached around 16.5m euros
In 1999, split from Perla Harghitei and moved towards PET bottling