Betty Ice: Weather and price hikes affected growth

Betty Ice, the second biggest ice cream producer on the domestic market, in the first seven months of this year saw sales increase by 9% compared with the same period in 2007.
“In real terms, the market is shrinking this year, for two reasons: the inconsistent weather until August and secondly the population’s budget has been hurt by several factors (such as rising interest rates and euro), so we also feel the fallout of the global economic crisis,” specified Vasile Armenean, Betty Ice owner.
The seven-month growth rate is way below the growth rate the company posted last year. In 2007, Betty Ice reported turnover worth 56.2m RON (16.8m euros), up 40% year-on-year. In fact, most major ice cream producers expect a weaker sales growth this year against 2007. Armenean also specified his company had expanded production and distribution by 20% this year.
Betty Ice is currently fighting with Swiss company Nestle, with annual sales of around 20m euros, for the top position on the ice cream market. Romanian companies that hold an overall market share of 60-70% currently dominate the market, forecast at 100-110m euros.
Betty Ice owns production facilities in Suceava, whilst the plant’s capacity revolves around 100 tonnes of ice cream per day. The company has recently tapped into the premium segment of the market with Betty Ice brand, a direct rival for Nirvana ice cream of Nestle Ice Cream’s portfolio.
Besides the development of retail distribution, Betty Ice is also investing to expand its ice cream shop network, and has partnerships with several shopping centres of major cities.
Betty Ice generates around 90% of sales during the season, namely during May-August period inclusively. Amid rising ice cream consumption, the seasonality of this product tends to wane. Last year, Betty Ice reported 0.7m-euro income – almost double the 2006 level. Launched as a local business, in Suceava, in 1994, Betty Ice has gradually expanded nationwide through overall investments worth around 30m euros.
The company’s most important distribution channel is traditional trade and its fleet now includes over 120 vehicles.