Kraft: for better or for worse in Romania

Kraft Foods Romania, the local branch of the US giant food and beverage company Kraft Foods, will continue its investment programme in Romania, although the mother-company has recently said it will close down several plants based in Central and Eastern Europe.

Kraft Foods entered the Romanian market a decade ago, when it bought the Brasov-based sugar products plant Poiana Produse Zaharoase. “We have invested over $20 million in this plant and we will keep investing. We have experienced both favourable and less favourable years in Romania, but we are generally pleased with the results,” Stephan Warley, general manager of Kraft Foods Romania, said.

Kraft Foods International has said it plans to cut 6,000 jobs in the next three years, accounting for 6% of the total workforce, and will close down 20 plants based in Central Europe and US in a move to cut costs. The main markets of Kraft Foods Romania, namely packaged coffee and chocolate, have dropped in the past two years as consumer spending decreased, whereas customers went for cheaper products.

Kraft Foods Romania has 750 employees and saw some $50.2 million in turnover in 2002, down 8% from 2001, having reported net loss exceeding $5 million. The company’s officials would not disclose last year’s results.

“Kraft Foods Romania has sold over 100,000 tones of products estimated at more than $400 million since it began its activity a decade ago, while the company’s contribution to the State budget has exceeded $75 million,” Warley also said. Also, Kraft Foods Romania has invested $600,000 to train the 750 employees, Warley mentioned.

Kraft Foods Romania’s portfolio includes chocolate brands, such as Africana, Poiana, Suchardine, Smash, Milka, Toblerone, sweets Sugus, Silvana and Yam-Yam and two coffee brands: Jacobs and Nova Brasilia.
georgiana.stavarache@zf.ro