La Festa spends 2.5m euros to boost capacity

La Festa International, one of the largest natural juice producers on the market, will complete an investment worth 2.5m euros this year, in order to increase its production capacity.
Following this investment, the production capacity of the factory in Valenii de Munte, Prahova county, will grow by 30%, according to the company’s representatives.
The factory currently numbers 600 employees and was opened in June 2002, following an initial investment of over 7 million euros.
The funds invested in the Prahova-based production plant top 25 million euros.
Most of the products are dedicated to the local market, whereas some 17% of the production from Valenii de Munte is exported to countries such as Syria, the Republic of Moldova, France or Germany.
La Festa International budgeted sales amounting to some 43 million euros for this year, 20% up against last year, and banks on the Tymbark brand, considering it launched three new types of this juice variety this summer.
The company posted gross profit worth about 3 million euros, at a turnover standing at 36 million euros last year. The company also holds a division of instant products, which launched on the market instant hot chocolate, “3 in 1” cappuccino, Ekoland and Lemona teas, Brumi grained cocoa, Van cocoa powder and the powder coffee creamer Coffeeta.
The juice division is represented on the domestic market through the following brands: Tymbark, Tedi, Duo Fruo, Carotella, Ciao and Livada Verde syrups.
Most of the brands La Festa International sells on the domestic market are produced locally.
The company’s main competitors on the natural juices segment are Parmalat (with Santal), QAB (with Prigat Nectar), European Drinks (with Frutti Nectar), Coca-Cola HBC (with Cappy), Pfanner or Carlsrom Beverages (importer of Granini).
The natural juices consumption is still low in Romania, standing at only 4.5 litres per capita, according to the estimates on the market, considering that the European average tops 30 litres per capita.
However, more and more local producers are investing in bottling factories’ capacity growth, being attracted by the consumption’s development potential in the following years.
The growth of the living standard in Romania is the main factor that will generate the development of the local natural juices market in the wake of the EU accession, say the producers and importers on the market.