Modern retail pushes charcuterie producers to seek niches

On a charcuterie market no longer witnessing the 40-50% fast growth rates of recent years, domestic producers are seeking niches that can support their growth after EU integration.
Contracts with major retailers for the delivery of semi-cooked foods or salads in their own networks are among solutions domestic charcuterie producers have found to keep their profit margins steady. The market for such products is currently limited at the area of Bucharest and several major other cities. However, producers say the growth potential is huge, the more so as the number of Romanians that spend their time cooking has plunged considerably as of late.
“The precooked product market will witness considerable increases in the coming years as a result of the changing life style and of the soaring purchasing power, elements that will take us closer to the countries where consumption of precooked products has become a tradition,” stated Gheorghe Antochi, general manager with Agricola Bacau, one of the first domestic producers to invest on this market segment.
Agricola Bacau started production of semi-cooked poultry foods in 1996, within its poultry slaughterhouse, with an initial production capacity of 3-5 tonnes per day. In 2001, the group of firms in Bacau decided to set up Europrod Bacau, exclusively focused on production of such foods, and in July 2004 the Europrod plant was opened. The plant now has a production capacity of 250 tonnes per month and posts average monthly sales of some 90 tonnes. Agricola Bacau has so far invested over 5m euros to modernise Europrod plant through some Sapard investments. Last September, the group launched Sav’Or range of precooked products. “(…) Whereas in 2006 these products weighed 7% in total turnover, in 2007 we expect their weight to rise to 10-11%,” said Antochi.
Aldis Calarasi, one of the top 3 charcuterie producers, has finalised a several million-euro investment programme related to the construction of a ready-meal unit to deliver around 30 products. Only the construction part has been finalised and the company will earmark 4-5m euros to start production this year.
A player known for tapping into market niches, Angst of Bucharest, will finalise a new plant by yearend, to be located in Buftea and specialise in salad and semi-cooked foods production, with initial investments revolving around 1-1.5m euros.
CrisTim, leader of the charcuterie market in terms of turnover in 2006, also owns an extremely active ready-meal unit. CrisTim plans to expand the network countrywide.
According to market players, in many European countries the ready-meal segment already has a well-established tradition and market, with the trend to also become visible in Romania over the coming years.

Main players on ready-meal market
Agricola Bacau in July 2004 launched the Europrod plant, currently holding a 250 tonne production capacity and generating average monthly sales of some 90 tonnes
Aldis Calarasi has finalised a several million-euro investment programme to build a ready-meal unit to deliver around 30 products
Angst of Bucharest will finalise a new plant by yearend, to be located in Buftea
CrisTim also owns an extremely active ready-meal unit