Sherif, Interbrands: Consumer confidence is rebounding

Rand Sherif, the executive that runs the over one billion-euro operations of fast moving consumer goods distributor Interbrands, says that consumer confidence has started to rebound in the second quarter, after the company posted 35% decline in sales in the first three months of the year, the cigarette portfolio not included.

“We feel the consumer confidence rebounding in the second quarter of the year, which translates into a slower decline of the market. It remains to be seen what will happen with the incomes of the Romanians working abroad and with the agriculture over the coming months,” stated Rand Sherif, CEO of Interbrands. Sherif’s signal is very important, considering that the wholesaler feels the pulse of the economy, as its portfolio comprises market leaders in the field of cigarette manufacturing (British American Tobacco), which is the biggest FMCG market, put at more than 2 billion euros and P&G, the leading player in the non-food consumer goods sector. Sherif adds that, despite a highly unpredictable market, he does not see any reasons for the situation to worsen in the consumer goods sector in the third quarter, compared with the first. The companies’ forecasts in such sectors as constructions and automotive industry are more pessimistic: the worst is yet to come, and it will come this autumn. “The hardest until now was the first quarter, when companies had to cover for the high costs generated by the more expensive credits and depreciation of the RON against the euro,” the executive explains. Interbrands got a capital inflow of 3 million euros at the beginning of the year to reduce the value of the loans. Interbrands is the biggest player in the fast moving consumer goods industry in Romania and one of the fifteen companies whose turnover amounts to at least one billion euros in the Romanian economy. The wholesaler, whose sales stood at 1.1 billion euros in 2008 has Lebanese-born entrepreneur Elias Sarkis as principal shareholder.