ZF News

The year with the most changes at the helm of banks

No less than twelve banks out of the 43 operating in Romania have changed their manager in the last year. In Romania’s Business Yearbook for 2009 published by ZF, nine banks feature with a new executive at the helm compared with last year’s situation, but some new changes have occurred since the yearbook was put together, too. 2009 is the year with the most changes of bank heads in the recent history of the banking system. In fact, the number of banks operating on the market has risen, as well, with two new players emerging. The manager changes appear even at the very top, with the BCR – the local Romanian bank is now run by British-born Dominic Bruynseels.   After agriculture, Danes show interest in energy After investing over 300 million euros in acquisition of farming land alone, and tens of millions in the food industry, bringing renowned brands such as Tuborg and Carlsberg onto the market, Danish investors see a new opportunity on the Romanian market – the development of renewable energy farms, according to Ulrik Helweg-Larsen, Denmark’s ambassador to Bucharest. By 2020, around 20% of Romanian energy production should come from renewable energy, such as wind, solar and biomass production. Under the circumstances, Danish energy companies are showing a lot of interest for starting energy projects, with big name companies such as Vestas to enter the Romanian market this year. “Danish companies are interested mainly in renewable resources, a sector in which they have extensive experience. I think investments in energy will soon rank second among the preferences of Danish investors, after agriculture,” said Helweg-Larsen.   Unilever does not integrate Napoca’s distribution yet Unilever, which entered the Romanian ice cream market by launching products of the Algida division and by acquisition of the Napoca brand from Friesland Foods, will use two different distribution systems on the Romanian market in 2009. “Algida and Napoca have different business models. Napoca’s distribution is good at present and we want to keep two distribution systems for the two businesses, but we are trying to find synergies where possible,” said Daniel Barbulescu, Category Manager Ice Cream within Unilever South Central Europe. On the Romanian market, the company’s ice cream portfolio currently includes around 50 different products. The Algida brands, only one of which is local, Big Milk, are distributed in Romania by Macromex, the largest frozen food distribution company on the market.   Fashion retailers face first sales slowdown Deichmann, Europe’s largest footwear retailer, Takko, the German discount retailer and German lower-price fashion retailer New Yorker, are just a few of the names that announced their entry on the Romanian market in 2007, in a euphoric period for the Romanian fashion market, which saw their turnovers grow by up to 100%. The year 2009 surprised them somewhat and made them more reluctant, both when it comes to choosing commercial spaces and to outlining a plan with many new store openings. “We have contracts with shopping centres in Focsani and Bucharest (Cotroceni and Sun Plaza), but those responsible with expansion don’t want to provide any details as to the opening of new stores any more because nothing is certain. Whereas last year we exceeded our target by 10%, now sales have become more moderate. Whereas in 2008 people wanted to buy, buy, buy, now sales are starting to stabilise,” said Mihai Sindrilaru, manager for Romania of the eight-store New Yorker chain.   Sorin David, D&B: We lawyers are becoming knowledgeable in insolvencies Sorin David, a partner of D&B David si Baias, says the current period is not comfortable for lawyers, either – instead of transactions and financing, they have to be involved in restructuring or insolvency contracts. “We lawyers are now becoming knowledgeable in insolvency legislation. Fortunately, at D&B we have not yet had any clients filing for insolvency, but as a businessman you sometimes expect the worse. The crisis has probably yet to bottom out,” the lawyer says. S&B David si Baias, a correspondent law firm to PricewaterhouseCoopers in Romania, has distinguished itself over the last few years by assisting businessman Jean Valvis in the sale of the mineral water and dairy business to Coca-Cola and Lactalis, as well as through contracts assisting the Avrig 35 group in selling Iris Shopping Center in Titan.