Suceava-based ice cream producer Betty & Criss Prod. has earmarked 3-4 million euros for investments in its new ice cream factory in Suceava this year, said Vasile Armenean, chairman and owner of the firm.
Two years ago the company started construction of a new facility in Suceava, where they have so far invested more than 5 million euros.
“We built a 1,400 square metre warehouse and the new ice cream factory, which is 40% operational. At present, we are installing equipment and the investment will be continued this year with about 3-4 million euros,” said Armenean.
With its new facilities, the company expects its turnover to exceed 8 million euros this year, up from around 6 million euros last year.
The investment is part financed from profits, part from banking loans. The first investment stage will be completed in 2007, when the company is likely to begin new investment to double its production capacity.
“Our target for when the first stage of investment is over is to have a production capacity of 100 tonnes per day,” said Armenean. In the long run he is also considering exports.
Last year”s turnover by Betty & Criss Prod. exceeded 6 million euros, according to Armenean, representing an increase on the previous year.
“Last year was very difficult for ice cream producers because the cool and rainy weather hit sales. For example, our sales per customer dropped by 30%, however, as we expanded the number of points of sale by another 2,000, we saw turnover rise,” said Armenean.
The company has over 250 employees, of which 120 work in the sales department. “After these investments are complete the number of people employed in the production sector will not rise very much, though we do want to boost the number of sales personnel significantly,” he said.
The Suceava-based company has nine warehouses, which are situated in most major cities around the country, with the exception of Timisoara, Arad and Craiova, which it plans to enter next year.
Last year also saw Betty & Criss Prod begin selling through HoReCa (hotels, restaurants, catering) distribution channels, says Armenean, an activity that will continue to be developed in 2005. One area where they do not have a presence, however, is in the hypermarket networks, and there is no plan to enter this area on short or medium term.
Ice cream consumption in Romania is worth 30-35 million euros per year, according to estimates by producers. georgiana.stavarache@zf.ro