Coca-Cola HBC Romania was the most dynamic subsidiary of the Greek soft drinks bottler Coca-Cola HBC after Russia, the company announced yesterday.
A report by the company shows sales in Romania rose by 5%-10%. This contrasts with results from developed and developing countries, where sales stagnated or in some cases fell.
“Of particular note was the performance of our key emerging market segment, where Russia and Romania delivered both strong volume and real margin improvement,” said the Coca-Cola HBC report released yesterday.
Coca-Cola HBC’s business in Romania amounted to some 200 million euros in 2003, 45% higher than in 2002, while profits stood at some 18 million euros. If this pace of growth continues, the company should achieve a turnover of around 220 million euros.
“These results were obtained despite a shrinking market due to the bad weather and in face of increased competition. Over the next few months we plan to grow at at least the same pace in order to achieve our full-year goals,” explained Mugurel Radulescu, Coca-Cola HBC Romania’s marketing and communication manager.
CCHBC generated 3.3bn euros in turnover for the first nine months, up 5% from the same time last year, while net profits were 178 million euros, up 34% on last year. The weakest performer was the group of developing countries, which include the Czech Republic, Poland, Slovenia and Croatia.
Coca-Cola owns eight factories in Romania in six locations – in Bucharest, Ploiesti, Timisoara, Iasi, Vatra Dornei (three factories) – and has some 2,800 employees. The main brands in the company’s portfolio are Coca-Cola, Fanta, Sprite and Cappy.
Coca-Cola competes in Romania with European Drinks, Quadrant Amroq Beverages (Pepsi bottler) and Romaqua. Estimated at approximately 500 million euros, the soft drinks market was hit this year by the rainy weather.
Coca-Cola HBC Romania has invested 38 million euros in expanding production capacities in Romania in 2004.
georgiana.stavarache@zf.ro