The Cristim group, one of the top domestic charcuterie producers, plans to double its store network this year, by opening at least 7 new locations both in and outside Bucharest, with the hope of attaining turnover of 200 million euros.
“Our target is to create a network of 15-20 stores this year, both in and outside Bucharest,” stated Gabriel Alexandru, Cristim vice-president. He specified that expansion would be achieved both through directly owned stores and through a franchise system. “We”ve received calls from small store owners wanting to place their business under our umbrella,” explained Cristian Ungureanu, the company”s marketing manager.
Ungureanu also said the concept of a Cristim store was modified last year in line with the “fresh market” principle: more than 75% of traded products are fresh ones (meat, milk, patisseries) while just 25% are raw-dried.
Cristim decided to turn the plant it owns in Filipestii de Padure into four specialised units this year. “We will have four distinct production units for specialties and bacons, raw-dried products, patés, and boiled -smoked products,” explained Ungureanu. This year Cristim has earmarked more than 6 million euros to complete the project, after having invested 12 million euros to add 6,000 square metres to its existing production space. The new plants will increase production capacities from the current 120 tonnes, to 160-170 tonnes in 2006.
“We have reorganised our business policies and our target for 2010 concerns reaching a market share of 30% and producing 300 tonnes daily,” said Gabriel Alexandru.
The Cristim group of firms, which includes a swine farm and a constructions company beside the charcuterie business, last year derived turnover worth 140m euros, up from the level of 100m euros reached in 2004. According to the company”s representatives, the group will see turnover standing at 200 million euros this year.
Last year, Cristim posted 50% higher charcuterie sales, as compared with the overall market growth rate of 15%, mainly on the basis of stronger marketing activities and the launch of 50 new products in all categories: raw-dried products, salamis, bacons, specialties and sausages. In line with its own estimates, Cristim holds more than 20% of the market, while in terms of volume its market share ranges between 15 and 20%.
During 2006, the company plans to strengthen its position on the domestic market. To this end, it will inaugurate a warehouse in Timisoara in early February and by the end of this year will build a similar centre in Craiova. The required investments range between 0.7 and 1 million euros. Last year, the market for processed pork products amounted to 600 million euros, according to Cristim representatives. Four of the top five players on the charcuterie market are family businesses. dana.ciriperu@zf.ro