Nestle Romania, one of the main players on the market of consumer goods, last year made losses standing at 0.89 million euros (3.2 million RON), more than 70% lower from the previous year, according to the data published in the Official Gazette.
At the same time, the company’s turnover last year came to 71.7 million euros (260 million RON), up 32 percent from the previous year. This was primarily due to the rising purchasing power and to a novel promotion campaign for the Maggi culinary product brand, according to previous statements by company officials.
Thus, one of the most significant increases, by more than 40 percent at the level of the entire year, was posted by Maggi brand (food seasonings, instant soups).
In RON, Nestle Romania’s turnover went up by 25%, according to the estimates the company’s representatives had made at the beginning of the year.
“The advance of the turnover in 2005 compared with the previous year is based on the long-term investment strategy, including the expansion of the plant of Timisoara,” stated Paul Nuber, general manager of Nestle Romania.
The company expects to see further growth on the Romanian market this year, by a pace of 15-20 percent, with the company even likely to enter new market segments in the categories it is already present in.
Nestle Romania is the domestic branch of Nestle Switzerland, the world’s biggest food company. Nestle has been present on the Romanian market since 1995, when it launched the Nescafe, Maggi and Nesquik brands.
In 2000, Nestle acquired the Timisoara-based Joe wafer plant, and in 2005 internationally bought the ice-cream unit of Delta Ice Cream Greek producer, which has a production facility in Romania, too, in Bucharest.
Nestle Romania is thus planning to become one of the major players on the domestic ice cream market, which was last year estimated at over 35 million euros.
Though Nestle is one of the main players on the European ice cream market, Nestle Romania had not been importing any ice cream brands. The brands were brought onto the domestic market by independent importers, including Bock Impex distribution company of Arad.
The brands Nestle has in its portfolio for the Romanian market include Nescafe coffee, Maggi food seasonings and soups, Joe wafers, Nesquik, Chocapic, Cini Minis, Cornflakes breakfast cereals, Kit Kat chocolate bars, Nestle baby food, Purina, Darling, Friskies dog and cat food. Nestle invested an extensive campaign to promote the Maggi culinary products last year, whose main competitor is Knorr (made by Unilever).
Nestle, Unilever and other several smaller firms compete on a market currently estimated at around 15 million euros.
On the segment of wafers, Nestle Romania competes with major players such as Alka, European Food and on the segment of instant coffee its rivals include Kraft Foods (Jacobs), Elite (Elite), Pan Food Romania (Amigo).
Nestle Romania
Last year posted losses standing at 0.89m euros, down by more than 70% from 2004
Turnover amounted to 71.7m euros in 2005, 32% higher year-on-year
The positive trend was primarily due to higher purchasing power and the novel promotion campaign for Maggi culinary products
Maggi saw one of the most significant increases, 40% in 2005
Forecasts further growth on the Romanian market, by 15-20%.