Dariusz Komisarek, the general manager of Masterfoods Romania, the importer of the Mars group, says he decided to change the distribution system to be closer to the major clients.
“Sales of pet food through the international retail chains operating in Romania witnessed the fastest growth pace of all, compared with the rest of the distribution channels,” says Dariusz Komisarek.
Komisarek took the reigns of Masterfoods Romania three years ago.
One of his first decisions at the local branch was to change the distribution system. The company is currently working with 15 distributors, instead of only one national distributor three years ago and is directly involved in the distribution to major clients (international key accounts) that have logistic platforms. Masterfoods importer has constantly seen its business increase and is to reach a turnover of 33 million euros this year, up 17% on 2005.
Komisarek says the pet food market has constantly grown over the last ten years, with its current growth pace standing at approximately 20%.
The Romanian pet food market, put at 33,000 tonnes a year, is still lagging far behind the other markets in Central and Western Europe, therefore the growth trend is expected to continue over the coming years.
“Caloric coverage on the pet food segment in Romania is about 5%, which means only 5% of the calories needed by pets come from the ready made food available on the market. The average in many Western European markets has reached 70% already, which proves the tremendous potential of the Romanian market in the long run,” Komisarek says.
The bulk of Masterfoods sales on the pet food segment are made in the big cities, as is the consumption of pet food on the entire domestic market.
“We cover smaller cities, too, and we’ll reach rural areas in the long-term,” Komisarek adds. The most important element in attracting potential customers to ready made food is sampling of the products, the manager feels. That is why the company’s strategy largely relies on sampling campaigns conducted in major stores. After all, major store chains account for a large part of pet food products.
“More and more buyers go by brand and quality, and price therefore becomes less important in choosing products, which is good for us because we are still focusing on consolidating our brands,” Komisarek says. Most Masterfoods products are positioned on the premium segment. At present, all the brands in Masterfoods’ international pet food portfolio are also present in Romania.
Masterfoods’ European pet food production facilities are located in Poland, Hungary and Austria; this is where they are imported from in Romania.
“We have given some thought to production in Romania, but the necessary investments would not be justified by the current consumption. If the growth pace maintains in the medium and long term, we will consider this possibility more carefully,” Komisarek adds.
Masterfoods
Has changed the distribution system so that it is now working with 15 distributors instead of only one three years ago
Has constantly seen business increase, with this year’s turnover to reach 33m euros, up 17% from last year
The bulk of its pet food sales is made in big cities
Relies on sampling campaigns in major stores to boost pet food sales