Friesland Foods: €63 million worth of business

Sales up by 25 percent for Napolact products and 36 percent higher for ice cream were responsible for this rise, said company officials.

The domestic dairy market is worth some €800 million. Main producers are Friesland Foods, Danone, and domestic companies Albalact, Brailact and Covalact. Friesland has a market quota of 20 percent, according to company representatives.

"For 2007, Friesland estimates that turnover will reach some €107 million, 12 percent higher than last year," Gerbrand Redmer de Boer, Friesland Foods Romania General Manager, told Business Standard. The company's turnover for 2005 was some €107 million, up €16 million over 2005 figures.

Friesland plans to invest some €5 million this year, and the modernization of dairy product factories in Baciu and Targu Mures will require more than half of these funds.  Friesland is not considering buying or opening a new factory at this time or in the near future, says de Boer.

"Acquisition is a tiring process that would require most of the management staff to be involved in reorganizing and restructuring," explained de Boer. 

The Friesland group entered the Romanian market in 2002, when Dutch company Nutricia Dairy & Drinks, owned Somesana in Satu Mare, Belcar in Timisoara, and the main share package of SCIL Targu Mures. Friesland Foods Romania is the main shareholder at Napolact Cluj-Napoca since 2004,.  The group produces the Milli, Oke!, Dots and Completa brands. The Romanian subsidiary also sells the Napolact and Napoca brands. The company has its own distribution network, with 16 storage facilities in major cities.

"Acquisition is a tiring process that would require most of the management staff to be involved in reorganizing and restructuring  Gerbrand Redmer de Boer  General Manager, Friesland Foods Romania