Dr. Oetker’s profit margin at about 20 percent

The company, part of German-based Dr. Oetker producer, posted some €31 million in turnover in 2006, 13 percent higher year-on-year, according to data available on the Finance Ministry website. Net profits amounted to some €6 mln, the same as in 2005.

Dr. Oetker entered the Romanian market in 1998, following the purchase of local pudding producer Regal Corporation, located in Arges County.

Prior to 1998, Dr. Oetker products were imported to Romania. The company currently employs 366 people and is production leader for baking additives, dessert powders, and preservatives, with more than 70 products. The company also produces frozen pizza and snacks. The best-known products in the company’s portfolio are its Dr. Oetker puddings, Cioco Latte desserts, Ristorante and Dr. Oetker pizza and Bistro Baguette snacks.

The German-based group is also involved in the production of alcoholic and soft drinks, owns hotels, maritime transportation companies, and finance and banking institutions. In Romania, however, its activities are focused on foodstuff production.

On the dessert, pudding and cream markets, Dr. Oetker competes with both local and international companies, such as Nestle, Masterfoods, European Food, La Festa, Malita and Darling. The total sweets market is expected to annually exceed €400 million, with wrapped sweets accounting for 70 percent of the market.

Romanians eat an annual 35 kilograms of sweets, about half the European Union average. Moreover, Romania ranks among the last four in the EU in terms of chocolate consumption. Studies show a Romanian eats an average of 1.9 kg of chocolate, while the European leader, Switzerland, has a chocolate consumption of 11 kg per capita. Hungarians eat an average 4 kg of chocolate per year.

Market
On the dessert, pudding and cream markets, Dr. Oetker competes with both local and international companies, such as Nestle, Masterfoods, European Food, La Festa, Malita and Darling.