Meggle brands to take over 30 percent of Lactag production in 2008

The partnership has led to Meggle brand yoghurts and sour creams, available in Romanian stores, being produced in the Lactag Arges factory.

Concerning the acquisition by Meggle of the Costesti producer, Nicolae Oita, General Manager of Lactag, indicated that the sale of the factory does not presently constitute an objective for either of the companies.

Lactag Arges posted turnover in 2007 of RON 20 million (€6 mln), and net profit of 15 percent of total business. “This year we are expecting a minimum RON 30 million, due to investments were are making to extend our distribution, increase our production capacity, and launch new products,” said Oita. He added that investments in 2008 will amount to some €1.25 mln and are intended mainly for the modernization of its packing line and logistics. The company delivers 25 percent of its production to Bucharest, and intends to double this by the end of the year.

The production capacity of the Romanian dairy is 70,000 liters of milk per day, although it produces only 35,000 liters.