The good and the bad in the Romanian FMCG market in 2008

The lists includes factories which entered in the portfolio of multinationals such as Kraft Foods, Coca-Cola, Nestle, Bunge, Friesland Foods, and Colgate-Palmolive.
This relocation process is expected to continue in 2009, considering the financial crisis, but also fiscal advantages in nearby countries and low labor costs.

However, significant investments have been announced, such as the Greenfield project of the U.S. giant Procter&Gamble (P&G), which is allocating $100 million (€70 mln) for building a production unit in the Prahova County. In this particular case, Romania was chosen over Poland, Turkey, and Ukraine, due to its strategic position, considering that almost 90 percent of production would be exported. Furthermore, Tymbark Maspex Romania, a major player on the soft drink segment, invested €30 mln in a new factory, thus doubling its investments on the Romanian market.

After several years of rather high growth rates registered by the Romanian food industry, compared to neighboring countries, this trend slowed in 2008, and profits started to drop. Nevertheless, the local market has potential and remains attractive for foreign investors, due to the low level of consumption for certain products, compared to Western countries.

The Romanian retail is the second-largest in the Central and Eastern Europe, with sales worth €41 billion in 2007, and which are estimated to exceed €100 bln by 2010, according to Deloitte Romania consulting company.