Masterfoods eyes Romanian growth

- Last updated on GMT

Related tags: Mars incorporated, Investment, Snickers

Masterfoods Romania, part of the US manufacturer Mars, has
announced that it is expecting its sales turnover to exceed €20
million in 2004, encouraging the company to invest further in the
country.

According to reports from a number of Romanian national newspapers company officials say that after a period of steady expansion backed by aggressive marketing the company's confectionery and other food brands have now developed a significant consumer following.

Masterfoods produces internationally renowned confectionery brands such as Twix, Mars, Snickers and Bounty, together with a range of pet foods, rice and cook-in sauces.

However the company's mainstay in Romania is the confectionery sector, where it is a market leader in countline bars. The Romanian market for chocolate is estimated to be worth €20 million annually.

Facing stiff competition in the confectionery market from players such as Heidi, Kraft, Excelent-Kandia and Primola, Masterfoods has had to invest heavily in order to remain competitive. In the ten years since the company started its operation there it has invested an estimated €10 million in Romania. Adding to this investment the company has just announced that it will be spending another €2.1 million on new equipment for its production facilities in the course of the next 6 months.

At the end of last year the chocolate market in Romania took an interesting turn when the two leading players Excelent and Kandia merged to become the biggest player with a 40 per cent market share. In the face of stiffened competition analysts believe that Masterfoods is having to increase its level of investment if it is to remain competitive in the all-important chocolate market.

Related topics: Ingredients