Danone Romania, the domestic branch of the French foods group of the same name, last year posted gross profit of 9.7 million euros (35.4 million RON), an increase of 53% from 2004. Danone's profit in RON rose by 37% on the previous year.
"Romania is a country that has potential to develop the dairy products category and Danone's investment in this regard has paid off," stated Milena Nedelcu, Danone Romania's communication manager.
Danone Romania posted 70 million euros in turnover last year, an increase of 45% from 2004. As for this year's estimates, Danone representatives stated they intended to maintain the 45% growth pace of last year.
Danone has diversified its range of dairy products and has branched out into the fresh milk market. According to research company MEMRB, milk accounts for 36% of the sales on the dairy market in terms of volume, the same percentage as yoghurts. As a result of launching a new product line, and in order to back the existing brand portfolio, Danone raised its marketing budget by 25% this year.
Company officials would not specify the value of the investments in promotion.
At present, over 95% of the Danone-branded products on the store shelves in Romania are made in the factory in Bucharest. According to company representatives, of the 13 brands Danone makes in Romania, 80% are present in stores that sell fresh dairy products. The Danone Group has been present on the Romanian market since 1996, and has invested approximately 30 million euros. It has a 50% share of the fresh dairy market, according to officials of the company, with its products including various types of yoghurts and cream.
Danone Romania is part of the French foods group Danone, one of the world leaders of the food industry, operating in 120 countries. The operating profit of the group went up 8% last year to 1.173 billion euros, whil
