How much does entrance onto the Romanian market cost global food & beverage giants? The answer is at least 100 million euros, according to the value of deals carried out over the past 2 years. The various transactions (worth around 170m euros) sealed on the Romanian food & beverages sector in 2007 have strengthened the foothold of multinationals on a market Euromonitor estimates at almost 20bn euros.
The deal of the year cost British firm Cadbury, one of the world's largest chocolate producers, almost 100 million euros after it acquired Kandia-Excelent. Last year, US giant Pepsi Americas paid more than 100 million euros to establish complete control over the Pepsi bottler in Romania and the Republic of Moldova after it acquired a 49% stake in the company for 42m euros.
The record deals Pepsi Americas and Cadbury forged on the Romanian market indicate the world's major players are watching the Romanian market, not missing any opportunities to enter market segments with a high potential. The market's growth rate, which is way above the average of the European food industry, and also the size of the Romanian market are just two reasons why foreign investors have become involved in deals worth tens and even hundreds of millions of euros.
Six months after the almost complete takeover of confectionery producer Kandia-Excelent, company representatives believe it is still too early to talk about strategic changes brought by the new shareholders.
After it retained its management team, Kandia-Excelent also expanded its domestic product portfolio and will count on the brand it has developed over the past 2 years. However, market players also anticipate heavy competition from the British on the gums & candies segment, which is currently around 80% dominated by Wrigley. The deal has propelled the British company among the top 3 players on the domestic mark
