1. What did the year 2014 represent for the food industry and especially for the meat industry?
In terms of food industry, a huge increase in consumer confidence boomed from December 2014 lead to greater loyalty towards higher priced brands.
In 2014 the FMCG market experienced a slight decline. Despite the fact that non-food categories grew, this was offset by the declining beverages, both alcoholic and non-alcoholic.
Modern trade continued to grow in 2014. For the first time in several years, the main driver were not discounters as in 2015, but supers and hypers. Supermarkets in specific have significantly grown, both numerically and in importance.
As for the processed meat market, this is currently stable in volume, but 2014 meant a year of stagnation for cold cuts. The growing segments based on volume are salami, ham and frankfurters.
2. How was 2014 in terms of competition on your market?
The cold cuts market is always a dynamic one, under permanent change. Customers pay a lot more attention to what they are buying and the challenge is to keep up with their expectations and with the trends of the industry. We are focusing on anticipating their needs and exceeding their expectations. We have been doing so for as long as we know and 2014 made no exception. We have been at the core of the industry for over two decades now, and have witnessed various changes. Nevertheless, we have always operated under solid actions, meeting the requirements of both the industry and our customers. In time, we have managed to adapt and grow rapidly, staying aware of the market’s variation and not neglecting our business objectives. Big players continued to be aggressive in terms of advertising. Small producers are starting to lose share because of the investments made in technology and advertising by the big players.
3. 2014 brought a VAT cut for the bakery industry. Have you seen any impact on your industry? 2015 brought a lower VAT rate for the food industry. What is the outlook for 2016, when we are expecting a general VAT rate cut?
The VAT cut for the bakery industry did not impact significantly or directly the meat industry, but it indicates that the decrease will boost the meat consumption and also decrease the black market. The forecast for 2016 is very positive, namely maintaining the increase of the market after the VAT cut.
4. Has the post-crisis period begun for your industry? Can we expect Caroli Foods Group to function at its full capacities again?
Our perseverance and our commitment to develop the best products for our consumers were proved every day through the quality of our products and services. Our care for consumers always kept us responsible and committed. Therefore, despite market/ social fluctuations, we have always kept on finding adjustable solutions to stay competitive on the market and in front of our consumers.
Many economic indicators are on a positive trend. GDP growth estimated for 2015 is 2.4% (source Eurostat, INSSE). Post crisis effects are seen in the media, it is the third year of growth for online, TV and OOH and we have noticed that pragmatism in on an ascending trend.
We are currently working at very high capacity utilization in our factory in Pitesti. As a result of the success of our campaign advertising the high meat content of our products, the cut in VAT and the growing trend on the market in terms of meat consumption, we take into consideration reopening our conserved factory in Tulcea. Nonetheless, these are actions we have always considered, following the trends of the market imposed by our consumers.
5. Have you seen any significant mergers & acquisitions in Romania in 2014? Do you expect any in 2015-2016? What does ‘a clean market’ mean for your industry?
The year 2014 was one of growth and investments. The market focused on acquiring new technologies, and also the safety and the quality of the products were in the spotlight. Top players on the market concentrated their efforts towards better answering their consumers’ demands, and regarding the meat industry there were no relevant mergers and acquisitions. However, we are confident that the market will mature and will be consolidated. Now there are more than 300 players on the market, where top 10 represents less than 50% of the market share. A ‘clean market’ represents the place where loyal competition is encouraged, where all competitors fully understand and respect the regulatory rules of the industry in matter. Also, a ‘clean market’ refers to a healthy and constructive relationship with the consumers, shoppers & customers, suppliers and all business partners.
6. What does Caroli Foods Group represent for Romania in terms of employees, turnover and research?
Caroli Foods Group represents a stable work environment where employees can grow and develop skills that can improve their work. More than half of our employees have been together with us for almost six years now. And in matters of turnover, we are dealing with normal situations on the operational zone.
7. Regarding the food industry, how have you perceived 2015 so far and what is your vision for the rest of the year?
2015 was a great year in terms of the consumers’ engagement with our brand, which gave us the opportunity of coming up with innovative recipes on the market, thus meeting our consumers’ expectations. Certainly, the last couple of months until the end of the year will help us consolidate what we have achieved so far. As of June 1st 2015, the Romanian Government reduced the VAT rate applied to agri-food products from the general rate of 24% to 9%. According to a survey conducted by market researcher Nielsen, the VAT cut on food items has triggered an average price decrease of 11%. The effects of the food VAT reduction, be they economic or social, can undoubtedly be positive, provided that the decrease in food prices proves to be a long-term one.
8. How would you describe a good year for Caroli Foods Group?
I could describe a good year for Caroli from 2 perspectives: personally and company related.
Related to the company, a good year for Caroli Foods Group is a year when all the established company targets are overachieved. Moreover, we highly value a year in which we are recognized as a preferred brand by more and more consumers choosing Caroli Foods Group brands with a positive impact in our market shares.
From a personal point of view, the road to the results is important, as well – the quality time together, not only the results. A successful year for me is represented by the satisfaction index of my team, my customers and all business partners. Success means how quickly we accomplish those goals, how we could increase the revenue, gaining more customers, improving the profitability of our brands, finishing our projects on time, within the budget, and to the complete satisfaction of the beneficiaries of our projects. We put a great deal of efforts into adding value, into building the trust of our consumers and customers and we will continue to generate a high satisfaction to all our business partners.
