ROMANIA: Caroli wants a 10% increase in business this year | Progresiv
Caroli Foods Group, one of the largest cold cuts producers in Romania, taken over by Sigma Alimentos, estimates a 10% increase in business this year, up to 117 million euros in gross sales and a net turnover of 95 million euros, said for Progresiv Roxana Manolescu, the company's financial director. 
In the first half of this year, the cold cuts producer increased its business by about 10% compared to the same period last year, a trend supported by new product launches, products with high meat content, and investments in production. In return, profitability did not reach the budgeted growth level.
"This difference was generated by both external factors and internal, strategic decisions on the modernization of production lines and investment in innovation. I remind you that in 2017 there was a significant increase in the price of raw materials - by more than 25% compared to the same period of the previous year, and this change certainly affected the profitability of the company that chose not to increase the price of the products in line with the raw material increase", said Roxana Manolescu.
For this year, the company allocated an investment budget of five million euros, which is mainly intended for production investment, with the manufacturer finishing a portion of new machinery purchases and upgrading production lines.
Recently, Caroli Foods achieved a market share of 17% in value (according to the Nielsen report for January-July 2017), with 50% of business being supported by sales in modern trade.
"Modern retail is the main business partner for Caroli Foods Group, with a share of about 50%, but it is still important to be present at traditional points of sale and export. It is obvious that in this food industry, modern retail goes side by side with the traditional one, and distribution is just as important as the quality of the products", the company's financial director added.
Established in Bucharest in 1994, Caroli has expanded on numerous market segments, building a portfolio of brands such as Caroli, Campofrio, Sissi, Maestro and Primo. The Caroli Group has evolved from a family company to one of the largest employers in the industry, with over 1,200 employees, a factory in Pitesti and a strong distribution network and net sales of over 100 million in 2016 and a net income of 88 million euros.
