ROMANIA: Meda cold cuts producer is preparing for a 3 million euros investment | Progresiv

Meda Prod 98 cold cuts producer, owned by Luchi Georgescu businesswoman, is in the process of implementing an investment of three million euros to build a raw-dry production line, estimated to be completed early next year, said for Progresiv Mihai Dinculescu, the company’s Marketing Director.

Meda's businesses climbed by 10% in volume in the first half of the year, a growth pace that will be maintained steady until the end of this year, according to the company's forecast.

"This constant evolution is influenced by several factors, among which the most important are the advertising campaigns and the internal marketing strategy, but also the increase in market consumption. For the second part of 2017, as we have already mentioned, we anticipate maintaining the current trend and rely on the same strategic elements. Currently, we are in the process of implementing an investment of 3 million euros to build a raw-dry production line, expected to be completed early next year. So, in 2018, we aim to complete the assortment offered to our customers, with the raw-dried Meda products", said Mihai Dinculescu.

Meda Prod 98 ended last year with 138 million lei turnover and a profit of 15.2 million lei, according to data provided by the Ministry of Finance.

"From our data, we estimate that we will end this year with a turnover of 150 million lei. On profitability, however, we can not say yet, given that the price of raw materials is still evolving, and they have a significant impact on general costs", added Mihai Dinculescu.

According to him, market studies have revealed a phenomenon of uptrading over the past two years, as consumers tend to buy more product volume and "slightly more expensive". "At the same time, due to the investments made in the expansion of the big chains, the consumer prefers to buy more from the IKA channel", Mihai Dinculescu concluded.