Carlsrom Beverages may produce Granini juice

Shachar Shaine, chairman of Carlsrom Beverages, the importer of the Granini juices on the Romanian market, says investments in a production facility become profitable at the moment the plant becomes a regional supplier.
"Investments in a natural juice plant are huge, but we are willing to make them at the moment sold volumes are large enough," states Shachar Shaine.
Shaine specified such a plant had to sustain the entire regional market and not only the domestic one.
"It also depends on the area we can sell the products in. If we cover neighbouring markets as well, Hungary and Bulgaria, for instance, then it's worth making the investment," added Shaine.
The estimates Carlsrom Beverages is making with regard to the future investment largely depend on EU integration as well, considering that custom duties for import products will be done away with at the moment Romanian joins the EU. Thus, the plant the group may hold in Romania could supply both Bulgaria and Hungary on a market with no customs barriers.
Carlsrom Beverages, a member of United Romanian Breweries Bereprod (URBB), formed a partnership with Eckes-Granini International group, manufacturing Granini natural juices. In the wake of the agreement, the company became the only importer and distributor of Granini brand on the domestic market, as well as coordinator of marketing activities related to this brand.
URBB's involvement in a business on the soft drinks market did not start with Eckes-Granini partnership, though. Last year, Cadbury granted Carlsrom Beverages the licence to bottle the Orangina soft drink on the Romanian market.
"We are interested in any premium and super-premium products on the soft drinks market," added Shaine.
According to the general manager of Carlsrom Beverages, the decision to enter the segment of natural juices is primarily related to the development of the market. The Romanian natural juice market grew by 20% in 2005 compared with 2004, after having advanced by 35% in 2004 and by 9% in 2003. At the end of last year, the market had doubled compared with 2000.
"In two or three years, the market of non-carbonated drinks will double again in Romania," Shaine believes. Shaine also said the budget earmarked this year to promote Granini amounts to 2.5 million euros.