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A short presentation highlighting some of the trends, threats, and opportunities within the Romanian Dairy category.

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  1. 1. KNOWLEDGERomania DairyTrends, Threats and OpportunitiesMarch 2011 See further, deliver more
  2. 2. introductionThe following pages represent a short summary of some of the trends, opportunities, andthreats to dairy on both a global/regional level and to Romanian dairy market specifically.This report has been compiled by and comes courtesy of Cocoon Group Knowledge Center.
  3. 3. Trends and Opportunities
  4. 4. green friendly Globally, social responsibility and "green friendliness" are being reflected in a great number of sustainability projects and locally produced, fair trade and bio products. Milk increasingly included.
  5. 5. social media savvy There is an increasing presence across all social media by FMCG producers as companies and brands begin to sort out effective strategies and realistic objectives.
  6. 6. healthy boomersHealth issues drive new product development in dairy.Omega 3-fortified products, introduced in WesternEurope in the first half of the last decade - and othernutritional additions - are arriving in CEE in a greaterscale. This trend is strongly influenced by Boomers’increasing health awareness and purchasing power.
  7. 7. conscientious indulgence There is still a lot of space for variation in healthy foodregarding presentation and nutritional benefits. Conveniently, Conscience meets Indulgence when the taste appeal of the dessert comes with the promise of better health.
  8. 8. growth spaceSome dairy sub-segments, such as yoghurt and specialties, still showlow consumption levels in Romania, when compared to more maturecountries in the European Union. Growth potential is evident.
  9. 9. novelty Romanians are known for being open to innovations and willing to try new products and formats. For instance, new proposals in the cheese segment (snacking cheeses, flavored cheeses, mixed cheeses, specialty cheeses) or milk segment (flavored milk) are welcome.
  10. 10. online activity There is a lot of space for the development of more efficient and attractive online strategies. For instance, as the nutritional appeal of new advances in Dairy are given more attention to by the producers, it is not a bad idea to include online health information and advice sections and put them within easy reach of the consumers.
  11. 11. hunger forprivate labelsPrivate brands are eagerly swallowing marketshare due to their strongly functionalpositioning and affordability. As theconsumers realize that these value for moneyproducts fulfill basic needs for a lower price,the exodus from other brands is feltworldwide.Dairy brands, as with most categories, mustcontinually justify their price points throughinnovation and non-functional benefits.
  12. 12. Threats
  13. 13. category blur Categories are overlapping. Dairy fights with more than just dairy when it comes both to nutritional values and taste appeal: fruit juices and smoothies, desserts, soy products, supplements and other products that bring similar benefits as milk products. Solid communication strategy, innovation and creativity - all reflected in attractive packaging - are invaluable weapons in this war.
  14. 14. EU invasion A current threat to the national production lays on the fact that imported milk products from other European Union countries frequently arrive in Romania with lower prices than those locally produced.
  15. 15. lack of capitalRomanian dairy farmers, already lacking the capital to modernize or grow, now faceadditional pressure because of steep declines (or even cancellations) of governmentsubsidies due to the recent financial crisis. This anemic level of state and privateinvestment threatens to undermine quality and amount of production in the country.
  16. 16. Thank you for your attention.For more information, please contact:Cocoon Group Romania CG KnowledgeSimona Straut Douglas d.kaufman@cg-eu.com0040 212 222 077 00420 222 998 516Emanoil Porumbaru street, no. 43011422, Bucharest 1,