CAROLI FOODS GROUP SRL

 | 

KHALED EL SOLH

  |  27.11.2015

2016 brings food industry growth, following the expected general VAT cut

The effects of the food VAT reduction can undoubtedly be positive, provided that the decrease in food prices proves to be a long-term one.

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CAROLI FOODS GROUP SRL



KHALED EL SOLH

KHALED EL SOLH

CEO at CAROLI FOODS GROUP SRL

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.

 

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