ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-08-29 06:06:17 EDT. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-08-29 06:06:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited. L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t I E u r o mo n i t o r I n t e r n a t i o n a l LIST OF CONTENTS AND TABLES
ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-08-29 06:06:17 EDT. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-08-29 06:06:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited. L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 1 E u r o mo n i t o r I n t e r n a t i o n a l LABORATOARELE FARES BIOVITAL SRL
STRATEGIC DIRECTION Laboratoarele Fares Biovital SRL is a continuation of Digitalis the first Romanian cooperative for the cultivation of medicinal plants, established in 1929 by pharmacist Andrei Farago. The present company proudly uses the original formulas for medicinal tea, promoted on the labels together with the title Fares 1929. In order to maintain and consolidate its position in tea, the company focuses on specific consumers, which they target with particular products such as herbal aromatic tea, special tea for mother and child, curative tea to combat afflictions and slimming tea. Its other products include syrups free of E-additives, tinctures, essential oils, and dietary supplements complete its range of natural products. The launch of the first organic camomile and mint tea represents the new orientation of the company towards fully-natural products.
KEY FACTS
Summary 1 Laboratoarele Fares Biovital SRL: Key Facts Full name of company: Laboratoarele Fares Biovital SRL Address: 50, Plantelor Street, Orastie, Hunedoara District, Romania Tel: +40 25 424 1942 Fax: +40 25 424 7570 www: www.faresbiovital.ro Activities: Manufacture of tea and dietary supplements Source: Euromonitor International from company reports, trade press
Summary 2 Laboratoarele Fares Biovital SRL: Operational Indicators 2010 2011 Net sales RON40.3 million RON48.3 million Net profit RON7.1 million RON9.7 million Number of employees 194 211 Source: Ministry of Finance, trade press, company research
COMPANY BACKGROUND Laboratoarele Fares Biovital is owned by Fares SA, which was established in 1990 after its separation from the national company Societatea Nationala Plafar, and was privatised in the same year. The owners of the company are Romanian citizens. In 2000, three separate companies were established, all owned by Fares SA as the mother company: Laboratoarele ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-08-29 06:06:17 EDT. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-08-29 06:06:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited. L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 2 E u r o mo n i t o r I n t e r n a t i o n a l Fares Biovital, specialising in the production of fruit/herbal tea, green tea, essential oils, tinctures and ointments; Fares Drinks SRL, producing spirits, wine, medicinal syrups and liquid concentrates; and Fares Trading SRL, responsible for the distribution of these products. Laboratoarele Fares Biovital is involved in the production of natural products, which are made only from herbs. Medicinal tea remains the core business but the company also shows an interest in the manufacturing of dietary supplements, which it has added to its product portfolio. Capsule Insuveg (for diabetics), Gastrofit (digestive), Mentusin (cough), Spirulina, natural vitamins, Colesterol, cold and flu treatments and Plantusin syrup, are the products included in its range. Located in Central Romania, the company also operates warehouses across the country which give it national coverage. The company has launched a 100% natural range for the treatment of colds and flu, attempting to meet the increasing demand for seasonal natural products. Products include tea for colds and flu, capsules for colds and flu, tea for fever reduction, lotion for fever reduction and oils for aromatherapy. The range is called Plantusin and each product has a specific use. Increasing concerns about weight loss led to the focus of the company moving towards the manufacture and distribution of slimming tea. As a consequence of the healing effects of tea and other products, the company is focusing its distribution on the growing number of pharmacies and health shops, though it did not neglect independent small grocers, supermarkets and hypermarkets. Pharmacies are its main concern, explained by the change in its role from selling mainly Rx and OTC medicines to increased penetration of fruit/herbal tea, dietary supplements and cosmetics.
PRODUCTION Its production facility is located in central Romania, where all the three companies owned by Fares SA are established. Fares Trading operates subsidiaries and 22 warehouses in Bucharest and a few other large cities, most of them concentrated in Transylvania. The company operates domestically, but also expects to expand into other EU countries, following an investment of 1 million in new manufacturing technologies to fulfil requirements from the EU. Investment in manufacturing lines and its own laboratories is the companys intention over the forecast period. Laboratoarele Fares Biovital owns 180 hectares of land, where it cultivates medicinal herbs, thus succeeding in reviving the traditional culture of medicinal plants through the introduction of species that usually are only harvested from wild plants.
COMPETITIVE POSITIONING Finding itself at the lower end of the product range at the beginning of the review period, the company has invested in repositioning itself as a quality-products company. The usage of new labels, with reference to the year 1929 and its use of original formulas, are expected to produce the company image it is aiming for. The launch at the beginning of 2008 of organic tea positioned the company as an active manufacturer of organic food, and its leading position domestically is not easily threatened as the ingredients it produces for organic tea take a minimum of two years to develop, and imports of such products are too expensive compared to the level of the purchasing power that exists.
Summary 3 Laboratoarele Fares Biovital SRL: Competitive Position 2012 ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-08-29 06:06:17 EDT. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-08-29 06:06:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited. L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 3 E u r o mo n i t o r I n t e r n a t i o n a l Product Type Value Share Rank Tea 29.1% 1 Source: Euromonitor International from company reports, company research, trade press, trade interviews
ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-08-29 06:06:17 EDT. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-08-29 06:06:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.
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