The Romanian market is poorly industrialized and digitized, compared to other countries in Western Europe. Also, many of the businesses in the bakery, pastry and confectionery sector do not have a seniority to ensure their stability in times of crisis. Family businesses, with tradition, such as the German ones for example, can face obstacles better, due to their positioning in the market.
Business migration to the online environment it has been a lifesaver for many entrepreneurs. The most affected by the pandemic were small businesses, bakeries and artisan confectioneries, which were unable to restart their businesses after the state of emergency.
What have been the biggest challenges for manufacturers in the bakery, pastry and confectionery industry?
Gabriela Bereş (GB), regional director of Puratos Group, believes that the biggest challenge faced by producers are: decreasing demand, canceling private and public events, closing schools.
• Decrease in demand - Consumption is the main thing they (Puratos customers - no) lack at present. People do not spend as much money as before the crisis, because they have become more cautious, they have lost their jobs, it depends on each case.
• Cancellation of private events and public - Bakeries and confectioneries survived not only through the shops they opened, but also through the fact that they delivered to events such as weddings and baptisms. They no longer existed, so they were hit from this direction as well.
• Closing schools - Many of them (Puratos customers - no) live off the products they sell to children when they go to school. Each (child - no) takes a croissant, a cake, a loaf of bread...
Romania versus other Eastern European states
GB: In Romania, the crisis had the biggest impact due to the fact that our country is an artisanal market. So, if in other countries we are discussing an industrial market, where there are many automated confectioneries and bakeries, Romania has an artisanal component, and this has been seen now. I also make a comparison with Germany, which has bakeries and confectioneries handed down from father to son, very old, traditional businesses. When your business has a history of over 50 years, you have a different positioning in the market, even if you are affected in the short term. You probably have more cash and sustainability in the business you do. On the other hand, in Romania the age of the business, especially in confectionery, is probably between 10 and 15 years at most. Also, there are many confectioneries that have appeared in the last 2-3 years.
According to the World Health Organization (WHO), life will return to "normal" only in the second half of 2021 or even in 2022. What will the market look like then?
GB: In all fields there is discussion about the new normal or this "new normal". We believe that life in 2022 will not look like before. There will be some defining developments in the market and I think we have to be realistic and recognize them. It is very clear that large automated bakeries or confectioneries that have financial strength will survive. Obviously, they must differentiate over time. It is very clear that retail stands to gain, being stronger and stronger. Once again it is very clear that small entrepreneurs have suffered the most. The idea is that the structure of the market will change from this point of view, and the small entrepreneurs, probably many of them, will survive, but doing things differently. For example, to use online-, to go online, to make themselves visible, to be dedicated to online - thus, I think things will look completely different. I also think they will have to to differentiate more. Those small entrepreneurs who go for standard products will not survive, and this was seen before the crisis. The crisis only accelerated these trends. Those who come up with different things in terms of product, taste, packaging, will win. So imitating you is not part of "the new normal".
Puratos Romania is one of the main players on the market of ingredients for the food industry. The company has an extensive product portfolio, including active and inactive yeasts, sprouted and infused grains in liquid yeast, Belcolade Belgian chocolate, fruit fillings, frostings, fine creams for desserts.
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