Top players on the bakery market in Romania

• While most companies faced blockages and massive drops in sales, in the year 2020 there were companies in the bakery field that managed to overcome the crisis and even grow their businesses

The bakery industry in Romania went through great trials in 2020, perhaps the most difficult year in the recent history of the sector. At Easter last year, for example, 30-40% fewer cookies were sold compared to the figures reported for 2019.

The end of the year came with price increases for raw materials, only flour being 35% more expensive in December 2020 compared to July 1, 2020.

The main difficulties that arose during the period when the milling and baking market was hit by the coronavirus pandemic, as they were pointed out by the president of ROMPAN, Aurel Popescu, were "those related to the increase in prices, the provision of the necessary wheat for baking, especially for the months of May-June when it was not possible to make contact with the new harvest, the supply of yeast, which recorded historic sales at the bottom of the market, and, of course, difficulties in providing hygienic and sanitary materials for own staff and production units".

Although the food sector continued to carry out its activity even in the midst of the crisis caused by the pandemic, the units in the bakery industry were divided into two camps: bakeries that had contracts with hypermarkets and bakeries that delivered their products through their own stores or through others local partners.

Bakery units in the first category, he wrote last year White Art, were less affected during that difficult period, while the others faced massive drops in sales, even more than 50%. Beyond the challenges and hardships, the year 2020 also had successful players who managed to overcome the crisis.

Here, who are the most important players on the milling and baking market in 2020, according to figures validated by the Ministry of Finance.

Vel Pitar

Company Vel Pitar is the leader in the bakery products market in Romania and one of the most innovative investors in the industry, with a varied range of products and assortments.

The company ended 2020 with a turnover of 556 million lei, up 9% compared to the previous year, and a net profit of 77,2 million lei, according to data from the Ministry of Finance Vel Pitar budgeted for this year a turnover of 583 million lei. 5% more than in 2020.

The company announced that it will invest 43 million lei in technologies that will allow the manufacture of products with a longer shelf life, but which do not contain Es and without preservatives. Part of the amount comes from European funds, amounting to 11,2 million lei, and the difference is Vel Pitar's own contribution.

The company has over 2.000 employees and 12 production units in the counties of Vâlcea, Argeş, Braşov, Cluj, Galati, Iaşi, Giurgiu, Gorj, Olt and Dâmboviţa. Vel Pitar, the leader of the local milling and bakery market, is controlled by the American investment fund Broadhurst, managed in turn by the company New Century Holdings (NCH).

It was created in 2001, through the merger of 4 factories from the milling and baking industry. An expansion of the activity followed by the acquisition of other profile companies.

OLTINA Impex Prod Com

Oltina Impex Prod Com, one of the largest Romanian businesses in the milling and baking sector, ended 2020 with a turnover of 499.413 million lei, up 16% compared to the previous year, according to data from the Ministry of Finance.

Oltina Impex Prod Com is a commercial company with full Romanian capital that operates in the fields of baking, milling, grain trade, but also in agriculture. The company was founded in 1994, in the city of Urlați-Prahova. Now, in addition to the bakery unit in Urlati, it owns wheat and corn processing units in Urlati, Carani (Timiș) and grain silos in the counties of Prahova, Dâmbovița, Giurgiu, Teleorman and Timiș.

Oltina Impex Prod Com specializes in the production of bread, bakery and pastry specialties, wheat and corn flour, as well as their distribution.

It carries out its activity through 13 work points located in the counties of Prahova, Ialomița, Galaţi and Teleorman. The company's products are distributed throughout the country - among the customers are the large retail chains, the main bread producers and important grain traders. It exports products to countries in the European Union and Asia.

In 2022, following an investment of 22-25 million euros, the company will inaugurate in Carani, near Timișoara, a wheat mill with a capacity of 550 t/24h and a corn mill with a capacity of 300 t/24h. This will become the largest milling facility in Eastern Europe.

BOROMIR

Company Boromir was established in 1994 as a family business, which included a bakery and a mill. During 27 years, SC Boromir Ind SRL developed at a dynamic pace.

Last year, the company achieved a turnover of 351.630 million lei and controlled 10% of the milling activity on the profile market in Romania, with a grinding capacity of 1.500 tons/day.

This was possible both following the acquisition of new milling and bakery factories, from areas of the country with development potential - Sibiu, Buzău, Deva, Slobozia -, as well as through the re-technology and reuse of all production facilities from the heritage.

Of the total Boromir businesses, the milling division has a share of 55%, followed by that of sweets and cakes which owns 20%, then the bakery division with a share of 15% and the rest of the activities are represented by stores, distribution and activities in other fields (petrol stations) covering 10% of business.

"Through everything he has created for 25 years, Boromir shares joy both in Romania and abroad, through exceptional, innovative traditional products", says the president of the group, Constantin Boromiz.

PAMBAC SA

Cotton Bacau, one of the top ten players on the local market and one of the best-known names on the Romanian pasta, milling and bakery market, with over 80 products in its portfolio, had a turnover of 2020 million lei in 214.5 .

The Pambac Company is the successor of the Bacău Milling and Bakery Company, established in 1968, in Bacău. After the privatization through the MEBO method, in 1995, SC Pambac SA was formed, which preserved the tradition, constantly adding modern machines of the highest technological level to the production process and made new investments.

The company is now present in the main international and national networks of modern trade - hypermarket, supermarket, discounters and cash & carry. Pambac products can be found in Kaufland, Auchan, Cora, Mega Image, Profi, Metro, Selgros, and other networks. The company also owns eight Pambac and Pambac Caffe stores, located in strategic points in Bacău.

Dobrogea Group

With a 60-year presence on the market, Dobrogea Group owns in Constanţa county two wheat mills, a corn mill, several bread factories, a biscuit factory, a pasta factory and its own network of stores. Dobrogea Grup also has the well-known Eugenia brand in its portfolio.

The most important player in the South-East region, Dobrogea Grup, has budgeted investments of 2 million euros in 2021, after completing an investment of over 1 million euros in an automated frozen pastry production line.

The representatives of the company emphasize that last year the lack of mobility and social distancing produced changes in the business model of the companies and required a quick adaptation to the new context.

Despite these conditions, the group ended 2020 with a turnover of 177.6 million lei, an increase compared to 2019.

At Lorraine Romania

At Lorraine Romania is the first ultra-modern frozen pre-baked bakery factory in Romania, a joint venture between Macromex and Vanobake Group, the main frozen bakery manufacturer in Belgium.

La Lorraine Romania products are distributed through Macromex, leader in the distribution of temperature-controlled products.

The La Lorraine Romania factory, in Câmpia Turzii, opened in September 2011, is the first ultra-modern frozen bakery products factory in Romania. In 2019, the Belgian group La Lorraine put into operation a production line for rustic bread with sourdough and seeds.

Investments in the frozen pre-baked bakery factory reached 60 million euros at that time.

Last year, the company exported 17% of its production, directly and indirectly, to countries in Europe, such as Luxembourg, Greece, Bulgaria, Serbia, Italy or France.

TRANS AGAPE SRL

Company TRANS AGAPE SRL, based in Sibiu, is one of the important producers of bakery, pastry and confectionery products in Sibiu County, but it is equally active in other fields.

The company was established in 1994, when the first factory was built. Eight years later, the second bread and pastry factory was inaugurated.

In 2019, Trans Agape became one of the established brands in Sibiu county that owns over 35 stores. The business is the result of a Romanian-German partnership. The economic performance in 2020 was increasing compared to the previous year.

Lido Gîrbea SRL

The trading company Lido Gîrbea SRL was established in 1992, with headquarters in Ploiești. Soon, there was a need to increase production capacity both in the baking and milling fields. Thus, in 2003, several halls and related lands were purchased, in the town of Păulești, Movila Vulpii point.

At the same time, in the same year Lido Girbea SRL will build a modern milling and bakery complex. The investment was considerable, and the results appeared a year later when the first wheat mill of SC Lido Gîrbea SRL was put into use, with a grinding capacity of 1.300 tons of wheat/month.

HIS SIMPA

sIMPLE is a company with a tradition on the bakery market, being one of the oldest profile factories in Sibiu, opened in 1967. After privatization, the investors purchased pastry lines and set up a confectionery laboratory.

Now, SIMPA offers its consumers, through its more than 25 stores, more than 60 varieties of bread and bakery products, as well as various types of pastry and confectionery products.

Thanks to the experience accumulated in over 50 years, SIMPA managed to create unique products on the Sibiu market using traditional technologies.

LIDAS SRL

Company Lidas has been present on the bakery market since 1993. It was born as a family business. The factory was built in Mineri village, Tulcea county.

Through continuous investments, both its own and through European Funds, Lidas currently owns a newly technological factory for the production of bread, pretzels, rolls, cookies, salés or croissants, as well as its own mill, as well as two warehouses storage of raw materials, a laboratory and its own network of stores.

This year, Lidas Company plans to expand its production capacity by building a new bread factory. The total investment amounts to 46,8 million euros, of which 23 million euros will be provided by state aid, according to public data.

European SRL

European SRL has a recognized tradition in the field of baking, pastry and milling in North-West Romania. Until 1999, it operated under the name SC ARNYAND SRL, and later it became SC EUROPAN SRL. In the beginning, the company from Sărmaşag, Sălaj county, produced a limited range of bread and bakery specialties.

Later, the field of activity diversified, so that at the moment the company produces a wide variety of bakery products, bread deliveries and other products, to stores in the county as well as in neighboring counties. In addition to the bakery business, the company also focused on pastry and milling products.

PANEMAR Milling and Bakery SRL

Panemar is a leading brand in the field of pastry and bakery from Cluj county. The business started in 1993, with a brick oven in which one kilogram of bread was baked. Then a mill and a factory were built where new varieties of bread, cakes and other bakery products are produced.

"Things baked slowly like well-made bread", and using simple and good ingredients, keeping the true recipes and putting a lot of effort into it, they managed to obtain the bread loved by the people of Cluj.

The company has also developed its own network of stores. In 2019, the company took the first step outside of Cluj, opening a store in Oradea. Later, in 2020, two more stores followed in Oradea, and this year, after the restrictions were lifted, in July it opened another unit in Cluj Napoca. In total, Panemar exceeded the threshold of 40 stores, and the business strategy aims to consolidate the chain of pastries on the market. The Panemar factory, where the brand's products depart, has a production capacity of 25 tons of bread per day and 5,5 tons of pastry products.

HARMOPAN SA

Company Harmopan, based in Miercurea-Ciuc, is the most important milling and bakery company in the region. The enterprise is one of those with the longest activity in the field, having been established in 1965, bringing together several mills and small factories in the bakery industry with local co-interest, some of which were functional since the 20s and 30s.

In its current form, the company has been operating since April 1991, as the legal successor of the Milling and Bakery Industry from Harghita county and took the name HARMOPAN. Harmopan has earned its reputation as a keeper of traditions, especially traditional Szekler products. But at the same time, under the Harmopan brand, products from the new trends of the bakery market appear.

Harmopan SA owns two production units in Miercurea-Ciuc and one production unit each in the towns of Odorheiu Secuiesc, Cristuru Secuiesc, Gheorgheni and Topliţa.

Within the platform that houses the administrative headquarters, there is also a wafer section, a wholesale warehouse, a non-stop retail store and a bistro. The company also operates and manages four mills – two for wheat, one for corn and one for rye.

Part of the products manufactured under the Harmopan brand are sold through its 39 own stores, throughout the territory of Harghita county, but also in the cities of Braşov, Sovata, Târgu-Mureş.