CYROM Romania S.R.L www.cyromromania.ro CYR M Romania Originally established as PLATINIUM LEAF SRL in 2002, we were rebranded as CYROM Romania SRL at the beginning of 2005. Formerly a producer of cigarettes - under a license from Austria Tabak. CYROM Romania SRL is part of the CYROM GROUP and from the end of 2008 Pfanner Austria was involved as a shareholder in CYROM Romania. Since the end of 2009 CYROM Roamania is own entirely by PFANNER HOLDINGS A.G. Today, we are one of the leading distribution companies on the Romanian market. A dedicated team of 12 Area Sales Managers and 3 Key Account Managers together wit 58 merchandisers makes sure that the brands which form our portfolio reach all our final consumers. Their work is completed and sustained by an excellent logistics team which organizes deliveries and uses 1 warehouses (totalizing 3000 sqm located just outside of Bucharest) We focus our distribution, especially from the end of 2008 mainly on International Key Account – almost 90 % of our yearly turnover We are covering the rest of Romanian Market with it's small shops and special structures together with our 44 local Distribution-Partners. We are acting as an importer and representative in : trade planning marketing Merchandising customer servicing and as distributor for imports with emphasis on food and beverages. Flow Chart Manager Human Resources Depart PSI Depart Administrative Depart Financial Depart IT Depart Sales Manager Logistics Depart Marketing Specialist Cief Deposit Accounting banking Accountant Trainer Head Depart Transp Area Sales Manager Import/Export Depart Graphic Designer Bookkeeper Area Sales Manager Asistent Manager Merchandising Merchandising Sales Representative Asistent Manager Storeman Secretary Maid Sales Team 75: •1 Sales Manager •12 Area Sales Manager • 3 Key Account Manager •1 Sales Representative •58 Merchandising Administrative Clerk Administrator Driver Logistic 42 : • 1 Manager • • • • • 3 Conducere sef-servici 4 Accounting Banking 2 Storeman 30 Workers 2 Administative Invoice Issuer Cargo Forklift Maid Driver Leader Discretion handling Other departaments 22: • Importur(1) • • • • • • • Financial(2) Human Resources(1) IT(1) Marketing(2) PSI(2) Administrative(6) 2 Others (7) Total Employees : 139 www.cyromromania.ro Distribution CYROM 530 International KA 44 Distribution Partners SALES MANAGER 42 Cash & Carry 76 Hypermarket 238 Supermarkets 200 Local Supermarkets 5 KA Managers 41 Merchandisers 7 Area Sales Managers 800 Traditional Trade 15 Merchandisers 125 Horeca 236 Hard Discounts Modern Trade International KA directly 3 KA Managers 41 Merchandisers Sustained by Area Sales Mng. Traditional Trade Dist. Partner (44) indirectly 7 Area Sales Managers 15 Merchandisers Deliveries to: B+ (Supermarkets) B0 ( Sm. 21-40 sqm) B- ( Minimarkets <20sqm) END CONSUMER www.cyromromania.ro Logistic Employees • 2 Managers • 3 Administrative • 2 Storekeeper • 28 Workers Import • Truck max. 24 tones • Direct train access www.cyromromania.ro Warehouse • 2900 sqm, Bucharest • 3300 pallets • 4 levels shelves • 5 re-packaging machines Transport • deliveries to Bucharest • deliveries to counties • weekly delivery program <24hours <48 hours Key KeyAccounts Accounts Activating in Romania SUPERMARKETS CASH & CARRY Kaufland METRO Billa Part of REWE Group Selgros Part of REWE Group Mega Image Part of Delhaize Group Interex HYPERMARKETS DISCOUNTERS Carrefour Plus Real Bought by LIDL Cora Profi Part of METRO Group Part of Delhaize Group Auchan Polish Enterprise Fund VI Penny Part of REWE Group www.cyromromania.ro Development 22 The continues development of distribution played a key role in our success. Also diversifying our portfolio of brands lead to higher turnover. Turnover Million Euro 19 On 2009 because of the crises our 16 16 15 14 12,3 13 turnover was €14 million but we are still on 1 place at 100% juice category and we have 1 third from the olive oil Romanian market. Our turnover in 2010 year was €15 million. 10 Our expectations for 2011 year are €16 million based on: 6,8 7 4 The total turnover achieved by CYROM in Bucharest in the 2005 fiscal year is €3.9 million. The sales figures revealed an increased turnover of 40% versus 2004. More focus on the IKA – to grow over 90% from yearly turnover 3,9 2,2 1 2004 www.cyromromania.ro 2005 2006 2007 2008 2009 2010 New portfolio of brands to be added and also enlarging the volume of private labels for IKA The Concept: Portfolio Food & Beverage means: Basic Food, Coffee – Tea – Sweets and Beverages. The first step was to ensure a solid base for future business development, one that would create high volumes and recognition among consumers. Cyrom operates in the beverage area within the following segments: 100% Juices, Nectars, Still Drink, Ice Tea, Mineral water and Energy drinks. In our long term development we consider to make steps also in importing light and strong alcoholic beverages. I. Drinks Pfanner is imported since 2004 by Cyrom nowadays it is on the juice segment nr. 1 in Romania. Imported in Romanian trough CYROM Romania since 2004 and market leader in Romania in premium natural juice. www.pfanner.com The German company belongs to the Pfanner group of companies. www.pfanner.com Premium mineral and near water products.No.1 Austrian Mineral water. With CYROM since 2005. www.voeslauer.com The newest partner of CYROM Romania is present on the Romanian market since the 2009 www.eichbaum.de www.cyromromania.ro The Concept: Portfolio Our strategy was to find a suitable producer of a premium product in a market segment with future growth potential. In the food segment we had our first entry with Monini. During 2009 we start to produce private labels for most of the IKA This year we came to the conclusion that the fundament in this direction is strong enough to enable us to introduce new brands on the Romanian market. II. Basic Food Monini is imported since 2005 by Cyrom, nowadays it is on the olive oil segment nr. 2 in Romania. & Premium Olive Oil from Italy. No.1 Italian Extra Virgin Olive Oil and imported trough CYROM Romania since 2005. www.monini.com III. Coffee – Tea – Sweets Cyrom first step in this segment. Cyrom Romania start in September 2008, with Milford – the Tea from Germany. www.milford.de IV. Private Label Cyrom is also producing in Spain olive oil and in Malaysia palm oil for the following International Key Accounts: V. Own Brands To meet the latest market demand, for quality products at a affordable price, Cyrom Romania developed their own brands: • Stardoro, palm oil from Malaysia, is the first brand of the company came to meet the increased requirements are received in the market for this product. Under this brand our company planned to develop a complete range of base food products. • Olivoni olive oil range, produced in Spain, was created by our company to offer to the Romanian consumers the high-quality of the Spanish oil at reasonable prices Marketing Strategies to be used: extensive (Ho-Re-Ca, inland distributors, new Key Account development) intensive (specialized distribution for Ho-Re-Ca, increase range of product, merchandising) Tools: promotions, bonuses, contests, discounts, training for agents, promo packaging Implementing strategies objectives: stimulating the sales force stimulating retailers Purpose: increase sales volume increase number of active clients Objectives: 1. Increase brand awareness; 2. Reward customer fidelity; How: Tasting activities - advantages: - direct contact with consumers increase trial rate of old and new products direct communication of product’s characteristics increase of sales in real time. Marketing Marketing Advertising in B2B magazines: Objectives: 1. Increase brand awareness 2. Increase numerical and weighted distribution Advertising in: - Progressive Magazine - Piata Magazine - Evenimentul Zilei - Ziarul Financiar Marketing Advertising in B2B magazines: Special offers/promotions Objectives: Marketing Increase sales Increase brand awareness Reward customer fidelity How: Special Promo offers - advantages: direct contact with consumers increase trial rate of old and new products direct communication of product’s characteristics increase of sales in real time. Traditional Trade/HoReCa Objectives: Stimulating the Traditional Trade Stimulating the HoReCa channels – promotional materials: glasses, “biscuits”- glass support, menu display, time table display, - brand awareness projects: refrigerators branded with Pfanner; Stimulating our Distribution Partners Increase Sales Increase Brand Awareness Our Goals To become one of the most reputable Trade Houses To develop the import and logistic services. To extend the Traditional Trade distribution coverage. To obtain the International Quality Certificate for Distribution Services To complete our customer and marketing services To maximize the brand potential www.cyromromania.ro Why Cyrom? Specialized Import and Logistic Services Specialized Storage and Promo Re-packing Specialized Services in Marketing and Merchandising Specialized Services in Market Survey and Market Analyze Specialized Commercial Services for all distribution channels Our partnerships are based on transparency. We have the “know-how” to implement any desired market strategy. The brand “Cyrom” represents a guarantee in front of buyers www.cyromromania.ro