Biborteni Concludes First Phase of 7 Mio EUR Investment Project

Mineral water bottler Biborteni has started an investment project estimated at more than 7 million EUR in a bid to increase production capacity and diversify the product portfolio. "The investment consists of building a production hall and installing a new production line. The first phase, which is the construction of the hall, has been completed. We are currently awaiting an answer from the banks and the leasing companies in order to proceed with the second phase. The new production line will increase the bottling capacity by 70%, which is in line with the projected market development in the next 5-7 years," said Biborteni Brand Manager Madalin Simion.

"Now, almost two months after the beginning of the financial crisis in Romania, we cannot know what may happen in 2009. We cannot foresee how far Romania will manage to stay from the crisis. What we do know for sure is that we all are affected by the liquidity crisis. However, the economic crisis should not affect mineral water bottlers so much, because this is a mass consumer product, which cannot be "postponed" like the purchase of a house or a new car," he added. Simion believes that, judging by the political messages that the National Bank was going to revive lending, Romania might not be affected as severely as Germany, Spain or the U.S.

Last year marked the consolidation of Biborteni on the mineral water bottling market. "Following a study on consumer preferences, we launched mineral waters with three levels of carbonation: strong, balanced and soft. We also launched the soft drink Limo, which contains Biborteni mineral water, lemon juice and lemon pulp, which the market received quite well," Simion said.

Following the product portfolio diversification, the company"s turnover reached 9 million EUR in 2007, up by 30% from 2006. The projection or 2008 points to 11.7 million EUR. The plan for 2009 is to add two percent to the current 5% market share.

Biborteni becomes supplier to the Romanian Royal House

Biborteni recently joined the seven other suppliers to the Romanian Royal House. King Michael I gave the CEOs of these companies the status of Royal Supplier over the past five years. The other suppliers are Murfatlar S.A. (wine), Frottirex SA (towels, bathrobes, bed linen etc), Cramele Halewood SA (foaming wine Rhein Extra), Transavia SA (poultry products), Principal Company SA (Salonta charcuterie) and fashion designers Doina Levintza and Dan Coma.