Laboratoarele Fares Biovital SRL in Hot Drinks (Romania)

LABORATOARELE FARES BIOVITAL SRL IN HOT DRINKS (ROMANIA)

Euromonitor International

July 2013

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L A B O R A T O A R E L E F A R E S B I O V I T A L S R L I N H O T D R I N K S ( R O M A N I A ) P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1 Key Facts ..................................................................................................................................... 1

Summary 1 Laboratoarele Fares Biovital SRL: Key Facts ............................................... 1 Summary 2 Laboratoarele Fares Biovital SRL: Operational Indicators ............................ 1

Company Background .................................................................................................................. 1 Production .................................................................................................................................... 2 Competitive Positioning ................................................................................................................ 2

Summary 3 Laboratoarele Fares Biovital SRL: Competitive Position 2012 ..................... 2



L A B O R A T O A R E L E F A R E S B I O V I T A L S R L I N H O T D R I N K S ( R O M A N I A ) P a s s p o r t 1


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





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





Product Type Value Share Rank

Tea 29.1% 1

Source: Euromonitor International from company reports, company research, trade press, trade interviews



Laboratoarele Fares Biovital SRL in Hot Drinks (Romania)

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