SOFIA (Bulgaria), May 20 (SeeNews) – Bulgarian water bottling company Devin will focus on the fruit juice segment where it sees bigger potential for organic growth than on its core market, the company’s marketing director said.
The company entered the juice market in 2012.
Growth opportunities in Bulgaria are limited by the market's size, and expanding the company's share on the bottled water market even marginally requires enormous resources, Maya Gerasimova told SeeNews on the sidelines of a forum organised by the Bulgarian Association of PR Agencies (BAPRA) in Sofia last week. SeeNews was a media partner to the event.
"That's why we have decided to step up our presence on the fruit drinks market where a number of professional players operate [...] and we are steadily building our brand and increasing our share," she added.
Devin holds a 38% share on the bottled water market, she added.
Its main rivals are Bankia, a unit of Coca-Cola Company, and Gorna Bania, owned by Armenia's Multi Group.
The company's entry into a new segment requires an increase in storage area, Gerasimova noted, adding that Devin is building a warehouse at its plant in the town of Devin, in the south of the country, which will have a capacity of 3,000 pallets.
The construction of the plant, which is estimated to cost some 1.0 million euro ($1.4 million ), started earlier this year and is scheduled for completion by the end of September.
Devin has been growing in a very close correlation with the market, Gerasimova said, adding that both the bottled water and the fruit juice segments declined last year. In the first quarter of 2014, however, the company reported stronger financial performance, fueling hopes for a growth in sales and profit this year, she said, without quoting figures.
In a bid to outgrow the bottled water market, Devin plans to launch three bottled water brands in June.
Devin offers self-branded mineral and spring water and fruit juices under the Frutelli brand.
The company was listed on the Sofia bourse in the period 2007-2010. International fund Advent International bought the company in 2010 and delisted it from the Bulgarian bourse.
($= 0.732 euro)