In the United States, the company supplies almost the entire product line – from Dry food (cookies, crackers, bagels, etc.) to bread and cookies. Most of the products are exported frozen, so the same Botanica bread is also sold in US stores.
“We managed almost painlessly to avoid price increases due to the imposed 25% duties,” said Mr. Beshliu. – Firstly, we have already increased our price tag in the USA by 12% since the beginning of the year. Secondly, we have reduced the weight of the products. This allowed us to stay in the same price range: we kept the price, but reduced the weight. Thus, the company’s products have not lost their American customers.
Andrei Beshliu emphasized that the problem is not so much in the duties themselves, but in the fact that the direct competitors have much lower duties. “In the US we compete on the shelf with Ukrainian producers. Our goods are not for native Americans, but for emigrants from the former USSR, who know them well. Therefore, the main factor is price. Ukrainian suppliers have duties set at 15%, which gives them an advantage in the formation of the final cost. We have to be more enterprising and react “from the wheels”.
It should be noted that Franzeluta exports over 250 tons of products per month – to Romania, Germany, Italy, Israel, Czech Republic, Ireland, USA, Canada, South Korea and Australia.
In Moldova the enterprise covers about 30% of the bakery products market. It is among the top 5 large operators, along with “Milina”, “Şapte spice”, “Balti Bread Products Combine” (part of “Zernoff” group), “Brodetchi”. For local consumption, the plant produces 22 thousand tons of bakery products per year (60 tons per day).
The company retains the status of a joint stock company, where 55% of shares are owned by the state (Public Property Agency). Another 1.36% is owned by the Chisinau City Hall, and the rest is owned by individuals and legal entities.
