The Romanian producer of the popular snacks "Pufuleti" (expanded maize flour) sold under the Gusto brand is targeting more value-added market segments with a EUR 10 million investment.

Supported by a EUR 4.6 mln state aid, Phoenixy (the Gusto brand owner) aims to produce more sophisticated products based on the traditional recipe of expanded maize.

"We are talking about more sophisticated products. We focus on chocolate-covered Pufuleti with various fillings, things we have done so far to a certain extent, but now we are taking these experiments to a different level. With one of the investment projects, we focus on expansion technologies that do not only involve corn but may involve various other raw materials. We think of organic ingredients, a growing market that is very much in line with our brand policies. I always said that we are a technology and marketing company that makes Pufuleti," commented  Eliodor Apostolescu, general manager and shareholder of Phoenixy, Ziarul Financiar reported.

The company generated over EUR 32 million in revenues in 2020, with a profit margin of 11%.

Phoenixy's sales volumes are split 60% for exports and 40% for the domestic market, but Eliodor Apostelscu argues that this ratio is close to 70-30% in terms of value.

The company ponders building a plant abroad, in the western part of Germany, that would also serve France and Benelux, but it also considers expanding to another continent.

andrei@romania-insider.com

(Photo source: Silviu Matei/Dreamstime.com)