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LABORATOARELE FARES

BIOVITAL SRL IN HOT DRINKS


(ROMANIA)
Euromonitor International
July 2013

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L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t I
E u r o mo 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


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L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 1
E u r o mo n i t o r I n t e r n a t i o n a l
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
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L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 2
E u r o mo n i t o r I n t e r n a t i o n a l
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
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L A B ORA T OA RE L E F A RE S B I OV I T A L S RL I N HOT DRI NK S ( ROMA NI A ) P a s s p o r t 3
E u r o mo n i t o r I n t e r n a t i o n a l
Product Type Value Share Rank
Tea 29.1% 1
Source: Euromonitor International from company reports, company research, trade press, trade interviews


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