LOCAL RESIDENTIAL MARKET GOES BIG
April, 2019 / Volume 23, Issue 4
www.business-review.eu
6
ROMANIA WAITING FOR NEXT GAME-CHANGING UNICORN STARTUP
18
MBAs ‘BOOST KNOWLEDGE AND NETWORKS’
28
REBRANDING – WHEN TO DO IT AND WHY
34
CRITICS CLASH OVER LOBBY LAW
www.business-review.eu Business Review | April 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Ioana Erdei
6 Local residential market
• Editor-in-Chief •
goes big
8 Real estate market closes in on EUR 1 billion COVER STORY
I
Looking to legislate lobbying
n the field of lobbying, Romania’s almost existential question is whether to make it a legitimate legal occupation (regulate it), or not. Skeptics, including Ministry of Justice officials, can’t
yet find or clarify the line between lobbying and influence ped-
12 Opinion split on Austrian-style lobby law
dling. And Romania’s recent background in terms of criminal cases
ENTREPRENEURSHIP
involving state officials gives the skeptics enough ammunition to argue against such a law. The question that remains unanswered is:
18 Romania waiting for next
does Romania need a lobbying law?
game-changing unicorn startup
A draft regulation on the matter was recently passed by the
20 Capital market looking to
Senate, after the Ministry of the Business Environment attempted
give entrepreneurs growth path
to pass a similar draft law through the government. The Cham-
22 Entrepreneurship on the
ber of Deputies has the decisive word on the matter. In the form
rise as startup ecosystem gets upgraded
approved by the Senate, the draft bill states that lobby firms can be set up in Romania and undertake lobbying activities only after being entered in a special registry managed by the Chamber of
MANAGEMENT
Commerce and Industry of Romania. The model is copied from Austria’s current legislation. Regulating lobbying is a relatively recent concept in the majority of European Union Member States. Currently, only seven EU states (France, Ireland, Lithuania, Austria, Poland, Slovenia and the United Kingdom) have legislation on lobbying activities, as well as a mandatory register of lobbyists. Hungary’s earlier legislation
28 MBAs ‘boost knowledge and networks’
on lobbying and register were revoked in 2011. The most recent law was adopted in France in November 2016. In some countries
CITY
(Denmark, Germany, Sweden, the UK) there are ethical codes governing public relations and consultancy agencies, but these are not included. Belgium, Bulgaria, Denmark, Estonia, Greece, Cyprus,
40 A kind of magic:
Luxembourg, Hungary, Malta, Portugal, Slovakia and Sweden have
Queen musical gets Romanian rendition
no legislation, code of conduct or register of lobbyists.
42 TIFF comes of age:
Our cover story this month investigates this controversial new area.
iconic film festival turns 18
44 Expat eye
FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | April 2019
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
Daniela Iliescu has been named Patria Bank’s general manager, starting April 1. She is taking over the role from Bogdan Merfea, who will continue as chairman of the board of directors of Patria Credit. Iliescu is one of the strongest promoters, supporters and builders of Patria Bank’s brand and business, having been active within the bank over the last ten years. Prior to her current position, she worked at PwC Romania, where she was responsible for coordinating audit and financial consulting services for key banking, leasing, credit and asset management companies.
Photo: Dreamstime
Romania currently has around 800 km of motorways
Government to speed up investments in infrastructure By Sorin Melenciuc The Romanian government
ture projects. Experts say Roma-
ing the poor infrastructure in
is preparing an emergency
nia has one of the worst road and
the country, as during recent
decree intended to speed up
rail networks in Europe.
years the government has
major road and rail projects
major infrastructure projects
growth, stimulating house-
ing approval procedures and
will be partially or completely
hold consumption and GDP
limiting the options for appeals
exempted from the provisions
growth rates at the expense
in tenders. The decree, being
of the current legislation on the
of infrastructure investments.
prepared by the Ministry of
environmental impact of infra-
Romania currently has around
Transport, would speed up the
structure projects.
800 km of motorways and few
the country’s major infrastruc-
page 5
adopted a strategy of wage-led
in the country by simplify-
expropriation procedures for
Virgiliu Ichim has been appointed general director of Allianz-Tiriac Private Pensions, the second largest player in the Pillar II mandatory private pensions market by number of participants. Ichim has over 18 years of experience at Allianz-Tiriac Insurance, and has served as director of subscription and management for the life and health insurance division. He has made a significant contribution to the creation and development of the life insurance business since its launch in 2001.
The document also says that
The draft comes at a time of fierce debate in Romania regard-
additional roads are under construction.
12 retail projects to be delivered in 2019
Photo: Dreamstime
By Razvan Zamfir
Twelve commercial centers are
cycle delay, it is only now that we
scheduled to be delivered this
are seeing a significant increase
year on the Romanian real estate
in deliveries, with the pipeline
market, surpassing 250,000 sqm,
for 2019 sharply higher than in
according to Colliers Interna-
previous years: nearly 250,000
tional.
sqm, more than double the fig-
“Due to the development
ure of a couple of years ago,” say
Romania’s retail surface per capita is the second smallest in the region
www.business-review.eu Business Review | April 2019
NEWS 5
A&D Pharma buys 46 Belladonna pharmacies By Aurel Dragan A&D Pharma Group is continuing to strengthen its position on the retail pharma market, buying and integrating 46 Belladonna pharmacies. The pharmacies will be rebranded as Punkt, the retail chain operated by the company along with Sensiblu, another pharma retail chain. The announcement came
A&D Pharma currently operates three business lines
right after the sale of Solacium
community,” said Leonardo Fer-
company is one of the larg-
and its subsidiary Be Well
randino, CEO of Interimar A&D
est pharmaceutical groups in
Pharma to Zentiva and Siyiara
Pharma and president & CEO of
Romania that offers integrated
Enterprises. Dr. Max Group,
Dr.Max Group.
import, distribution and retail
owner of A&D Pharma, is
Officials say the transaction
services for pharmaceuticals.
continuing to focus on its core
complies with all the criteria
A&D Pharma currently operates
business, the distribution of
imposed by law and it has been
three business lines, namely
pharmaceuticals.
approved by the Competition
Mediplus, Sensiblu and Punkt,
Council, which marks a new
national pharmacy chains, and
46 new units in Punkt pharma-
stage in the integration of the 46
A&D Pharma Marketing & Sales,
cies, we reconfirm that we are
pharmacies, a process that will
which provides value-added
a dynamic group. We will not
last for several months. Follow-
services to international drug
stop here; we will continue to
ing the acquisition of the Bella-
manufacturers in Central and
grow to provide patients and
donna pharmacies in Bucharest,
Eastern Europe. Marketing &
customers with high-quality
over 180 new employees will join
Sales, which provides value-
and affordable products that
the A&D Pharma Group.
added services to international
“With the integration of the
will contribute positively and proactively to the lives of our
With about 25 years of experience on the local market, the
John Stynes has been appointed CFO of Bitdefender, a Romanian cybersecurity and antivirus software company that provides solutions for 500 million users in over 150 countries. Previously, Stynes worked in the financial departments of technology companies Verifone, TT Electronics and Cisco. He replaces former CFO Niculae Dinca, who will continue to be a part of Bitdefender’s financial management team and support Stynes in his transition period.
drug manufacturers in Central and Eastern Europe.
Christina Verchere has been confirmed for a new four-year term as CEO of OMV Petrom, after having taken over the role from Mariana Gheorghe, who had been at the company’s helm for 12 years, in January 2018. Verchere started her career in 1993, after studying Economics at Aberdeen University in Scotland. She was BP’s regional president for the Asia-Pacific region and previously worked as president and CEO of BP Canada Energy.
Colliers consultants. This would be the highest level since 2011, and, outside Bucharest, deliveries should near a post-crisis high. Meeting developer plans would also lead to a hefty pipeline for 2020, with a figure similar to this year’s from just a handful of large projects. Six of the projects to be delivered are new, while the other six are extensions of existing shopping centers. Romania’s retail surface per capita is the second smallest in the region, after Bulgaria, at 181 sqm / 1,000 people.
Dan Puica has been appointed CEO of BestJobs, taking over from the company’s founder, Calin Fusu, who will stay on as a member of the board. Puica started his career at KPMG Romania and has held several management roles in Romanian and international companies. In the last four years, he’s been part of the OLX group, first as finance manager and later as business manager for real estate.
www.business-review.eu Business Review | April 2019
6 REAL ESTATE
Local residential market goes big Last year around 50 large-scale residential projects were launched in Romania, including at least 100-200 apartments, but projects exceeding 1,000 units are also on the market. This year, however, the number of huge residential projects launched will drop to 20, owing to the market conditions. By Razvan Zamfir
Atria Urban Resort sold half of its first phase apartments
T
Arcadia Apartments, the first residential investment from entrepreneur Dan Sucu
he estimate comes from real estate
cated on the western outskirts of Bucharest.
Popoviciu, one of the owners of the Baneasa
company Imoteca, which blames the
In Stefanestii de Jos, Turkish investors from
commercial project in northern Bucharest,
new bank tax, the rule limiting credit
Opus Land are building 3,000 apartments as
also has a large complex under construc-
debt to 40 percent of earnings, and slightly
part of Cosmopolis, a EUR 300 million invest-
tion here, Belvedere Residences, which will
weaker demand.
ment to date.
contain a total of 1,500 homes.
The first large-scale projects developed
Palladium Residence is being developed
Less common are projects above mid-
in the capital targeted both the mass market
by Jacob Gardens in the Titan neighborhood.
range, like the 800-unit Arcadia Apartments,
segments (in western, southern and eastern
This project, in the east of the city, will have
developed by Dan Sucu of Mobexpert and
neighborhoods of the city) and the middle
a total of 2,500 flats.
Sorin Visoiu of Conarg in the Domenii area,
market (in the north).
Meanwhile, Mohammad Murad, the
in the north of the city, with an investment
owner of the hotel chain Phoenicia, is build-
of EUR 100 million, and the 630-apartment
ongoing in Bucharest is Militari Residence,
ing Onix Park, a residential complex of 2,000
Luxuria launched by Impact.
which features 5,000 apartments and is lo-
apartments, while businessman Gabriel
The biggest project whose construction is
“It’s the first project we’ve developed
www.business-review.eu Business Review | April May 2016 2019
COVER REALSTORY ESTATE14 7
for this type of audience. At the end of last
homes. Rotar Park Residence is sited on the
received construction approval for its first
year, we were very pleased to find that our
former Turbomecanica industrial platform in
phase and will begin its construction in the
projections were correct: nearly 50 percent
the west of the capital, near the Peace Metro
summer of last year. The project includes
of the first phase apartments were already
Station. And in the Drumul Taberei district
four buildings and will be delivered in two
contracted by both investors and end-users,”
a residential project of 1,300 dwellings,
stages. The first phase includes two blocks,
said Impact CEO Bogdan Oslobeanu.
Moghioroş Park Residence is being developed
176 apartments and studios, to be completed
by Hassanain Mohamed and Saddiq Omar
within 18 months of the start of works. The
Abu Seedo.
other 176 units will be delivered in a second
The Luxuria residential project is located in the vicinity of the future office floor of the Expozitiei Boulevard, where 17,000 employ-
In the near future, other large-scale resi-
ees will be relocated from large companies,
dential projects will get underway, includ-
so it has a solid base of potential customers.
ing AFI City, the first residential project on
stage, just six months after the completion of the first phase. Aviatiei Park will provide medium- to
the local market from the Israeli group AFI,
high-end housing in the north of the city.
largest residential complexes in Bucharest
which will feature about 2,000 homes. Mean-
More than 50 percent of the project area
announced last year is H Pipera Lake, with
while, businessman Cristian Erbasu, who
will be green areas, and of the 15,000 sqm
1,350 apartments, an investment of over EUR
owns Erbasu Constructions, is joining forces
of land, only 3,700 sqm will be occupied by
90 million for the developer.
with the entrepreneur Daniel Piturlea, the
the footprint of the four buildings. “I chose
owner of constructor Concelex, for a residen-
to test the business formula I had in mind
the capital has attracted large-scale invest-
tial complex of 1,000 homes in Mogosoaia,
before moving on to a scale of development
ments in residential projects with hundreds
Arbo Residence.
with hundreds of apartments. We have
Also in the northern area, one of the
And in recent years, the western area of
teamed up with the ADNBA design office and
or thousands of dwellings each. Pedro Company Constructexim, controlled by busi-
SPECIAL PROJECTS
set up a new division, Forte Partners Resi-
nessman Petre Niculae, is developing 1,500
Worthy of a special mention is Win Her-
dentials,” says Geo Margescu, founder and
apartments in the 21st Politehnica Residence
astrau, developed by Cristi Pascu, with 252
CEO of Forte Partners.
near the Cora Lujerului hypermarket.
apartments and a market value at delivery, in
And the same developer is building another Plaza Residence, which will have 743
2010, of EUR 60 million. The complex will boast facilities such as
Forte Partners, which sold The Bridge office project to the Paval brothers of Dedeman for EUR 200 million last year, tested
two fitness centers, a private events space,
the residential market with three residential
integrated shopping area and underground
boutique projects: London 27, Calderon 80
from Plaza Romania shopping center, Spanish
car park including car wash. It will include
and Suvenir 1.
developer Gran Via is building an ambitious
pedestrian areas connecting the green areas
project, Gran Via Park, which will have a total
and the neighboring park.
dwellings, near the Plaza Romania mall. In the same area, just across the street
of 1,100 homes. Elsewhere, nearly three years ago the Eskiocak family of Turkey began to build a residential project that will total 1,300
By the end of last year, Win Herastrau had sold around 30 apartments. Aviatiei Park of Forte Partners has
And the residential market continues to grow, fuelled by investment inflows, albeit at a slower pace than expected. What pundits say remains to be seen is if demand will remain strong over the next 12 to 18 months.
www.business-review.eu Business Review | April 2019
8 REAL ESTATE
Real estate market closes in on EUR 1 billion Pundits are tipping the Romanian real estate sector to perform similarly to 2018 this year. In the first quarter of 2019, projects of around EUR 118 million were sold, almost equal to the value in 2018. If predictions prove correct, the second and third quarters will bring big money onto the market. By Razvan Zamfir
Oregon Park office project was sold for EUR 170 million last year
I
n 2018, the total transaction value of the
for one fifth of total volumes, not too far be-
entry on the investment market, concluding
Romanian real estate market neared EUR
hind South African capital. The latter aspect
several deals in 2018.
950 million, slightly down on 2017. This
is especially positive as the limited presence
The two biggest deals of the year were on
year has the potential to bring a rebound, and
of Romanian money on the real estate market
Bucharest’s office market: Dedeman’s pur-
possibly set a new post-crisis high, as several
has been criticized by foreign investors in the
chase of The Bridge and Lion’s Head Invest-
large deals have remained stuck in the nego-
past; at the same time, it highlights a growing
ments’ acquisition of Oregon Park; the deals
tiation phase longer than expected.
maturity in the Romanian economy overall,
were reported to be in the region of EUR 200
and reassures all market players.
million and EUR 175 million respectively.
“We believe that this year, if all the negotiations conclude, we could reach close to
The most notable entries on the real estate
A different reference deal for the of-
EUR 1 billion of transactions involving office
scene were those of the investment arm of
fice market was the purchase of Skanska’s
buildings. It is certain that negotiations are
Romanian-owned DIY chain Dedeman and
Campus 6 (first phase) by CA Immo. Another
ongoing for the purchase of EUR 500 million
South African-backed Lion’s Head Invest-
noteworthy move was the sale of Romanian-
of buildings,” says Robert Miklo, director of
ments, while other players that have been ac-
owned Maestro Business Center in Cluj-
CEE investment services at Colliers Interna-
tive in recent years (Prime Kapital/MAS REI,
Napoca to First Property Group, which marks
tional. That said, 2018 saw some of the largest
Cerberus Capital Management) continued to
one of the few examples of an institutional
deals ever, while domestic capital increased
snap up properties. Also, the second biggest
(and listed) investor moving outside Bu-
more than fivefold versus 2017, accounting
player on the industrial scene, WDP, made an
charest for office assets. Overall, the year
www.business-review.eu Business Review | April May 2016 2019
COVER REALSTORY ESTATE14 9
brought a bumper crop of office deals in 2018,
see chances of jumping to the EUR 1 billion
for almost 82 percent of volume compared
which generated close to 55 percent of total
transaction threshold in the office segment,
to 37 percent in 2017. This is largely due to
turnover in 2018, despite the fact that several
compared with nearly EUR 600 million
the prevalence of office transactions last year
large deals saw their negotiation phases
in 2018, which would mean that if it stays
and, given the way the pipeline looks for
extended into 2019.
dynamic last year, on the other segments
2019, it is likely that Bucharest will continue
we could exceed EUR 1.5 billion. But coming
to weigh the most.
THE TRANSACTION MARKET IN 2019
back, given the risks, Colliers’ official forecast
The first two transactions in 2019 were the
is somewhat lower, at about EUR 1 billion,”
tants, under normal conditions, Romania’s
acquisition of Prime Kapital shares in nine
says Silviu Pop, head of research, Colliers
dynamic economy in recent years coupled
small and medium-size commercial centers
International.
with the juicy yield differential compared to products in neighboring CEE countries would
by partner company MAS RE, for around EUR 113 million, while Romanian entrepreneur
According to Colliers International consul-
support a rosy outlook for the real estate
Sebastian Balasescu, the former owner of
THE RETAIL AND INDUSTRIAL & LOGISTIC MARKETS
Urgent Curier, a company he sold to Abris
The retail segment was a distant second in
Capital in 2014, bought the Biharia 26 office
2018, but still accounted for a significant
actions looks good, with investors continuing
building in north Bucharest for around EUR
34 percent of total investment volumes.
to show healthy interest in assets currently
5 million.
The biggest ticket, estimated at well over
on the market. The market is being analyzed
EUR 100 million, emerged late in the year,
by investors not currently present or active
when Sonae Sierra bought out its partner (50
domestically.
And reports suggest there are many major assets on sale on the real estate market. “NEPI Rockastle has put its office portfolio on the market. Portland Trust might sell something, Atenor as well. And with a spread
percent) at the ParkLake Shopping Center in Bucharest. Another large deal saw Prime Kapital/MAS
investment scene. The current pipeline for real estate trans-
According to Cushman & Wakefield Echinox consultants, the local real estate market has begun to attract the attention of
of at least two percentage points above
REI buy the Militari Shopping Center in the
major Asian investors, as groups from China
Poland and Czech Republic, the products will
capital for EUR 95 million.
and South Korea are exploring the potential
sell,” says Chris Bell, managing director of consultancy company Knight Frank Europe. The market could yet surprise everyone,
Hotels and industrial saw smaller deals
to invest directly in the primary commercial
than in previous years, but some large assets
markets. It would be feasible for the first
were on the market in 2018. For industrial,
transaction to occur by the end of this year. So, the market could expect total volumes
if all the negotiations for office buildings are
while very big-ticket items were lacking (the
somehow completed this year, as the value
two biggest deals were each in the EUR 20
of at least EUR 1 billion in 2019, with offices
of the office transaction market could reach
million area), it is important to note that size-
set to remain the star with a pipeline of at
EUR 1billion
able deals were closed by WDP, the second
least EUR 500 million – but there are some
biggest player in the warehouse market.
threats on the horizon.
“It is hard to say how much we could exceed the EUR 1 billion threshold, but there
This year, CTP, the biggest player in the
Besides the worsening macroeconomic
are chances. Many large properties (tickets
industrial market, is close to securing the ac-
picture and fresh uncertainties, the biggest
of over EUR 100 million) are currently on the
quisition of a property, probably from WDP,
potential threat for the investment scene
market, so if all goes well, we will be there,
for EUR 40 million.
comes from the bank tax. This has the poten-
but it depends on many uncertain issues. Colleagues in the investment department
Bucharest returned to the forefront of demand, as assets in the capital accounted
tial to reduce banks’ appetite for real estate products, say pundits.
www.business-review.eu Business Review | April 2019
10 ECONOMY
Elections: booming public spending heralds short-term gain, long-term pain In the next two years, Romania will see four rounds of political elections. This could have a significant influence on the economy, which is already showing signs of a slowdown in 2019 amid cooling conditions in some key sectors. By Sorin Melenciuc
E
Photo: Dreamstime
xperts are already warning that Romania is facing a testing end to the business and election cycles. During
this kind of busy election schedule, local ruling parties generally concentrate on shortterm policies to boost wage and pensions, neglecting ones that could lead to long-term prosperity. The government already increased wages at the beginning of this year and has promised to hike pensions in September – and this kind of largesse need resources to finance it.
HIGHER WAGES AND TAXES
The common point of different politicians in Romania is populism
Of course, raising wage and pension spending boosts retail sales, and retailers may benefit
similarly. The common point is populism – in
This approach kept the public deficit under
through higher revenues and profits.
a very Latin, almost South American fashion,
control in that period.
But there is another side to the coin:
say commentators. In 2008, when the US
running out of revenue sources, the govern-
and most Western European countries were
FIGHT WITH THE EU
ment increased taxation at the end of 2018,
already in the grip of the financial crisis, the
But now the situation looks different as the
creating turbulence in many key sectors of
ruling party of the time in Romania told its
current government seems less committed to
the economy. “It is important to point out the
supporters that the crisis would not affect the
respecting EU rules regarding the sustainable
recent tax changes that confounded domes-
country. Moreover, the government increased
finances of the member states. “Large pen-
tic businesses (the levy on bank assets and
pensions and public sector wages. The con-
sion hikes may push the budget deficit above
taxes on the revenues of telecom and energy
sequence was a near-collapse of the public
3 percent of GDP in 2019-20. Moreover, the
companies). These are likely to lead to less en-
finances, with the budget deficit climbing to
negative market reaction to the announced
thusiasm for expanding in the future, but it is
almost 5 percent of GDP in 2008 and more
measures could undermine the government’s
difficult to gauge their impact as things stand
than 8 percent in 2009. In 2009 this situation
borrowing efforts,” Dan Bucsa, UniCredit’s
now,” Colliers International Romania analysts
forced the country to accept its biggest ever
chief CEE economist said in a recent report.
said in a recent report.
loan from the International Monetary Fund
In fact, the current ruling party has chosen to
(IMF), World Bank and the European Commis-
confront the EU over fiscal and judicial issues
damaging, given the level that the central
sion, of EUR 20 billion, to escape an economic
and this may bring more turbulence to the lo-
bank deems excessive; this could lead to more
collapse, and to slash public sector pay by 25
cal economy. “Politicians will probably ignore
expensive loans and tighter lending stan-
percent in the following year. In 2014, before
the country’s reliance on portfolio investment,
dards,” the analysts warned. But looking back
the presidential election, the government
continuing their two-pronged fight with EU
at recent events in Romania, the second poor-
acted in a more prudent way: it financed its
institutions on fiscal and judicial issues. While
est EU member state, these measures gener-
populist spending by raising new taxes on fuel
Romania could narrowly avoid an excessive
ate a feeling of déjà-vu. In the face of a fierce
and large companies (through a famous “tax
deficit procedure in 2019, it may face one in
political battle for the right to run the country,
on pillars”, paid by all owners of electricity
2020 if fiscal policy does not tighten further,”
different politicians in Romania behave very
or telecom pillars – and some similar assets).
Bucsa warned.
“Furthermore, the bank tax is especially
12 COVER STORY
www.business-review.eu Business Review | April 2019
OPINION SPLIT ON AUSTRIANSTYLE LOBBY LAW Romania is close to adopting a lobbying regulation based on the Austrian model, with a draft bill already approved by the Senate. But many commentators think that the line between lobbying and influence peddling must first be clarified. By Sorin Melenciuc
www.business-review.eu Business Review | April 2019
COVER STORY 13
I
n September 2018, two different draft bills with almost the same content were published: a draft government emergency decree drawn up by the Ministry of Business Environment, Commerce
and Entrepreneurship and a draft bill put forward by ALDE, the junior ruling party. The two projects evolved differently: the draft emergency decree is still going through the inter-ministerial approval procedure, while the ALDE draft bill was approved by the Romanian Senate on March 11. But the origin of the both projects is the same, according to Radu Oprea, the Romanian minister of the Business Environment, Commerce and Entrepreneurship. “The draft project was published on the ministry website and was up for public debate for a long time. The business community confirmed the need for legislation on lobbying. Then we entered the internal and inter-institutional approval process – unfortunately things take a long time to go through this process in Romania, so some of our colleagues in Parliament said that a quicker way to do it was through a parliamentary initiative; therefore the lobbying law, which is fundamentally identical except for a few words here and there, has already passed the Senate and is up for debate in the Deputies’ Chamber,” Oprea told Business review. In the form approved by the Senate, the draft bill says that lobby firms can be set up in Romania and undertake lobbying activities only after being entered in a special registry managed by the Chamber of Commerce and Industry of Romania.
LOBBYING MODEL: US VERSUS EUROPE In the US and in Europe, lobbying firms are generally specialist companies that primarily represent clients before politicians and government regulators. While there are no clear boundaries between what is lobbying and what is PR, lobbying firms often play specific roles within a broader campaign plan. The Romanian minister of the Business Environment argues that Romania needs to regulate lobbying activities – but using a clear European model. “The American approach is the harder, tougher one, and it follows the money. You state your interests, your contracts, the amounts you make, everything is transparent and there’s a lot of talk, including in the US, about the need and the power of lobbying today. But we’re not going to discuss that here,” said Oprea. In Europe, a voluntary statement of interests is preferred, Romanian officials say. “For example, there’s a transparency registry in Brussels where everyone voluntarily registers their interests and who they’re meeting with. This has worked in Romania as well, and I continue to provide information about all my meetings because I believe that’s the honest and transparent approach. The first rule of transparency is to have rules that are clear to everybody – and once you know the rules of the game, everything happens in a transparent manner,” the minister outlines.
www.business-review.eu Business Review | April 2019
14 COVER STORY
But in Romania, talks between government officials and representatives of the business community – which have taken place in
compliance and only apply sanctions if they find malevolence is a fundamental idea that changes this relationship,” Oprea told BR.
the Economy and Industry Committee of the Senate, as well as at the Ministry – show that there is a desire for a lobbying regulation. “Therefore, we have chosen the Austrian version as it’s the lobby
LOBBYING AND INFLUENCE PEDDLING Could a lobbying law also clarify the difference between legitimate
law that works best in Europe right now and it’s the closest to what
discussions over the introduction of laws that affect industries and
the Romanian business community wants. Austria held the EU presi-
influence peddling?
dency before us, which is why I can’t see why anyone would oppose
Such meetings have always been considered influence peddling
the idea of having a lobby law that’s similar to the Austrian one, and
in Romania, and experts say that the two activities must be viewed
as a result of this intense research we’ve conducted, we took it out of
in a separate manner.
the official gazette in Austria and adapted the law to Romanian institutions in the spirit and the letter of the Austrian law,” added Oprea.
“There is a view in the Justice Ministry that the line between lobbying and influence peddling is too unclear. I believe that this is an argument in favor of a lobbying law, so that this thin line is no longer
DISPUTED PROVISIONS
an issue. This line, which is not at all clear, between the two, means
However, representatives of the business community have issues
that people can be subjective on the matter. Clear regulation is exact-
with parts of the draft bill: the Coalition for the Development of
ly what we need to be able to make the difference,” argued Oprea.
Romania, representing major local businesses, has criticized some aspects. The first contested provisions are on the management of the special lobbying registry and the lack of a clear mechanism to investigate and settle complaints involving lobbying activities. “The sanction mechanism proposed by the draft decree may easily give rise to abuses as it looks at enrollment errors, with information that is open to interpretation,” the Coalition said last October, in response to the proposed draft government emergency decree. “We also propose the elimination of fines, as a long period will
Romania has tried to introduce lobbying into its legislation several times, but always got stuck in intense discussions and no progress was made. But many in the current government think that clearly defining these concepts can only have positive results. “Today, a lobbyist doesn’t really know what they can and cannot do. Some of the lobbyists in Romania today don’t even call themselves lobbyists,” notes the minister. “In my opinion, the law that was passed by the Senate, through its definitions, clearly differentiates between lobbying and influence peddling. I can’t say whether it leaves room for interpretation as I’m
be needed for organizations to understand and adapt to registration
not a legal expert, but given that such a law has worked in another
conditions, and for the authorities to understand what they need to
EU member state, it can also work well in Romania. Our research on all EU member
monitor,” the Coalition added.
states has
Both the draft bill approved by the Senate and the emergency decree propose fines between
shown that
RON 50,000 (EUR 10,500) and RON 300,000 (EUR
the Austrian
63,000) for various violations of the law.
version is the best for our
There has also been criticism of the terminology
country,” he
used in the proposed draft bills.
added.
“The project distinguishes between lobbying
Some
and representation of interests, although the two terms are synonymous. We think that the terminol-
members of
ogy should be unified and only one of the terms
the opposi-
used, preferably ‘representation of interests’, which
tion are also
is also used in European institutions,” the Coalition
supporting
commented.
the idea of a lobbying regulation.
REBALANCING THE RELATIONSHIP BETWEEN STATE AND BUSINESSES
“A lobbying
The law is part of the current governance program and the minister
law has become necessary today for the simple reason that lobbying
of the Business Environment points out that the Romanian govern-
is already going on in Romania without any regulation and without
ment wants to rebalance the relationship between the state and
standards. I know three Romanian companies with foreign share-
entrepreneurs.
holders who are lobbying and say in the market that they are doing
“The best example of this is the Prevention Law, which introduces a fundamental change in the general mentality and the Romanian state’s approach through its representatives who go to inspect businesses. The idea that they should first guide entrepreneurs towards
it,” Catalin Predoiu, an opposition (liberal) member of the Chamber of Deputies, told BR. Other opposition MEPs oppose the project, arguing that it is just a masked decriminalization of influence peddling.
www.business-review.eu Business Review | April 2019
COVER STORY 15
How do EU member states regulate lobbying? Regulating lobbying in Romania has been debated for the past few years. The Ministry of the Business Environment produced a draft law, but it got stuck in technical legal matters and never reached adoption. The same draft document was submitted in Parliament, with the senator Varujan Vosganian as the initiator. In March, the Senate adopted the draft law and it was sent to the Chamber of Deputies, which has the final decision.
R
By Ioana Erdei
omania’s draft lob-
up to EUR 60,000 and can lead
bying law is mainly
to the elimination of the entity from the lobby registry, follow-
copied from the law
currently in force in Austria. In
ing a decision by the Justice
the European Union, around
minister. Those eliminated
eight member states have lob-
from the registry can only be
bying laws in place: Austria,
reinstated after a three-year
Ireland, Lithuania, Latvia,
suspension. The law applies to a wide
Poland, the UK, Slovenia, and Hungary. Other member states
range of actors in the field of
have widely accepted customs
public policy influence. Com-
and practices related to lobby-
mentators say the reporting
ing: Belgium, Denmark, Fin-
requirements for registered
land, France, Germany, and the Netherlands. In Bulgaria, the Czech
entities are not burdensome and don’t hinder lobbying activities.
Republic, Portugal, Spain, Sweden, Greece, Cyprus, Italy and Croatia,
However, registration is difficult for companies not headquartered in
lobbying is not regulated.
Austria, with the exception of associations that don’t hire lobbyists, but carry out lobbying activities.
AUSTRIA IRELAND
Austria’s Federal Law for the Transparency of Lobbying Activities and Representation of Political and Economic Interests was passed
Lobbying in Ireland is carried out under the Regulation of Lobby-
in July 2012 and came into force on January 1, 2013. The law estab-
ing Act of 2015. The Department of Public Expenditure and Reform
lishes clear conduct and transparency rules for lobbying in parlia-
(DPER) is the institution that oversees the regulation’s implementa-
mentary or administrative decision-making processes. It establishes
tion and the public consultation process and receives proposals for
minimum contractual standards and conduct requirements for
amendments to the law.
lobbying. Lobbying companies, businesses that hire lobbyists to represent their interests, individual lobbyists and associations that carry out activities to represent political and economic interests must register
Ireland’s lobbying law aims to inform the public about: who carries out lobbying activities and on behalf of whom; the issues involved in lobbying; the purpose of the lobbying; who is targeted. The law led to the introduction of a registry of individuals con-
in the Austrian Federal Justice Ministry’s official lobby and trans-
ducting lobbying activities, a code of conduct, a set of restrictions
parency registry – a public database. Those involved in lobbying
for some public officials, and new ethical rules for public offices
must follow a code of conduct and publish this code on their own
and the provision of information. The registry is public and can be
websites. Violating the conduct code results in financial penalties of
viewed online. The Public Office Standards Commission oversees
www.business-review.eu Business Review | April 2019
16 COVER STORY
the implementation of the registry, monitors compliance, offers guidance and assistance and, if needed, investigates violations of the legal requirements. The Commission is an independent body and has six members. The lobbying law also imposes restrictions and conditions on individuals in order to avoid conflicts of interest.
LITHUANIA requires all individuals involved to register in order to be allowed to carry out such activities. Formal procedures enable individual members of the public to lobby their Member of Parliament but most lobbying activity centers on corporate, charity and trade association lobbying, where organizations seek to amend government policy through advocacy. The country’s lobbying law came into force in 2001 and requires all
SLOVENIA
lobbyists to enroll in a public registry and submit annual reports that include revenues and spending related to lobbying, as well as their interests in relation to legislative proposals. Lobbying is defined as action carried out with the purpose of influencing change or repeals in existing legislation or the adoption or rejection of new legislation. The law does not apply to foundations or associations. The institutional ethics commission oversees compliance with institutional ethics standards, regulates public and private interests in public
Lobbying activity is included in the Integrity and Prevention of Cor-
office and controls certain lobbying activities.
ruption Act of 2010. Lobbying is defined as activities carried out by representatives of interest groups who, on behalf of these groups,
POLAND
exercise non-public influence on decisions made by state authorities and the local community, and on the public authority in the discussion and adoption of legislative acts and other general documents, as well as on decisions made by state authorities or local bodies and administrations on other matters than those subject to judiciary and administrative procedures or other procedures carried out according to public acquisition regulations, when the rights and obligations of individuals are decided. Lobbying is defined as any non-public con-
Poland’s law on lobbying in the legislative process was passed in
tact between a lobbyist and an individual targeted by lobbying with
2005 and focuses on implementation and transparency rules, profes-
the purpose of influencing the content or adoption procedure of the
sional norms, professional control of lobbying and the principles of
decisions noted above.
maintaining a registry of entities involved in such activities as well
Lobbyists must register in a public database under the supervi-
as their type of activity and the issues they deal with. Lobbying is
sion of the Anti-Corruption Commission. Some say that the regula-
defined as any action carried out through legal means to influence
tion is insufficiently implemented. The Commission has complained
public authorities in the legislative process. Failure to register as a
about its limited resources having a negative impact on the system-
lobbying entity results in fines of between EUR 750 and 12,500. The
atic and rigorous supervision of lobbying.
Internal Affairs Ministry maintains the database and ensures its security. The law only applies to professional lobbyists and excludes
HUNGARY
all other categories of individuals or legal entities. There has been extensive debate on how the law should be improved, amid complaints that it imposes excessive reporting requirements on public authorities, which has made them wary of establishing contacts with registered lobbyists.
UNITED KINGDOM The UK passed the Transparency of Lobbying, Non-party Campaign-
Lobbying was regulated in 2006 through a law that was repealed in
ing and Trade Union Administration Act in 2014. In March 2015, the
2011 and replaced with a new one. The general consensus is that the
government launched a registry for lobbying consultants, which
law has several problems.
www.business-review.eu Business Review | April 2019
PARTNER CONTENT 17
Passion is what builds a successful business Laura Stochiță, sales manager at Agrafa Print, a company specialized in digital printing and customized promo gifts, tells BR how the company has become a successful business after 20 years of activity and explains that what drives the firm is the team’s passion for the printing industry. beginnings. Through all these years we have
Financially speaking, for 2019 we’ve
undergone professional training, we have
planned the same capital growth as in
specialized in what we do and today we are a
2018; we know it’s a bold objective. We are
professional team ready to accept any challenge
aware we cannot do this organically, but our
in printing and ad production.
sales strategy was developed to cover this shortfall.
Apart from passion, you need other qualities to
Online communication is one of the busi-
build a business. What else makes Agrafa Print
ness components we constantly develop.
work this well?
We will soon be launching a new site with
Of course it needs more to build anything, not
improved online shopping options. Also this
only a business. We believe in planning. We
year we will launch a design app for printing,
constantly set new objectives, we take the right
through which any client can easily and
opportunities in the right contexts and we man-
intuitively employ graphic design for their
age to achieve all we have planned.
marketing materials (business cards, drafts, flyers). Any user will be able to save into their
Speaking about objectives, which of them were
account the created materials, to order them
achieved in 2018?
online, to edit or to erase them in a few ac-
Financially, 2018 was an exceptional year. In
tions. We aim to use all the advantages that
2018 we had a 30 percent capital growth, reach-
technology has to offer us. By integrating
Employees are usually hired through a se-
ing the value of EUR 2 million. On the topic of
all the online and offline tools we will have
lection based on their resume, followed by
investments and finished projects, last year we
a completely automatized process, efficient
one or more face-to-face interviews. How do
implemented a new ERP/CRM custom-made
from ordering to invoicing and receiving
you discover the passion of a new candidate
software which helped us organize and make
money into the bank account.
through this process?
more efficient our production flows and client
It’s easy to see when somebody is talking
service. We invest constantly in new production
is the second edition of the “How it’s made”
about their passion. So, enthusiasm is the
technology to be able to offer printing services
event. Between 28 and 30 May we open the
first clue.
on any support material, in any colors, at a high
gates to everybody who wants to see how
An offline action which I’m very fond of
quality and in a short time. Last year we replaced
we work, what technologies we use and
printing industry and their daily duties,
a set of printing technologies with new ones to
what we can produce. Last year we were
his or her chances of joining the team and
supply the production capacity.
visited by clients, partners, and even com-
If a candidate is enthusiastic about the
professionally advancing in the field are
Another of our 2018 objectives was to shorten
petitors. They were very interested to see
very high. Besides, we have a secret in our
the supply chain for imported promo products.
how actually marketing materials or promo
company: from the owner to the driver,
We are now a direct importer from the big manu-
products are made or customized, to speak
from graphic design to the production team,
facturers in Europe and Asia. This means lower
with our specialized team and to socialize in
from sales to client service, we are all very
buying costs for us translated into lower buying
a friendly and cozy environment.
infectious. Once you enter the company it’s
costs for our clients. More than that, we have
impossible not to catch the bug!
outsourced stocks for popular products, reduc-
How would a challenge sound for Agrafa
ing order delivery times, a popular benefit among
Print?
our clients, especially in busy periods.
Our true challenges are special projects.
How many people have you “infected” until now?
We have carried out many unconventional
Printing and ad production is one of these
What have you got planned for 2019?
works and creative projects built from
fields which created jobs we didn’t know
In the first few months of this year we installed
scratch with and for our clients. We have
existed 20 years ago. Over this time we have
three new machines for printing on textiles, for
printed on oranges and roses, designed and
built a team of over 30 people, most of them
customizing special shaped promo products and
produced mascot toys, printed on water, and
being in the industry from its
for big-dimension prints.
the list can go on.
www.business-review.eu Business Review | April 2019
18 STARTUP
Romania waiting for next game-changing unicorn startup The local entrpreneurial ecosystem might generate a new unicorn in the next five years, most probably in the tech sector, pundits predict. Already, Romania has some “soonicorns”, which are companies on track to reach a valuation of USD 1 billion. By Ovidiu Posirca
T
he story of UiPath, the first Romanian unicorn startup whose valuation climbed rapidly to USD
3 billion, is set to provide a shot in the arm of Romanian entrepreneurs looking to strike it big. The startup, which pioneered the robotic process automation (RPA) market, has raised USD 448 million to date. “Sure, UiPath is definitely an inspiration for many Romanian tech entrepreneurs and we see a number of companies following in their footsteps. Will they get into the billions as valuation? It’s too early to tell, but certainly some of them can reach a significant scale, particularly those aiming to serve global markets or at least some large international markets,” Marius Ghenea, partner at 3TS Capital, the venture capital and private equity firm, told BR. Ghenea suggested that there are two companies on track to become unicorns in the near future. Bitdefender fits in the “sooni-
The global unicorn startups population exceeded 300 in 2018
corn” category after its valuation soared to a reported USD 600 million last year. At the end
the transformation of the ecosystem and in-
be one of the avenues for raising funds that
of 2017, investment fund Vitruvian bought a
creases the capabilities of Romanian startups
also push up the valuation.
30 percent stake in the Romanian software
to expand globally,” Paolucci told BR.
company from Axxess Capital.
Entrepreneurs could get their inspiration
TECH TOUCHED UNICORNS
Another player set to break into the uni-
from this success story, but actually building
Startups accelerating the digital transition
corn club is e-commerce group eMAG, which
a startup that can reach global status will be a
of traditional industries such as transport,
has already established itself as the largest
daunting challenge for many.
banking, agriculture, retail, healthcare and
player in the region.
Scaling up to the extent UiPath did,
life science have a shot of breaking the USD
without going outside Romania, “would be
1 billion valuation target, suggested Paolucci
ture Partners, says that UiPath has directly
extremely difficult, if not impossible”, says
of GapMinder. Meanwhile, angel investor
and indirectly supported the development
Dinu Bumbacea, consulting partner-in-charge
Sergiu Negut would bet on software as a
of the local startup scene by attracting the
at Deloitte Romania, the professional services
service (SaaS), especially B2B, Fintech and
interest of foreign investors and key industry
firm. Entrepreneurs are striving to build prod-
HealthTech. He says there are “amazing” op-
players. “This, combined with the surge of
ucts and services that can take their startups
portunities in AgriTech as well, but this field
VC funds focusing on Romania, accelerates
on international markets, and this seems to
might prove harder to scale at global level.
Inti Paolucci, partner at GapMinder Ven-
www.business-review.eu Business Review | April 2019
STARTUP 19
“The businesses are likely to include strong
for Romanian startups quickly to expand
rapidly and break the USD 1 billion barrier
Intellectual Property in Artificial Intelligence,
their business internationally, showing
is on the mind of every venture capital and
understanding that AI is a generic term,
global scalability and closing series B, C and
private equity fund, but this tells only part of
covering a number of very different things at
D rounds with international investors,” says
the story.
very different levels of complexity, thus quite
the GapMinder partner. The most valuable
misleading and overused. And I’ve put my
unicorn in Europe is based in the UK. Global
on unicorns, because they are still few and
money where my mouth is, with my invest-
Switch, which is in the hardware business,
far between, and no fund strategy should be
ment and involvement in FintechOS, a B2B
reached a valuation of USD 11 billion in Janu-
built on delivering unicorns, at least not in
SaaS in Fintech,” Negut told BR.
ary, according to a report by CB Insights. A
our region, in my opinion,” says Ghenea of
series of UK-based fintechs are also in the
3TS Capital. He suggested that funds should
ranking, alongside unicorns from Germany,
help companies grow as well as possible,
The founder of taxi-hailing app Clever Taxi, Mihai Cosmin Rotaru, says that tech
“Investment funds should not be focused
Switzerland and Sweden. UiPath, meanwhile, is included in the list as a US-based startup. Negut predicts that there will be no Romanian unicorn going forward, but US or UK unicorns of Romanian origin with Romanian research & development centers and Romanian founders. He thinks that the next unicorn started by Romanians could emerge earlier than five years from now. “The ecosystem sees many professionals has always been rewarding thanks to a great
of Romanian origin getting better education,
but not only by looking at their “unicorn
investment-versus-return ratio and the
experience and track records in the tech
potential”.
existence of a good tech talent pool in the
business. This is slightly different from just
3TS Capital has delivered one of the few
market. He says that startups doing SaaS or
having amazing engineers with no business
unicorns in the region. Its Budapest-based
enterprise-focused solutions have the poten-
background, but far from having a full stage
company LogMeIn, which went public a few
tial to reach unicorn status by scaling more
of experts in all tech business jobs and at all
years ago on the US stock exchange, is cur-
easily on larger markets, as “the local one is
levels. The trend is likely to make business
rently valued at around USD 5 billion.
unattractive, except maybe for just a few high-margin verticals.”
WHEN WILL ROMANIA SPAWN A NEW BILLION-DOLLAR COMPANY? The entrepreneurs, consultants and financiers that spoke to Business Review suggested that a new unicorn startup may emerge from Romania in the next three to five years. “Closer to five than three years, though.
and product development skills more acces-
At global level, there are 310 private com-
The timeframe to create a unicorn has
sible to Romanian startups,” says the angel
panies with a valuation of over USD 1 billion.
considerably shortened. At a global level we
investor.
These firms are worth a combined USD 1 trillion and have raised a total of USD 257 bil-
counted 130+ unicorns in 2015 versus 300+ at
lion, according to CB Insights. In 2018 alone,
increasing number of USD 100 million-plus
SHOULD INVESTMENT FUNDS FOCUS ON DELIVERING UNICORNS?
financing rounds. In this context, it is crucial
Investing in a startup that can scale up
58 percent compared to 2017.
the end of 2018. This is mainly driven by the
112 companies joined the unicorn club – up
www.business-review.eu Business Review | April 2019
20 CAPITAL MARKET
Capital market looking to give entrepreneurs growth path With the stock exchange one of the best routes for entrepreneurs and investors to receive handsome returns from high flying startups on international markets, the founders of Romanian startups are starting to pay closer attention to the potential funding opportunities provided by the Bucharest Stock Exchange (BVB). By Ovidiu Posirca Since then, the company’s market capitalization has grown ten-fold and currently stands at EUR 14.5 million. Cristian Logofatu, CFO & co-founder of Bittnet Group, told BR the company was able to raise more than EUR 10 million from the Romanian capital market through corporate bonds issuances, capitalization of profits and capital increases. “The majority of this financing we used for fueling our M&A activity, which has helped us grow significantly – this year we target over RON 100 million in revenues at the group level, a goal that we would have never been able to accomplish in such a short time if it weren’t for the listing,” said the entrepreneur. To list on the AeRO, a company needs to have an anticipated market value/equity of More local entrepreneurs will be interested in listing on the BVB
T
at least EUR 250,000 and to have a 10 percent stake available for listing. Companies can go public on this platform through an Initial
he operator of the BVB has an ongoing
solution for developing the companies they
Public Offering (IPO), a private placement or a
program to convince more entrepre-
own to another level, to understand that the
technical listing.
neurs to list their companies. In 2015,
discipline imposed by capital market rules
In the meantime, the BVB has been pursu-
it put in place a special platform called AeRO
will be ‘remunerated’ by investors through a
ing its Made in Romania initiative, a financial
for startups and small and medium-sized
fair valuation of the shares in that company,”
education program that targets entrepreneurs
enterprises in order to give entrepreneurs a
representatives of the BVB told BR.
and management teams. The program is
taste of the full stock exchange experience. It
In 2018, the market capitalization of
designed to help business owners learn how
then merged this platform with the Alterna-
Romanian public companies was EUR 18 bil-
to attract investments, either from the capital
tive Trading System, reaching a turnover of
lion, while the capitalization of all companies
markets or from other sources.
EUR 5.2 billion last year and a daily average of
listed on the main market of the BVB reached
more than EUR 275,000.
EUR 30 billion, according to BVB data. The
“The stock exchange brings together entrepreneurs who need capital to fund business development ideas with investors
average daily trading value for equities was
AN EMERGING BVB BECOMING MORE ATTRACTIVE FOR STARTUPS?
around EUR 10 million.
The Romanian capital market has for years
The first startup that listed on the AeRO
had frontier status and has recently been
who could place some of their money in the
platform back in 2015 was Bittnet, the IT
trying to get upgraded to emerging status.
business development. We want to see as
training company. Four years ago, the com-
Increasing the volume of daily trades and
many entrepreneurs as possible interested in
pany went public on the new BVB platform
listings of large companies on the BVB could
understanding the stock market mechanisms,
when Polish fund Carpathia Capital acquired
accelerate this process, according to com-
to understand that the capital market is a
a 10 percent stake in Bittnet for EUR 150,000.
mentators. The local stock exchange could
www.business-review.eu Business Review | April May 2016 2019
CAPITAL COVER MARKET STORY 21 14
get emerging status by the end of 2020 at the
group of entrepreneurs aiming directly for an
public roughly ten years after securing their
earliest, said Ovidiu Wlassopol, non-execu-
IPO will also be able to grow,” Gavrila told BR.
first funding, according to a report by CB
tive member of the council of the Financial
Logofatu of Bittnet adds that that, “in
Insights. More than ever, companies are
Supervision Authority (ASF), in an interview
principle”, more local entrepreneurs will be
raising more funds prior to IPOs. By the end
with business journal financialintelligence.ro.
interested in listing on the BVB as the valua-
of 2018, the median amount raised by tech
He added that in this period, Romania should also develop a derivatives market. By becoming an emerg-
tions should go up once the Romanian capital market is upgraded to emerging status. He says that the current chal-
startups before listing on the stock exchange had reached USD 239 million. In 2017, this figure was USD 185 million; five years before it stood roughly at USD 64 billion.
ing capital market, Roma-
lenge facing the stock
nia would attract more
exchange is the lack of
IPOs, with unicorns Uber, Lyft, Airbnb, Pin-
international investors
a strong local institu-
terest and Slack planning to go public.
and this could also
tional investor base that
support the growing en-
could absorb the small-
trepreneurial ecosystem.
sized placements coming
2019 might be a blockbuster year for tech
Ride-hailing company Lyft is set to raise USD 2 billion from its IPO and will be valued at roughly USD 18.5 billion, according to
But Felicia Gavrila, capital
from local SMEs.
PitchBook. Its rival Uber is aiming for an IPO
markets leader, assurance, at
“I actually think that
that could value it at as much as USD 120 bil-
professional services firm EY Romania, says emerging market status will
relaxing the investment rules of Pillar 3 pension funds or the local asset
lion. Neither company has yet turned a profit. In the meantime, Airbnb has been valued
not on its own be the “silver bullet” that can
managers, which would allow them to invest
at USD 31 billion, Pinterest at USD 15 billion
solve the current capital markets situation.
in AeRO-listed equities and bonds, would
and Slack at USD 10 billion, according to CB
have a bigger impact on local SMEs and could
Insights data. Last year, the 286 tech com-
would definitely nudge this ecosystem in the
be the much needed ‘push’ to convince more
panies planning to go public raised USD 30.5
right direction, as more investors will become
entrepreneurs to list,” said Logofatu.
billion in equity financing. IPO has been that of social media giant Face-
and partner with entrepreneurs (as an exit
FROM FIRST FUNDING ROUND TO IPO IN TEN YEARS
through IPO will become feasible). The select
US startups backed by venture capital went
“The emerging market status of the BVB
Since 2012, the largest US VC-backed tech
interested in investing on the BVB, thus giving equity funds more incentive to invest
book, which was valued at USD 104.2 billion.
www.business-review.eu Business Review | April 2019
22 ENTREPRENEURSHIP
Entrepreneurship on the rise as startup ecosystem gets upgraded Being your own boss is becoming a more coveted aspiration, with more Romanians interested in starting their own businesses. Although the number of new limited liability companies (SRL) dipped by around 4 percent in 2018, a growing network comprising business accelerators, angel investors, venture capitalists and banks are doing their best to promote entrepreneurship. By Ovidiu Posirca
The development of the startup ecosystem will come in Romania with the development of science parks around universities
O
ne in two Romanians living in cities
Austin, founding partner at Risky Business, a
SRLs, the most popular type of company in
would like to become an entrepre-
startup investor.
the economy. The number of such com-
neur, according to an iVOX study
“If you ask people if they want to have
panies newly registered last year stood at 94,255, down 4.4 percent compared to 2017.
commissioned by Raiffeisen Bank, published
their own business, be their own boss, be
in early spring. The research further shows
a millionaire, be like Elon Musk, of course
Romania is also running short of co-
that more than half of Romanians currently
most would say yes. The propaganda and
founders of new companies and needs to
in employment would like to become an
hype around entrepreneurship makes it seem
create a community for them, suggested
entrepreneur and 34 percent would think of
very sexy and desirable. But the truth is most
Claudiu Vrinceanu, an enabler and connector
starting a company after securing funding
new businesses and startups fail. So you put
in the Romanian startup ecosystem.
from a bank. Most of the surveyed individu-
an incredible amount of effort to get a busi-
“Firstly, more investments and new
als agreed, however, that entrepreneurship
ness off the ground, have constant worries
communities focus on the most ambitious
supports economic growth.
about paying your employees, growing the
and talented individuals with professional
business, etc. and generally for the first few
experience who should be the new founders
years you make almost nothing,” Austin told
of companies. For this, we need in Roma-
BR.
nia more so-called ‘Talent Investors’ who
ROMANIAN ENTREPRENEURSHIP – A WORK IN PROGRESS Starting a new company takes a lot of sacrifices and few are able to pull it off, says Jennifer
Fewer companies were created in Romania last year, judging by the registration of
are willing to invest in individuals before they have a firm or even an idea. One of
www.business-review.eu Business Review | April May 2016 2019
ENTREPRENEURSHIP COVER STORY 14 23
the biggest barriers to starting a company is
moting entrepreneurship, and universities
hampering business growth in 2019 is cited
finding a co-founder. In my opinion, we have
should do a better job of developing “adapt-
by 72 percent of the managers and entrepre-
a limited co-founder supply and this makes
able and cross-function professionals”, adds
neurs surveyed by EY Romania in a barome-
it really hard to start a company,” Vrinceanu
Austin of Risky Business. She also raises the
ter regarding the local business environment.
told BR. He says that the country can harness
topic of age in creating business, suggesting
the growth of startups by having at least one
that we should focus on “enabling those in
compared to last year’s results. Red tape
science park, which can bring together uni-
their mid-careers to pursue entrepreneur-
remains a challenge, with this indicator going
versities, organizations doing heavy research
ship.”
up by 7 percentage points this year. Close
This figure was down 8 percentage points
and development, companies and markets. “It facilitates the creation and growth of innovation-based companies through incubation and spin-off processes. Romania is lagging behind other European countries in terms of creating new companies and also in terms of the presence of science parks. The development of the startup ecosystem will come also in Romania with the development of science parks around universities,” added Vrinceanu. The overall health of the economy is another ingredient for the development of en-
“The average age of a successful startup
to 60 percent of the mangers and entrepre-
trepreneurship. Romania’s economic growth
founder is 42. This makes sense because
neurs said that the lack of political stability
is set to remain constant this year, with an
it’s when you have some experience under
and public policy vision could hurt business
estimated expan-
your belt, have
growth this year. Considering that Romania
sion rate of around 4
some network, and
will go through four rounds of elections
percent, roughly in
have connections in
by the end of next year, the private sector
line with the results
your industry,” says
should get ready for many challenges going
from 2018.
Austin.
forward.
In the US, Ameri-
The lack of entrepreneurial education was
BEING MIDCAREER COULD BE AN ADVANTAGE WHEN STARTING A COMPANY
cans who are 35 or
cited as a challenge for business growth by
older are 50 percent
27 percent of the respondents, while difficult
more likely to start
access to funding is an issue for 15 percent of
a business than are
the managers and entrepreneurs included in
their younger coun-
the survey. The research was based on 301
A growing economy
terparts, according
respondents, split based on the turnover of
feeds an entrepreneur’s confidence, at least
to data from the Bureau of Labor Statistics
companies. Respondents representing com-
in the starting stage, comments Mircea
cited by the Wall Street Journal.
panies with an annual turnover under EUR 1
Vadan, program manager for KPMG Startup
“For youth, we should be focusing on
million made up 23 percent, while those with
Grow Pad within Spherik Accelerator. On
job readiness and
turnovers between
top of this there needs to be legal and fiscal
career development
EUR 1 million and
predictability.
– two things which
EUR 10 million
are sadly lacking in
accounted for 23
IT creates opportunities and great ambi-
Romania and reduce
percent. The EUR 11-
tions for tech startups; the European startup
entrepreneurial
50 million turnover
ecosystem receives a lot of support from
readiness and
bracket included
the European Commision, which is a strong
economic growth in
21 percent of the
catalyst in this field that needs all the backing
the long term,” says
respondents while
it can get. Support and acceleration programs
the Risky Business
10 percent fell into
are also important, but they have to be de-
representative.
“In particular, the impetus and energy in
otherwise they could even become harmful for local entrepreneurship,” Vadana told BR. Education remains a key factor in pro-
the EUR 51-100 million bracket. Respondents from companies
signed and implemented coherently, because
MAIN CHALLENGES FOR BUSINESS MANAGERS AND ENTREPRENEURS
with a turnover of EUR 100 million or above
The lack of fiscal and legal predictability
companies surveyed had domestic capital.
made up 16 percent. Some 51 percent of the
www.business-review.eu Business Review | April 2019
24 BUSINESS
Romgaz in talks with two big players about Black Sea offshore gas Romgaz, one of the most profitable state-owned companies in Romania, is in talks with two large players about exploration and exploitation projects in Black Sea offshore gas, the company’s CEO, Constantin Volintiru, told Business Review in an interview. By Sorin Melenciuc
in order to expedite works.
Romgaz has expanded its development
What investments has Romgaz planned for this year and the following years and in which main areas will they be made?
strategy for the next few years, with the main
Completing the investment in Iernut is our
ing VAT, which makes it the most important
priorities being to develop its base activity of
main priority! The new thermoelectric plant
investment in the energy sector in over ten
exploration and production, to harness the
has reached a completion status of 74 percent
years.
production of natural gas and electricity, de-
for civil and industrial works and 60 percent
velop storage activity and expand its business
for electrical works. The site is constantly
on the Mintia thermal plant, which I want
in the region.
inspected by our company’s representatives
to remind you is also included in Romania’s
What are Romgaz’s main objectives for the coming years?
The investment in Romgaz’s new 430 MW plant is worth EUR 269 million, exclud-
At the same time, we want to begin works
www.business-review.eu Business Review | April May 2016 2019
COVER BUSINESS STORY 25 14
Energy Strategy. In fact, the Mintia project
about what power to gas means as a new and
objective to diversify the natural gas recovery
mirrors the one in Iernut, as we envision in-
innovative technology.
channels, at the same time ensuring a balanc-
stalled power of 400-500 MW and an investment of about EUR 300 million. Both Mintia and Iernut have the main pur-
For rigs where deposits are low and that
ing tool for the system at DEN’s disposal, de-
should be closed down because they’re no
termined by the superior technical structure
longer cost-effective, we can install genera-
represented by this national investment.
pose of balancing the National Energy System
tors that are capable of transforming the gas
(SEN), acting on the side of system services,
into electricity, as they are able to work even
when the situation requires it. Last but not
in very low gas pressure conditions. The only
least, we are planning to acquire green energy
limitation that could exist is the proximity of
production facilities.
electricity routes.
Our overall plan is to turn Romgaz into an integrated company.
How does Romgaz expect gas consumption to evolve in Romania in the next few years? Will it increase or decrease? How will it evolve on the domestic and industrial segments? Price de-
other opportunities to invest in offshore
Romgaz is facing a natural decline in the onshore gas resources it is exploiting. Can this trend be stopped? Can new onshore gas reserves still be found in Romania?
blocks, and for this we’re already in talks with
You’re asking me about things that will hap-
yields will be different, conditions will be cre-
two other large companies.
pen in the future. I can confirm that my team
ated to reposition themselves on the market
In any case, we want to increase our stake in
and I are working today to achieve the things
or leave it altogether.
the Black Sea, less by increasing our partici-
that will shape the future we’re envisioning.
pation in the Lukoil association, and more by
We have confirmed discoveries in the Black
identifying new partnerships where Romgaz
Sea, Caragele and others, and more will
Is Romgaz planning to get more involved in the exploration and exploitation of offshore gas in Romania’s exclusive economic area in the Black Sea? We certainly want to be more involved in the exploration and exploitation of Black Sea offshore gas. We want to develop our existing partnership with Lukoil, as well as identify
creases lead to increased consumption. Romania is now an emerging economy. Lowyield technologies are evolving along with high-end technologies right now, and for the next three years, although their
will have a larger
come, while at the
Besides electricity production, is Romgaz looking to enter other sectors such as petrochemicals?
stake than it does
same time we’re
We are analyzing this possibility, but we’re
at the moment (12.2
making current
also looking at opportunities provided by
percent).
production more
new technologies (photovoltaic, wind), as
efficient in line with
well as using GNC for vehicles (GNCV).
Romgaz has made steps to expand outside Romania, but currently doesn’t have a significant presence in any other country. Is there still a plan to expand activity abroad – either through investments or through takeovers of foreign companies?
maintaining the exploitation trend that
What impact will OUG 114/2018 have on Romgaz’s business and profits?
Is Romgaz facing difficulties in finding qualified employees in the context of the workforce crisis that is affecting many sectors in the Romanian economy? Will the number of employees at Romgaz increase, decrease or remain the same this year?
compensates for the natural decline in production.
The ordinance will lead to a significantly
There are some segments where finding hu-
Yes, we still intend to develop our business
increased consumption of natural gas for a
man resources is more difficult: seismic spe-
on a regional level and we’re looking for
producer the size of Romgaz, but at the same
cialists, exploration as well as other parts of
opportunities where we can use our experi-
time restrains the size of investments we’ve
our business. This is to be expected, however,
ence in the production, storage and supply
scheduled on the long term.
in an aging society. in training young people who can work in the
technologies: Natural Compressed Gas (GNC),
Romgaz is investing in a new gas-based electric plant. When will it be ready and what will it mean for Romgaz’s activity and for Romania’s energy system?
Liquefied Natural Gas (LNG) and power to
The plant will be completed by the end of the
new talent, because, personally, I think that
gas.
year. Together with the future plant in Mintia,
this is the only way for it to become more ef-
it will complete the range of the company’s
ficient and have better results.
This is the reason why Romgaz is investing
of natural gas. The current regional context and the existing technical and innovative development make us a good candidate to become a partner in the exploitation of these
To be more precise, I’d like to go into detail
company with programs set up with universities or other professional training organizations. Our company continuously looks for
www.business-review.eu Business Review | April 2019
26 PARTNER CONTENT
Why choose an International Nursery? The King’s Oak vision: Inspiring creativity, Developing confidence, Celebrating community
Parents can feel overwhelmed when it
for younger children. Larger indoor and outdoor
their knowledge and understanding of the
comes to selecting the best nursery for their
environments provide greater opportunities for
world.
children. As parents, we want our children
exploration and creative play – the main way
to be safe, happy, make friends, become
in which young children learn. With smaller
independent, to learn about themselves and
student-teacher ratios, more time and attention
the world around them, and to have the best
is given to each student’s individual developmen-
possible future beyond childhood. So how do
tal needs.
we know we are making the right choice for
Another major advantage of attending a
our children? Why choose an international
school with a variety of nationalities represented
nursery school for our children?
is that children are exposed to cultural differenc-
The smaller class sizes found in interna-
es at a very early age, becoming more empathetic
tional nurseries provide a far more “hands
and understanding of others. They experience a
on” practical and engaging learning style
range of celebrations and traditions; improving
https://kingsoakschool.ro
www.business-review.eu Business Review | April 2019
28 MANAGEMENT
MBAs ‘boost knowledge and networks’ Romanian managers, like those from other countries, continue to apply to MBA schools, despite the fact that a two-year program costs well into five figures. Recent graduates from an MBA module of the Viennese WU Executive Academy in Bucharest are sure that their investment will be worth the money. By Sorin Melenciuc est management techniques. “If you want to learn by yourself what we have learned here, it would probably be possible, but the real impact would be much smaller,” says Eduard Gongonie, regional marketing director at Provident. The major business schools are the most interested in adapting to the latest international trends in business administration as digitalization brings disruption and puts managers across the world under stress.
FOCUS ON ENTREPRENEURSHIP Studying with top international professors and the opportunity to meet successful entrepreneurs are among the key attractions of an MBA. “We have these residencies, so they do not only stay in Romania, but have the very first MBA candidates are usually young professionals
A
week in Vienna, the last week in Vienna, and one week in the US where we try to give an impression of how really big interesting busi-
round 30 Romanian managers are
Romanian network afterwards,” Prof. Phillip
nesses are running their operations and how
selected for each MBA module and
Nell, executive director of the MBA Bucharest
they are responding to current challenges,”
there has been no shortage of appli-
at WU Executive Academy, told Romanian
says Prof. Nell. MBA schools also underline a
journalists during a press visit to WU Acade-
key advantage in attaining an MBA: acquiring
cants in recent years.
my in Vienna. Students also point out that an
better entrepreneurship skills. WU Execu-
KNOWLEDGE AND A STRONG NETWORK
MBA gives them better job prospects, despite
tive Academy professors teach their MBA
So, what are the main selling points of an
the fact that many reject the idea that such a
students that it is really important for an
MBA degree? Beyond the desire to acquire
degree is really important for their CVs.
entrepreneur to be persistent, and to believe
new skills and knowledge about business,
“The MBA program is an investment we
MBA students target access to a strong net-
decided to make to hit some personal targets.
work.
One of them: to evolve within my organiza-
have an idea and tell it to your boss or to
tion. The second: maybe I’ll begin some
your colleagues. What we need is someone
key reasons. The first is to get more inside
entrepreneurial project. Is the program really
who is really enthusiastic, who believe in an
knowledge and skills. The second is to get
useful? That depends on us, if we are able to
authentic way. The ability to motivate others
a really strong, interesting network. If you
apply everything we have learned here,” said
against skepticism, against criticism, against
do an MBA in London and you have a totally
Oana Macoveiciuc, a manager at BCR.
problems is important. This is also what I
“Why do people do an MBA? There are two
diverse student group, then you’ll know
MBA candidates are usually young profes-
in what he or she does. “Any entrepreneur faces resistance. You
tell students. If they fail, that’s the life of an
maybe someone in New York, someone in
sionals with a few years of work experience
entrepreneur. You can’t always win,” says
Chile – okay, it’s an international network.
under their belts, and studying an MBA forces
Prof. Nikolaus Franke, academic director of
But if you do an MBA in Romania, you have
them out of their comfort zone, to encounter
the PMBA Entrepreneurship & Innovation at
a lot of Romanians, you’ll have a very strong
the latest business trends, and apply the new-
WU Executive Academy.
www.business-review.eu Business Review | April 2019
30 INTERVIEW
Listening to the wine at Crama Bauer Oliver Bauer, oenologist and co-founder of Crama Bauer, sat down with Business Review to share the story of both his business and the philosophy behind it, called simply “natural creativity”. By Anda Sebesi obtained with rather ancient, traditional winemaking methods, sustained by modern technology and knowledge, where it helps us to prevent spoilage and to protect quality. In general I see myself as a wine-guide rather than a wine-maker. I want to let each wine express itself without bending it towards a certain demand of the market. While Stirbey wines can already be considered classics, Crama Bauer offers its clients more extreme wines, pure, direct, edgy and unadapted. An imprint of their terroir and each grape’s characteristics. Wines like Cramposie Selectionata demi-sweet, Sauvignonasse, R.A.W., O.R.A.N.G.E. and Petit Verdot are just a few of our wines which embody our philosophy. A good friend of ours once made a nice statement: “If Stirbey wine is for the connoisseurs, Bauer (dot) wine is for the geeks” – that’s exactly what we want to do.
When did the story of Crama Bauer start and what is the reason behind it?
very famous and appreciated Romanian
My story starts in Germany, where I was also
skills into practice.
born. My great-aunt Johanna Braun was the
winery, Stirbey, and put my experiences and Some years later and as soon as Johanna
What can you tell us about your wine tourism? What should tourists expect when they come to your vineyard?
former owner of the winery where I grew up.
realized I wouldn’t come back again she
Since 2004 we have offered guided visits and
Born in 1904, she was already 70 years old
started to support and to encourage us also to
wine tasting directly at the Stirbey winery and
when I saw the light of the world, but since we
finally start and to live our own dream. This
there is still a growing interest in wine tour-
lived on the same property, she literally raised
attitude and her faith in us were the main
ism. More and more young people especially
and took care of me like a grandmother. With
reasons we (my wife Raluca and I) dared to
would like to discover the world of wine.
the experience of over 90 different harvests,
start Crama Bauer in 2012. Sadly Johanna died
They want to find out more about it, to taste
she was a living encyclopedia for me, but
in 2012, aged 108, and so she was never able
and listen to the cellar stories, and at Crama
what was most inspiring was her way of look-
to see what she got “started” on the top of the
Bauer we are more than happy to receive as
ing at her life and living it with dignity – no
Dragasani vineyards.
many of them as possible. To offer maximum
matter what. She would have loved to see me taking over the family estate, and therefore it was a staggering blow for her when she had to learn that it wasn’t gonna happen. I left Germany in 2003 as I got the rare chance to be part of the rebirth of a formerly
competence and deep information and to
What can you tell us about your business philosophy, “natural creativity”, and how is it reflected in your business strategy?
provide a unique experience for all our visi-
Our philosophy of “natural creativity” is
the vineyard to the glass!” Because of that
expressed in exclusive single-vineyard wines
and the high demand our free slots are very
tors every time, each of our tours and wine tastings are done by my wife or myself. “From
www.business-review.eu Business Review | April May 2016 2019
COVER INTERVIEW STORY 31 14
limited. Therefore we sometimes have to ask
sharing all of these nice moments and experi-
for a little bit of patience. We receive groups
ences with friends. There are a lot of stories
from 4 to 18 people, only by reservation.
to tell.
We present of course the entire winemaking process, but we talk a lot about wines in about a certain lifestyle and culture. Horizon-
What does it mean to taste a wine? What are the main steps and what should be considered when doing it?
tal (same year, different wines) and vertical
In short, you need a good glass, a corkscrew,
(same grape/wine, different years) wine tast-
a wine at the right temperature and, most
ings, wine glass tasting, blind tastings, wines
importantly, good company to enjoy it. The
and local food pairings are just few of the
glass and the temperature can really make the
experiences of a Bauer wine tasting.
difference. Just try to drink the same wine in
general. For us, it’s not only about wine, it’s
different cups or glasses and you will feel the
What can you tell us about wine tasting on demand, a service that you offer for events or companies as team buildings?
difference. As for the temperature: first of all
Our tasting room at the winery, in Dragas-
whites and 12-16 C for reds would be a reason-
ani, is too small for the number of people
able start but it’s not a must, so don’t worry. If
interested in our wines. So we decided, for
the wine is a bit too cold, let it rest in the glass
bigger groups, to join their events and bring
for a couple of minutes. The bigger problem is
our wines there.
that often wine is served too warm. Too warm
forget about the outdated rule of “room temperature”: 5-7 C for sparklers, 8-12 C for most
is okay for “professional” tastings because
do I like this wine or is it not for me? After that step an entire new world is revealed.
their first steps towards wines there with us
then one can spot flaws much more easily.
But of course you have to feel the desire to
and that is a big responsibility. Most impor-
But since we want to enjoy wine I am not too
take your time and also to “listen” to the
tant to us is to take away all the stiffness and
shy to ask for a wine to be cooler, even for
wine. It can tell you a story of an ancient
snobbery of a guided wine tasting. During
reds, if the restaurant or whoever wasn’t able
grape, grown in a sunny region, handcrafted
such a tasting we will show and explain in a
to serve the wine at the right temperature.
by a crazy passionate winemaker. Or about
And it is fun! Some of the participants take
relaxed and casual atmosphere all one needs to know, to really enjoy wine. We want to show that wine isn’t a snobbish product – it is a cultural product first of all. Therefore let’s talk less about points, medals, and competition and more about fun, enjoyment and
a young vine, planted on the other side of
What you feel in a wine is a very personal thing – one person can think of apricots while for me the most intense flavor is jasmine. The best thing is – we are both right. It is important in the beginning to decide:
the world, dreaming of becoming a mature, expressive vineyard, full of character. Our philosophy “natural creativity” is also an expression of our belief in diversity and not in the concept of “the best wine”.
www.business-review.eu Business Review | April 2019
32 MARKETING
Chat up lines: marketing goes conversational in 2019 Conversational marketing involves the use of live chat, chatbots, and social monitoring to foster genuine conversations and real relationships, and also the ability to have oneto-one personal conversations across multiple channels – meeting customers how, when and where they want – say players. BR found out more. By Romanita Oprea
Iulia Niculae-Cuciurean, Romanian Football Federation, IAA Young Professionals
Mia Munteanu, Marks
A
that’s in real-time or when they have a spare
Heyday.ai for Forbes, puts it, “In the age
leaving behind the impersonal tone that is of-
moment. As important as it is for businesses
of omnichannel shopping and ubiquitous
ten used,” outlined Iulia Niculae-Cuciurean,
to be able to chat in real-time, it’s just as
messaging apps, brands have no choice but
marketing manager at the Romanian Football
important for them to be able to finish a
to shift gears and reinvent the way they com-
Federation and president of IAA Young Pro-
conversation at whatever pace the customer
municate with consumers. From the data
fessionals, the Romanian chapter.
wants. And that is because it should be all
collectors and passive listeners they once
about enhancing the user’s experience and
were, brands need to start practicing active
ing, a brand can get left behind in terms of
making him or her feel as close as possible to
listening and proactively identify relevant
customers, sales, engagement etc. “Still,
the brand.
next actions that are designed around the
listening to consumers can be very dif-
personal needs of each and every customer.”
ficult, as after such a process brands may
t the same time, specialists say,
as lies are exposed easily nowadays and a bad
in which brands can sustain two-way com-
conversations should occur when-
reputation is hard to shed.
munication, learn from their customers and
ever the customer prefers, whether
Pundits say it’s becoming more and more
As Etienne Merineau, co-founder of
obvious that brands need to try and under-
come back to them in a more human manner,
Moreover, according to her, by not listen-
ask themselves questions about their own
stand the way their customers feel and what
ACTIVE LISTENING
values, what drives their brand, is their
they truly want, and be there for them and
“Brands need to meet audiences when they
brand purpose still relevant and so on. One
ready to interact in a clever and creative
are ready to talk or buy and, for this, social
of my favorite examples of brands that truly
manner. It’s time for sincerity and empathy,
listening is crucial. Also, this is the only way
listen is Netflix. Netflix collects data about its
www.business-review.eu Business Review | April 2019
MARKETING 33
customers and then comes back to them with
try and solve their trust issues. Besides this,
ing reps connect with prospects in a more
personalized recommendations based on
in the background remains the question of
helpful, organic way. And customer success
their preferences, or creates original content,
how to mix the online with the offline shop-
teams have already seen significant benefits
like shows or movies, that are successful
ping experience and put the customer first.
using chat and there, chatbots and AI, as one
because the customers’ likes are included
There are some cashier-less grocery stores,
of their major support tools.
from the creation phase,” noted the market-
apps through which you can preorder your
ing manager.
items and pick-up from stores, and apps that
In her turn, Mia Munteanu, client service
make product recommendations based on
So how do specialists see it properly working on the Romanian marcomm market? Munteanu believes ad agencies should
director at Marks, reminds us that in 2021,
clients’ purchase history, but more needs to
team up with small production houses or
which is just around the corner, if we want,
come,” argued Niculae-Cuciurean.
develop their own in-house department. But,
we will be able to buy entire houses on
Meanwhile, Munteanu embarked on her
of course, this is not enough. “Technology
Amazon. As the world around us is changing,
own journey of discovery and research,
does not replace creativity and adaptability
we interact more and more with chatbots, we
by focusing on five big global brands with
in order to keep up with the conversation on-
have automated and predefined responses,
online and offline shops that also commu-
line. There is a need for knowledge, research,
our fridge knows when we run out of milk,
nicate in Romania. She was very interested
understanding data and, most importantly,
and the online store receives an order im-
in observing the way in which a brand that
understanding at least the basics of market-
mediately. “By the time we’re making our
is well anchored in the local market opens a
ing. For content creators, the problem is that
coffee, the milk should already be on its way.
conversation with the followers of its page.
they confuse good ideas with a long-term
There are as many homes as lifestyles, the
And her conclusion wasn’t, unfortunately, a
brand strategy,” said Munteanu. What is
insights come from the real world, and the
happy one: most of the so-called big brands
needed is collaboration, as the future is about
marketing people are paying more attention
fail when it comes to direct interaction with
bringing specialists from all fields to the same
than ever to our day-to-day habits. Brands
their community. “The message is unidirec-
table. “Hyper-specialization, if you will. It’s
are forced to keep up not just with what is
tional; they work a lot with stock images and
time to bring in people that are not necessar-
happening in the present, but also to think
superficial constructions, and they invent all
ily part of our core team, it’s time to share the
two or three tech generations ahead. In order
kinds of situations. There is no real-life inspi-
knowledge and the resources, share the op-
to adapt, they have to be true listeners,” said
ration and content that is inspired from the
portunities, the future. From what and how I
convert more customers,” activecampaign.
way we live our lives and interact eventually
see it, it’s about sharing tables and expertise,”
com reported.
with a product. I believe that 2019, for some
added Mark’s client service director.
Munteanu. And with that comes the realization that “conversational marketing is about the rise of a new type of marketing technology – and about trends in how people talk to each other online. With live chat and chatbots, you can answer people’s questions immediately. You can address concerns. And because the people who ask questions over live chat are likely to be more engaged, you can
According to Niculae-Cuciurean, conver-
of us, is about the real world; this is where
At the same time, according to Niculae-
sational marketing has replaced traditional
the real conversation starts,” said the Mark
Cuciurean, experience demands in digital
sales funnels (like AIDA) with impulse shop-
representative.
are not met by the digital infrastructures in
ping as we see on some platforms or social
Romania. In other words, technology cannot
networks: a customer sees an item, likes it
WHAT LIES AHEAD
sustain the speed at which we should answer
and instantly purchases it – on Instagram,
And brands should now realize that conver-
customers’ needs. “Real-time communica-
for instance. “Instant commerce will expand
sations should take place across their entire
tion has become a must now that everything
even more in 2019. It will be helped by the
business, as in the future, businesses will
is a click away, including our competitors.
chatbot industry, which is expected to grow.
need to develop a comprehensive conver-
Brands in Romania need strong database
Still, many social platform users are annoyed
sational growth strategy to deliver a better
structures and automation in order to sustain
by what they perceive as aggressive sales.
customer experience throughout the entire
a personalized dialog, be always available
This cumulated with the privacy scandals of
customer journey, say commentators. Con-
and enhance the user experience,” concluded
2018, which have forced social platforms to
versational sales will play a huge role in help-
the marketer.
www.business-review.eu Business Review | April 2019
34 MARKETING
Rebranding – when to do it and why Clever. Prisum. Hochland’s Atelier. Transilvania Executive Education. Those are just some of the brands on the Romanian market that have concluded it was time to spruce up their image in the last few months. By Romanita Oprea strategic process that goes hand in hand with a business change. “The company changes management/ownership and a new strategic gear is added. After an M&A or as the result of a transition from an entrepreneurship to a corporate entity (an acquisition). The company needs the verbal and/or visual identity to be refreshed (too old, dusty, unattractive, unclear, etc). The company has suffered from a brand accident with lasting consequences (PR wise and beyond) or it has undergone significant changes to its DNA (changes to the products/services it offers or to the organizational culture, for instance).What matters most is that all parts are aligned and that the common purpose is clear. A rebranding is not only a matter of a changing a logo or a name, but a matter of consistency across all brand manifestations, internal and external,” outlined Radulescu. In other words, a rebranding process is a Alina Tudose, independent brand consultant
T
Mihaela Radulescu, InnerOut
crucial period in a company’s life, and also a considerable investment – one that should be made with a lot of attention and with the
his spate of changes following 2018’s
line that require a change of character and
right people. “It requires years of research,
big moves by Apa Nova, Brico Depot,
possibly a change of targeted customers, or
evaluating the alternatives, creating and
Notino, First Bank and co. What is a
the brand personality has to keep up with the
validating concepts, etc. We need to take into
rebranding? It is the process of changing the
change in customer generations, or the brand
consideration the direct costs incurred by
corporate image of an organization, a market
company in itself is going through changes
the change of the corporate identity, but also
strategy, of giving a new name, symbol, or
such as mergers and acquisitions or changes
those required to communicate effectively
change in design to an already-established
in the shareholder structure that would alter
and memorably the NEW identity and brand
brand. So when should a company start a
the product portfolio etc,” said Raluca Ene,
DNA to the target audiences,” said Roxana
rebranding process and why? According to
managing director at Chapter 4 Romania.
Dumitru, marketing manager at De’Longhi.
Roxana Tampau, managing director at DDB
Moreover, she added that these triggers for
Therefore, the marketer points out, a
Romania, it is vital to quantify the reasons
change should be periodically and proactively
rebranding should be a meaningful event, as-
for a rebranding process. A marketer should
checked through market research and direct
sociated with a major development or a major
therefore ask him/herself a few questions
contact with customers, as well as staying
change in the status or vision of the company.
before conducting any rebranding strategy:
updated with market trends and customer
“Such situations are changes in ownership/
“A rebranding decision can have a diversity
lifestyle and behavior changes, to make sure
shareholding structure, significant changes in
of reasons: the product’s natural life cycle re-
the brand always keeps its relevance and sig-
the core business or a refreshment required to
quirements, or if there is a change in customer
nificance, and thus remains competitive.
keep in tune with younger audiences, if that is
behavior that requires a revisiting of the
In turn, Mihaela Radulescu, senior brand
the type of audience the brand addresses. Or,
brand personality, or if there are innovations
consultant at InnerOut, points out that
a major shift in the category we are playing in.
or improvements in the product or product
rebrandings, like any branding, should be a
Or a major repositioning of the brand, that in-
www.business-review.eu April2016 2019 Business Review | May
Raluca Ene, Chapter4 Romania
COVER MARKETING STORY 35 14
Roxana Tampau, DDB
Roxana Dumitru, De’Longhi
volves re-segmenting, re-targeting and a new
“I personally recommend and perform one-
very quickly. Other times, when the brand
set of brand values/brand architecture, etc.
to-one discussions, with a significant per-
to be replaced is very strong on the market,
That implies a huge project behind it and a
centage of the organization, through in-depth
the process is deliberately slowed down or
clear and comprehensive validation process.
interviews. Then the process goes to the
extended to allow people to get used to and
Reasons behind rebranding processes need
brand platform set-up: a purpose is defined,
internalize the transition. In any rebrand-
to be communicated and clarified to all a
alongside mission, values, behaviors derived
ing process, you want to keep your existing
company’s relevant audiences – from employ-
from values, brand personality, tone of voice,
audience and consumers and expand on that.
ees and authorities, to business partners and
and an external promise. The positioning is
Ideally, you do not want to lose anyone along
consumers,” added Dumitru.
a strategic approach that reunites the best of
the way. The full process can take up to three
both worlds: what the audience expects with
to five years for a very serious and complete
brand consultant, believes that the time has
what the company can deliver sustainably, in
rebranding.”
come for a company to first think about going
the long run,” said Radulescu.
Meanwhile, Alina Tudose, an experienced
through a rebranding when decision makers
Then, as she points out, comes a redesign
“The whole process might take between three and six months, and during it the
feel that the brand no longer represents its
of the visual identity (including a renaming,
agency will work with the client to prepare
clients or employees, when it has become a
if the case). “After the entire internal rhetoric
a launch plan for the new brand. How and
poster on the company’s wall and an obsolete
is strategically defined and well worded, then
when will they unveil the new brand on the
brand for its clients. “When the brand is no
the engagement process with the employees
market? What type of activities will they be
longer able to generate emotion, a change is
closes the circle. People were asked at the
using? What strategy will they be applying
necessary,” commented Tudose.
beginning their opinion about the organi-
to build excitement around the ‘new thing
zational culture. They inspired the strategic
coming soon’? After launching the new brand
company expands beyond its core services/
direction and now everybody gets aligned in
image, both agency and client should focus
products area and is no longer credible to
the same boat. Brand engagement sessions
on evaluating results so that they will adjust
represent new ones. In that case, according to
are the natural closure of a transformative
their communication in real-time,” said
Tudose, there can be a rebranding or a brand
process that involves changes in so many
Tampau.
extension, meaning a repositioning of the
stakeholders’ perceptions. Good cultures
brand, with an extended addressability or a
start by having their principles stated, agreed
renewed brand personality is complete, com-
rethinking of the brand architecture with line
upon, and then collectively followed,” con-
munication comes next, through relevant
extensions or sub-brands.
cluded Radulescu.
content development and deployment on
Moreover, a second scenario is when the
Dumitru added, “The duration of the
And, as Ene points out, “Once the
the specific channels that reach the desired
THE RIGHT STEPS
process depends on many factors; it is very
target. Communication is essential in the
According to InnerOut’s representative, any
difficult to come up with an average. It
brand transition to the new face – the lack of
rebranding process should start with a solid
depends a lot on the reason or purpose of the
a proper approach would create an undesired
organizational audit (not only a business
rebranding, as well as the number and type
gap in the acquisition process that might
diagnosis, but also a perceptual map of the
of decision makers involved. Sometimes, if it
cause harm to the business rather than help
most important stakeholder – the employee).
is the result of an acquisition, it can happen
it grow.”
www.business-review.eu Business Review | April 2019
36
EXCELLENCE IN BUSINESS Farmec, a successful Romanian story on excellence in cosmetics that crosses borders Mircea Turdean, CEO of the biggest Romanian cosmetics manufacturer, talks about the story behind the Farmec company brand. the leadership of the company and became
Shave Foam and Catifelin Hand Cream, fol-
CEO. With his arrival in the company, the
lowed by the Femina product range - deodor-
implementation of a comprehensive com-
ant, face cream, hand cream and hairspray
pany development plan was initiated: the rise
and the BOB product range - shaving foam,
of the Gerovital brand. Farmec was entrusted
aftershave and deodorant. Years after, in
with the right to produce and distribute Gero-
1985-1990, several other deodorants were
vital H3 creams, after a discussion between
developed for this particular range.
the world-renowned Romanian Professor
One of the biggest achievements on the
and Academic Doctor Ana Aslan, who cre-
company’s business card was in 1970, when
ated the world’s first anti-aging formula, and
Farmec was the most up-to-date and biggest
Liviu Turdean. In the autumn of 1968, the
cosmetics company in South-Eastern Europe.
Cluj-Napoca-based cosmetics company be-
That year, Farmec began the development of
came the first producer of Gerovital H3 skin
the skin-care production platform and the
care and lotions in Romania. Until then, the
plan of investments and expansions led to an
renowned anti-aging recipe was only avail-
unique business model on the local market
able to a limited number of people, including
and not only.
personalities and international celebrities.
By 1972, the laboratory had been expand-
The products were addressed to women over
ed and modernized and it became known
40, when their skin showed the first signs
as the Farmec Factory of Cosmetics. Prior to
of aging. Thereby, Farmec became the first
1989, Farmec’s production provided 90% of
What is the story of Farmec?
company to grant access to this innovation,
the local consumption needs of that period
From the beginning, Farmec set the goal to
in the form of skin moisturizer and emulsion
and, with the transition to a market economy,
leave its footprint in the Romanian cosmet-
to all customers.
a new strategic plan was developed to ensure
ics production and to offer the most perfor-
Today, Gerovital is one of the most valu-
a steady solid growth in Farmec’s business. Right after 1989, Farmec underwent the
mant and qualitative products to custom-
able, powerful and solid Romanian brands,
ers. The first premiere that revolutionized
its prestige being recognized at worldwide
transition from a closed local economy to a
the market at that time was in 1966, when
level.
market economy, facing, for the first time, a
the production of the Doina cleansing milk
Year after year, Farmec harnessed all the
direct competition as well as distribution and marketing challenges.
began and, for decades, it remained one
opportunities for growth, ensuring that it
of the most beloved skin products among
maintained an ascending development path.
Farmec tackled the aforementioned
Romanians.
For example, a new premiere was registered
challenges by making use of its insightful
in 1969 when the sprays production was
skills and determination, embracing change
launched - the Triumph antiperspirant, Adam
altogether and considering it a catalyst for
1967 was a key point in Farmec’s story, as it was the year that Liviu Turdean took
www.business-review.eu Business Review | April 2019
37
progress and evolution. Farmec’s business plan was managed by Liviu Turdean, who proposed the development of Farmec’s own distribution network, set to provide more strategic control of prices, in-depth market analysis and the development of efficient promotional campaigns. Another plan consisted in research and in upgrading the product ranges. In 1993, Mircea Turdean started working within the company and helped grow the company as a family. In 1995, the main privatization method was MEBO. Farmec adopted this approach, while maintaining a 100% Romanian capital. That method allowed any employee to become a shareholder of the company, as the first General Manager was elected by the General Shareholders’ Meeting - Liviu Turdean. This change represented another In 2017, Farmec recorded a turnover of
make-up, oral hygiene, sunscreen, profes-
After 2000, the national distribution net-
over EUR 45.8 mln and in 2018 a turnover of
sional cosmetics, men’s products or home
work was strengthened, new product ranges
EUR 49.9 mln. In 2017, within the company,
care solutions. In 2018, Farmec established
and single products were launched under the
there were 760 employees, and in 2018 about
an investment program of EUR 2.4 mln,
Gerovital, Farmec, Aslavital, Nufăr, Doina
780 people, involved in all units and depart-
aimed at modernizing the company’s
and Triumf brands and the development of
ments of the company: the technical and
laboratories and production lines. 2019
modern Farmec sky rocketed.
milestone for the company.
production sector (almost 200 people), the
is also set to be a great year for Farmec,
The first international approach took
distribution network, the stores network, etc.
with the premiere of a new range for men,
place. In 2003, Farmec entered the United
Farmec is today a landmark for Romanian en-
Gerovital Men. Opening new stores in
Arab Emirates market and it was the first
trepreneurship and a successful model of the
a franchise system is another strategic
country where Romanian cosmetic products
local business environment, by considering 3
move for Farmec’s business expansion.
arrived. It was a great success and a starting
major development pillars: asserting product
The company also outlines the franchis-
point for the international development of
quality, steady development of the portfolio
ing of brand stores to external collabora-
the company. In 2019, Farmec is present in 30
as well as constant investments in innovation
tors. Once all the operating conditions of
countries worldwide.
and modernization. With a production capac-
this system will have been established,
ity of 27 million units, at least 100 products
the opening of the shops will follow. The
of the Gerovital brand. The success story of
are launched every year on the market, be
franchise project should be defined in
Gerovital is now 52 years old. Half a century
it completely new single product launched,
the subsequent period, on both local and
in which the brand became known world-
new products in a certain range or line exten-
global level. Internationally, Farmec plans
wide, placing Romania on the excellence in
sions and product upgrades.
to open new brand stores in collaboration
In 2008, Farmec got the rights of usage
cosmetics map.
In the past years, important Gerovital and
with international partners, while continu-
Farmec brands were launched and extended,
ing to research for new markets. Farmec is
opened in 2016 and since then, the brand’s
such as Gerovital H3 Derma + Gerovital,
the biggest Romanian cosmetic producer
network has grown steadily, with 26 stores in
Gerovital H3 Derma +, Gerovital H3 Hyaluron
and the only one in the top 5 international
2019, both Farmec and Gerovital stores, being
C, Gerovital H3 Derma + Premium Care, Gero-
players on cosmetics and face care market.
the only Romanian cosmetics producer that
vital Stop Acne, Gerovital Plant, Gerovital
Through values such as innovation,
has developed such a network.
Beauty, Gerovital Luxury, Gerovital Trata-
tradition, efficiency, passion, trust and
ment Expert and Farmec, Nufăr, Triumph
quality, Farmec has been proving that
and Aslavital.
Romanian companies can drive excellence
The first Gerovital store in Romania was
Externally, apart from the 7 stores opened by partners of the company across Europe, Farmec products are present in over 30 coun-
At the same time, Farmec has been main-
in business and are capable of outstanding
tries on all continents, representing Romania
taining a balanced portfolio, which includes
performance in cosmetics, in Romania and
at the highest level on the global arena.
skin, hair and body care products, as well as
beyond.
www.business-review.eu Business Review | April 2019
38 SUSTAINABILITY
Bucharest to get first PPP waste management project The Bucharest Municipality has adopted a new strategic program to improve waste management in the city, with a pilot project started last year intended to separate the collection of packaging from public events. By Aurel Dragan Relying on stakeholders’ willingness to get involved, the project was carried out at no cost, benefiting from the voluntary support of Global Innovation Solution (coordinator of the action), Ecoteca (which contributed to the production of documents and raising awareness), ArCuB and CreArt (organizers of events that have made special efforts to improve the current waste management situation), Recycle International (a waste collector which provided the infrastructure for collecting recyclable waste), ALPAB (Parks, Lakes and Recreation Areas Administration), Bucharest Police Department, and INCD ECOIND (Research Institute for Environmental Protection). In brief, the project aimed to objectively monitor and assess how public events are organized, identify the main problems within
C
One of the concerts where GIS carried out separate waste collection
the waste management system, and then propose a series of measures for improvement.
ommentators say the project, which
strategy used at public events such as large-
The information was collected in a creative
was started in 2018, implemented
scale concerts and other entertainment per-
manner over a nine-month period (data
with the research and innovation
formances, organized by CreArt and ArCuB.
obtained by analyzing various events of differ-
company Global Innovation Solution SRL
So far it has been rolled out at large events
ent sizes / types, each with its own different
(GIS), is one of the most promising and
such as: IEI Festival, Creative Fest, Cinepark,
peculiarities and characteristics).
important schemes in municipal waste
Green Sounds Festival, Bucharest City Days,
management, because it addresses many of
The Fair of Bucharest, and Christmas Fair.
The events organized in parks and squares each gathered between 15,000 and 155,000 participants. With maximum daily generation
the capital’s weak points, such as citizens’ awareness and education, low rates of sepa-
PLAYERS AND AIMS
of 4.5 tons, the recycling rates varied between
rate collection and poor waste management
The project’s main objective was to develop
5 percent and 75 percent of the total produced
infrastructure.
an effective strategy and an easy-to-use
quantity (recyclable and household waste),
The initiative, entitled Separate Collection
guide, for more efficient waste management
based on the prevention and awareness ac-
of Waste generated during Public Events, was
at the events organized in collaboration with
tions implemented for each event and the
born during the implementation process of
the Bucharest Municipality.
infrastructure provided.
a European research and innovation project
The activities were designed and imple-
Following the indicators developed by the
called Urban Wins, which aimed to create
mented in response to discussion by the
Urban Wins project and urban metabolism
innovative ways of improving the quality of
Urban Wins research project, which identified
approach, the action raised awareness, helped
urban life, by adopting a new perspective:
the need and urgency for implementing the
reduce waste generation and contamination,
considering the city as a living organism.
program, following suggestions by civil soci-
improved collection strategies, increased the
ety and several organizations who attended
total volumes of recyclable waste collected
public debates.
separately, and improved the collaboration
In progress until April 2019, the project is intended to improve the waste management
www.business-review.eu Business Review | April 2019
SUSTAINABILITY 39
between all waste management stakeholders.
ment at public events (such as training for the
companies, event organizers, civil society,
The project design phase also took into
employees of the event organizer, the sanita-
environmental NGOs, police, park adminis-
account the recent changes to the environ-
tion staff, the recyclable waste collector staff,
tration) to enable an accessible participatory
mental legislation, stipulating that waste
volunteers, as well as the general public),
approach. Also, unlike other one-off actions,
producers and local public authorities have to
important steps were taken in this regard.
the project was designed to have a long pe-
increase their recycling objectives by 2020, to
In terms of raising awareness, the pro-
riod of analysis and implementation, in order
be better prepared for the reuse and recycling
posed actions envisaged getting the artists
to correctly identify the current situation and
of waste (paper & cardboard, plastic, metal,
on stage to promote the separate collection
to create useful guidelines and recommenda-
and glass).
of waste, so celebrities could remind the
tions for stakeholders.
The legislative changes aimed to reduce
crowds of the organizer’s intention to collect
the amount of waste sent to landfill and to
the waste selectively. Printed information (in
in Romania that takes proper notice of waste
encourage the separate collection systems of
the form of reusable, non-disposable ban-
contamination, which has made it possible to
recyclable waste.
ners) may also be used
It is also notable that this is the first project
to announce the waste
GUIDELINES DRAWN UP The initiatives implemented in the pilot proj-
recycling plan. ”We want this project
ect have already proved their effectiveness
to be just the beginning
(the monitored indicators have shown clear
of a change of waste
improvements), creating a system of guide-
management strategies
lines and rules for stakeholders and the gen-
and mindsets so that we
eral public, helping to improve the municipal
can gradually imple-
waste management system.
ment all national targets
For example, in the observation phase
in order to reduce the
when the proposals were tested, the amount
total amount of gener-
of waste produced at the event and collected
ated waste, and increase
selectively was monitored and quantified,
the recycled quantities.
keeping the amount sent to landfill below 20
The medium- and long-
tons. The recycled waste had a low level of
term objective (after the
contamination, so 100 percent of it could be
Urban Wins project completion) is to expand
carry out statistical analysis of the different
sent for recycling, while organic waste was
what has been developed to other municipali-
types of waste collected separately in order
sent to landfill in much smaller quantities.
ties in Romania and to serve as a source of
to change the approach depending on the
information for other European cities,” said
type of packaging being disposed of or the
ers that manage waste in the city to sign a
Dr. Ing. Florin Nenciu, Researcher in waste
type of event. ”In the past there have been no
collaboration agreement, where they accepted
management at GIS.
assessments of how to address the inherent
The project brought together all stakehold-
duties to fulfill on a voluntary basis, the first
Commentators say the project is impor-
action of its kind at municipality level. Each
tant, and not necessarily because it is the first
each event type and scale. Many differences
stakeholder has set its own goals (through a
long-term initiative resulting from a research
have been identified that completely change
participatory approach, moderated by munici-
and innovation assessment, but because it
the approach (such as interior vs external
pal representatives and project partners), and
meets four main objectives that no other
events, the different number of participants
the project has improved several prevention
Romanian campaign has really tackled: the
per event, the way security measures at a
aspects and increased separate collection
prevention of waste generation, public and
concert affect the collection, restrictions for
levels, while reducing the contamination of
stakeholder awareness, separate collection
avoiding the degradation of park vegetation,
recyclable waste.
of waste produced during events, and a clear
and the demographic attracted by the con-
target for the collected waste to be recycled
certs),” said Dr. Ing. Florin Nenciu, Researcher
sellers of food & drink products, capping the
(assuring low contamination levels and a very
in waste management at GIS..
waste they could dispose of, and tasking them
strict separation of waste types).
In addition, guidelines were introduced for
and specific problems that arise depending on
Commentators say the project solves many problems frequently identified in municipal
with keeping a clear record of the waste disposed of at the event. In some cases, only the
INNOVATIVE TECHNICAL DETAILS
waste management. The development of the
use of biodegradable packaging was permit-
The project has many innovative technical
strategy was based on the needs identified by
ted, or the use of waste with low recyclability
elements, firstly the strategy that was created
stakeholders implementing waste manage-
was forbidden.
following debates involving all stakehold-
ment actions and not on the needs of the mu-
ers (vendors of packaged food and bever-
nicipalities in order to reach their objectives,
ages, sanitation companies, waste collection
which could damage the strategy.
Given that there was no training methodology for individuals involved in waste manage-
www.business-review.eu Business Review | April 2019
40 MUSICAL
A kind of magic: Queen musical gets Romanian rendition After last year brought to Bucharest the sun and fun of Mamma Mia!, local fans of musicals will once again be in a (Bohemian) Rhapsody, with Ben Elton’s Queen-based We Will Rock You due to give us one of the Days of our Lives. By Oana Vasiliu
Killer Queen Loredana playing a librarian who has books and testimonies about the music of other times when Part of the crew who Will Rock You
Q
there were bands like The Beatles and Queen. The set was designed by Adrian Damian (known for Rhinoceros by Eugene Ionesco,
ueen have long been Somebody
if the legends of rock had ever thought of
directed by Robert Wilson, and for his work
to Love, but have really been in
creating a musical based on their songs.
with directors Radu Afrim and Mihai Manu-
the spotlight recently, when Bryan
We Will Rock You tells the story of a group
tiu) and will have a cyber punk feel, as well
Singer’s Bohemian Rhapsody hit the silver
of Bohemians who struggle to restore the free
as channeling the atmosphere of top rock
screens put box offices Under Pressure, then
exchange of thought, fashion, and live music
concerts around the world in recent years.
claimed major international awards. The
in a distant future where everyone dresses,
Show Must Go On, and, Romanian Wonder
thinks and acts the same. Musical instru-
You has also benefited from the involvement
Theatre duly presents the musical We Will
ments and composers are forbidden, and rock
of British musical director Stuart Morley and
Rock You, directed by Razvan Mazilu, who
music is all but unknown.
vocal coach Mary Hammond, who is head
is also responsible for the choreography and
On stage will be seven main actors and ten
costumes. The production will premiere on
supporting actors plus dancers. Local pop
April 10, at Sala Palatului.
singer Loredana will star as the Killer Queen
The Romanian version of We Will Rock
of musical theatre at the Royal Academy of Music in London. Ready to hear Who Wants to Live Forever,
who has an ally in Khashoggi, played by
I Want to Break Free, Don’t Stop Me Now
meeting between the actor Robert De Niro
Adrian Nour, while Mara Captaru and Lucian
and We are the Champions? Because we are.
and Queen band mates Brian May and Roger
Ionescu will take on the roles of Scaramouche
Tickets are available on www.iabilet.ro, and
Taylor, in Venice in 1996. De Niro’s daughter
and Galileo Figaro. One of the most surprising
just a few remain, so hurry. Prices start from
was a big fan of the group and the actor asked
appearances will be from Razvan Vasilescu,
RON 80.
The idea for the musical came after a
www.business-review.eu Business Review | April 2019
42 ROMANIAN FILM
TIFF comes of age: iconic film festival turns 18 The Transilvania International Film Festival (TIFF) is the place where new box office records are made, sold-out opening and closing screenings are the talk of the town and eclectic film-based events are the places to be. Haven’t checked in yet? Maybe now is the time, if your schedule is clear between May 31 and June 9. Here’s why. By Oana Vasiliu to the movie world, presenting them to the public, not to mention the international stars who discover Romania through their TIFF invitation. In terms of numbers and audiences, the largest film event in Romania attracted over 135,000 participants, with 227 titles – 178 features and 49 shorts – which played on the largest screen in the country and the 13 partner spaces. Almost 95,000 tickets were sold, up 5.7 percent on the previous year. Among the special events with the highest attendance, the recital of international opera star Angela Gheorghiu and the screening of Tosca stand out, followed by The Pleasure Garden ciné-concert accompanied by Notes This is how a full house looks like in Cluj’s main square during TIFF
& Ties. TIFF 2018’s record holder in terms of sheer number of tickets is Wes Anderson’s most
ONCE UPON A TIME IN TRANSYLVANIA…
world. Everything was by the book: awesome
recent film Isle of Dogs, which sold no fewer
It was 2002 and the first edition of TIFF was
film selection, zero grammar mistakes in the
than 3,647. So what’s next?
pronounced a roaring success: jury members
catalog, all projectors checked, clean carpet
were American film critic Ron Holloway, film
at the Republica cinema, impeccable press
2019
producer Lewis Chesler, Icelandic director
conference. We were proud and we were sure
In Romania, turning 18 is a big thing. That’s
Hrafn Gunnlaugsson, actress Oana Pellea and
we could be the talk of the town. But one
why the anniversary is a milestone for the or-
director Constantin Vaeni, with the participa-
thing was missing. The Star. A name. Some-
ganizers, who have invited some Cluj-based
tion of the American actor Brandon Priest-
one who would attract the attention of Cluj
18-year-olds to join their communication
ley, best known for TV series Beverly Hills,
people and convince them that we were not
campaign, which is expected to bring some
90210. The event boasted 43 movies from 15
playing about and that we were doing serious
exciting moments this year. One piece of
countries, and 11 in competition, with Cristia
work,” Tudor Giurgiu, the president of TIFF,
breaking news is a partnership with Shanghai
Mungiu’s Occident being the big winner – and
told www.sub25.ro, recalling the behind-the-
International Film Festival (SIFF), present-
not only as it was the only Romanian movie
screen stories of the film festival’s very first
ing an ample selection of Chinese cinema,
in the competition. The director had already
year.
developing a collaboration platform for film
presented it at the Cannes Film Festival earlier that year. The final touch came late on. “It was two
industries in both countries, and having big
LOOKING BACK ON LAST YEAR
names from Chinese film among the special
TIFF gets bigger and better every year. Not
guests.
weeks before TIFF was due to start. We were
only in terms of an incredible film selection,
TIFF 2019 is preparing a Focus China sec-
the best trained festival organizers in the
but also in terms of connecting different arts
tion, which will include a broad selection of
www.business-review.eu Business Review | April 2019
ROMANIAN FILM 43
film: for direction, acting, and cinematography. Another San Sebastian selection arriving at TIFF is Quien te Cantara, a work that confirms the status of Carlos Vermut (Magical Girl) as rightful successor of Pedro Almodovar. This dark melodrama, reminiscent of Ingmar Bergman’s Persona, centers on a star of the ‘90s preparing for her comeback after a decade of absence. As the other films of Matias Bize (The Life of Fish, The Memory of Water) were preQuien te Cantara, Carlos Vermut’s stylishly-mounted drama
sented in previous years at TIFF, 7:20 Once a Week could not be an exception. A chance
recent Chinese cinema, a showcase of the
work, painter Renzo Nervi vandalizes one of
meeting forces Manuel and Julia to recon-
most important titles awarded in internation-
his paintings by shooting bullets into it. The
sider their marriages and yearn for more as
al festivals, a surprise silent film screening
intended act of self-vandalism is embraced as
a one-night stand develops into something
accompanied by a live score, a retrospective
performance art, triggering a delicious farce
else.
dedicated to a major Chinese director, as
about the business of art.
well as industry meetings for directors and
A decade after winning an Oscar for The
Olivier Assayas’s Parisian comedy Doubles Vies also deals with double lives. Unexpected
producers from both Romania and China. Moreover, further surprises will come on the TIFF stages during the Romanian-French season which is currently taking place, as part of a cycle of cultural manifestations and knowledge exchange between the two countries. Composer and pianist Jean-Michel Bernard, awarded at Cannes in 2007, and the legendary group Les Négresses Vertes will perform in Romania for the first time.
LIGHTS, CAMERA, ACTION: ON THE SILVER SCREEN IN 2019 Two of the directors previously awarded at TIFF will return with their most recent works: Spanish filmmaker Rodrigo Sorogoyen, whose Stockholm won the 2014 Trans-
Lives of Others, Florian Henckel von Don-
references to Star Wars, Taylor Swift, and
ilvania Trophy, will bring The Realm (San
nersmarck returns to the fray with Never
Theodor Adorno are brilliantly woven into
Sebastian, Toronto), an absorbing political
Look Away, which was presented in competi-
the story of a successful editor who has to
thriller about corruption at all levels of pow-
tion in Venice and has been freshly nomi-
adapt to the digital era, in which books no
er that could easily have been inspired by
nated for best foreign language film at the
longer physically exist, couples are a flexible
events in Romania.
Golden Globes. Inspired by the life of Gerhard
concept, and life seems to reorganize itself
Richter, the director cuts across four decades
around social media with each new day.
Then Uruguayan Federico Veiroj, winner of the Special Jury Prize at TIFF for his 2011
of German history, from the Nazi regime
La vida util, presents Belmonte (San Sebas-
to the Communist one in East Berlin, in an
this year to major festivals (Toronto, San
tian, Toronto), a moving portrait of a freshly
engrossing epic about the phantoms of the
Sebastian) with the stylized horror In Fabric,
divorced painter seeking a balance between
Holocaust and art in a totalitarian regime.
which gives new cinematic meaning to the
his successful career and his personal dependency on his 10-year-old daughter.
Rojo, Benjamin Naishtat’s third feature,
British director Peter Strickland returned
term “a dress to die for.” An ode to the trans-
is a tragicomedy set in a small Argentinean
formative powers of fashion and a scathing
town. A banal evening in a bar where a lawyer
critique of consumerism, the film brings back
My Masterpiece, a new black comedy by Gas-
is verbally attacked by a stranger becomes
to TIFF a Strickland regular, the Cluj-born
ton Duprat, whose The Distinguished Citizen
a complex story filled with secrets, silence,
actress Fatma Mohamed.
was shown last year at TIFF. Accused by his
and crimes. The San Sebastian festival jury
gallery owner of failing to promote his own
awarded no fewer than three prizes to this
A different look at painting is provided by
And we saved the best for last. Business Review is a media partner of TIFF!
www.business-review.eu Business Review | April 2019
44 EXPAT EYE
Mum’s the word: parenting Romanian style In our monthly look at life in Bucharest from an outsider’ point of view, BR’s British writer finds that being a mother reveals a new side to the Romanian psyche. By Debbie Stowe Official advice if your child has a cold is still to take them to their kindergarten – unless they clearly feel unwell. Forget about that here. Infants are isolated for months, and when they are tentatively brought together with other children, any sign of a bug is reason to cast out the offending parent and child. Toddlers are pulled out of nurseries after picking up infections. Expat friends often say, “We’re not coming to class today – she has a runny nose. She feels fine and I’d like to bring her, but I can’t face the looks from the other mums!” It’s so relaxing back at our toddler groups in the UK, where parents are regularly seen wiping long strands of snot from their kids’ noses, and nobody minds!
T
4. THERE’S NO PEDOPHILE HYSTERIA
here are few things more tedious
shine, happy that winter is over. But is it? All
In Britain, health and safety culture is so
than a columnist who becomes a
around, children are swathed in thick coats,
entrenched (and usually for good – better
parent and then only wants to write
in the obligatory hat. Meanwhile, yours are
health and safety than illness and danger)
about children, babies and family. That said,
running around in t-shirts, refusing all jump-
that we’re paranoid about interacting with
motherhood has given me an insight into
ers and jackets. No problem – until the nearest
strangers’ children. If a child is alone and cry-
local parenting, which has revealed surprising
member of the Hat Gestapo marches up and
ing, an adult (especially a male or non-parent)
characteristics of a country which, after (gulp)
informs you that your child should have its
will seldom approach them, for fear that the
16 years, I thought I knew pretty well.
head covered.
late-arriving parents will think they’ve foiled
So bear with me as I try to avoid being a
And if the older generation – a grandpar-
a kidnap attempt. At the music class I attend
baby bore, to bring you four things you never
ent or nanny – is involved, expect even more
in Bucharest with my sons, the teacher hugs,
know about Romanian parents.
insulation. Three layers of tights and trousers,
high-fives and takes the kids on her lap – they
trouser legs tucked deep into socks, babies
love it! At my own baby group, I make no at-
1. THEY CALL THEIR CHILDREN “MUMMY” AND “DADDY”
wrapped up so densely they’re spherical…
tempt to touch the children because in Britain
A child back from a day out with “bunici”
it would be frowned upon. It’s refreshing to
In a playground near you, right now, a
could be so layered up that by the time you’ve
be in a more innocent society, where an adult
middle-aged Romanian man is saying to
undressed them you’ve missed bedtime!
is not automatically suspected of bad intent. Cultural exchange opens the mind, and I
his daughter “ce faci, tata?” while a thirtysomething woman is calling her toddler son
3. THEY’RE HIGHLY GERM-PHOBIC
love discussing these differences with other
“mama”. Surely it’s confusing enough being
We all know about the Romanian fear of the
parents, both foreign and Romanian. I’ve
thrust into this crazy world without having
draft (curent). But medical paranoia starts
also “gone local” – a bit, anyway: in the UK
your parents calling you “mum” or “dad”? To
young. In the UK, as soon as mums give birth,
recently, I found myself tutting that a nearby
add to the mix, your grandparent is also likely
our GPs and health visitors advise us to get
child should be wearing a hat. I didn’t tell the
to call you “grandma” or “grandpa”.
out and join parent-child groups – both for
mum though – when I do that, I’ll expect my
our own sanity and so our little ones can start
Romanian passport in the post.
2. THEY DRESS THEIR KIDS AS IF THE NEXT ICE AGE IS COMING
to spend time around other babies. Yes, they will catch bugs – but this is a necessary part
Debbie Stowe runs Baby Bounce Bucharest at
It’s a bright spring day, and you decide to hit
of kick starting their immune systems and
Ludotech (www.facebook.com/BabyBounceBu-
the park with your littles for some sun-
something that has to be faced sooner or later.
charest).
www.business-review.eu Business Review | April 2019
RESTAURANT REVIEW 45
TRULY FRENCH
I
>>> Époque Hotel, Intrarea Aurora, 021 312 3232 <<<
n case you are unaware, French cuisine
excite Romanian food as it is so crude and
instead I opted for a Black Angus beef pie
has notions and values which have
unsophisticated. So they had saramale in
in a sauce made from Burgundy wine and
been entrenched for hundreds of years.
a salt crust, polenta in a Perigeux sauce
truffles.
Don’t look for innovations, as no good chef
(Madeira wine and truffles), pork neck in a
There were four vegetarian dishes,
will dare deviate from ‘the norm’ and over-
gribiche sauce (emulsified hardboiled egg
which, as a committed carnivore, I refuse
all this is a good thing. And as you will see,
yolks)… and many more. But enough of this.
to describe further. Veggie food is a politi-
sauces dominate the House dishes, another
I turned the page to reveal the French dishes,
cally correct fad, and it misses punch. The
great French tradition.
which were a delight.
people who eat it are all odd and gener-
So let’s go and eat. The hotel describes
Blondie loved the fish section and dived
ally humorless, which is hardly surprising
itself as boutique, and as befits a small
into a sea bass with glazed turnips and
as they masochistically deny themselves
hotel the dining room is equally small,
morels (one of the finest mushrooms in the
humanity’s greatest pleasure – eating meat.
holding around 40 covers. The tables are adorned with a
We are genetically programmed
world) and a pesto sauce.
to eat the stuff so abstain-
We reluctantly
ers suffer mentally
floral display resting
and socially.
resplendently on a white table-
The chef is a
cloth, both of
fine fellow – a Frenchman
which you will pay
with the
for. This
grand name
style is so
Samuel le
outdated
Torriellec,
and far too
who has mastered
serious.
his métier.
Contemporary top
He must love
restaurants
his sauces, which accompany every
‘lighten up’ the dining experience with fine tables sans the pristine cloths.
dish, and I marveled at
passed on
the number of sauces on offer.
maccheroncini pasta with
Frankly, the cool, open-neck, 30-something
clams in a white wine sauce and scallops in a
He has added a liberal amount of truffles to
diners looked out of place in this oh-so-
zingara sauce (chopped ham, tongue, mush-
many of them, again an authentic French
serious dining room.
rooms truffle and tomato).
touch.
There were six starters. One, with a nod
She was far too full to order her next
The wine list is comprehensive to say
to Japan, caught my eye – duck liver tem-
favorite choice of grilled scallops glazed with
the least, with 145 wines to choose from.
pura (a frying batter made with flour, iced
salsify vegetable with a zingara sauce and
But I was surprised to note that there was
water and egg yolks) together with miso
a soubise (milk, flour butter and sautéed
no cheese board. It was a minor sin and I
(fermented soya beans and salt), orange
onions) and truffle broth.
forgave the House There was one genuinely
sauce and Japanese enoki mushroom salad.
I, too, missed out on a pacceri (a tubed
Gallic item missing – the notoriously rude
short pasta from Campania, not to be con-
French waiters. By a welcome comparison,
marinated in soy and lime with a garlic
fused with the long cannelloni tubed soft
the House staff were charming and well
sauce and a celery remoulade (mayo, herbs
pasta) which was accompanied by grilled
informed.
and capers).
octopus, olives and pesto.
On a simple note, there was salmon
But quelle horreur, imagine my surprise
But back to meat. I desperately wanted
when I saw the first page of the menu list-
the beef tenderloin cooked in red wine and
ing Romanian dishes. The House ‘Frenched
finished with a grand vineur sauce (duck
them up’, but there is little you can do to
trimmings, bullion and red currant jelly). But
There are three top French restaurants in town, and Epoque may well be the best. Go there and decide for yourself! Michael Barclay Mab.media@dnt.r
www.business-review.eu Business Review | April 2019
46 CITY
Cultural calendar
By Oana Vasiliu
tions by local and international artists.
MNAC Spring Opening 2019 April 19, National Museum of Contemporary Arts
Renault and art, a living history, 1967-2019 (ground floor) curated by Ann Hindry (Renault Art Collection director), NEUTRASOMNI (artist Sorin Neamtu and curator The first festival in Romania at
presents a line-up of artists who
Calin Dan), Yvonne Hassan (cura-
the intersection of fashion, film
challenge their own artistic,
tor Adrian Buga in collaboration
and branding aims to provide a
sociological and bio-political
with Alexandru Solomon) are
platform for discussion of the
identities through musical per-
among the new temporary exhi-
As graphic design gains promi-
relationship between clothes
formances, installations, videos,
bitions being staged by MNAC.
nence, nine world-class speakers
and movies through screenings,
and special events. Lyra Pramuk,
will share candid advice and in-
debates and special events. Com-
Lutto Lento, Volition Immanent,
sight into their creative journeys.
bining the best in contemporary
Chlorys, JASSS and many others
Organizers promise interested
fashion films with a selection of
will take to the stage. Tickets are
parties access to some of the in-
documentaries and cult mov-
still on pre-sale at RON 55.
dustry’s best creative minds, and
ies, the festival offers a variety
the event will be followed by an
of perspectives on the fashion
after party. Tickets available from
industry, addressing issues such
www.eventbook.ro
as diversity and sustainability in
Visual Playground Conference April 6-7, Expirat
World Press Photo Exhibition May 6-26, National Museum of Arts
Spotlight Festival April 18-21, Calea Victoriei
the system, the role of clothing
Bucharest Fashion Film Festival April 11-14, Cinema Elvire Popesco, Teatrul Odeon, Promenada, FIX me a drink
in a museum collection, cultural appropriation and the status of the designer and model through
An independent jury from a wide
the decades.
range of backgrounds in photography, drawn from six global regions, with an equal number
Rokolectiv Festival April 18-21, Control Club and Apollo111
The artistic director of this year’s
of men and women, has selected
event is Jean-François Zurawik,
the nominees for the 2019 World
The 13th Rokolectiv Festival
director and producer of Fête des
Press Photo Contest, the 62nd
Lumières in Lyon. The theme
time the contest has been held.
of this edition – EuropeLights –
These important and challenging
celebrates the role Romania is
stories reach about more than
playing in Europe in this period
4 million people each year in
by capturing a series of relevant
a touring exhibition that visits
characteristics of European iden-
some 100 locations around the
tity translated into light installa-
world.