BR/04/2019

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.