Monika Rączka-Erhardt, Export Manager, Magnat.

Tuesday, 24 February, 2015 Food From Poland 21/2015
What is the FPH Magnat brand awareness in foreign markets?

With more than twenty years presence in the market, Magnat places in the segment of small and medium-sized enterprises. For more than 10 years, its export is growing steadily with very positive results. It is difficult to talk about the brand awareness and recognition in foreign markets in case of Magnat or any other Polish company of a similar size, because branding is not just products sales and distribution. The branding process is spread over time, and it is closely connected with marketing and advertising in the broad sense (media, promotions, sponsorships, etc.). Surely, we cannot compare ourselves with the Polish market leaders in the segment of sweets, whose brands - because of their production potential and marketing budgets - are firmly anchored in the consumers' minds, but I think that, in comparison with companies with a similar potential, we are doing very well. At present, we sell our products to more than thirty countries on all continents, with nearly fifty foreign trade partners. So we can say that, together with them, we are increasing the Magnat brand recognition in small steps.

What are the main directions of the export sales?

The above mentioned information about our cooperation practically all over the world is still to be clarified, because among our trade partners there are enterprises with a great sales potential and small companies that hopefully will be growing together with us. The turnover in the European Union, the United States and Russia is at the forefront. But our chocolates are sold also in such surprising - due to their climates - countries as Mexico, Singapore, Iran, Georgia, Armenia and Thailand. Why surprising? Remember that our products do not like high temperatures. Our major partners are in the Republic of South Africa and Australia. Also, South America knows the taste of our chocolates.

Cherry Liqueur Chocolates are Magnat's flagship product. What are the sweet export hits?

In addition to our most recognizable product, cherry liqueur chocolates, which are our main sales hit, it is difficult to identify another taste that would be equally acceptable all over the world. Taste preferences in individual markets are so different that it is hard to find an equally strong favorite. They often depend on the legislation concerning e.g. the pralines' alcohol content, and on the traditions and culture in the various regions of the world. Is is definitely easier to identify our hits taking into account the form and aesthetics of the packaging. E.g. Western Europe and the United States are fond primarily of a package that is simple in its shape, with sophisticated aesthetic and made of paper. A small and subtle gift is well seen here. Leaders here are the Dream series products: Cherry, Nut, Caramel, Vanilla and Advocat – a little, modest and sweet something.
Eastern Europe and Asia go rather for a typical gift packaging with a richer graphic design. The main selling hits in these directions are My Sweet Cherry, Cherry Charm and Exclusive Collection chocolates and Princess of Cherries chocolates in the metal packaging or Cherry Evenining, Sweet Poems, Chocolate Miracle and Purple Magic with the 3D effect.

How will the value of exports change in the near future in relation to the Company's total revenues from sale of sweets?

Of course, we will make every effort so that the value of exports in the coming period keeps growing. This year, we will be also satisfied if we can maintain last year's numbers, because in view of the current economic situation in the world business, fluctuations of exchange rates, the increase in raw material prices, political and economic situation in the east, it will be difficult to count on a spectacular growth. We want to achieve these goals through participation in international fairs, constant attention to the quality of our offer, its development and remarkable aesthetic of the packaging. We are also working hard on a new offer, which should surprise the market.

Own brands and individual packaging – How is this segment of sales developing, both in the domestic and foreign markets?

We offer the possibility of manufacturing products under our customers' own brands. This is becoming an increasingly popular form of cooperation with distributors and retail chains. At present, we supply products as the customers' own brands mainly to companies in the European Union. Their share in the foreign sales reached the lever of 15%, at the same time showing an upward trend. In this respect we are open for cooperation and show great flexibility as to the form of packaging, the graphic design and the minimum quantities to be ordered in such a formula. Our employees and suppliers (printing houses delivering paper packaging as well as metal packaging producers) are able to satisfy even the most complex challenges, while they use all their knowledge and experience in the projects execution. Implemented in 2003, the Integrated Quality Management System ISO 9001, 2000, HACCP and 2011 certification for the IFS standard provides our partners with a guarantee of top quality and ensures safety of the ordered goods.   

Thank you for an interview.
Monika Dawiec

tagi: Monika Rączka-Erhardt, Export Manager, Magnat.,

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