The Sugar Confectionery Market in Poland
Since the 16th century, when the Spanish explorer Ferdinand Cortez visited Middle America and brought cocoa seeds and the secret of preparing a drink from them, chocolate has always been present in our menu. It is hard to live a day without “something sweet” in this hectic and stressful modern world.
The AC Nielsen’s data show that the value of chocolate product sales reached €1.05 billion in the period from December 2007 to November 2008; more than 146.000 tons were sold. As compared to the same period a year before, a volume increase of nearly 7% and a value increase of 15.3% were recorded. Bars/wafers had the biggest market share in terms of both sales volume and value (35.6% and 34.8% respectively). Chocolate bars (31.9%, 27.9%) and pralines (22.8%, 27.4%) ranked next. Most sweets were sold at supermarkets (39.9%), medium-size grocery stores (18.5%), hypermarkets (14.6%) and small grocery stores (13.8%). Not more than 0.9% of sweets, mainly bars and wafers packed individually, were purchased at newsagents.
“Experts claim that the sweets market in Poland has excellent prospects. Its value is estimated at € 1,4 billion and in 2008 it will go up by over 12%.” says Dorota Piwowarska, Marketing Director at Wawel S.A.
“Recent years have been very successful for the Polish market of sweets,” adds Jerzy Buchner, Vice-President of Management Board at Haribo Sp. z o.o. “An absolute majority of its segments have recorded a stable growth in successive periods. Increased purchasing power due to favourable economic conditions and salary growth has allowed producers to expand their offers. Fiercer competition in combination with growing demands of Polish consumers have led to the situation when we can now find a full range of products of all flavours, shapes, designs and packaging weights on store shelves”.
“The premium segment of the sweets market has been developing dynamically, which is caused by the increased wealth of the Polish society,” informs Dorota Weres, PR Manager Eurovita. “The better the financial situation, the bigger the demand for premium sweets like pralines, chocolate boxes and chocolate bars with unique ingredients. Poles are more willing to reach for sweets of a very sublime taste, offered in elegant packaging, which some time ago were considered niche”.
Based on the data provided by the Association of Polish Chocolate and Confectionary Manufacturers (Polbisco), which associates 40 leading companies of the industry, Polbisco member companies manufacture approximately 400.000 tons of sweets a year worth about € 1,75 billion. The value of exported goods totals some € 0,5 billion. The data do not include confectionery breads.
“In the last two years, the Polish market of sweets has grown at a two-digit pace. Further growth is expected in the next years,” says Marek Moczulski, President of Management Board at ZPC Mieszko S.A. “Pralines are one of the main categories characterised by very high dynamics of growth. The consumption of products from this segment in Poland, as well as other chocolate goods, is still lower than the consumption recorded in Western Europe. Such disproportion does not result from nutrition habits, but rather from a smaller degree of affluence of the Polish society. Chocolate products belong to the most expensive group of sweets. In the long term, with increased degree of affluence, we are expecting further increase of their consumption.”
Jutrzenka Colian also assumes that the Polish market of sweets will continue to grow in the future.
“A difficult situation on global financial markets causes that people give up purchasing luxurious goods,” says Joanna Kozakiewicz, International Marketing Director. “Instead, they often reach for sweets to cheer up. Manufacturers are observing how sweets slowly become an antidote against the omnipresent crisis. In reality, producers seek profits from the sale of their own products”.
Consumption of sweets in Poland is still much lower than in Western Europe. According to Polbisco, an average Pole consumes about 1.2 kilogram of chocolate a year. It is much less than for example in Switzerland (11 kg), Germany and Belgium (10 kg) or Great Britain and France (7 kg). Consumption of cookies is not better either. Statistically we eat 3 kg of these products a year, whereas an Irishman consumes five times more (15 kg) and an Englishman, 11 kg of cookies.
“If we take statistics into account, consumption of sweets in Europe is several times higher than in Poland, which allows this market to evolve and grow,” underlines Piotr Stawny, director’s assistant at Łużyckie Praliny. “On the other hand, in terms of purchasing power, the perspectives of development are much smaller. Moreover, consumers are becoming increasingly aware of the quality of nutrition, pay special attention to GDA values and want to eat healthy food. It is necessary to look at the market’s development with cautious optimism”.
Sweets consumption in our country differs from Western Europe not only because we eat much smaller amounts of sweets, but also because we are traditionalists who rather unwillingly reach for innovative products, e.g. containing the addition of vitamins or full grains, etc. The situation is slowly changing, in particular among young, better-off consumers, who are open to the world, ready to experiment and seek “added value” in sweets.
“The dynamic growth of the Polish market of sweets has not resulted in the same consumption of these products as compared with Western European countries yet,” says Jerzy Buchner from Haribo. “It allows us to assume that good economic conditions in this field will also continue in the upcoming years. However, we need to expect that this process will largely depend on specialisation and offering products precisely tailored to the consumer needs and expectations, instead of merely expanding one’s portfolio. In the nearest future, we may expect expansion of the category of functional products enriched with health-beneficial ingredients, and sweets, which, in addition to their taste qualities, provide an added value in the form of, for example, educational elements. Sweets are a constantly developing market segment with a huge potential.”
Until late 80s, confectionery products were manufactured by state-owned companies and cooperatives, which always grappled with the problem of raw materials shortages. Chocolate-like products dominated on store shelves.
After the political transformation in the years 1989-1990, the confectionery industry changed as well. Availability of confectionary goods improved; prices decreased as a result of an excess of supply over demand. In the second half of the 90s, production of chocolate in Poland doubled, whereas production of non-chocolate candies dropped by 1/3. In 2004, Poles consumed twice as much chocolate as compared to 2000.
The Polish confectionery industry is largely dispersed. There are approximately 140 producers - mainly small and medium-size companies. However, a dozen or so largest manufacturers, mostly owned by international corporations, dominate the market. Global players such as Nestlé Polska S.A, Haribo Sp. z o.o., Mars Polska Sp. z o.o., Kraft Fords Polska, Storc Sp z o.o., Lindt & Sprungli, Ferrero Polska, Bahlsen Sweet, Perfetti Van Melle – just to name a few – are all present in Poland. Wedel, now owned by Cadbury Group, used to be the market leader thanks to many years of tradition and high brand awareness. Other companies, such as Grupa Jutrzenka (owner of three manufacturing companies: Goplana, Kaliszanka and Jutrzenka), Cracow’s Wawel , “Solidarność” from Lublin and ZPC “Mieszko” also do very well in the market.
The sweets market records highest levels of turnover mostly during holiday periods. Chocolate and praline producers begin to get ready for the peak period in the summer. In September, orders from wholesalers start growing. In October, sales to commercial chains increase. In the last months of the year exports also pick up. It is hard to imagine Christmas without chocolate, a box of chocolates or a chocolate figurine. In the last weeks of the year sweets in Christmas packaging and chocolate Santas sell best. Sales volume can increase by even 7000 tons just before Christmas as compared with the summer season, to drop by 5000 tons at the beginning of the next year. In the summer, due to high temperatures, we consume much fewer chocolate products. Manufacturers compete for clients by launching occasional boxes of chocolates, e.g. on the occasion of the First Communion.
The biggest number of transactions in sweets is reported from 11 am to 8 pm. However, certain categories of products, such as functional candies, chewing gum and filled croissants, sell better in the morning when people buy them on the way to work. Candy bars are usually purchased during lunch, i.e. between 1 pm and 6 pm.
According to the report of 2007 published by Centrum Monitorowania Rynku (Market Research Centre), sweets generate about 7% of total turnover at traditional grocery stores and are reported on every fifth receipt. They constitute the fourth most important group of products, after bread, dairy products and beer, in terms of the number of transactions.
According to the Central Statistical Office (GUS), industrial goods producers from the public and private sector, employing at least 50 people, produced more than 233,000 tons of chocolate and chocolate products in the period from January to November 2008, which constituted 94.7% of production as compared to 2007. The production of chocolate (including white chocolate) amounted to 144,000 tons (95.1% of the 2007 production).
Based on the GUS data, 29,500 tons of chocolate and other filled products, 37,900 tons of products not filled (but with nuts or fruit), 27,800 tons of chocolate candies, 4,700 tons of white chocolate, and 49,300 tons of toffee and caramel candies were produced in 2007.
Below, we present particular product categories in detail.
Chocolate and chocolate bars
When we hear the word “sweets”, chocolate is the first thing that comes to our mind. And when we are thinking about chocolate – then also about chocolate bars.
Depending on the contents of sugar, chocolate has been divided into the following categories: sweet and semi-sweet (more than 50% of sugar), dessert (40-50% of sugar), and dark (below 40% of sugar). Four groups of chocolate are available on the market: full, filled, aerated and drinking chocolate. These groups are divided into various types and kinds, such as for example dessert, dark, milk, cappuccino or white chocolate. Hard bars of chocolate, which according to AC Nielsen constitute 41% of the volume of sales, enjoy the highest popularity. Moreover, milk chocolate is much more popular than dark chocolate - it constitutes 70% of the entire segment. Filled chocolate in particular those with strawberry, toffee, caramel and coconut flavour is the second most popular group of products. Bars of chocolate with nuts and raisins are the smallest category in terms of sales volume. Aerated chocolate bars, with a biscuit or fruit jelly, sell fairly well too.
The fashion to live a healthy lifestyle has led to increased popularity of dark chocolate, especially of the premium brands. These chocolate bars contain a lot of cocoa - even up to 80%; they often include additional ingredients such as almonds or orange peel. The group of products with coarse-grained additions, such as grain seeds, is also enjoying greater popularity among customers.
“Poles are becoming more interested in healthy products, e.g. sweets with high contents of cocoa,” says Dorota Piwowarska. “What is more, the standard of living of the Polish society has improved; therefore, they can afford a bit of sweet pleasure. A wide selection of first class sweets allows customers to reach for them more frequently. They have become a product, which we buy not only for special occasions, but we take delight in them everyday”.
Based on the TGI research carried out by the MillwardBrown SMG/KRC Institute in the period from October 2007 to September 2008, 82.72% of the Polish population, aged 15-75, declared that they consumed chocolate. The group of respondents also indicated their favourite brands: Wedel (37.5%), Alpen Gold (24.14%) and Milka (20.42%). These brands were followed by less popular ones such as Goplana (14.41%), Wawel (7.56%), Terravita (3.9%) and Nussbeisser (more than 3%). 32.52% of the respondents who declared chocolate consumption eat it 2-3 times a month, 28.48% do it once a month, 22.95% - once a week, and 16.06% - more than once a week.
According to the AC Nielsen report covering the period from December 2007 to November 2008, we usually buy chocolate at supermarkets (39.5%), as well as at medium-size and small grocery stores (19.5% and 14% respectively).
“The chocolate segment of the Polish market of sweets is still developing and has not been fully saturated yet,” says Dorota Weres. “Chocolate bars, which are an essential part of this market, have already witnessed a period of dynamic development. At present, this category records an increase in the sales volume, but on an insignificant level. Nonetheless, a chocolate bar is still the most popular and best-selling product. Under the Terravita brand the following filled chocolate bars are purchased most often: mint, advocate, tiramisu, marzipan-flavoured, milk and dark chocolate bars, as well as chocolate with the “window” addition of whole hazelnuts. Milk and dark chocolate bars are basic products offered by every chocolate manufacturer, whereas other flavours do not have their equivalents among their competitors.”
Candy bars perfectly suit the lifestyle of young people who make purchasing decisions under the influence of advertising or act on an impulse, and do not look at the price. Young consumers are convinced that a candy bar is a practical snack that satiates appetite and gives necessary energy. Producers, by introducing morning bars with muesli to the market, have started to compete not only with daily meals but also with breakfasts.
According to the SMG/KRC MillwardBrown report for the period from October 2007 to September 2008, 62.01% of respondents declared consumption of candy bars. The brands that were most often indicated included Snickers - selected by 27.25% of respondents, Mars - 13.34%, Pawełek - 12.8%, 3 Bit - 12.49%, Lion - 12.13%, Bounty - 6.64% and Milky Way - 5.35%.
Pralines
Pralines are one of the fastest developing segments of the entire market of chocolate products. Experts predict that this segment’s growth will continue in the future. Many Poles no longer perceive pralines as a product purchased only for special occasions. They have become a sweet pleasure, which Poles can afford more often, even without any special occasions. They can be bought loose by weight, in an elegant box or even by piece at specialised stores.
The highest sales volume of pralines is recorded during Christmas. In order to change this situation, producers suggest buying boxes of chocolate also for other occasions, such as Mother’s Day, Grandmother’s Day, St. Valentine’s Day or the First Communion. It is supposed to revive the segment during other seasons and generate new sales. Producers believe that packaging is the most important element determining success of a particular box of chocolate, thus they are attempting to make it as modern as possible by abandoning traditional floral motifs, especially roses.
“The pralines market in Poland is dominated by the so-called souvenir products,” says Marek Moczulski, President of Management Board at “Mieszko”. “Boxes, chocolates and other gift-like forms constitute half of the market. Most of them are given as gifts on birthdays, name days, other ceremonies, or as a form of expressing gratitude. Some products offered in souvenir packaging are bought for less official occasions, e.g. as a surprise for a close person, or without any occasion at all by for example praline fans for pleasure as a prize for themselves.”
The previously quoted survey carried out by MillwardBrown SMG/KRC indicate that 37.01% of the population, aged 15-75, consume pralines. One third of the respondents admitted eating chocolates once a month (30.6%) and 2-3 times a month (29.1%). Only 12.93% of them relish the taste of pralines once a week or more frequently. The top five most often consumed brands are Wedel (37.09%), Goplana (17.09%), Solidarność (15.38%), Wawel (13.97%) and Mieszko (13.91%).
Favourite flavours of pralines and chocolate boxes include hazelnut and caramel, whereas the least popular are fruit-filled products.
Poles usually buy pralines at supermarkets (44.8%) and hypermarkets (22.1%).
The market of chocolate goods in boxes is divided into chocolates and marshmallows. The latter group includes, in particular, Ptasie Mleczko (small oblong chocolate marshmallow) and other similar products.
Candies and lollipops
Candies are one of the most important product categories in terms of sales revenues. This segment includes products of various degrees of consistency and structure, produced from diverse materials and in different ways, among other things, caramel candies (boiled sweets, hard fruit and filled candies), drops (with or without filling), fondants (fudge, toffee) powder pressed candies and gum (jellies).
Hard candies have the biggest share in this market segment. 41.58% of respondents taking part in the survey conducted by the MillwardBrown SMG/KRC Institute declared consumption of these sweets. 41.42% of them eat hard candies once a month or less frequently, 31.47% do it 2-3 times a month, and only 12.23% - at least once a week. The most popular brands of hard candies, according to the survey, are Goplana’s Landryny (19.63%), Goplana’s Kukułki (14.34%), Mieszko’s Zozole (12.44%), Wedel’s Kukułki (10.52%) and Landrynki manufactured by Mieszko (10.36%). These are followed by Nimm 2 (9.35%) and Brando from Goplana (8.05%).
Cookies
The market of cookies is not divided in terms of flavour, but in terms of the method of sale. On the one hand, we have confectionery cookies, on the other hand we have another group which includes cookies sold loose by weight.
According to AC Nielsen, the cookie market’s value totalled almost € 0,5 billion in July 2008, i.e. almost 19 percent more than the year before. Lack of supervision over the cookies sold by weight at such places as marketplaces or bazaars is a significant problem when it comes to precise determination of the cookies market size. Despite a noticeable tendency towards abandoning products sold loose, consumers - in particular those from smaller towns, are still very willing to purchase them in this way. The share of products sold loose is estimated at a fairly accurate level and totals approximately 50% of the total market of cookies.
Biscuits, jaffa cakes, cream cookies and gingerbread as well as sponge cakes are market leaders.
Based on the SMG/KRC MillwardBrown report, 68.85% of the respondents declared consumption of packed cookies. The majority of respondents declared consuming them 2-3 times a month (35.53%), once a week (26.46%), or at least once a week (12.07%). The most popular brands include: Wedel’s Delicje - selected by 32.55% of respondents, Pieguski - 12.66%, Wafle Familijne from Jutrzenka - 11.86%, Jeżyki from Jutrzenka - 10.08% and Wedel’s Pierniczki Alpejskie - 7.27%.
Impulse and family wafers
There are a few dozens of wafer brands available on the Polish market. They are the most popular snacks of the youngest generation of Poles. Usually, these products are purchased on an impulse depending, to a large extent, on proper exhibition on a shelf at a store. However, a decreasing number of impulse wafer consumers is noticeable; they turn to the segment of candy bars.
In SMG/KRC MillwardBrown’s survey, 61.74% of respondents declared consumption of chocolate-coated wafers (packed individually). 1.81% eat them everyday; however, most of the respondents eat wafers 2-3 times a month (29.16%), once a month or less frequently (22.42%), and once a week (19.20%). Three brands dominated the market: Grześki - selected by 40.31% of the respondents, Prince Polo - 28.94%, and Princessa - 24.5%.
Other products
The market of sweets in Poland is so wide and vast that it is not possible to monitor all of its segments. Popular products in this category include halva, sesame snaps and chewing gum.
The production of sesame halva began in 1951. The halva market is stable; the product has been popular mostly because of the fashion for healthy nutrition - halva contains only 15% of sugar. The most important role of producers at this point is to show clients that their product is completely different from other sweets. Halva is addressed to a wide group of clients; therefore, the market grows by approximately 5% a year.
Good sesame snaps are a product containing at least 44% of sesame. They are crispy and constitute a perfect snack that everyone should have within reach. It is an impulse product that is light and inexpensive; thereby, it is easily affordable.
The chewing gum helps you prevent tooth decay, reduces nervous tension and allows you to to focus on your tasks. It has been a popular product for years.
Export of Polish sweets
In general, there are three markets where sweets are sold: Poland, the EU and third countries. Our products are primarily exported to the new and old EU member states, Russia, American markets and to Arab countries. The value of last year’s exports of sweets amounted to about € 0,6 billion. However, a common phenomenon, occurring both on the domestic and foreign market can be noticed: the requirements concerning product quality increase.
“Confectionery is one of the most dynamically developing industries,” says Marek Przeździak, General Secretary at Polbisco. “Sweets manufacturers are interested in selling their products not only in Poland and the EU, but also in other countries around the world. A large part of Polish sweets is sold in Russia, Arab countries, the Unites States and Canada. Altogether, the entire industry exports to more than 60 countries globally. Polish companies have invested in state-of-the-art production lines so the quality of products is very high.”
Understanding consumer requirements and adjusting the offer to the needs of the market is the key element that guarantees success of the company’s foreign expansion strategy. In order to be competitive on global markets, Polish products must meet a set of standards and hold certificates required on those markets. Also, they should be adjusted to local requirements.
Sweets are mainly sold on very demanding EU markets, in Russia, Ukraine and Israel. It is estimated that approximately 100.000 tons of sweets per year - in particular chocolate bars, hard and filled candies, pralines and wafers - are exported outside the EU. Small oblong chocolate marshmallows, the Prince Polo wafers and fudge are most successful in countries with sizable communities of Polish citizens.
“We are present in more than 30 countries, mainly in the USA, Canada, Germany, the UK and Hungary,” says Tomasz Kuszewski, Export Director at Wawel S.A. “We export to every continent, except for South America. On foreign markets we sell sweets from the whole product range. However, dark chocolate bars with high contents of cocoa, jelly in chocolate (Mieszanka Krakowska) and filled chocolates dominate. We also export to countries where our “Sugar Free” line of products enjoys very high popularity among customers.
Our export plans include both entering new markets as well as strengthening our position in those places where we have been present for some time. We pay particular attention to the neighbouring countries, where Wawel S.A. sales representatives operate. We are also planning to begin cooperation with German commercial networks and intensify distribution of our products in the US.”
“Mature Western European gourmet markets - Germany, Great Britain, Belgium, Scandinavia, Austria, as well as niche markets of presents, gift baskets or wine shops are the most important buyers of our products,” says Magdalena Karbowska, Export manager Doti. “An exceptional combination of chocolate and such traditional flavours as rhubarb in chocolate, which has received the Great Taste Award 2008 in Great Britain, blackcurrant or gooseberry in dessert chocolate attract particular interest. In the nearest future, we are going to focus on strengthening our presence on Western European markets, and on building and increasing awareness of the Chocolate Garden brand under which our packed products are sold on foreign markets.”
“We are observing an increased interest in praline products”, President of Mieszko notices. “It is clearly visible in our sales rankings where the top positions on our export lists go to the Chocoladorro and Amoretta boxes. This growth is particularly noticeable in dynamically developing countries of Central and Eastern Europe (Russia, the Czech Republic, Bulgaria or Azerbaijan). In other countries, such as Romania, the position of caramel products is getting stronger, and Zozole are one of the leading brands. At present, we are focusing on the development of distribution of Mieszko’s leading products. We are also considering introducing special versions of these products destined only for a particular foreign market. As a result of close cooperation with out foreign clients, we have come up with various ideas and concepts of new products; e.g. we have recently launched the Pikolo Max caramel candies invented and designed especially for our clients in Azerbaijan”.
The Central Statistical Office (GUS) carefully monitors exports of Polish confectionery products dividing them into several categories: the ones containing cocoa or not, chewing gum, gingerbread, sweet biscuits, waffles and wafers.
Export of confectionery products without cocoa in the second quarter of 2008 brought Poland almost € 65,4 million, of which € 39,15 million came from the European Union. From among the European Union countries, we export most of our products to Germany, the Czech Republic and Hungary. As to other developed countries, half of the exports revenues come from Canada (€ 1,4 million); other significant markets include Australia and the United States. As to the Central and Eastern Europe countries, we sell the biggest amounts of products to Russia, and from among developing countries - to Saudi Arabia.
In the second quarter of 2008, we exported chewing gum for a total amount of nearly € 165.500, mainly to the European Union – over € 131.000 (the leading markets are Hungary and Great Britain).
Most of the income came from exports of chocolate and other cocoa products – € 140,5 million in total. Products worth over € 100 million were exported to the EU, especially to Great Britain and the Czech Republic.
We also exported 342.000 tons of gingerbread, of which 2.930 tons went to Hungary (the biggest client among all European Union countries). Inside the EU, sweet biscuits (2.500 tons) are most often purchased by Germany; from among developed countries - by the USA, from among developing countries - by Saudi Arabia, Morocco and of course Russia. We sold 2.600 tons of waffles to Germany, Israel, Russia and Turkey - adequately to the regions.
Increasing exports, which are still growing, constitute approximately 35 percent of the entire production of the confectionery industry. Manufacturers adjust export volumes individually to their production capacities. For some, it is only several percent of annual production, for others - several dozens percent.
“Wawel exports goods worth 7% of its annual turnover,” says Tomasz Kuszewski. “This share changes depending on the category. We have the strongest position in the segment of filled chocolates.”
“Fore some time now, we have noticed an increased interest in our products from foreign companies looking for high-quality goods with unique flavour,” adds Magdalena Karbowska from Doti. “At present, exports’ share in our company’s sales volume is about 30% and is still growing.”
“Export is of great importance for us and constitutes approximately 15-20% of the entire sales volume, depending on the season,” says Piotr Stawny from Łużyckie Praliny. “We are mostly interested in European Union countries, in particular Germany, Slovakia, the Czech Republic and the Baltic states. We are planning that the level of export will soon reach 30% of our total turnover. We are most of all interested in the German market, where our products are increasingly popular every year. Moreover, we want to improve our position on the English market, especially at large commercial networks. We pay special attention to the development and improvement of sales in Slovakia and the Czech Republic, where we have recorded a high increase in terms of both the size of the product range and sales volume.”
Exports are also very important for Jutrzenka Colian Sp. z o.o., which is making an effort to become an international company and consequently executes the strategy of expanding into foreign markets. According to Joanna Kozakiewicz, International Marketing Director, the company is adjusting the graphical layout of packaging to the needs and requirements of consumers from particular countries. “Export products constitute approx. 5-7% of our total production. Jutrzenka Colian products are sold in European countries, the United States, Canada and the Middle East,” she adds.
Exports amount to about 15% of Eurovita’s revenues at present. “Regular products sold under the Terravita, Alpinella and Cocoacara brands from our annual offer are available on the following markets: Greece, Lithuania, Mongolia, Slovakia, Canada, Kenya, Slovenia, Taiwan, Estonia, the Czech Republic, Albania, the United Arab Emirates, Belarus, Latvia, Bosnia and Herzegovina, Kazakhstan, Portugal, Bulgaria, and Namibia,”– says Dorota Weres, PR Manager. “Occasional and festive products are exported to Lithuania, Greece, Slovenia, Estonia, the Czech Republic, Slovakia, Portugal, Canada, Kazakhstan and Romania. As regards our industry products, our main goal and task is to enter Central and Eastern European and Southern European markets, i.e. Lithuania, Latvia, Estonia, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria and Greece. In some of the countries I have mentioned, such as Lithuania, Estonia, Slovakia or Greece, we are making an effort to strengthen our position by reaching a wider group of clients. We want to build a solid position on the remaining markets by reaching potential clients and presenting them our offer. Besides key markets, we are doing our best to expand our sales activities on the markets we already operate on”.
Most of the manufacturers sell their products both domestically as well as abroad. Some manufacture especially for buyers outside Poland.
“All novelties are launched in Poland and abroad,” informs Export Director at Wawel S.A. “Sugar-free candy bar with strawberry filling is a new product designed only for export markets. For Christmas and Easter, we are introducing limited series of products to the markets where our fellow citizens live”.
“In our opinion, confectionery pralines in “everyday” and “for me” boxes are the largest export group of our products,” - says Piotr Stawny. “They are small and elegant bags, and we were one of the first companies to introduce them to the Polish market two years ago. In this way, our collection of Bella Vista pralines and Truffles chocolate balls had three couvertures. This year, our portfolio has been expanded by both premium as well as popular products, such as Sweet Secret - a 175g box of chocolates containing marzipan hearts coated in Belgian dessert chocolate and packed in remarkably attractive wrapping, Piramides - triangular chocolates imitating the famous and exclusive Gianduia, or Five O’Clock - thin marzipan leaves with the addition of pepper mint coated with dessert chocolate.”
Launching new products on foreign markets is strictly connected with Jutrzenka’s domestic offer. Joanna Kozakiewicz says that global equivalents of their standard products have been designed especially for exports, including popular Clue cookies full of dried fruit and nuts (Jeżyki), Family’s wafers (Familijne) and Chopin chocolate bars. Goplana’s chocolate bars, pralines and Mella jelly are exported too.
Eurovita’s most popular products sold outside Poland are 100g Terravita chocolate bars: mint, milk, nut, marzipan, dark, yoghurt-strawberry, and 250g dessert Terravita chocolate bars: amaretto with apricots, Malaga raisins.
Mainly dessert chocolate bars and occasional goods - Christmas figurines and chocolate bars, are sold on Eastern markets.
“The DELISSA chocolate-coated wafers with hazelnut, chocolate, milk and coconut flavours, manufactured in Kargowa, have been exceptionally successful in the Czech Republic and Slovakia. We send our products to nearly 20 countries of Western and Eastern Europe, as well as to the Middle East,” says Radosław Marciniak, Marketing Manager at the Confectionery Goods Department of Nestlé Poland. “Next year, we will focus on strengthening our position on current markets.”
“Sweets producers, similarly to other domestic exporters, grappled with the problem of strong Polish currency for a longer period,” – sums up Marek Przeździak from Polbisco. “Now, our currency is getting weaker, but the general economic conditions are not stable either. Unfortunately, it may lead to a smaller demand for many products, including sweets. Besides, high prices of sugar are another big issue. Sugar in the EU is much more expensive than on world markets, which unfavourably influences competitiveness of our products in third countries. We receive alarming signals that sugar prices in 2009 will increase by 15-20%, which is very bad news. Product prices may also be negatively affected by rising prices of cocoa on global markets and weakening Polish currency. VAT on sweets is 22% in Poland, whereas it is only 7% in such countries as the Czech Republic or Germany, which causes that prices of these products in those countries can be lower. Reducing the VAT rate in Poland can result in the revival of demand, which is particularly advisable in the current situation.”
Tamara Prusak
*/We assumed the exchange rate 1 € = 4 PLN/.