Foreign trade of sweets
In the first half of 2009, sweets, i.e. confectionery products with or without cocoa, constituted the most valuable item in both export and import of confectionery and sugar products. During the first half-year of 2009, their export increased by 5% reaching 82,200 tons and the export value grew by 19% to more than 297.8 million tons in relation to previous year. At the same time, import fell by 2% to the level of 48,800 tons. Nevertheless, the value of imported sweets remained at the same level of EUR 146.7 million.
The results of a report prepared by the Foundation of Assistance Programmes for Agriculture (FAPA), Foreign Agricultural Markets Monitoring Unit (FAMMU), show that export and import of confectionery products without cocoa decreased, whereas export and import of chocolate sweets (with cocoa) increased in the studied period.
During the analysed half-year, the volume of sweet export constituted 35.2% in terms of quantity (21.2% in 2008) and 81.7% in terms of value (72.0% in the previous year) of the export of a group of products including sugar, sugar industry products and confectionery products. In total, sweets constituted 1.3% of the quantity (1.8% in the first six months of 2008) and 5.5% of the value (4.5% in the previous year) of the entire agricultural and food goods export.
Understanding consumers’ expectations and adjusting an offer to the needs of the market are the key elements guaranteeing success of a foreign expansion strategy prepared by a company. In order to be competitive on global markets, Polish products must meet a series of norms and possess certificates required by that market, as well as be adjusted to local requirements. It needs to be emphasised that Polish companies have invested in state-of-the-art production lines and the quality of products is very high. Therefore, Polish confectionery products are highly valued by foreign customers. Based on FAMMU/FAPA data, sweets from Poland are available on demanding European Union markets, as well as in Russia, Ukraine and Israel. It is estimated that approximately 100,000 tons of sweets – in particular chocolate bars, hard and filled candies, pralines and wafers – are exported outside the EU every year. A large part of Polish sweets is sold in the Arab countries, the Unites States and Canada. Altogether, the entire industry exports to more than 60 countries globally.
Most of the manufacturers sell their products both domestically, as well as abroad. Some produce especially for recipients outside Poland. Manufacturers adjust their export volume individually to their production capacities. For some, it is only a few percent of the entire annual production, whereas in the case of others – several dozen percent.
For example, currently export constitutes approximately 16% of total revenues for Eurovita Sp. z o.o.
According to Dorota Weres, PR Manager, the company sells its regular products from the all-year-round offer, available under the brand names Terravita, Alpinella, Cocoacara, to the Czech Republic, Slovakia, Greece, Lithuania, Romania, Bulgaria, Latvia, England, Israel, Canada, Croatia, Slovenia, Estonia and Albania. The countries where smaller volumes of products are sold include Mongolia, Portugal, Taiwan, Hungary, Belarus, Germany and Russia.
For Mieszko S.A. seated in Racibórz, producer of chocolates (among others pralines, boxes of chocolates, jelly), sweets (caramel drops, lollipops, chewing gum, jellies and fudge), as well as wafers and halvah, the export channel generates approximately 30% of all company revenues. Mieszko products are delivered to more than 40 countries. Krzysztof Kozłowski, Marketing Director for Exports and Own Brands, says that the company mostly focuses on Central and Eastern European countries, and the United States.
The share of sweets in the import of the group of goods including sugar, sugar industry products and confectionery products, during the first six months of 2009 amounted to 19.2% in terms of quantity (22.2% in the previous year) and 60.5% in terms of value (65.9% in the first half of 2008). Meanwhile, the import of other forms of sugar constituted 0.7% (0.6% the year before) of the total import of agricultural and food products in terms of volume and 3.4% in terms of value (3.0% in the previous year). The increase of sweets share in export was mostly possible due to a drop in the exportation of sugar. On the other hand, in the case of import, a smaller share of sweets is also the result of increasing sugar importation.
Confectionery products without cocoa
The group of confectionery products without cocoa comprises chewing gum, liquorice extract, white chocolate, drops, including sore throat drops, confectionery goods covered with sugar, gelatine goods and jelly, boiled mass sweets, including stuffed sweets, toffees, caramel drops, confectionery products in the form of pressed tablets and other types not listed above.
The volume of exported confectionery products without cocoa in the first half-year of 2009 decreased by 5% to nearly 24,600 tons as compared to the same period the year before (almost 25,900 tons). The value of exported sweets without chocolate fell at the same time by 6% in relation to the corresponding period the year before and amounted to EUR 75 million (almost EUR 80 million in 2008). Moreover, the quantity of products imported to Poland dropped by 10% from 16,600 tons to nearly 15,000 tons. During the examined period, sweets without cocoa were imported for a total amount of EUR 40.5 million, which means a decrease by 8% in relation to EUR 43.9 million in the first six months of 2008.
Export
In the period from January 2009 to June 2009, the export of confectionery products without cocoa constituted 10.5% in volume and 20.6% in terms of value of the total sales of the group of goods comprising sugar, sugar industry products and confectionery products. During the first half-year of 2009, the shares of the above-mentioned products amounted to 7.0% and 23.0% respectively. In the same period, the exportation of confectionery products without cocoa amounted to 1.4% in terms of export value of all agricultural and food products and 0.4% of its value (0.6% in previous year).
Similarly to previous years, “remaining confectionery products without cocoa” were the most important export goods in the first six months of 2009. On foreign markets this group of products was sold in the volume of 9,700 tons for a total of EUR 36.3 million. Exportation of these products, both in terms of volume and value, recorded falls of 4% and 5% respectively. Remaining confectionery products without cocoa constituted 40% in terms of volume and 48% in terms of value of all exported sweets.
Toffees and caramel drops were the second biggest group with a share of 31%, which exportation amounted to 7,500 tons for an amount of EUR 16.3 million. The discussed group of products achieved a 22% share of export value. Sweets made of boiled mass (including stuffed sweets) formed another group of products. They were sold outside Poland in the quantity of 3,400 tons for EUR 7.5 million. The share of candies in the exportation of sweets was estimated to a total of 14% in terms of value and 10% in terms of volume. Gelatine products and jelly, including fruit spread, in the form of confectionery products and white chocolate are significant products in the structure of export.
For several years now, the most important markets for Polish confectionery products without cocoa have been the European Union member states, where approximately 63% of the value and volume of exports was sold (15,700 tons for EUR 46.7 million). Some 10.9 tons of these products were sold on the EU market for a total sum of EUR 30.6 million. More than 16% of exports were delivered to the Commonwealth of Independent States and 4% to the signatories of the North American Free Trade Agreement.
It needs to be emphasised that Germany and Russia were the most important recipients of Polish sweets without chocolate in the first half-year of 2009. In terms of volume, nearly 36% of products were exported there. According to the FAMMU/FAPA report, the Germans purchased 5,600 tons of the above-mentioned goods for EUR 14.2 million. Some 3,200 tons of these products were sold in Russia for a total amount of EUR 9.7 million. The volume of products delivered to Germany reduced by 4%, whereas to Russia by one third.
Relatively smaller markets for Polish sweets without chocolate were Great Britain and Hungary (1,400 tons each), followed by Saudi Arabia (1,100 tons, an increase by three quarters). Based on the discussed data, export to the Czech Republic fell by 33%.
The Central Statistical Office informed that during the first two quarters of 2009, Poland exported confectionery products without cocoa, including white chocolate, for a total amount of almost EUR 73.4 million. Export comprised approximately 23,900 tons of products (excluding chewing gum) and 93 tons of chewing gum. The data indicate that products worth a total of EUR 45.1 million were sent to the European Union. Germany was the biggest market with the value of export amounting to EUR 14 million. Other significant foreign markets for sweets without chocolate included Hungary (EUR 4.4 million), Great Britain (2.9), Czech Republic (2.7), Italy (2.3), Lithuania (2.2) and Slovakia (2.2).
Outside the European Union, many products were also delivered to developing markets (EUR 6.4 million) and to Central and Eastern European countries (EUR 12.2 million). The largest market of the latter group was Russia with 3,100 tons of products without cocoa exported for a total amount of EUR 9.6 million.
Import
During the first six months of 2009, the import of confectionery products without cocoa had a share of 0.9% (the same share in the first half-year of 2008) in terms of value and 0.2% (similarly to the previous year) of the volume of imported agricultural and food products in total. The share in import of goods comprising sugar, sugar industry products and confectionery products amounted to 5.9% in terms of volume (7.4% the year before) and 16.7% (19.7% in 2008) of the value of imports in the analysed period.
EU countries are the main suppliers of sweets without cocoa to the Polish market (85% of such products were imported from these countries). Import from the 26 EU member states in the first half of 2009 amounted to 12,700 tons (-8%) worth EUR 34.8 million (-7%). The “old fifteen” EU member states exported 10,600 tons of sweets without cocoa to Poland for a total amount of EUR 30.3 million, which constituted 71% in terms of volume and 75% of the importation value of these goods.
Confectionery products without cocoa were supplied primarily by Germany – nearly 5,000 tons for a total value of EUR 13.7 million. This means a 33% share in the volume and value of imports. It is necessary to emphasise that despite a 2% increase in the volume, the value of purchases from Germany dropped by 8%. The second most important exporter of confectionery products to Poland was the Netherlands (30% more than in the previous year, i.e. 1,500 tons). The Czech Republic moved to the third position with 1,200 tons (a decrease by 33%). A 50% increase of purchases from Colombia needs to be noticed (almost up to 1,000 tons), which allowed this country to have a 7% share in Poland’s importation of sweets without cocoa.
The main products imported by Poland were gelatine products and jelly, including juice spread, in the form of confectionery products, which achieved a share of 29%. These products were imported in the volume of 4,300 tons for a total of EUR 11.1 million. This group recorded an increase both in terms of quantity, as well as value (+ 2% and 11%). Goods covered with sugar had a distinctly smaller share in terms of volume (a drop of 1/3 resulted in a share of 16% in terms of quantity and 15% in terms of value). Gelatine products and jelly were imported to Poland in the quantity of 2,400 tons for EUR 5.9 million. Sweets made of boiled mass, stuffed sweets and toffees, caramel drops and other similar sweet candy were other important items in the goods structure. Their share in the total import of confectionery products without cocoa amounted to 14% in terms of value and 12% in volume.
Chocolate products
During the examined period, chocolate products (confectionery products with cocoa) were the most valuable item in Polish export and import of sugar industry products and confectionery products. These goods include chocolate and other confectionery products with cocoa, stuffed or not, in blocks, bars or candy bars. Thanks to the ten-times-higher dynamics of growth (export to import), the turnover of Polish foreign trade with these goods ended with a favourable balance in the amount of EUR 116.6 million, which meant an increase of 72% in relation to 2008, when the final result oscillated around EUR 67.7 million (EUR 66.3 million in 2007). During the first half of 2009, 57,600 tons of the above-mentioned goods were exported for a total amount of EUR 222.8 million (52,500 tons for EUR 170.7 million in 2008). Based on the data published by FAMMU/FAPA, the export volume was higher by 10% and their value increased by 30%. At the same time, the volume of import increased by 2% and amounted to 33,900 tons, whereas their value rose by 3% to EUR 106.2 million.
Export
During the first half-year of 2009, the exportation of chocolate products constituted 61.1% of the value and 24.7% of the volume of exports from the group of goods including sugar, sugar industry products and confectionery products. The share in agricultural and food products export amounted to 0.9% in terms of quantity and 4.1% in terms of value.
Similarly to sweets without cocoa, the majority of chocolate products were exported to the European Union. According to FAMMU/FAPA data, up to 80% of the total export was delivered to the 26 members states of the European Union. The EU countries purchased 46,300 tons of chocolate products for a total of of EUR 180.6 million in Poland. It meant a volumetric increase by 18%, whereas the export value grew by 42%. Poland exported 31,300 tons of chocolate products (+24%) to the “old” EU member states worth some EUR 130.8 million (+53%).
The United States, Turkey, Croatia and Russia were other important markets for the products containing coca. Based on the data published by the Foundation of Assistance Programmes for Agriculture (FAPA), Foreign Agricultural Markets Monitoring Unit (FAMMU), the majority of Polish confectionery products with cocoa were delivered to Great Britain – nearly 9,200 tons worth approximately EUR 30.5 million. Other significant markets were Austria (a twofold increase to 6,600 tons with a share of 12%), the Czech Republic, which purchased 5,200 tons, and Germany with 4,900 tons of export. Among other EU member states, Hungary, Slovakia, the Netherlands and Italy were also important markets for Polish chocolate products. Outside the European Union, Croatia (despite a significant decrease) and Israel played the most important roles.
Export wwa dominated by spread products with cocoa (12,200 tons sold outside Poland – a 44% increase – for a total amount of EUR 220.6 million (+9%)). In the export structure, these products had a 21% volumetric share and a 10% share in terms of value. Other most exported goods included remaining food products with cocoa and stuffing. Some 8,900 tons of these products were delivered outside Poland for EUR 71.9 million, which meant a share of 16% in terms of volume and 32% in terms of value. It is worth stating that as far as export value was concerned, these products were ranked in the first position. Fewer chocolate products in blocks, bars or candy bars were exported from Poland in the first half of 2009 as compared to the same period of the previous year. Their export volume amounted to 6,700 tons worth EUR 21.6 million, which meant a share of 10% in terms of value and 12% in terms of volume.
According to the data for the first two quarters of 2009 published by the Central Statistical Office, Polish companies exported the mentioned products for a total amount of EUR 202.2 million. Products worth nearly EUR 160 million were exported to the European Union markets. Trade with Germany was characterised by the highest value of chocolate and food products with cocoa export (EUR 27.2 million). Other most important markets included Great Britain (EUR 22.5 million), Italy (EUR 21.9 million), the Czech Republic (EUR 14.3 million), Hungary (EUR 11.2 million), Spain (EUR 10.2 million) and Austria (EUR 10.1 million). Products worth in aggregate more than EUR 15.2 million were exported to the remaining developed countries, with the highest values recorded by export to the United States (EUR 6.1 million) and Israel (EUR 4.5 million).
As far as Central and Eastern European countries are concerned, the exportation of chocolate products was estimated to a total of EUR 12.6 million in the second quarter of 2009. Russia, with export worth more than EUR 6 million, led the way. Other main countries included Croatia (EUR 4 million) and Ukraine (EUR 1.8 million).
Import
During the first half-year of 2009, chocolate products importation constituted 2.5% in terms of value and 0.5% in terms of volume of the total importation of agricultural and food products. The share of the group of goods comprising sugar, sugar industry products and confectionery products in total import amounted to 43.8% in terms of value and 13.3% in terms of volume.
Confectionery products with cocoa were imported only from the European Union in the analysed period. According to the FAMMU/FAPA report cited above, Poland imported the biggest amounts of chocolate products from the EU member states (in total 96% of products were purchased there both in terms of value and volume). Import from the “old” EU member states constituted 82% in terms of value and 75% in terms of volume. Some 32,500 tons of goods with cocoa were purchased from the 26 EU member states for nearly EUR 102.6 million.
The report indicates that purchases in France and the Netherlands fell drastically. On the other hand, Poland imported more products from Romania. Outside the European Union, Ivory Coast and Switzerland were other important suppliers of products with cocoa. For many years, Germany has been the main supplier of chocolate products to the Polish market. Poland imported 17,300 tons of these products from Germany for EUR 55.6 million. Import from Germany constituted slightly more than 50% of all sweets with cocoa delivered to Poland. Considerably less significant suppliers of chocolate products to the Polish market were the Czech Republic (3,500 tons), Belgium (2,200 tons), Austria (1,200 tons), Italy (1,100 tons) and France (1,000 tons).
During the analysed period, the most popular imported sweets included food products with cocoa in blocks, bars and candy bars, as well as stuffed products, which – in terms of volume – achieved a share of 21% in the importation of the mentioned goods. The purchase value of the above-mentioned products amounted to EUR 25.6 million, which meant a 24% share.
The second group were remaining products in blocks, bars or candy bars, with a total mass exceeding 2 kg, or products in the form of liquid, spread, powder, granules or in any other form, in containers or direct packaging, with content exceeding 2 kg, containing 31% or more cocoa butter, or containing 31% or more cocoa butter and milk fat altogether. They were imported in a total amount of 5,700 tons worth EUR 12.9 million (share of 17% and 12% respectively). The third biggest group were remaining food products with cocoa in blocks, bars or candy bars, with a total mass exceeding 2 kg, or products in the form of liquid, spread, powder, granules or in any other form, in containers or direct packaging, with content exceeding 2 kg, which were imported in a total amount of 4,800 tons for EUR 10 million (share of 14% in volume and 9% in value).
Tomasz Masal
