Kandia-Excelent, the producer of Kandia and Laura chocolates, has earmarked 10 million euros for investment in production this year, according to Sorin Alexandrescu, the company's general manager.
The investment will be go into raising chocolate production capacities and helping the company enter new complementary market categories - the wafers segment being one of possibilities. "This year's investments will come to around 10 million euros, more than double the value of last year. This only includes investments aimed at technology and equipment and excludes sums linked to product promotion," said Alexandrescu.
Investment by the company last year amounted to 4 million euros, part of which was used to acquire a chocolate production line. The company plans to invest in a new production line this year, since current volumes do not cover market demand.
"Last year, in August, we installed a new production line that raised our chocolate production capacity by about 30-40%. But despite this, growth in demand outpaced that for production, which is why we are acquiring a new production line this year," explained Alexandrescu.
Excelent merged with rival company Kandia last year, creating the largest chocolate producer in Romania, equal to Kraft Foods.
According to Alexandrescu, the company hit its own targets last year. "Last year, we reached the financial targets as well as the targets we had set in terms of volume and investments. After the merger, we reshuffled our product portfolio and these were modified to a 70% extent," said Alexandrescu. He chose not to disclose the company's turnover for last year. The company had forecast a turnover of 29 million euros for 2004.
"For 2005, our objective is to push up sales by about 25% in euros, about as much as last year. This year, we will try and consolidate our two umbrella brands, namely Kandia and Laura, together with the tablets segment and other segments such as bars and pralines," added Alexandrescu.
He also said that investments in promotion would be at least as high as last year.
The Romanian chocolate market is worth more than 100 million euros each year and last year was one of the most dynamic markets, seeing growth of over 25% in volume. georgiana.stavarache@zf.ro
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