Since turning Primola into one of the top brands on the domestic chocolate market, Supreme Chocolat now plans to shift its attention towards foreign markets, but expects a long road ahead as it attempts to ensure client loyalty abroad.
According to entrepreneur Jihad Jabra, who founded Supreme in Romania at the beginning of the '90s, the local economy is unsupportive when it comes to national brands' attempts to turn themselves into regional brands in the food industry.
"The low output, the unjustifiably high costs and the local market's consumer spending, which is far lower than the European average and generates low turnovers, these are all elements that are unhelpful for Romanian companies that want to become regionally competitive in the face of multinationals," says Jihad Jabra, general manager and associate of the Supreme group.
However, the company did launch exports on several regional markets last year, and will soon start an intensive promotion of its products in Bulgaria.
Investments in Bulgaria will contribute to a 30% increase in the company's promotional expenditures this year against 2007, believes Cristian Stancu, marketing manager of Supreme Chocolat. The producer will also tap into the Bulgarian market through key account networks.
"Under better market conditions, we could be even more competitive than we are now," says Jabra.
After the takeover of Kandia-Excelent by UK-based Cadbury, a transaction finalised in 2007, Supreme Chocolat is now the sole Romanian chocolate producer on the local market. The company currently holds 12% of the market, according to marketing studies cited by Supreme.
Jabra, an entrepreneur who was born in Lebanon, but has lived in Romania since the early '90s, is poised to turn the Primola, Anidor, and Ulpio brands into regional brands, but believes the Romanian authorities should support local entrepreneurs who want to enter foreign markets.
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