Chocolate maker Primola is planning to invest $5 million in infrastructure, distribution and marketing in order to expand and consolidate its market position.
"We believe we should seize every opportunity. We will broaden our product range and continue to invest, to add more sweets to our brand portfolio in order to grow stronger," said Jihad Jabra, general manager of the Supreme Group, the company making Primola.
The Supreme Group started making chocolate in Romania in 1995, but only focused on this activity after having sold coffee brand Nova Brasilia to American group Kraft Foods in 2001. Jabra would not disclose the sales posted by the group last year, but mentioned that the market share of Primola has increased from 3% in April-May 2002, up to 12.4% during the same period this year, according to surveys ordered by the company.
The chocolate market is estimated at some $100 million every year. Moreover, the group's manager added that Primola increased its market share due to the advertising campaign effective since launch.
Primola's gross investments in advertising (rate card) were worth $3.8 million in 2002, which is almost three times more than in 2001. "The Romanian chocolate market is shrinking, as the purchasing power is dropping, as well. We have no data for this year, but I think the trend is somewhere between decrease towards consolidation," general manager of the group also said.
Chocolate consumption per capita was estimated at 0.8-1.2 kilos last year.
"The chocolate consumption per capita in Romania is lower than in Bulgaria, because of the lower wages. Moreover, the maintenance expenses and the power prices take a big slice from the monthly revenues, so that basic products such as meat, milk or bread become increasingly important, while chocolate, for instance, loses ground. They say the increasing consumption of bread and milk is the first sign of poverty," he added. claudia.covaci@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
