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Coffee and chocolate take Kraft turnover beyond 100m dollars

Coffee and chocolate take Kraft turnover beyond 100m dollars

Kraft also has two coffee brands, Jacobs and Nova Brasilia

27.06.2006, 18:50 12

Kraft Foods Romania, one of the major players on the chocolate and coffee market, ended last year with turnover worth 100 million dollars (80.4 million euros), up 18% from 2004. "We expect two-digit growth this year," Peter Muller, general manager with Kraft in Romania, told ZF. Kraft Foods Romania currently ranks second on the chocolate market, in the wake of investments worth over 28 million dollars (22.16 million euros), directed solely at the expansion of the production capacity of the Brasov-based plants it acquired from Poiana Produse Zaharoase in 1994.
The domestic branch of Kraft Foods International owns two plants in Brasov, specialising in the production of chocolate tablets, chocolates, candy drops and sugary products. The company also owns a packaged coffee production facility in Bucharest, located on the same site as the logistic centre.
Peter Muller says the Romanian coffee market is witnessing a rapid growth, but packaged coffee is facing fierce competition from loose coffee. The company last summer launched the "Jacobs three in one" instant coffee range; designed specifically for dynamic people, in a bid maintain among the leading domestic producers.
According to company data, coffee consumption in Romania amounts to 300 cups per minute.
Muller also said the company would further invest in Romania, in all the sectors it currently operates in, with Romania's future EU integration being an opportunity to expand exports.
"At its current productivity, the Romanian unit of Kraft Foods will not face threatening competition from imports," says Muller. The Kraft portfolio on the domestic market includes chocolate brands such as Poiana, Africana, Suchardine, Milka, Toblerone, the Smash chocolate bar and candy drops brands such as Sugus, Silvana and Yam Yam. Aside from the sweets sector Kraft also has two coffee brands, Jacobs and Nova Brasilia, as well as Philadelphia cheese cream. By re-launching the Smash chocolate bar, Kraft hopes to gain a significant share of this market, whose rate of 25% growth seen in 2005 maintained throughout the first quarter of 2006, according to Adrian Cernautan, Smash brand manager.
"In the long run, Kraft Foods Romania plans to cut production costs and reinvest savings in the development of production capacities, as well as in boosting the value of brands and the product portfolio, depending on market demand," Muller also said.

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