Kraft Foods Romania is set to change the structure of its domestic portfolio with the creation of the LU cookies division, while forecast sales are expected to account for 5-7% of this year's turnover.
The company intends to dominate the Romanian cookies market with LU cookies, after it became No. 1 on the chocolate and coffee markets. "In the coming years, we also want to become market leaders on the cookies segment, which, in 2008, will account for around 5-7% of the company's turnover. In the future, cookies could make up 15-20% of Kraft Foods' sales on the Romanian market," said Peter M?ller, General Manager of Kraft Foods Romania.
Kraft, one of the leading global food producers, has taken over the cookie division of French group Danone (with brands such as LU and Prince), in an international transaction. The acquisition was concluded last year, and amounted to 5.3 billion euros. At the time of the takeover, Kraft estimated the cookie division would become the group's largest global business, and account for 20% of overall revenues.
The cookies division will, as of this year, be the third largest unit of Kraft's local subsidiary, after the chocolate and coffee units, but ahead of the Philadelphia cream cheese unit. M?ller added that LU cookies suited the company's products portfolio better than cream cheese. The company will also start a promotional campaign in April for the new cookies. Next month, the way LU cookies are distributed on the local market will change, when they are integrated into the distribution system of Kraft Foods. In the past, LU cookies have been imported and distributed in Romania by distributor Consumer Product Network, with turnover worth around 40 million euros in 2007.
"The Romanian cookie market has a high growth potential. If we look at volumes, we can say it is at the same level as the chocolate market, because bulk sales account for a large share of total sales. In terms of sales per capita, they represent half the average sales in countries such as Croatia or Serbia," added M?ller.
Kraft is in direct competition with companies such as ?lker (Turkey), Supreme Chocolat, Rostar, as well as with importers that primarily operate on the premium segment, on a cookie market that is currently estimated at several tens of millions of euros.
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