Mihai Georgescu, general manager of Wrigley Romania, the leader of the domestic chewing gum market, says that Wrigley''s global strategy related to the company''s continued expansion on non-gum segments will also be implemented in Romania, where the company is growing at a fast pace on the candy market.
"In Romania, the candy drops market accounts for one third of the chewing gum market, which is quite little compared with other more developed countries, where the two segments are even equal. Therefore, the candy drops market has a high growth potential, and we want to approach it with products that we are going to take on from Wrigley''s international portfolio," stated Mihai Georgescu.
Wrigley Romania currently accounts for approximately 30% of the candy market (not including chocolates) after the launch of the Solano brand, according to research by AC Nielsen. "This year, we plan to reach a 40% share," added Mihai Georgescu. Candy sales generated 4 million euros for Wrigley last year.
The Romanian candy is constantly increasing, with the pace of growth registered over the last two and a half years standing at 66%, according to company data. New product or flavour launches must be backed by substantial investments in promotion. Wrigley Romania last year had a promotion budget of 7m dollars (5.6m euros). In 2005 Wrigley also undertook a recruitment drive and increased the number of employees by about 10%, to 175 persons. Early this year, Wrigley launched the Juicy Fruit candy range including candy drops and gum candies.
"Juicy Fruit candies are a novelty for Wrigley globally and Romania is the first and only country where the candies are sold. This is therefore a pilot project of Wrigley''s," specified Mihai Georgescu.
Later, depending on Romanian consumers'' reaction to these products, they will be introduced into Wrigley''s portfolios in other countries.
This is actually how the Solano candies were launched, which Wrigley included in its portfolio after taking over Spanish producer Joyco in 2003.
Wrigley''s strategy of expansion on non-gum segments targets two directions, organic growth and acquiring international candy producers.
Globally, Wrigley took over several candy production facilities from Kraft. Regarding Wrigley''s Romanian distribution strategy, Mihai Georgescu said there were still many rural areas Wrigley wanted to cover.
For nationwide distribution, Wrigley Romania currently works with 15 distributors. According to the AC Nielsen survey, 90% of Wrigley Romania''s sales are generated by urban areas. Chewing gum is still Wrigley Romania''s core business.
Last year, chewing gum sales accounted for 90% in the company''s turnover, increasing by 15% from the previous year.
Wrigley Romania
* Leader of the domestic chewing gum market
* Plans to expand on the candy market, to reach a 40% share
* Currently holds around 30% of the candy segment
* Last year had a promotion budget of 7m dollars
* Collaborates with 15 distributors nationwide
* Chewing gum sales last year accounted for 90% in turnover and rose 15% year-on-year
* At the end of 2005 had 91.4% of the chewing gum segment, 2% more than at the end of 2004.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
