Alka enters cake market

Alka, one of the leading companies on the sweets market, has entered the cake segment through a one million-euro investment in production. “The investment could reach 3 million euros by the end of 2007, depending on any increases in production capacity and the launch of new varieties,” stated Amir Krenzia, general manager of the Alka group. The company paid 0.5 million euros for two production lines that it purchased from abroad, capable of producing almost 1,000 tonnes of cakes per year. The remaining 0.6 million euros went into creating a recipe and devising the packaging, as well as into market surveys. The total volume of cakes produced this year is estimated at some 80 tonnes. The new products will be positioned on the luxury segment of the market, targeting female consumers. The increase in company sales witnessed last year also continued into the first nine months of this year, taking company turnover to 24 million euros, a 20% increase against the same period of 2005, according to Krenzia’s statements.