Heidi plans "highest investments so far"

“On the one hand, there were favourable factors felt by the entire market: higher domestic consumption and the good weather. On the other hand, there were new products supporting a 40% rise in sales, above the market average, and our company’s reaching a market share of 7%”, explained Emilian Cristescu, brand manager with Heidi Romania.

With the Heidi chocolate brand, the company competes on the premium chocolate segment.

Chocolate was last year one of the most dynamic categories of the consumer goods market, with an increase of 15-20% in terms of volume as compared to the previous year.

The main competitors on the segment of chocolate tablets are Kraft Foods (Milka, Poiana, Africana), Excelent (Excelenta, Kandia and Laura) and Supreme Chocolats (Primola, Novatini, Anidor).

Heidi’s growth was supported by the launch of nine new product ranges, in which the company invested about 300,000 euros. For 2005, Heidi projects turnover will advance by 20% and plans to strengthen its position on the premium segment.

“To this end, we will make the highest investments so far, both in production and in promotion. We have been working with an advertising agency, Tempo, and this will directly reflect in our communication policy”, Cristescu also said.

The company has a chocolate plant in Bucharest, with 250 employees, and a milk plant in Timisoara, with the produced milk being used only for the company’s own production.

“Last year’s and this year’s investments will make way for improved productivity and this is why we are targeting a powerful increase of the number of employees”, he also stated.

The Romanian chocolate market went through a period of decline in 2001 and 2002 because of the low purchasing power and orientation toward smaller products.

In 2003, the market rallied, strongly boosted by the massive investments in advertising, which continued to flow in 2004.

“Though it already is a strongly competitive market, new names are certain to emerge”, Cristescu believes.

Market research shows consumption preferences are leaning toward higher quality products and the market is diversifying. Cristescu says “the modification of consumption preferences will stay behind the market development”.
georgiana.stavarache@zf.ro