Wrigley forecasts growth of 15-16% for 2004

The Romanian branch of US company Wrigley estimates this year’s turnover will reach $40 million (30.7 million euros), up 15-16% on last year, according to Mihai Georgescu, the company’s regional manager.

He did not specify what profits he expected the company to make, saying only that Wrigley Romania was a profitable business.

“We’ve had years during which our sales have doubled, but this is no longer possible now. We have attained 95% brand awareness and the possibility to double sales is no longer realistic,” said Georgescu.

The company bought the Silvana and Sugus candy and dragee unit of Kraft Foods Romania’s facility in Brasov, following an international deal between the two American companies.

The whole acquisition was worth $1.5bn worldwide and is expected to be completed by mid next year.

This transaction will see several Kraft brands and factories transferred to Wrigley.

Local representatives of the two companies declined to reveal how much the acquisition was worth locally.

Also this year, Wrigley, which is yet to start producing in Romania, launched the Solano candy brand.

Georgescu was unable to provide sales data because the newly introduced brand was introduced as late as October.

At the time of the launch, he said he expected Solano to account for 10-15% of the candy market within a short time.

As for the chewing gum market, Wrigley this year launched the brands of Orbit Professional, Orbit Herbal and Airwaves Menthol.

“We also made many flavour rotations,” said Georgescu.

“We have quite a number of flavours that have keep constant consumption levels, while others need rotations. This is particularly true for fruit flavours, where consumers are constantly looking for different flavours and expect this,” Georgescu added.

Wrigley opened a Romanian subsidiary ten years ago, with investments thus far amounting to some $100 million.

A significant amount of these investments was directed to mass-media support, with money also going to operational investments, according to Georgescu.
claudia.covaci@zf.ro