Supreme Chocolat, the producer of Primola and Novatini, plans to considerably expand its product portfolio on the Romanian market and begin exporting to the neighbouring countries as of 2005, Jihad Jabra, general manager of Supreme Group said.
“We will launch many new products. We have already released the chocolate bars for kids, Primola Zoo, two weeks ago. We have recently entered the chocolate dragees segment, with the Rondo brand. We also plan on releasing pralines this year, as well,” Jabra stated.
The company’s expansion investments last year amounted to about 5 million euros (some $7 million). The group, which is based in Bucharest, has 4-5 million euro investments planned for this year, part of which will go to building a finished product storage and a logistics centre.
It also plans to expand beyond chocolate. Buying a factory is not out the question, either, Jabra adds.
“We will surely branch into other segments of the sweets market. We already have a series of plans and feasibility studies, which are yet unfinished. If the opportunity arises, we will buy a factory, but we’d rather build everything from scratch ourselves,” Jabra said. He did not reveal the targeted market segments, though.
Supreme Group is comprised of four distinct companies: Supreme Chocolats, which makes chocolate, Supreme Imex, a coffee producer, Supreme Gourmet, a coffee shop operator, and distributor Supreme Distribution. All in all, the four entities employ some 700 people.
The four Supreme companies logged $44 million turnover last year, up about 30% from 2002, when turnover was of $34 million.
The company has operated only on the chocolate tablet segment so far, selling Primola (middle to premium) and Novatini (economy) brands. Novatini was released in September last year.
Other significant brands on the chocolate tablet market are Poiana and Africana (Kraft), Kandia, Laura and Ambasador (Excelent) and Heidi (Heidi Romania).
“AC Nielsen data reveal a 14.6% market share for Primola and 6.5% for Novatini in February 2004. If we look at the sales, Primola was number two on the chocolate tablet market,” Jabra said. The best-selling brand is Kraft’s Poiana.
The chocolate market, estimated at $100-110 million last year is divided among tablets (some 70% of the total), bars (20%) and pralines (10%).
Jabra says chocolate consumption rebounded from the 2002 decline last year.
“All three categories witnessed growth last year, but tablets were the most dynamic of them, progressing by 20%-25%. This was partly due to the massive investments in brand promotion, as well as to the increase in the purchasing power,” Jabra said.
georgiana.stavarache@zf.ro