Ciprian Scrieciu, the general manager and one of the shareholders of Saff Trading Distribution Company, has decided to create his own brand for the sweets market after he took part as a marketing manager in the creation of “Untdelemn de la Bunica”, “Tomi” and “Wiesana” brands.
The company started toffee production, under the Cipi brand, in a plant located in Bragadiru, near Bucharest, after investments worth 1.2 million euros.
Scrieciu says the company”s investments in production will not stop here. “We want to be known as a sweets producer, because for now everybody knows us as a distributor. On the toffee market, we intend to reach a 40% share over the next two years,” states Ciprian Scrieciu.
He also says new investments worth around 1 million euros will begin this year in the construction of a new production facility located in Bragadiru, as well. The plant, built on a 1,200 square metre area, will be finalised in February.
“We will also develop other product categories related to the sweets market. At the moment toffee distribution is secured, you can add other products to the portfolio. This is even necessary,” he believes.
To sustain the modernisation and retooling of the first plant, the company used both its own resources and financing provided by ING, worth 500,000 euros.
The “model” will be employed to also sustain the second production facility of Saff.
The company”s production facility includes a 770 square metre hall, three manufacturing lines for two types of toffees and two packaging lines. For the time being, the plant in Bragadiru has 50 employees, but over the following period the recruitment process will centre on the marketing and sales departments.
The company estimates toffee production will generate 20% of the group”s turnover this year.
“Our distribution business will also grow this year. We estimate we will end the year with turnover worth 55 million RON (15 million euros), says Ciprian Scrieciu.
Saff Trading last year saw turnover worth 47 million RON (12.8 million euros), up 15% from 2004. The company carries out distribution operations in Oltenia and Arges, and works with distribution agents in the other areas.
“On the sweets market, one has to move quickly, always come up with something new, even though the product does not see considerable changes.
“One must innovate, adjust oneself to Western trends, because we are already no longer speaking about the sale of sweets, but about toys sold in a toffee pack,” adds Scrieciu.
To boost its production efficiency, Saff has already undertaken export activities. The first partnership is in Hungary, with the French retail chain Auchan, and the next step is to target Bulgaria.
Sweets market
* The biscuit market, estimated at 50m euros, is extremely dynamic, especially after the emergence of some strong competitors: Ulker, Danone and Nestle
* The chocolate market, assessed at 130m euros, is dominated by Kandia-Excelent, Kraft Foods Romania, Heidi Chocolate Suisse and Supreme Chocolats
* The chewing gum market, worth over 50m euros, is dominated by Wrigley
* The candy market, approximated at 20m euros, is dominated by Kandia-Excelent, Kraft, Perfetti van Melle or Bon Sweet