According to predictions, the value of the chocolate segment will increase by more than 17% by 2018, while at the same time the sweets market as a whole will grow by 9%. How do you at Lotte Wedel view these predictions?
Of course, these predictions are very optimistic and we have serious intentions to have a piece of that pie. At the moment we are working on developing our cooperations in the export markets, expanding our portfolio and adapting it to specific markets. We have built a strong team comprising of people dealing, purely, with export sales and marketing support, thanks to which we hope to develop this part of our firm, even more. Additionally, we have set up an international website in english, www.wedel.com, which will make it easier for clients to get to know our products and the company.
Regarding raw materials – what is the situation like?
Despite a very good harvest in cocoa, the market price of the cocoa bean and cocoa products (especially cocoa butter) are fairly high. This is probably caused by two factors, i.e. a long-term prediction of deficits in the cocoa market and the behaviour of agents in the investment funds.
However, the drop in the sugar and milk markets help, as this optimizes the production costs. Next year should be balanced, so I assume that we will not increase the prices of chocolate.
For the past 3 years a high positive balance has been maintained in the foreign trade of sweets, which amounted to over 4 billion PLN in 2013. Have exports become a more important source of income and a chance for development?
Margins in foreign sales are much higher than those in the country, so export is a good tool to improve the results of the company. However, it is not an easy method to quickly bring significant gains. A suitable strategy requires commitment, time and above all organisational changes in the firm as well as the allocation of resources and the means for export activities. The task requires many months of trade talks, often ending in fiasco, financial risks – which is also everyday life in exports.
6% of your sales go abroad, will this percentage rise?
Currently, 6% of our sales end up abroad. We have ambitious plans, a specialized team of experts and great support from external organisations, that is why we will work hard, so that this percentage increases much more – in the range of 12-15% over the next 3 years.
How important is the SIAL Paris fair to your export development?
We are attending the Paris trade fair this year for the first time. It is a strategic event for the food sector and one of the most important in the environment of trade and food production. We are hopeful and are counting on making fruitful contacts with clients outside Europe.
Wedel is a brand that has a historical heritage. Do foreign consumers appreciate this?
In the the international market we compete with very strong local producers, that is why when communicating, we do not only focus on the aspect of historical heritage, which is highly valued in Poland. The Wedel products are our showcase abroad, characterised by excellent quality, attractive packaging and competitive prices. However we, the team concerned with export, have a passion for chocolate....and for winning competitions. We gain clients, mainly through the quality of our products and attention to their needs. Obviously, 160 years of history and immense experience speaks for itself, that Wedel is a good choice and that the next 160 years of adventure, not only in Poland, awaits.
Your export hits are...
The export hits from our Wedel brand portfolio have been recently, flavoured dessert chocolates: Panna Cotta, Creme Brulee, Tiramisu. We hope to add a fourth flavour soon, which has just been available on the market, Brownie flavoured milk chocolate.
United Kingdom, Canada, and even Mongolia, Azerbaijan, Moldova and Georgia - are countries where your products, Wedel, can be bought. What are the plans for further development?
We are currently working on a three year export strategy, which will allow us a larger concentration and allocation of funds to some chosen regions. In 2015, we wish to focus on North America. Our second strategic plan is the Persian Gulf and the Middle East. We are also thinking of introducing our chocolate lounges E.Wedel abroad, so that the clients can be convinced of the excellent taste of our products
What are the requirements to get a Kosher certificate, which will assist in getting access to the Israeli market? What are your perspectives for this market?
Kosher production is a difficult undertaking, especially in a factory of complex technological processes. An inside knowledge of what it takes: kilometers of pipes, crossing paths in transport, intermediates in the factory and finally water – this is at least half a year of preparation. In my knowledge, we are the only chocolate manufacturer in Poland, who has in its portfolio some kosher products. Regarding this, we are also trying to reach store shelves in the United States. However, when it comes to the Israeli market we are in the process of sales tests at the moment, we hope that soon we will be processing orders.
What other certificates do the Wedel products have?
The Wedel brand is certified by IFS and BRC, which are necessary for cooperation with retail chains. The company was also been audited, with positive results, by the FDA.
Does Poland have a chance to become a power in the chocolate sector?
Poland has a chance of becoming a european power in the wider confectionery industry. We are, as a country, an important supplier of cake in the whole world. On the European and North American shelves, we see sweets or chocolate bars from many wonderful Polish producers. We encourage our competitors and we are happy to see our products in the far most corners of the world. They are our showcase and they confirm the excellent quality, which we can boast about to the world
Thank you!
Tomasz Pańczyk
