Confectionery market growing in Poland

2010-08-30

The confectionery market in Poland is worth around PLN 6.4bn (€1.6m), according to recent data by Memrb. The market is expected to grow by between 5-7% in 2010.
The largest sector is the chocolate segment, which, in terms of value, accounts for 20% of the sweets market in Poland. The leader in the segment is Kraft Foods, the American giant that controls 34% of the chocolate market, while the runner-up is Wedel, recently acquired by Lotte Group. The latter concern, which to date has not been present in Poland, has not yet revealed its strategy for the Polish market.
In turn, Wedel is a leading producer in the pralines segment, which accounts for 18% of the Polish sweets market. The latter company has around a 24% share in the segment, and is followed by Storck and Ferrero, both with 14% share.
Confectionery is perceived as one of the few market segments that has not been strongly affected by the crisis. As Retail Update Poland reported on a previous occasion, Wawel managed to double its net profit in H1 2010, which totaled to around PLN 18m (€4.5m), and expects to invest around PLN 20m (€5m) in 2010. Also, Mieszko reported healthy results in H1 2010. Its net profit grew three-fold to around PLN 3m (€700,000). What is more, one of the largest producers in this segment is Zaklady Przemyslu Cukierniczego Otmuchow, which plans to go public in the near future in order to obtain money for further investments.