Small chocolate producers take a bite out of leader market shares

According to Erwin Vondenhoff, General Manager of Heidi Romania, a possible explanation is that “the Romanian market is known for poor consumer loyalty for a brand.”

Specialists in the field say that the decision of the Kraft Foods market leader to close its Romanian production unit in 2009 has also influenced the market. “There are only a few factories, with low capacities, left on the local market. This way, Cadbury could become leader on the local chocolate market in 2009, provided it plays its cards right,” said Dragos Frumosu, President of the Federation of Trade Unions in the Food Industry (FSIA).

The Romanian chocolate market reached some €250 million in 2007, and major players estimate it increased 10-20 percent in 2008. Major producers remain optimistic in spite of the financial crisis, and are expecting higher net sales. Romania’s annual per capita chocolate consumption is slightly below 2 kg, compared to 8-10 kg in some Western countries.