Fairy optimism

"Food and Ingredients", 2010 year
     1. How do you measure a present situation on confectionery market? How have change sales volumes in 2009 in comparison with the period of 2008 and first month of 2010 in comparison with the similar period of the last year ? If have changed what are the main reasons for it?

      In my opinion the situation has changed on confectionery market for today. Confectionery of expensive segment are sold less. Confectionery of cheap price segment, especially the cheapest, began are sold much more. Also confectionery of foreign manufacture (delivered directly from abroad) have practically disappeared from shelves. In 2009 sales volumes have not changed, have not fallen and have not grown concerning our products. In the first month of 2010 everything is still stable. Basically sales from one shop have decreased and factory sales volumes «Lesnaya Skazka» have not changed in general due to widening of trading places at floor squares including entering the markets of Belarus, Moldova, Kazakhstan, Azerbaijan and so on.

     2. Have you had to reduce costly articles during the crisis period in what was it expressed?

     It was necessary to reduce costly articles, even it was necessary to change the project because we planned conclusion to the market of a new product in price segment «Average +» as a result of crisis and as consequence demand change it was necessary to revise plans and to pass to low price project segment release. In this sense as to investments in the project costly articles have sharply increased. We also increased expenses for advancement of goods and marketing.

     3. Do you provide price change for confectionery production and what are the main reasons? What kinds of goods will be most essentially affected?

     Change of confectionery production prices has already happened towards increase. The main reasons are raw material market change, sharp rise in price of sugar, prices practically haven't lowered meaning now the prices work in favor of manufacturers, its won't lower because the raising of the prices for energy will appear soon.

     4. Tell about features of manufacture and realization of chocolate-wafer production.

     Feature of chocolate-wafer production manufacture is it is quite difficult manufacture, it presupposes use of expensive equipment. If such manufacture is automated these are very expensive lines. Plus there is very high competition. If I am not mistaken only in Ukraine there are about thirty six large enterprises producing such goods. Besides it is great variety of chocolate-wafer production on the market.

     5. What production have had increased demand? What are regional distinctive features of this product use?

     There are regional differences of this product use. Chocolate-wafer production is in more demand in the east of Ukraine than in the west whereas the situation with our chewing marshmallow is directly opposite, it is sold better in the Western regions (I mean sales from one shop).

     6. What kinds of new products have been presented by your company in 2009-2010? What trade marks of your company are in the most demand?

     We produced cakes "Natutik" with stuffing from natural hazelnut packaged by slices of 45 grams in elegant individual packing among chocolate-wafer production. Product has won certain share of the market first of all thanks to quality and taste. At the same time the project on release of very cheap chocolate-wafer sweet was successful due to its price.

     7. What technical marketing decisions have brought the most successful f results or you in this category of production?

     We produced new product line of chocolate-wafer sweetsreducing cost price as much as its possible, we have reduced part of the profit and as a result were haven't mistaken – we entered a product of chocolate-wafer production at price segment which is most asked-for by buyers today and it is proved with its sales on the market.

     8. Where is production of your company basically realized? What kinds of relationships are with trading networks? What are your partners, if it is not a secret, on what conditions?

     Working conditions with networks are traditional, everything is achieved by negotiations as well as the others do. Chocolate-wafer production of our company is realized in Ukraine. Approximately 60 percents of chocolate-wafer productions are on sale in eastern regions and southern and approximately 30-40 percents are on sale in western areas. Production is laid out basically in retail in usual shops. Chewing marshmallow is a network product, we collaborate with almost all networks especially with those who request the adequate sums for shelf space.

     9. What are your basic achievements and if it is possible what are your plans for the future?

Our basic achievements are that today there are optimistic views on the future, during this period we prepare start of one more manufacture. We plan to conclude to the market a new product for Ukraine by October.