ТМ «Lesnaya Skazka» increases export of flour confectionery on the territory of the CIS countries in 2010 and 2011.

FOOD UA продукты украины, №4 / 2011

     Unfortunately the last year has not brought increase of incomes of the population of Ukraine. But raw material and accordingly finished goods have risen in price. Thus share of cheap (weight) segment either remains stable or continues to grow on the confectionery market.

     In connection to these tendencies ТМ «Lesnaya Skazka» increases export of flour confectionery on the territory of the CIS countries in 2010 and 2011. Market of Russian Federation remains the most interesting and highly liquid for us.

     Incomes grow per capita in Russian Federation. It allows to increase volumes of confectionery market in natural expression. Import to Ukraine reduces for the same reasons meaning because of absence of purchasing capacity growth.      In 2010 raw material rose repeatedly in price. Price rise of fats (price rise has made 30 % in comparison with 2009), sugar (30 %), cocoa (30 %), cocoa (30 %), flour (50 %) affected most of all the finished goods price (wafer segment). Finished goods price increases if raw material price grows. As a result our production has risen in price for 30 % during the last year. It negatively affects sales. Therefore volumes of output of already available lines remained within previous year. In connection to it the decision on conclusion to the market of cheap weight product was accepted. For these purposes «Lesnaya Skazka» establishes a new line, new industrial shop was constructed in 2010. This decision has already justified itself. New technologies on manufacture of confectionery pancakes "PanKeyk" started last month of the last year have allowed to increase volume of realized production for a year by 40 % in natural expression and on 44 % in monetary expression.

     We have noticed that the consumer of flour confectionery chooses products more deliberately practically excluding spontaneous purchase in 2010. Following this logic of the buyer we do not consider production of expensive price segment. Instead we plan to expand chip weight segment and also we will increase export share.