Review of Russian Market of Chocolate Sweets and Boiled Candies
Research of Information-Analytical Company “VVS”
Few product categories offer such diverse product range as sweets and candies do. Certainly, every consumer has favorite kinds, but new products always tempt to taste them. So, how did Russian market of sweets and candies perform in 2013? Let’s take a look on segments of boiled candies and chocolate sweets.
According to RosStat, in 2013 Russia produced about 206 thousand tons of boiled candies and about 396 thousand tons of chocolate sweets. Dynamics of production in segment of boiled candies is not quite settled; neither it demonstrates unexpected upswings. Meanwhile production volume of chocolate sweets in autumn significantly exceeds production volume in first six months of a year.
Despite quite impressive volume of domestic production, Russia still imports the review categories. In 2013 import of boiled candies constituted 16.4 thousand tons worth almost $ 40.8 million. Dynamics of import during the year was not even: about 80% of total annual import volume was supplied during the first 7 months and then import volume was rapidly declining*
. However, it should be mentioned that the average contract price during the period of decline of import volume was higher. In January-July 2013 the average import contract price of boiled candies was 2.2 - 2.7 $/kg and during August-December 2013 it never was less than 3.1 $/kg.
Undisputable leader among foreign supplies of boiled candies to Russia is Ukraine. In 2013 Ukraine provided 55.3% of total import volume (9.1 thousand tons). Second important supplier was China with 16.8% (2.8 thousand tons); Poland was on the third line with 8.6% of import volume (1.4 thousand tons). Germany and Turkey provided 4.1% of import volume in the category each. The rest 11% was shared by 45 countries.
Confectionery corporation “Roshen” was the leader among foreign suppliers of boiled candies to Russia in 2013; this company stood far ahead its rivals with 52.4% of total import volume in the review category in 2013. “Roshen” imports to Russia diverse range of confectionery products including boiled candies under TM “Bim Bom”, “Malibu”, “Molochnaya Kaplya (A Drop of Milk)”, “Rachki-Druzhki (Pals Lobsters)” and others. “Cadbury Confectionery Cо., Ltd” (China) was on the second line among foreign suppliers of boiled candies to Russia with drops TM “Halls’ and 9.4% of import volume. Polish company “ZPC Mieszko S.A.” was on the third place in 2013 with 3.2% of import volume in the review category. The company mainly imports drops under the brand “Mieszko”. Fourth important supplier of boiled candies to Russia in 2013 was Chinese “Quanzhou Jingyi Foodstuff Co., Ltd” with lollipops TM “Jingyi” and 2% of import volume. German “Cavendish & Harvey Confectionery GmbH” was on the fifth line with 1.9% of import volume in the category of boiled candies. This company supplies to Russia hard candies and drops. Polish “P.P.H.U. Astra SP. Z.o.o.” and Turkish “Beyazpinar Seker Ve Seker Mamulleri Gida San. TIC” provided 1.8% of import volume each. The rest 27.5% of import volume of boiled candies in 2013 was shared by about 300 companies.
In Russia 279 companies were buying foreign boiled candies for resale in 2013. The leader among importers was “Roshen” LLC with 42.5% of import volume. Second large importer was “Optroztorg” LLC (Sverdlovsk Region) with 10% of import volume. “Dirol Cadbury” LLC was on the third place with 9.8%. Top three importers were followed by Moscow companies “Polskie Sladosti (Polish Sweets)” LLC (6.3% of import volume) and “Sweetexim” LLC (2.3%). Shares of other Russian importers of boiled candies in import volume did not exceed 2% in 2013.
Import of chocolate sweets constituted in 2013 about 105.9 thousand tons worth $ 420.3 million. Import dynamics was uneven through the year but the trend was reverse to boiled candies: maximum import volume was reached in the second half of the year. The average contract price constituted 3.4 – 3.8 $/kg in spring and summer and 4.1 – 4.4 $/kg in cold season.
Ukraine is the leader in import of chocolate sweets to Russia: in 2013 this country controlled 77% of foreign supplies of the review category (81.5 thousand tons). Second important supplier was Netherland with 7.1% of import volume (7.5 thousand tons). Third place was shared by Poland and Italy – 2.7% of import volume in chocolate sweets each. Germany provided 2.3% of import volume in the review category in 2013, Belgium – 2.2%. The rest of import volume of chocolate sweets came to Russia from more than 40 countries in 2013.
Among foreign companies supplying chocolate sweets to Russia the leader in 2013 was Ukrainian confectionery factory “A.B.K.” PAO KF with 36.2% of import volume in the category. The company sells to Russia such brands of chocolate sweets as “Burunduchok (Little Chipmunk)”, “Korolevsky Sharm (Royal Charm)”, “Prikhot (Whim)”, “Trufalye”, “Shatenka (Brown Hair)” and other. Second large foreign supplier was another Ukrainian company “Konti” AO PO with 18.9% of import volume of chocolate sweets. This company imports to Russia such brands of chocolate sweets as “Esfero”, “Bellissimo”, “Zolotaya Liliya (Golden Lily)”, “Korovushka-Buryenushka (Browny Cow)”, “TofiFruit”, “Shokoladnye Istorii (Chocolate Stories) Jack”. Top three of suppliers also included corporation “Roshen” (ТМ “Roshen”, “Zolotoy Telyonok (Golden Calf)”, “Korolevsky Desert (Royal Dessert)”, “Mont Blanc”, “Skazochny Mishka (Little Bear from Fairyland)”, “Slivki-Lenivki (Lazy Cream)”, “Shokolapki”and other); in 2013 share of “Roshen” in import volume of chocolate sweets constituted 16.3%. “Mars” LLC was the fourth large foreign supplier of chocolate sweets to Russia (7.1% of import volume in the category); import of this company is mainly driven by such brands as “Bounty”, “Mars”, “Milky Way”, “Snickers”. Fifth large company among suppliers of chocolate sweets to Russia was “Ferrero SpA” with 3.9% of import volume; the company mainly sells to Russia chocolate sweets of cognominal brand. The rest 17.6% of import volume in the category of chocolate sweets was shared by 480 companies.
410 Russian companies imported chocolate sweets in 2013. Top ten of them controlled almost 84% of import volume in the review category. Three largest importers were “ABK” LLC (Russian office of confectionery factory “A.B.K.” in Belgorod) with 19.5% of import volume, “Konti Rus” CJSC (Russian office of “Konti” group in Kursk) with 18.9% and “Roshen” with 13.7% of import volume in the category of chocolate sweets.
In 2013 Russia sold abroad 29.6 thousand tons of boiled candies for the total amount of $ 67.1 million. Export demonstrates unsettled yet more or less steady dynamics. The average export contract price for Russian boiled candies constituted 2.2 – 2.3 $/kg.
Major buyer of Russian boiled candies in 2013 was Ukraine with 24.3% of export in the category or 7.2 thousand tons. Second large buyer of Russian boiled candies in 2013 was Azerbaijan with 17.9% of export volume (5.3 thousand tons). Tajikistan was on the third place with 3.9 thousand tons or 13.2% of export volume in the review category. Other important buyers of Russian boiled candies were Mongolia (10.2%), Turkmenistan and Kyrgyzstan (4.8% of export volume each) and Latvia (4.2%). The rest of export volume in the category was shared by about 40 countries.
In 2013 Russia exported 79.5 thousand tons of chocolate sweets worth $ 292.6 million. Dynamics of export in this category was uneven through the year with impressive increase of export volume in autumn. Meanwhile the average export contract price demonstrated almost no change during the year and danced around 3.5 – 3.9 $/kg.
Major buyer of Russian chocolate sweets is Ukraine again. In 2013 this country bought in Russia 29.8 thousand tons of chocolate sweets (37.5% of export volume). Second large buyer was Azerbaijan with 14% of export volume (11.2 thousand tons). Kyrgyzstan was on the third place with 9.9% of export volume (7.9 thousand tons). Other important buyers of Russian chocolate sweets in 2013 were Tajikistan, Mongolia and Turkmenistan respectively with 7.6%, 5.6% and 4.1%. The rest of export volume in the category was shared by about 35 countries.
Thus, in 2013 visible domestic consumption of boiled candies constituted about 193 thousand tons, of chocolate sweets – 422 thousand tons. Current situation in Ukraine will certainly bring some changes to the review market; by now Russian companies are not too worried about this.*
This review presents data of market performance in 12 months, so it is hard to say whether the revealed dynamics of import is a typical seasonal fluctuation or just a trend of the year.
Analyst in the company “VVS”