There is always money for sweets

Though consumption has not dropped, the domestic production of sweets has declined in the past two years. Multinationals like Kraft and Nestlé have relocated part of their production to other countries. Sales on the other hand increased by 3,5-4 percent last year. Sales of sweet biscuits were up by 2 percent in terms of quantity last summer compared to 2007. Sweet biscuits took over the market lead from dry biscuits in 2008. These two segments account for 57 percent of the market at present. Competition in the market of salty snacks has intensified in recent years. Chio-Wolf Magyarország Kft is the market leader, while Fritolay (FÁÜ) and Mogyi are also major players. Private labels have achieved a 25 percent market share. Slow growth has been continuous for years in the segment of chips. There have been fluctuations in the sales of seeds and popcorn, while the popularity of products made with flour has begun to decline. Chio-Wolf and Mogyi have production facilities in Hungary. Annual sales of candies total 8-9000 tonnes. Classic hard candies account for almost 50 percent of the market. Partly as a result of an intense media campaign against the consumption of candies, the popularity of these products is in decline. Negró by Győri Keksz Kft is an example of pharmaceutical candies. Bonbonetti Kft is the market leader in dragées, where sales have begun to rise again as a result of efforts devoted to product development. Sales of private labels and imported brands are increasing. Countline chocolate continues to account for a substantial part of total sales (55-58 percent), though the popularity of tablet chocolate has been growing. Kraft Foods Hungária Kft, Nestlé Hungária Kft, Bonbonetti (Stollwerck Budapest) Kft., Masterfoods Magyarország Bt, Ferrero Kft are the leading manufacturers in this segment. Kraft Foods Kft is the market leader in the countline market with three strong brands. Ferrero Kft has become successful in the premium dessert market while .Szamos Marcipán Kft is another major manufacturer in this segment. No substantial increase in consumption is foreseen. Companies focus their marketing activities on maintaining their market positions. However, growth is expected in the premium segments.