ISM in Cologne: flood of innovations in the market

Similarly to other markets, sales of sweets are also growing in Hungary. Though it may sound surprising, rising prices are the main reason behind growth. The ISM in Cologne was attended by 1,593 exhibitors from 65 countries this year. According to Márta Kakuk, representative of Köln Messe in Hungary, it is difficult to make plans for 2009, owing to anticipated rises in costs. Though the majority of exhibitors were German (319), Belgium, Holland, France and Italy were each represented by around 100 companies. Sales of chocolate were up by 4 percent on average in the seven big Western European markets in the August 2007-July 2008 period, while growth for candies and sweet biscuits was 3 and 7 percent respectively. Food retail accounted for 82 percent of total sales. Regarding the German market, the vice chairman of the Sweets Global Network, dr. Uwe Lebens had this to say: – Imports of sweets have been growing for three consecutive years. Growth was 13.2 percent in terms of value, with total sales reaching EUR 3.14 billion. This shows that consumers have accepted higher price as a result of higher costs. Bonbonetti, the largest Hungarian manufacturer of sweets attracted so many visitors that I only succeeded in talking to dr. Viktora Zombory export and business development director on my fourth attempt. – We want to increase the proportion of export in our sales, which is one-third at present. This is the seventh time that we are attending ISM. Our experience has been positive so far, meeting new potential partners and also existing ones – she said. Their principal export markets are neighbouring countries and the Cherry Queen product range is their leading export item. There are three Hungarian companies which focus specifically on children. Felföldi Édesipari Kft. in Debrecen is one of them. According to director Sándor Mike, this is their ninth year at ISM. They combine sweets with toys and playful shapes. The owner, József Felföldi is personally responsible for innovation and product developemtn. Their best known products are Candy spray, Funny gum, and Stick & Dip. Export accounts for 95 percent of their revenues. Their leading markets are the UK, France and the US. The stand of Vida’s Kft. would also be successful at a toy exhibtion. The company was formed in 1993 by its director, Csongor Vida. They make sweets combined with toys and also import sweets. Export accounts for 90 percent of their revenues. This ISM was particularly successful, as they had made contact with South American partners. McScotland Kft. manufactures special straws for flavouring milk. Six flavour versions are available. – Chocolate is our most popular flavour – says the director József Dudás. Their product is sold in the Lidl and CBA chains. Manner had a spectacular stand. As their communications director Otto. W. Riel has told us, classic Manner creamy wafer was invented in 1896 by Josef Manner and its recipe has remained unchanged ever since. A delicious flavour is no longer enough for consumers today who also want something extra. Packaging has to be exuberant in order to get noticed and products should appeal to several senses simultaneously. The French premium chocolate Lago is an example of this trend. According to Martin Schmidt, an expert from Nielsen Germany, consumers of sweets are especially fond of diversity and innovative products. Though the majority of innovations survive less than one year, they are the driving force behind growth. Chocolate, mainly countline products accounted for over 50 percent of the growth seen in the German market last year.