The Riga-based manufacturer is a market leader and held a share of 24% of the Latvian market last year, according to statistics provided by Euromonitor spokesperson and research manager for Latvia, Rusne Naujokaitye.
At present the company exports to 25 countries worldwide. Its biggest importers are neighbouring Eastern Europe countries, where Laima occupies a share of almost 4% in Lithuania and 8% in Estonia of the chocolate confectionery market in both countries.
In addition, it has a “very strong partnership” with Russia, said Naujokaitye.
Laima is now looking to expand its export destinations to include Brazil and China in order to broaden its portfolio. The confectioner says it has “ambitious plans” for China in its attempt to break into new overseas markets.
Growing interest in European products
Head of Export Department for Laima’s management company, NP Foods, Ieva Johnsson, explained to ConfectioneryNews.com that plans to expand to these countries have been a long time in the making.
She said that BRIC countries are becoming more and more attractive to European producers such as Laima, because they are the ones that will take the lead “when it comes to GDP increase and economic development in general.”
She added that the local Latvian market as well as the European market as a whole will “not expand rapidly… for some time.”
Johnsson said that Laima’s participation at last year’s World Expo in Shanghai as well as in other fairs both in China and worldwide gave the company an insight into confectionery trends in non-European countries.
The company observed for example, that there is a growing interest in European confectionery products, especially in China, which has seen the arrival of major chocolate brands such as Hershey and Dove.
Finding the correct model
Johnsson said that China and Brazil were suitable candidates for the company’s export ambitions because there is a need for these countries “to introduce new products to the [local] market.”
According to Johnsson, China in particular, “seems to be the market everyone is looking towards.” She added that Laima is looking to “find the correct model” that will facilitate a fully functioning export market with room for development.
However, Johnsson pointed out that despite Laima’s ambitious plans in expanding to these markets, the company will continue to work on its trading relations with existing export partners, such as Russia, where she explained that there is still more work to be done.
Johnsson added that the company is “still expecting natural growth of 12%” for these established overseas markets in 2012.