Ferrero enters Burma as market ‘opens for business’

Italian chocolatier Ferrero has joined Haribo and Perfetti Van Melle in entering the Burmese market.

Confectioners have been flocking to Burma, also known as Myanmar, since the EU and US recently lifted trade sanctions.

Stability prompts investment

The country has a population of almost 50 million, making it an attractive prospect in the developing Asian market.

A Ferrero spokesperson told this site that the company already has a presence in Southeast Asia markets such as Singapore, Thailand, Malaysia and the Philippines.

“With our experience in these countries, we are now ready to take up this new challenge. Furthermore the new stable Myanmar Government is encouraging Western companies to enter their country.”

“We have decided to enter this new and emerging market now as Myanmar has only recently opened for business.”

The country has been beset with conflict and political instability for decades under the rule of a military junta between 1962 and 2011.

A civilian government was sworn-in in March 2011 and trade sanctions from the EU and the US.

Tic-Tac and Kinder focus

“With a population of over sixty million, the potential is huge,” said the Ferrero spokesperson.

Ferrero believes its Ferrero Rocher, Nutella, Kinder & Tic Tac are already well recognized names in the region, but hopes to concentrate on just two to help attract young consumers.

“We are looking to expand awareness of our brand among the predominantly young new consumers.  Tic-tac and Kinder would be the major products to satisfy these potential customers in terms of price and quality.” 

Chupa Chups maker Perfetti Van Melle and German candy firm Haribo both recently entered the Burmese market through separate sales, marketing and distribution agreements with expansion services firm DKSH.