Confectionery Firms Release 1996 Reports

percent. Since the German con- sumers still rank, in terms of the per capita consumption of baked goods, within the lower third in international comparisons, Reich still sees a Confectionery Firms considerable potential for growth. Martin Jansen, the business man- ager of Bahlsen Germany, was able Release 1996 Reports to show an outstanding statement of surplus. Since the separation of the product areas during the year —German divisions 1993, the sales of the Bahlsen spiced products had increased, by Some confectionery firms with branches in Germany the end of 1996, by 52 percent. took advantage of the International Sweets and Biscuits Bahlsen is an engine of growth in Fair in Cologne to release their figures for 1996. source: SG the very quickly growing snacks market. The snack market in Ger- many has grown, over the course of the past year, by DM 93 million, and Bahlsen claimed DM 47 million of this for itself. Bahlsen spiced products, with an increase in market share from 15.8 percent (Nielsen, 1993) to around 20 percent, were able to be established as the market leader. Bahlsen wants to Bahlsen Group Alfred F. Reich, the head of the continue during 1997 with new The Bahlsen Group was able to sweet goods product area of products introduced at the ISM. maintain its sales during the course Bahlsen in Germany, views the of the previous year, even despite development of the three brands, Mars the elimination of the U.S. sub- Bahlsen, Leibniz and Brandt during sidiary Austin (DM 240 million the past year in a confident manner. Mars increased their turnover in 1996 sales, as given to Hermann Bahlsen has been able to build up by 10 percent to DM 900 million.This Bahlsen), at the level of approxi- its market position relative to its makes Mars the category leader in a mately DM 2 billion (previous year: competitors in most of the segments market currently experiencing a DM 2.05 billion). The sales thereby of sweet goods. The market share in growth rate of only 2.8 percent. rose by two figures during 1996 on a the area of sweet goods increased The strongest evidence of growth comparative basis. Around half of slightly in value again, from 23.4 can be found in such products as the earnings were achieved in percent to 23.7 percent. Reich Balisto (+25%), M&Ms (+23%), domestic and in foreign sales each. emphasizes the significance of the Mars (+19%) and Twix (+18%). The total sales rose in a comparable new items, four products of which Mars was able to increase its share manner, by a good 9 percent, to (Conditola, Leibniz Minis, Coffee of the LEH market for snack bars 290,000 metric tons. The earnings Collection and Leibniz Zoo) were and snack items to 34.4 percent, as after taxes should be at the level of immediately established among well as becoming the absolute mar- 0.5 percent of the sales, whereby the Bahlsen’s “Top Ten.” ket leader in the Impulse market, earnings from sweet goods are Bahlsen is also in a top position in with a share of 56 percent. somewhat better than in the area of the areas of autumn items and in Especially successful products for snacks. Total marketing expendi- seasonal baked goods. According to Mars were Balisto, Twix and Mars ture, which was at the level of DM a leading market research institute, Bars. At the ISM, Mars presented 145 million during 1996 (previous it was possible for the market share their first cereal bar, Ceralisto, and a year: DM 125 million), was addi- to be increased, during the period new generation of software, Capital tionally built up in parallel during from January to November 1996, 2000, designed to offer the optimum this year to around DM 170 million. from 11.5 percent (1995) to 12.7 of display space. The Manufacturing Confectioner/April 1997 27.

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