Producers of confectionary in Poland are expecting an increase in sales in 2009, bucking the trend of much of the retail sector.

Sweet manufacturers are looking forward to two factors this year – Easter time and export growth.

Demand for sweets should grow during the next few years, producers expect.

Poles have a sweet tooth and consume large amounts of chocolate – though they still eat less than Western Europeans. 

According to The Nielsen Company, from February 2008 to January 2009 Poles bought 4.3 billion zlotys (over 900 million euros) worth of sweets, 13 percent more than in the same period a year ago. Bigger growth – 17 percent – is also noticed in sales of cookies. Last year Poles bought 1.3 billion zlotys (270 million euros) worth of biscuits.

Though manufacturers are optimistic for the next few quarters, producers admit that from the beginning of 2009 the rate of sales increase is a little slower than this time last year.

“It is expected that in first quarter of this year sweet producers’ revenues would be higher than in 2008. Prices are higher, and demand is at the same level. But there are also some problems: more expensive cocoa beans and packaging will increase costs”, said Artur Iwański, analyst at Erste Bank.

Because of the weakness of the Polish currency producers are expecting bigger income from exports. In 2008, producers sold 614 million euros of confectionary abroad.

Sweets sector also is looking forward to the upcoming Easter holiday, when traditionally producers reap the harvest of their work and every year gets better and better. Every Easter, retailers see an increase of up to 10 percent on their annual sales during this time. (dw/pg)