Double-digit growth for exports - German confectionery in demand worldwide

According to preliminary figures, confectionery turnover only rose slightly in 2007 - 2% - in comparison to the previous year. That was announced by the Association of the German Confectionery Industry (BDSI), in the run-up to the sector's key event, the International Sweets and Biscuits Fair (ISM) in Cologne. In addition, volume sales last year are only likely to exceed the results from the previous year marginally - + 0.9 %. However, the production of the 203 industrial confectionery manufacturers in Germany increased by 2.5% in volume and almost 4% in value. Exports again helped the sector achieve a very positive overall result. Confectionery exports increased significantly by over 10% in terms of volume and 14% in value. Total export value in 2007 was at a preliminary level of €4.3 billion. Whilst around 85% of exports are to EU partner countries, a total of almost 1.5 million tonnes of German confectionery is shipped around the globe.

The development of prices for almost all raw ingredients posed a major challenge for the confectionery industry in 2007 and makes companies' profits appear very poor. No producer could have foreseen the extreme price hikes for corn/flour (+ 80 - 100 %), powdered milk (+ 100 %), butter (+ 65 %), glucose (up to 50 %), vegetable oils and fats (up to + 130 %), cocoa and cocoa products (+ 10 - 15 %) and almonds and include them in their calculations in time. This also applies to the drastically increased energy, logistics and packaging costs. Further price increases, which could be highly varied due to the broad range of products in the sector, are unavoidable.

Companies in the confectionery sector are hoping that the growing trend towards the control of nutrition and advertising restrictions will not have a negative medium or long-term effect on the industry.

The International Sweets and Biscuits Fair (ISM) is taking place in Cologne for the 38th time. With 1,675 suppliers from 70 countries, the world's most important fair for the confectionery sector has attracted a record-breaking number of exhibitors. ISM is open from Sunday, 27th until Wednesday, 30th January 2008, for trade visitors only.

The organisers of ISM are Koelnmesse and the International Sweets and Biscuits Fair Working Group (AISM), which is the conceptual sponsor.

Source: Association of the German Confectionery Industry (BDSI), Bonn, 22nd January 2008

Information on ISM:
www.ism-cologne.de (www.ism-cologne.com)

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