Nestlé Bulgaria navigates cocoa market challenges with sustainable practices and innovation
Source：Food Drink Bulgaria
From：Taiwan Trade Center, Sofia
Update Time：2024/04/23
Petar Stoilov, the Executive Director of Nestlé Bulgaria, emphasizes the importance of leadership, shared values, vision, ambitions, and personal example in engaging and unifying a team. Amidst a challenging start to the year for the cocoa market, with prices soaring by 60% in 2023 due to shortages linked to climate change, Nestlé Bulgaria is bracing for an even greater price increase expected in 2024, with forecasts predicting an over 80% surge. Despite these challenges, the company remains committed to its sustainable business practices, focusing on the development of small farms in Côte d'Ivoire and Ghana through the Income Accelerator strategic program. This initiative aims to offer financial support to farmers and provide them with solutions to increase cocoa yield under changing climatic conditions.
Nestlé Bulgaria's long-term goal is to enhance the quality of life and conditions in cocoa-producing countries, balancing the responsibility towards end-user prices with the company's margins in the sugar and chocolate products category. By expanding its product portfolio and investing in innovations, Nestlé Bulgaria aims to maintain stability and increase production volumes, a strategy that has contributed to the company's financial performance, where income from chocolate products comprises a small part of its annual plan.
In the Bulgarian market, Nestlé is developing several segments including confectionery, coffee, baby food, pet products, and a newly added segment of dietary supplements following the acquisition of the company representing the Solgar brand. The company has also established itself in the ice cream niche through Froneri, enabling it to achieve stable growth and exceed half a billion BGN in turnover in Bulgaria despite market fluctuations.
Nestlé Bulgaria exports over 95-96% of its output to foreign markets, positioning its Sofia factory as one of four European centers of expertise for Kit-Kat desserts production and as an innovative center where new products and processes are tested and implemented. This includes the production of Smarties chocolate dragees, with an annual volume of over 20,000 tons and plans to double production capacity in the medium term.
Addressing the consumer demand for healthier options, Nestlé Bulgaria is innovating across its entire portfolio to reduce levels of sugars, salt, and palm oil, particularly in baby food. The company is responsive to consumer preferences, such as the increasing popularity of dark chocolate over milk chocolate coatings and the growth of the premium chocolate bar segment. Nestlé is also dedicated to promoting a balanced, healthy, and active lifestyle through comprehensive programs targeting groups like "Nestle for healthier children," which encourages healthy eating and exercise habits among children, with the involvement of parents and teachers.
Source: https://www.fooddrink.bg/en/news/petar-stoilov-executive-director-of-nestle-bulgaria-the-entrepreneur-the-leader-the-mentor