1. An overview of Chocolate & Confectionery Industry of Pakistan
Part I:
An overview of Chocolate & Confectionery Industry of Pakistan
Part II:
Practical aspects of sales & distribution of FMCG

2. Branded Chocolate and Confectionery Industry of Pakistan 2009
Via Google - Chocolate and Confectionery Pakistan

3. Chocolate & Confectionery - Pakistan
Chocolate and Confectionery Industry – An overview
Close estimates of sales turnover- major players
Characteristics, Distribution & Selling Strategy
Channels’ Margin
Popular Brands and Price points
Drivers, Challenges and trends

4. Overview of Industry
Enjoyed an emerging and growing trend in recent past
Yet its size and growth pattern is inconsequential to Asia-pacific region
Average annual growth rate 6.5% to 7.5% during
Domestic brands dominates accounting for more than 85% market share.
Split into organized (branded) sector and un-organized (generic) sector.
Branded sector – monopolistic in nature , with 9-10 prominent and active players
80% industry share – being enjoyed by 5 players

5. Estimated Market Share %
Company
Major product lines
Major Brands
Estimated annual turn-over PKR
Estimated Share %
Hilal
Bubble, Candies, Jellies, Beans, Powdered Drinks
Ding Dong, Fresh up, Tulsi, Kopra, Limopani
Over 3.5 billion
(only Choc. & Conf.)
26%
Ismail Industries
Jellies, Candies, Chocolates, Lollypops, Biscuit & Snacks
Chilimili, Fanty, Now, Paradise, Bisconi & Snaccity
Over 2.8 billion(only Choc. & Conf.)
21%
B.P Sweets
Jellies, Candies, Lolly Pops, Chocolates, Biscuits
Spacer, Dolphin, B.P Lollies, Dream Chocolate
1.7 billion
13%
Cadbury’s
Chocolates (Countline & Moulded), Toffees, Chewable Mint candies
Dairy Milk, Velvet, Éclairs, Softmint
Over 1.5 billion
11%

6. Estimated Market Share %
Company
Major product lines
Major Brands
Estimated annual turn-over PKR
Estimated Share %
Kidco*
Bubbles, Candies, Lollypops, Chocolates
4ever, Centro, Punch Candy, Lollies, Cox
1.2 billion 9%
Mayfair
Candies, Toffees, Bubble
Creamers, Tiger Bubble, Amrood candy, Café biscuit
0.8 billion 6%
Mitchell’s (only Chocolate and Confectionery)
Groceries( squashes, Jams , Jellies , Marmalades, Sauces, Moulded & Countline , Toffees & Candies
Milk Toffee, Fruit Bon Bon, Jubilee, Golden Hearts, Festival
0.70 billion 5%
DanPak
Bubble Gum, Lollypops, Candies
Chini mini, Fresh ‘ O bubble, Choco Bisco, Milko sip
Sweet Hills
Candies, Toffees
Dr. Milk, NutKut, Love Candy, Cow
0.5 billion 4%
Total
13.4 Billion PKR

8. Characteristics: Highly Price elastic
Bulk of sales concentrated in mid-price range products
Urban markets account for major share and also for a higher penetration rate.
Price point range:
Chocolates PKR
Sugar Confectionery PPKR
Coin barrier issue- “ bitter pill ” for manufacturer
0.25 paisa to 0.50 paisa mid 80’s
0.50 paisa to 1.00 rupee mid 90’s
Re. 1/- to Re. 2/- late 2008
Strategies to combat coin-barrier issue

9. Distribution & Selling strategy:
Almost (75- 80)% sales come from W/S channel in general
B.P and Hilal > WS driven > Media pull > wide-spread national distribution network over towns > mass market products Re.1,2 and beyond > Cost leadership strategy > High Volume sales
Cadbury’s , Candyland, Mitchell’s and Mayfair > retail inclined > building brands

15. Drivers, Challenges & Trend