Ivaylo Naidenov - General Manager of Mondelez International for Bulgaria, Romania and the Eastern Adriatic, speaks with "Capital"
How does the coronavirus pandemic affect your business?
Overall, we are lucky that our company operates in the food industry, which was perhaps the least affected by the COVID pandemic. In Western European countries, where people have very high incomes, but during the lockdown could not travel and visit restaurants, they actually consumed alot of our products. Therefore, we reported a huge increase in sales in France, Britain, Germany, Spain, Italy. In countries like Bulgaria, where per capita incomes are three to five times lower than in Germany, for example, consumption has focused mainly on basic foods such as rice, flour, bread, meat. Staying at home, people did not allow themselves to be pampered with our products. So in Eastern Europe, the consumption of snacks has dropped dramatically. This was particularly pronounced at the end of the first and full second quarters of last year, after which - in the third quarter - there was a period of recovery, but in the fourth quater felt again, although not so strongly, this closure at home, which affects consumption . Many of our products are consumed outside the home, in moments of hectic daily life, when you need something small to eat, and when there is no traffic and dynamics outside, these products are less sought after.
How did you end 2020 as financial indicators?
We will end at the level of 2019, which is a super achievement, given that some companies have registered a decline of over 20%. We managed to maintain the level of 2019, when we grew by over 12% compared to the previous year. This is an extremely good achievement.
What is the behavior of the individual product categories during the pandemic? Which are the top 3 best-selling products, which perform less well?
During the pandemic, consumers returned to the brands they trust. That is why a brand like Milka had a very serious advantage over the others on the market. In terms of segments, the strongest growth was recorded by chocolates, or, as we call them, tablets. The consumption of sweets was significantly reduced, as meetings with friends and shared moments were missing. The most serious decrease was reported by the products for consumption on the go - waffles, bars. At home, people consumed more biscuits than chocolates, perhaps because the biscuits are in a family package and are shared and have more varied flavors.
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