Traditionally, demand for sweets increases before Easter. Sweets producers stress that there is a large supply of imports on the market and companies have to compete with imported goods, which are comparatively cheaper. Are manufacturers producing more sweets this year, and is Cielaviņa still the most popular cake? Latvian Radio set to find out.
Orkla Latvija, the largest producer of sweets, working with the well-known brands Laima and Staburadze, traditionally sees an increase in demand at Easter. Laura Bagātā, a representative of Orkla Latvija, said that one of the most sought-after products is the Cielaviņa cake:
“It is indeed the most popular cake in our range. We have been producing Cielaviņa for more than 40 years and while we originally produced about 400 Cielaviņa per month, we can now say that we produce about 20,000 Cielaviņa per month and even more during the holiday season, which means that it is still a top seller”.
While Cielaviņa is still produced in the Rīga city centre factory, most of Laima’s sweets are made in the modern factory in Ādaži, built several years ago, and some of the chocolate bars are produced in the Orkla Group’s factory in Estonia.
“We built a beautiful, large, innovative factory in 2021. This plant is capable of producing around three thousand tonnes of sweets a year, so there is no doubt that Laima is still manufacturing in Latvia. If we talk about Laima’s products, yes, we produce some bars in Estonia, which is the production site of our group company, Kalev, but at the same time, we should take into account that we produce many Kalev products in Latvia,” said Bagātā.
Latvia is the company’s main market, but 40% of its production is exported. 70% of exports are made to the Baltic States and Finland.
Although new and relatively small sweet producers have entered the market, the Orkla Latvija representative stressed that many customers are loyal and still put Laima’s products in their shopping baskets.
Competition is healthy, but the biggest fight is with international and global players, which have recently become more aggressive in their marketing battles.
Normunds Skauģis, owner of the bakery “Lāči”, also said that small producers have to compete with imports, but patriotism is important.
“It is the patriotism of our local buyers that makes them choose. You can choose the big brands of the world and you can also choose local products. It’s like in any food section, whether in dairy products, cottage cheese or cream or whatever cheese we want,” Skauģis said.
Several years ago, Lāči invested tens of thousands of euros and started producing chocolates. Has the investment paid off? Skauģis said that demand is stable.
“We cannot say that demand is going up because prices are skyrocketing due to raw materials and other costs. [Demand] is quite stable. We as players are new to this market. We are not trying to create products that will compete with the big manufacturers. We are trying to create something of our own, some ‘Lāči’ products, Latvian products, which would carry that Latvian feeling,” said the owner of ‘Lāči’.
He has noticed that customers want healthier products with less salt and sugar, so he has to adapt to consumer preferences. However, the confectionery cannot do without sugar.
“Skrīveru saldumi” also sees the demand for healthier products as a trend.
“We are starting to use different proteins in sweets so that the sweet adds value. Also, more and more people are starting to look at what they eat, what is in the ingredients, what is used and various sugar-free sweets or sweets with less added sugar have become quite popular,” said Kristīne Murjāne, the company’s marketing manager.
Skrīveru “Gotiņa” fudge is still the most popular product, but several years ago the company started producing protein bars and demand for these has been growing year on year.
The company exports 15% of its production and is working to increase this. Murjāne added that, despite the high share of imports on the market, both local buyers and export partners appreciate Latvian-made sweets. However, producers need to prove themselves in order to get new products on the shelves.
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