Cappuccino domination
it is planning to boost its production on the back of an
anticipated 15 per cent increase in sales, which it says will be
largely derived from enlargement. But to help it acheive this, the
company says that a trade partner will be vital.
Mokate, which produces a range of ready-mix cappuccino and other hot drinks, says that the move will push its sales up from ZL255 million (€54m) a year to ZL300 million in 2004.
The company says that the increased business from Poland's accession to the European Union has been long anticipated and that that a significant investment programme was hatched last year to help take advantage of this expected improvement. This has meant an increase in its 2003 investment budget from ZL8 million to ZL24 million in an effort to meet increased production requirements.
In order to fulfill its ambitions to increase sales, the company's investment programme has focused on increasing production capacity at its two production facilities in Katowicka and Strazacka. This has led to the construction of a new production line, scheduled to start production at the end of this month, and the addition of 150 new employees.
Presently, the company's product portfolio includes a range of hot drinks, such as tea, coffee and hot chocolate, as well as creams and ingredients for the food industry. The export market has always proved to be strong for the company and currently 25 per cent of its production is exported, mainly to neighbouring Central and Eastern European countries as well as the Middle East. To this end it has sales and distribution offices in Russia, Czech Republic, Hungary and Slovakia.
However, the company says that the future sales will continue to focus on its leading cappuccino brand. And with the limiting affect of tariffs on EU exports about to be eliminated, it is hoped that this will become a main market for its leading brands.
However, Mokate says that in order to achieve its ambitions to make a serious impact on the EU market it will need to have a partner.
"We are in negotiations with several food producing companies," said Teresa Mokrysz, Mokate's owner.
To this end the company says that it is expecting to announce the formation of a new partnership sometime in the second half of the financial year.
