Market announcement

Title

Kalev subsidiary grows market share in beginning of third quarter

Message

Kalev Chocolate Factory's (KCF) market share increased in July in comparison to
both the previous quarter and the same period from a year ago. According to
retail trade survey data from ACNielsen, the company's market share in terms of
turnover in the period June-July 2008 increased to 36.5% and the market share
in terms of volume sold increased to 41% of Estonia's retail market for sugar
and chocolate confectionery products. Kalev thus continues to hold the clear
leader position in the Estonian confectionery retail market. 
 
According to chairman of the KCF management board Kati Kusmin, the company can
be content with the good result, as KCF's position has become stronger in
categories which are important from the perspective of the company's strategic
development - areas in which production technology has received much investment
during the last year and a half. Kusmin added that the new packaging for
chocolate bars, introduced in spring, had met immediately with approval from
consumers, and that Estonian consumers have now also accepted the new packaging
for candies. “Certainly our active and successful product development activity
has contributed to maintaining the strong position: last year we launched a
total of 36 new sugar and chocolate confectionery products,” said Kusmin. 
 
Compared to the same period last year, Kalev Chocolate Factory's market share
saw the largest growth in the chocolate candies category, where the company's
market share according to turnover rose to 53% and the market share by volume
hit 65%. The market share also increased in the box candy category: in terms of
turnover, to 32% and in terms of volume, to 35%. The strong position is also
being maintained in the chocolate bar category, where the market share by
turnover is 54% and the market share by volume is 55%. 
 
According to data from ACNielsen's retail study of the sugar and chocolate
confectionery product retail market, the market's turnover increased during the
year by 17% according to turnover and 9% by volume. The market shares of the
five largest sweets manufacturers add up to 64% of the retail market in terms
of both turnover and volume. 

Kati Kusmin
chairman of the management board
Kalev Chocolate Factory
tel +372677710