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Belgium's Lotus Bakeries to Hike Prices Despite Optimistic Forecast for 2008

Source: FLEXNEWS
12/05/2008

12 May 2008 - Fearing downward pressure on its sales volumes, Belgian bakery firm Lotus Bakeries has increased its prices for consumers to respond to considerable rises in prices of various raw materials.

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According to a company statement, the first 4 months of 2008 confirmed the consumer's "confidence" in Lotus and Peijnenburg brands. The company expects a good sales growth and profit margins as a percentage of sales in line with those for 2007 as a whole.

Providing an update on its activities, the Belgian baker said that its capacity extensions for caramelized biscuits (Lembeke) and gingerbread (Sintjohannesga and Geldrop) were proceeding to plan.

In early 2008, Lotus introduced a caramelized biscuit spread in the Belgian market. "The first sales figures are telling us that this has been a highly successful launch", the company said.

Last week, Lotus began an alliance in Benelux with Studio 100, whereby Lotus will introduce nutritional 3 products (Mega Mindy gingerbread, Mega Mindy waffles and Bumba madeleines) in the Belgian and Dutch markets. The products will be available in retail outlets as of mid-May.

In January this year, FLEXNEWS reported that Lotus Bakeries acquired a Spanish importing partner, López Market, located near Madrid. Lopez Market sells waffles, cakes, pastries, caramelized biscuits and other original specialities in the Spanish market.



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