Haribo enters Burma and strengthens Singaporean presence

German candy maker Haribo has entered the Burmese market and expanded its distribution in Singapore through a deal with expansion services provider DKSH.

Haribo has allowed DKSH exclusive rights to market sell and distribute Haribo's products in both countries. The agreement marks the first time the companies have worked together.

Attractive growth markets

Joerg Wolle, president and CEO of the DKSH Group, said: “We are delighted to help grow Haribo's business in Singapore and to support its market entry to Myanmar. Myanmar is a very challenging market with significant growth opportunities.”

Burma, also known as Myanmar, has become an attractive market in the emerging Asian region since the EU and US recently lifted trade sanctions.

The country has a population of almost 50 million people, and while income levels are low they are expected to grow in the future.

Other confectioners have spotted the opportunity. Haribo rival Perfetti Van Melle, maker of Chupa Chups and Mentos, entered the market in November last year, also through a sales, marketing and distribution deal with DKSH.

Anticipating share gains

Nikolay Karpuzov, regional sales director for Haribo South East Asia, said:  “Singapore and Myanmar are very promising markets with high potential for growth.

“By working closely with DKSH and utilizing its capabilities for value-added services, we expect to see the results of this partnership with an increased market presence and market share gains,”

DKSH also sealed a deal with premium chocolatier Lindt in the Singaporean market, where it said the middle class population was growing.