Exclusive: Haribo UK enjoys the sweet taste of success

THE Yorkshire-based head of Haribo UK, part of the German sweets giant, has outlined plans to continue its recession-busting pattern of growth.

Herwig Vennekens, managing director, also revealed how the firm had expanded over the last three years on the back of new products and an advertising blitz.

In his first British newspaper interview since he took up his post in 2007, the Belgian-born businessman revealed that Haribo UK turned over 96m last year and saw sales rise 17 per cent over the first six months of 2010.

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It follows a similarly strong performance in 2009, when the firm was up 13 per cent on the previous 12 months.

Haribo UK is one of West Yorkshire's largest private sector employers with 520 staff at its Pontefract factory, its only domestic site where gums, jellies and liquorice are made for the UK and Irish market, as well as exported to countries such as Canada, Australia and Kenya.

It is part of Haribo, the family-owned sweets firm based in Bonn, which has 6,100 staff worldwide.

Mr Vennekens, who was raised in Germany, said the company had done well during the recession because Haribo sweets were good quality, had a long shelf life and were available at offer prices.

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There have also been other innovative promotions, such as allowing customers to vote on which new products they liked most, and the management decided to push the brand during the recession because it's an affordable treat.

"We have seen double digit growth over the last three years during which period many others have struggled.

"Growth has continued to flow (but) there is still room for the market to grow. We are not operating in a market which is capped. I came here to steal market share from other companies."

Asked what level of growth they were aiming for next year, Mr Vennekens said: "It is naive to predict exactly. Next year it could be 12 per cent – then I would not be disappointed. As long as we see continuous growth we are doing something right.

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"We are not committed to short-term peaks, we want sustainable growth rather than trying to hit a number. Hitting a very specific number is less important than making sure we are geared for future growth."

Dunhills' Pontefract Cakes have been made in the town since 1760. Haribo took a majority stake in Dunhills in 1972 and then bought the rest of the company in 1994.

Today Haribo UK sells its sweets, which include Starmix and Tangfastics, in supermarkets including Tesco, Leeds-based Asda, Sainsbury, Bradford-based Morrisons and Top Shop as well several cash-and-carry firms, including Booker and Palmer and Harvey.

They are also eaten by a number of high-profile figures including Prince Harry, Sheffield athlete Jessica Ennis, diver Tom Daley and pop act JLS, Mr Vennekens said.

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The brand's growth had been driven by developing new products, such as Fruity-Frutti, increased spending on cinema, television and radio adverts over the last two years and "good value for money" offers including promotions

"It is a name that works universally. It is practically the same quality around the world," Mr Vennekens added.

The group runs 16 manufacturing sites in 10 countries.

Tonic for the troops

Haribo has been operating in the UK since 1994 but the roots of the German firm go back much further, however, to its creation by Hans Riegel in 1920.

Its name derives from each of the first two letters of the entrepreneur's Christian name, surname and of Bonn, Herr Riegel's home city.

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The 'dancing bear' sweets were first made in 1922 and became the famous goldbears which are eaten around the world today.

Haribo's are frequently included in food packs sent to British soldiers in Afghanistan and, since discovering this, the company has begun supplying free sweets to servicemen and women.

Troops nicknamed the sweet 'Moralibo' and there is even an appreciation page on Facebook.

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