TALLINN - The Finnish juice producer Marli has said it wants to double its current market share to win one-fourth of the Estonia market, a goal that many in the industry say is unrealistic.
Currently Marli, which is owned by Germany's Eckes-Granini, has less than 10 percent of the market, which is growing at a rate of 10 percent per year, the Finnish business daily Kauppa-lehti reported.
"We'll decide later on whether we'll conclude an agreement with a local company, or buy and establish a firm of our own there," said company manager Timo Laukkanen.
He said that the Baltic juice market was particularly attractive to Marli, the leading juice maker in Finland with a 32 percent market share, since its Turku plant was working below capacity. The plant could easily double output, which currently stands at 90 million liters per year.
If all goes as Laukkanen foresees, the producer could satisfy the annual juice demand for the entire Baltic region.
However, other juice producers said Marli's targets in the Baltics were unrealistic. Tarmo Noop, CEO of Tartu Brewery, said that though there was not a juice producer who didn't plan to increase its market share in 2005, doubling one's share "is not likely to happen."
"It can only be possible in two cases: First, if one company acquires an existing and well-established market player, and second, if the production is sold at prices below the cost price," said Noop. "Marli's holding company Granini is a major global producer and theoretically can play the dumping price game, even though it is illegal if proved."
Board Chairwoman of Tallinna Piimatoostus (Tallinn Dairy) Kadi Lambot said that Marli was already a competitor to be reckoned with thanks to the firm's Largo brand and was skeptical of the Finnish company's plans. "Marli's goal of winning a 25 percent slice of the market is very ambitious as it calls for increasing [sales] volumes about 2.5 times. Achieving such a sharp rise in the market share is not easy and requires very forceful action," she said.
Laukkanen remains set on his goal, emphasizing that a sales boost in the Baltic states and Scandinavia is the firm's primary concern. In addition to Estonia, Latvia and Lithuania, Marli wants to expand to the Nordic countries, Germany, France and Switzerland where the firm's market share is small.
The major players on the Estonian juice market are Latvia's Gutta and the local Largo and Aura brands.
Tartu Brewery owns Osel Foods, the largest juice producer in Estonia with a 29 percent slice of the market.
The juice market in Estonia grew 12 percent in 2003 and another 4 percent in 2004.
