UK company Gü is taking its dessert brand nationwide in France ahead of a wider European expansion.
Sales across the Channel already account for 20% of the company's total volumes, worth €6m (£4.3m) at retail, after debuting in 2006 and entering northern France earlier this year.
Gü is forecasting it will reach €20m (£14.3m) in annual retail sales in the French market within three years. The company is also looking at creating desserts to cater specifically for French tastes .
"We will look at the best French desserts that people don't know how to make for themselves," said Fiona Fitzpatrick, MD for Gü France. "We see France as the seat of our European expansion."
The French market needed careful attention at the moment, she said, but the company would expand
further into Europe from 2009.
However, rather than expanding country-by-country, Gü would be more likely to pick a supermarket partner to roll out with, testing the water in several countries at once.
Gü began selling its desserts in the Île-de-France region around Paris in November 2006. By May this year, said Fitzpatrick, it was in 150 stores in the region, selling 4,000 cases a week.
In July it began distribution in northern France, before launching nationwide two weeks ago. It has a 10-strong team dedicated to the country, including five in field sales, who liaise directly with the category manager of each store to secure orders.
As a result of the operational differences involved in doing business in France, Gü has been working closely with fellow fast-growing UK brand Innocent to share information on the French market.
"We are good friends with Innocent and share knowledge and experience," Fitzpatrick said. "Who knows where that could take us?"
In the UK, meanwhile, Gü is increasing its marketing budget by £1m to £2.5m next year in an effort to maintain growth levels.
MD James Averdieck told The Grocer that a programme of strong NPD coming through would help it to increase its 12% household penetration.
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