Candies generate profit as well – After successful start in Serbian market, family-owned company Candy Universe offers franchise and enters sixth shopping mall

It is said that there is a secret connection between us and candies, especially candies. We do not know exactly what but candies sales can be a profitable business as shown in the example of the Pezelj couple who succeeded in creating their own “sweet universe”, hiring more than 15 people and stepping into the second year of business with new ideas and investments.

They almost left the country but then they replace their departure for America with the idea to try to set up something of their own. They opted for setting up a company where Sanja Pezelj will apply her previously acquired experience and her husband, Boris, will provide creative support as the marketing manager.

So, in December 2012, Sanja and Boris gathered friends, best men and cousins and set up Candy Universe, a company that sells chocolate dessert, coated candies and gummy candies, which are not available on our market.

After a year of business operations, they have 15 employees as well as 6-7 students hired through the youth association.

(Sanja Pezelj)

They import majority of their product line from Belgium, Germany, the Netherlands and Spain. When it comes to In the gummy candies program, they have some fifty kinds of products while there are around 40 in the chocolate program. They are trying to introduce new tastes every two-three months changing some kinds that do not sell so well.

When it comes to domestic producers, they cooperate with Candy D and Art Ival while when it comes to gummy product line, they do not have Serbian producers.

- Most of the chocolate products are cheaper in our stores than in shops… Burnt almond, coated candies with marzipan are only some of the products which cannot be found in Serbia. We earn minimum on these kinds of products (chocolate) and then we compensate that for gummy drops –Boris says.

Franchises

Candy Universe is planning franchise expansion in two ways. They will offer one kind of a franchisee to the local market and the other one to foreign where they focus on Bosnia and Herzegovina and Montenegro for a start.

In our country, Candy Universe offers its corners to playgrounds, cafes, candy shops and other shops.

– We made a smaller stand, a corner, for nine different kinds of candies which can be installed into the existing location. Although candies keep freshness, the real feel and taste upon consummation is achieved if they are kept in dishes only for a few days. –Boris Pezelj explains.

Franchisees in Serbia should only provide at least one square meter of space and good sales and they will get the entire equipment free of charge.

After all, Boris and Sanja Pezelj directed their forces on franchisee development in Bosnian and Herzegovina and Montenegro.

- Firstly we wanted to penetrate the market on our own. Since we would not do a lot with one stand, we concluded these would be too high costs for us. On the other hand, for someone who already has a location or a warehouse, this is an ideal opportunity – Pezelj explains.

The initial franchisee fee for an individual franchisee abroad ranges EUR 8.000 - 10.000, including two months of free goods procurement and material essential for business operations. This means that companies are autonomous in business during the first two months.

Candy Universe is for franchisees prepared detailed instructions they would have to stick to: selection of location, they would not be allowed to sell other producers’ candies, sellers would have to have tied hair and a bunch of other details. This way, they say, they want to comply wit standards they have in all their points of sale.

Franchisees also get marketing support since Candy Universe is very active on Internet and social networks.

The first loan

A few days ago, the Pezelj opened their fifth store in the Belgrade-based Zira shopping mall. As of April 19, they will open another one in Novi Beograd-based Immo centar.

Also, along with the spring, as of April already, they will initiate a separate portal where they will offer corporate gifts. As they say, companies more often opt for original, mostly chocolate, gifts to their clients, to their business partners and clients.

After that, they are planning another big investment in September – import of larger stock quantities which they will fund through loan for the first time.

What do they fantasize about?

- About their own production start. It would be a logical step which would crown our work–Sanja and Boris say.

Sweet marriage

The office we are having discussing in is a unique exhibition space with chocolate baskets, marzipan, caramels, etc..... Director, Sanja Pezelj says that not all kinds are there, "because they ate some of them". Therefore, in order not to be tempted, she let that office to her husband and she placed herself in a neighboring one.

When asked how it looks like when his wife is his director, Boris Pezelj says – great.

- Sanja is our company’s alpha and omega and our business is separated–Boris says while Sanja ads smilingly “that she does not interfere into her husband’s creative world”.

On the other hand, they always limit candies consumption which they never take home to their kids.

Jelena Djelic