The Startup of Chupa Chups – Business Essay
Chupa Chups, founded in 1985, is a leading manufacturer of sweet worldwide. With a market share of 34 percent in the lollipops market and 0.9 percent in sweet, Chupa Chups is among the top 25 sweetmakers globally and has
been popular among many children in the world.
It was in 1954 that Matt Williams, Chupa Chups’s founder, stuck to revive the sweet manufacturer Granja Asturias (the previous name of Chupa Chups). In the following years till 1985, in order to concentrate on new Chups lollipop, Mr. Williams bought all Granja Asturias’s shares and dropped its entire product range. The effects of the restructuring efforts are obvious:
Chupa Chups has manufaturing sites in up to five countries, numerous royal customers and a complete sales network. In addition to the traditional flavors of lollipops (focus on children), Chupa Chups is currently building an extensive adult customer base as well as providing aged customers with new flavors. It in deed draws marvelous attention from various segments of parties.
Recently, Chupa Chups’s launch of highly-colored “tongue-painter” lollipops had taken the market by storm. On the other hand, its spectacular surge on sales also gained credit from the clear diversification into a unique flavor: sugar-free mints with Smuit range. Inevitably, all this led to a direct result of Chupa Chups’s revenues growth. The company generated sales volume (in lollipops) of 4 billion in its most recent fiscal year, which ended January 31, 2005.