ChoCo’a, a Dubai-based chocolatier, said it has seen a three-fold increase in retail sales for chocolates and arrangements between 2006 and 2008, and was planning to go ahead with its regional expansion plans.

As the global recession continues to impact on some of the UAE’s major companies operating in the main industry sectors, SMEs specializing in niche market segments seem to be more resistant to the crisis, said an expert.

ChoCo’a is currently exploring the opening of another retail boutique in Abu Dhabi and launch of a new, state-of-the-art chocolate factory set to begin operations next year.

Between 2006 and 2008, the company's sales rose from 3,800kg to 12,000kg, said an official of the Barsha-based company.

The boutique’s birthday and wedding cakes offering doubled to 35,000 pieces with its cakes and pastries recording even stronger growth from 12,000 in 2006 up to 48,000 pieces in 2008.

And while ChoCo’a saw an overall year on year sales increase of 123 per cent across its three retail product segments at the end of 2008, growth seems to have slowed slightly as the global slowdown continues to bite, remarked Assem Hamzeh, ChoCo’a managing director.

“Premium chocolate sales are highly dependant on consumer mood rather than on consumer pockets,” he pointed out.

"It’s all about confidence, a key human characteristic that dictates happiness levels and the propensity of humans to celebrate a special occasion or simply allow a personal indulgence," he commented.

“Our March retail sales grew by 67 per cent year on year while our April figures were also increased by 23 per cent. We remain optimistic about the outlook for the rest of 2009, especially with the UAE wedding season and the Ramadan still ahead of us,” he added.

ChoCo’a’s chocolate and arrangements product range contributes 48 per cent of the company’s total sales, followed by its birthday and wedding cake offering which accounts for 33 per cent of its total business, with cakes and pastries making up for the remaining 19 per cent of sales.

"We also have a strong footing in the wholesale hospitality industry where we are retained by some of the UAE’s and Oman’s most prestigious five star hotels."

"Our monthly orders for this segment per client can be as high as 200 kgs of chocolate, however lower occupancy rates in recent months means that this part of our business has seen a considerable slowdown,” said Hamzeh.

ChoCo’a currently maintains retail operations in the UAE, Germany and Azerbaijan with its hospitality business spread across the key regional markets of Dubai, Abu Dhabi, Saudi Arabia and Oman.-TradeArabia News Service