Securing Funding for Business Development Requires More Than a Strong Balance Sheet

By the end of this year, the specialized retail network Candy POP will increase its total retail location count to 26 stores. Compared to the outset of the year, the network is expected to grow by an impressive 50% in 2023. Founder and CEO of Candy POP Group Dovydas Ju?kys says that it would be unlikely to maintain such a pace with their own funds, and procuring financing for companies in their niche is a major challenge.

Self-Financed Growth Would Be Slower

"Securing funds for expansion is a difficult task due to our highly specialized niche. Banks do not value our existing assets or assign minimal value to them. Even if a company demonstrates strong financial performance, lack of real estate or tangible assets complicates the financing process," D. Ju?kys explains.

According to D. Ju?kys, without the support of the Business Assistance Fund guarantee, Candy POP would be compelled to substantially scale down its expansion ambitions.

"Over the course of this year, we will have invested over 1.5 million euros in network growth, with approximately 30% from own resources, while the majority of the necessary investments, slightly exceeding 1 million Euros, have been financed by Swedbank Lietuvoje . Without additional financing, our growth would continue, but certainly not at the current pace," claims D. Ju?kys.

The Strategy of Rapid Expansion Has Proven its Worth

The CEO of the Candy POP Group reveals that their rapid growth trajectory is dictated by a strategic vision that has proven successful. "Just a couple of years ago, we would not have considered simultaneously preparing for several store openings, but today, we are fully capable of doing so. While each new store presents its unique challenges, the accumulated experience and optimized processes allow us to minimize unexpected setbacks and open successfully – meeting deadlines and achieving a high standard of quality," D. Ju?kys remarks.

During 2023, the Candy POP network will be expanded with a total of 8 new stores. Preparations for the final openings are currently underway in Poland, and Estonia.

"What affects consumer habits on a broader scale also impacts us – economic fluctuations and increased interest rates are reflected in our stores' turnovers. Nevertheless, we have consistently met our set targets thus far, and we remain optimistic, with no intention of slowing down our pace of growth," D. Ju?kys adds.

New Candy POP Product Lines to be Launched

Investments in Candy POP's business development include not only network growth but also the development of branded products. By the end of the year, two new Candy POP product lines will be available to customers in all four operating markets — Lithuania, Latvia, Estonia, and Poland.

"We can see from the sales results of Candy POP branded products that they are quickly catching on with customers, so we will continue to expand our product range.

We are focusing on exceptionally high quality and innovative products, with stylish and functional reusable packaging.

These products will be available both in our network stores and at major retail partners' locations throughout the Baltic region, including leading retail chains and gas stations," D. Ju?kys outlines their near-term plans.

Candy POP is the leading specialized retail chain in the Baltic States. The company is also active in e-commerce and wholesale. The Group's turnover in 2022 was EUR 8.8 million. The company's range of products includes carefully selected sweets, snacks, and beverages, most of which come from the USA, Asia, and other exotic destinations sought after by customers in the Baltic region. Currently, Candy POP has a network of 23 stores, 14 in Lithuania, 5 in Latvia, 3 in Estonia, and 1 in Poland.