Foreign Investments Europe Case studies Hoepman Haribo

Hoepman Haribo

Background
Hoepman Suikerwerken from Hoogezand was a family business which produced marshmallows, licorice and other traditional Dutch candy. However, the product range turned out to be too limited for the company to be a strong player on the European market. In 2000 the company was taken over by Haribo. In the Belgian city of Antwerp, the German candy multinational had a location where the same products were made as in Hoogezand. Several years later, it was decided that having two locations was too much. There was dissatisfaction with the results in both countries. Haribo wanted to close down the branch in Hoogezand, and transfer its production to Antwerp. Haribo/Hoepman contacted NOM in order to make a change for the better.

Question: How can we avoid closure? And are you willing to help us?

The first steps
How can we convince the board of Haribo that the Hoogezand branch has insufficient potential? To answer that question, NOM approached Buck Consultants, a research and consultancy organization which specializes in developing strategies, for example, for saving and attracting companies.

Progress and result
NOM, in consultation with Buck Consultants, carried out a comparative analysis of the business climates in Belgium and North Netherlands. The outcome of that was that the products made in Hoogezand were of a considerably higher quality than those made in Antwerp. Moreover, the location of the Belgian branch was not very good: it was in the middle of a residential area. This meant that, in contrast with Hoogezand, there was no or hardly any scope for expansion. Together with the mayor of Hoogezand-Sappemeer, Ed van de Beek, deputy director at NOM, travelled to Bonn to convince Hans Riegel of the Haribo/Hoepman potential. As a result, the location in Hoogezand stayed open. Even more so: a considerable investment in the company was made. Haribo/Hoepman recently broke all the records in terms of sales and profit.