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Marlenka's is set to conquer Walmart and Costco in the USA

Marlenka, the Czech cake manufacturer known for its honey cakes, is gearing up for expansion into the US market with interest from retail giants like Walmart and Costco. However, the demand is so high that the company is unable to keep up and needs to double production capacity.

Czech cake manufacturer Marlenka is about to expand to the USA. The world´s largest retailers, Walmart and Costco want Marlenka in their portfolio.

Almost $37 million in sales, $10.5 million in profit before tax in 2023, Marlenka's success story reads like a fairy tale. But behind the scenes, this cake connoisseur is facing a challenge that would make even the boldest baker break a sweat: such unprecedented demand means that the company has already sold out of its products by the end of the year, so it has had to put a lot of plans on hold for now. The company is already planning to build four new production lines to double their cake production. In the meantime, it has to buy or lease another factory to produce their honey balls as technology for honey cakes is more complicated to set up.

More than 70% of company´s production goes to foreign countries, as foreign demand grows. The shipment to South Korea doubled this year. Now, the company is heading to the world's number one retailer – the US Walmart. Marlenka has already supplied Walmart in the past, supplying Canadian branches, but now it is about to be available in the US. Additionally, there is demand from Costco as well. Nshan Avetsijan, a representative of the family-owned Marlenka, said that in ten to twenty years, the company should be where Ferrero or Mars are in the minds of the consumers. The company already uses about 20 percent of its turnover into advertising, TV campaign runs in ten countries, spreading the brand awareness of Czech sweet honey cakes. As tastes may vary from one corner of the globe to another, Marlenka has a secret ingredient: local partners who know their market. With their insider insights, Marlenka is serving up a slice of perfection tailored to every palate.

Overall, Marlenka has a lot of bold and ambitious plans, from foreign expansion and growth, to building a network of coffee shops in the Czech Republic with the possibility to start franchises abroad. However, the priority stands in expanding the production to meet the demand.


Presented by the team of employees of CzechTrade Austin, USA