The margin freeze changed things in the bologna and other cold cut categories

This article is available for reading in Trade magazin 2025/12-2026.01

Tibor Hollósy
deputy director of agricultural
development
KOMETA 99

“The margin freeze primarily had a beneficial effect on modern retail channels and branded product sales. As a result of its introduction, most promotions for bologna products were halted, because prices remained low for a long time. In contrast, with cold cuts much more promotions are needed to maintain market position”,

summarises Tibor Hollósy, deputy director of agricultural development at KOMETA 99 Zrt.

Modern channels and branded products benefitted from the margin cap primarily

Price competition and cost pressure

Zsuzsa Takácsné Rácz
sales director
Pápai Hús

Pápai Hús Kft. competes with a different business policy and product structure, so its experiences differ from those of its competitors. Sales in the bologna segment declined slightly, while the cold cuts category saw an approximately 10% increase.

“Our private label products played a key role in this growth, with sales expanding more dynamically than of those marketed under the Pápai brand”,

explains sales director Zsuzsa Takácsné Rácz. Raw material prices rose in the poultry segment in 2025, partly due to the impact of avian influenza in Europe.

Attila Lippai
commercial director
Master Good

Attila Lippai, commercial director of the Master Good group:

“It was impossible to prepare for the effects of the margin freeze regulation that entered into force on 17 March. Promotional activity for products affected by the margin freeze decreased considerably based on the decisions of our retailer partners, so we had to look for solutions to replace and compensate for the lost promotions”.

Manufacturer brands need to prove themselves

Bukovenszki Beáta
head of domestic sales
Gallicoop

At the moment products with a good price-value ratio are the most sought after.

Beáta Bukovenszki, head of domestic sales at Gallicoop Zrt.:

“Consumer habits have changed, as the proportion of sliced products is growing, especially in cities. More and more people are looking for smaller product formats, because this allows them to spread their purchases out better”.

She adds that because of the rise of private label products manufacturers need to better highlight what sets their brands apart – for instance domestic ingredients and high quality.

Consumers are increasingly looking for products with higher meat content that are free from additives, gluten and lactose, which the KOMETA product lines have been striving to provide for years. For instance the company’s products now contain 30% less salt. Health consciousness and allergen-free products are increasingly important consumer trends. Recognising this, Pápai Hús has made its bologna and “May delicacy” products soy-free.

Consumer demand is increasingly shifting towards pre‑packaged products, while bar‑format items still represent a significant share of sales

Diverse and healthy – this is what turkey is like

There has been no change in MasterGood’s bologna and cold cut assortment this year, but at the end of October the company expanded the Royal product line with a new chicken thigh in aspic. Since bologna is a traditional, widely known product, instead of “reinventing” the company is trying to remain close to consumers in terms of quality, taste and communication. Gallicoop has recently added Natura ham and delicious thigh ham to the Gallio range. Their breaded product range is also constantly growing – in line with market demand. Gallicoop has always built on being a reliable brand that uses domestic ingredients, to which they have added the fact that turkey meat is multifaceted and healthy. Turkey meat can be both white and red, so it can be used to make almost any dish.