Smaller pressure on cheese
The average price of cheese has reduced significantly since the first half of 2023 (there was a double-digit price drop). Consequently, while cheese volume sales increased compared to a very weak 2022, value sales were down.
This article is available for reading in Trade magazin 2024/8-9
In the second half of 2023 the market began to stabilise and is still doing so.
By now it is a luxury
“In 2023 masses of buyers switched to lower priced semi-hard cheeses. Sales of cheese from the deli counter and larger sized sliced products increased significantly”,
says Mariann Nagy, sales development manager of Savencia Fromage & Dairy Hungary Zrt.
“The underlying problem is still the weakening of purchasing power and the reduction in the amount of money spent on food. Private labels are clearly gaining ground and basic semi-hard cheeses have become a luxury product for many consumers”,
says Ádám Gábossy, CEO of Szega Camembert Kft.
András Lengyel, managing director of ERU Food Trading Kft.:
“The processed cheese category has also felt the impact of inflation, with demand for higher quality and higher priced products falling sharply”.
Renewal for the brand portfolios
Savencia has reacted to the market challenges with innovations, portfolio restructuring and a new marketing strategy.
“From our brands Karaván was the preferred choice of consumers for baking and cooking, but we have realised the limitations in smoked cheese, so Karaván is turning towards unsmoked cheese varieties too”,
informs Péter Fábián, brand manager of Savencia Fromage & Dairy Hungary Zrt.
Last year they put Karaván Toast slices on the market and revamped the brand image. This year they expanded the grilling cheese portfolio with new unsmoked Camembert and Tallér products. The soft cheese market has also been going through a difficult period.
“In this segment the Tihany brand renewed its camembert portfolio and packaging design in 2024”,
reports brand manager Ágnes Mike.
“Medve cheese evokes a real bond and positive feelings from Hungarian consumers, so we have built our new image campaign on these and the brand’s characteristic features”,
says senior brand manager Rita Szalay.
New flavours and niche markets in focus
At Szega Camembert Kft. they are currently focusing exclusively on innovations that can meet the needs of their export markets. In addition to slicable cheeses, the company has expanded its product selection with daily-use cream cheeses. The company is backing sales with promotions and has also recommended the new innovations to the HoReCa sector. ERU is trying to build on the strengths of its brand: the Camping brand can compete with the cheeses of other manufacturers primarily with its large and diverse offering. Two new flavours have been introduced recently: Camping cheese with Gyulai dry sausage and Camping Cheddar flavoured cheese. Both of them have passed the test, consumers have tried them and like them. ERU’s lactose-free processed cheeses have long been successful, but now the company targets vegan consumers with a new innovation: Camping Vegán (a spreadable vegetable preparation based on coconut fat) has become popular, thanks to its pleasant natural/salty taste.
//
Related news
Lidl Switzerland exported 3,000 tonnes of cheese last year
Lidl Switzerland exported more than 3,000 tonnes of cheese in…
Read more >Online subscription loyalty schemes are about to take off in Hungary
According to a representative survey by PwC (earlier GKID) for…
Read more >Coconut Collab rolls out yogurt alternative to support menopause
The new “thick and creamy” Protein Yog is plant-based and…
Read more >Related news
Holiday Shopping Study 2024: European Consumers Plan Ahead Amid Economic Pressures
The “Holiday Shopping Study 2024,” conducted by ShopFully and Offerista…
Read more >Nestlé Szerencs factory expands with new solar park
The 1.5 GW annual capacity solar park will come into…
Read more >Oversupply in the office market, returning demand in retail properties and hotels expected in 2025
The Hungarian commercial real estate market is currently characterized by…
Read more >