Bio sector expecting strong sales at the end of the year

Organic and health food has appeared in hyper markets and supermarkets years ago. Today, organic food is found on the shelves in most stores and online sale are also growing. Consumers of bio products generally have above average income and qualification. – However, consumers pf bio products are also sensitive to price, expecting value for money – say Mrs. Dobai, managing director of Biorama Kft. Consumers of bio products are more open to innovation, but also more critical. According to Sándor Kökényesi, sales director of Biopont, there are three big groups among consumers of bio products: health conscious people, also active in wellness and fitness, people following a strict diet as a result of a medical problem, and people committed to this lifestyle, like vegetarians. Sales in the bio category grew by 10 percent last year, in spite of recession. Private labels have appeared in this category as well, and the market share of imported products has grown substantially. Sales of SPAR Natur Pur products grew by 30 percent in the first quarter of 2008. In the opinion of Ákos Rédei, one of the owners of Rédei 97 Bt. a manufacturer of bio pastas, there are too many imported products on the shelves in large retail chains. According to Mrs. Dobai, sales of Biorama Kft have been growing steadily for years, but growth could be faster if purchasing organisation showed more confidence in this category. Prices of materials have continued to rise this year. This year, the Rédei pasta factory has been focusing on flavoured bio spelt pastas, which were awarded the right to use the Excellent Hungarian Food trademark in 2007. Bio cereals are this year’s priority for Biorama, achieving an 18 percent increase in sales in terms of quantity, with fruity and crunchy cereals producing most dynamic growth. A six pack of bio eggs is the only product from Farmtojás in the organic market, but according to Imre Horváth sales director, their Wellness egg with its high vitamin E content is also popular among health conscious consumers. The most popular Biopont product is a bio millet ball, but their sticks made from bio spelt is also a success. Modernisation of packaging has been scheduled by many companies for the end of the year period and price promotions are also to be launched soon. Most manufacturers expect a substantial boost in sales in the last months of the year. Bio food is usually displayed separately from conventional products with POS tools emphasising the “bio” character. According to relevant legislation, only organic products can be displayed on the shelves labelled “Bio”, which makes it easier for customers to identify these products. As the proportion of Internet users is high among consumers of bio products, communication on the internet is an important tool for manufacturers.