Frozen food brands face the challenge
During the COVID period demand for frozen food increased, but then came the hike in electricity prices from the summer of 2022, which made many retailers cut their refrigeration capacity in stores, giving room only to fast-moving products.
This article is available for reading in Trade magazin 2024/11
Buying when there are promotions
Ádám Nagy, CEO of Nádudvari Élelmiszer Kft.:
“2023 brought many challenges for the frozen food category. Food inflation made consumers more price-sensitive, searching for promotions more often. Many shoppers put cheaper private label products in their baskets. This year the market seems to be circling back”.
“Frozen meats are going through significant changes in the different segments. Average prices rose in all categories, but consumers have become more sensitive to promotions and often time their purchases to special offers”,
says Beáta Bukovenszki, head of domestic sales at Gallicoop Zrt.
Branded products are regaining strength
There was a double-digit price rise in the breaded meat category over the past 2 years, but in the January-June 2024 period the average price increase moderated to +2% compared to the same period last year.
“The winners in the last period have clearly been discount chains and PL products. However, in the first half of the year branded products regained strength, driven mainly by new products launched and an increase in the number of promotions”,
explains Tünde Matyasovszky, senior brand manager (Valdor & Pick Fresh Meat) of Bonafarm Zrt. PL products still dominate in the market with a nearly two-thirds share.
From vegan to exclusive
Nádudvari has strengthened its positions in the frozen foods market and is one of the most best-known brands. They offer a wide range of products and can serve consumers with specific needs. Their grilled cheeses – which can form part of a vegetarian diet – are becoming increasingly popular, with grilled camembert as a big favourite. Nádudvari’s vegan selection of fried broccoli, cauliflower and onion rings aren’t just a good choice for vegan consumers. Stuffed chicken breast balls have been developed as part of the Chef Exclusive range, with the continuous support of Chef Zsolt Serényi.
Using synergies
At Gallicoop product development is multidirectional. The first direction is developing lower-priced products for discounter chains. As one would expect from a market leader, they are constantly striving to come up with innovative products with high added value, too. For instance there are several variations of the high-quality turkey breast strips in special breadcrumbs, from which “breaded turkey breast strips in cornflakes” has already been listed by several retail chains and will be available on store shelves from December. In line with Gallicoop’s corporate strategy, the company is seeking to exploit the synergies of the group, resulting in a high-quality GALLICOOP cheese product.
Well-planned innovation is still successful
A well-positioned niche development reacting to a real market need can be successful even in less favourable market conditions. Bonafarm Zrt.’s Valdor Zoo children’s product is a good example of this, launched in 2022 in the premium segment. It has exceptionally high meat content and a flavour that is close to the Valdor Zizu that children love so much. In the marketing mix supporting breaded products, the company combines cost-effective means to reach the widest possible consumer base with POS tools. //
Related news
Szafi Life sourdough base 1000 g
A gluten-free, citric acid-free and vegan sourdough base that can…
Read more >Twinings special edition winter teas
Twinings will complete the festive mood with special edition winter…
Read more >Related news
On the threshold of a paradigm shift in food supply – Food policy analyst Réka Szöllősi was the guest at the September meeting of Chain Bridge Club
First Réka Szöllősi told in her retrospective that consumer protection…
Read more >BMI: Deepening contraction in October
The seasonally adjusted October value of the Purchasing Manager Index…
Read more >GKI: The need for competitiveness reforms in the EU and Hungary’s role in the changes
The European Union faces significant competitive challenges, needing reforms as…
Read more >