Frozen food brands face the challenge

By: Szalai László Date: 2024. 11. 26. 11:07

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.:

Ádám Nagy
CEO
Nádudvari Élelmiszer

“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”.

Beáta Bukovenszki
head of domestic sales
Gallicoop

“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.

Tünde Matyasovszky
senior brand manager
(Valdor & Pick Friss Hús)
Bonafarm

“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.

Prices on the breaded meat market virtually stopped rising in the first half of this year

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.

There is a big fight to “stay in” as retailers’ refrigeration capacity is finite

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.

The average price has grown in every category, with consumers often matching purchases and promotions

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. //