Spice mixes are a better choice for brand building

Many product groups capitalised on the fact that consumers are economising by not eating out. More cooking done at home should affect spice sales positively, but data by Nielsen indicate a decline in sales (we are talking about a mere 2 percent though). Despite declining purchasing power, the share of private label products became smaller and smaller packaging units advanced.

Gábor Heltai, Házi Piros Kft.’s commercial director says: – Growing sales of smaller packaging units are illogical, but when consumers are short of money they will not buy larger versions of spices even if they are cheaper, because just a small amount is used for cooking and once the bag is open certain spices’ start losing freshness.

Tamás Páhy, Kotányi Hungária Kft.’s marketing manager is of the opinion that people focus on the sum they have to pay when buying: they would sooner buy spice in a bag with a lower unit price, even if a more economical version is available in bottle at a higher unit price. János Zvolenszki, the managing director of Böllér Food Kft. told our magazine that demand for ‘fashionable’ spices was on the increase. Fresh pot herbs have also been gaining popularity recently. Cookery shows and thematic TV channels have vastly contributed to the development of gastronomy in Hungary.

This trend is especially palpable in the sales data of more exotic spices, such us curry, nutmeg or clove. Gábor Heltai added that in the past people used to marinate meat with their own spice mixes, but these days manufacturers offer a wide selection of marinades, Hungarian and international flavours alike. Red paprika, ‘the most Hungarian’ spice is experiencing hardships. Manufacturers do their best to help growers, but bad weather, a low level of state subsidies and a high level of price sensitivity from consumers gave room to an expansion of low quality import products. Tamás Páhy says: – The earlier ‘organic’ trend seems to weaken, but the use of natural ingredients is still of highlighted importance for consumers.

Consequently, Kotányi’s innovation activity focuses on natural ingredients, alongside user- and environmentally friendly packaging that is capable of keeping spices fresh for a long time. The company offers 17 different products for grilling and this year they came out with two new products: Vino-Rosso and Balm Vinegar dressings.
Házi Piros Kft.’s Házi Arany brand is a ‘B’ brand that is capable of competing in quality with market leaders. No wonder that in a period of economic recession, when many people switched from branded products to lower priced ones, Házi Arany managed to expand by 5-10 percent in all three categories (spices, spice mixes and condiments). They reduced the salt content of products and increased the proportion of spices in the mix.

The packaging of spice mixes became more colourful and they introduced new mixes such as Barbecue grill, Curry and Gyros. Böllér Kft.’s János Zvolenszki says: – In this grill season we offer our Varázspác marinade in 6 flavours. Besides spices they also contain oil, which makes these convenience products a perfect choice for grilling. Unilever Hungary is also preparing for the grill season. Melinda Hegyi, category operations assistant manager told Trade magazin that they had introduced Knorr Marjoram Roast Chicken and Spare Rib Roast multi-purpose spice mixes.