Less imported ham – can domestic industry benefit from this?

„I have some good news and some bad” – one could say. The good news is that if the HUF will stay as weak as it is now, then domestic products are to prevail in the retail sector. The bad news is that there is not sufficient liquidity to increase domestic production. Increasingly frequent and strict inspection by food safety authorities has lead to a reduction in the quantity of low or suspicious quality imported hams. There is lot of uncertainty in the market, owing to the instability of the HUF. Zoltán Szántó, a brand manager from Pick Szeged Zrt., is worried: – The financial crisis has made it difficult for the meat processing sector to prepare for the Easter season, as insufficient liquidity might lead to insufficient supply- he says. The financial crisis also has an adverse effect on purchasing power. According to Nielsen data, the market share of private labels in the cooked ham segment almost reached 30 percent last season. However, demand will continue to exist for traditional products. The number one consideration for consumers is attractive appearance. – There is an almost undetectable shift taking place in demand from deli counter ham to packaged ham – says Krisztina Bódi, marketing director of Kométa 99 Zrt. The difference between the market share of the two types is less than one percent in the cooked ham segment.. Deli counter ham is still slightly more popular, mainly as a result of being HUF 600 cheaper. – As most hams are delivered in packaged from, this is not a primary consideration in terms of hygiene – says Erzsébet Sebestyén, sales director of Debreceni Hús Zrt., Szole-Meat Kft. and Csabahús Kft. In her opinion, the market is getting polarised regarding sales techniques and the market share of discounts is growing, resulting in the growth of the packaged segment. The Easter assortment of Pick Szeged will continue to be composed of Délhús and Pick Békebeli products. Owing to increased demand for quality and traditional flavours, sales of Békebeli were up by more than 150 percent last year. Attractive labelling is a key priority for Délhús, as the market is flooded by “no-name” hams in the Easter season. Kométa 99 focuses on the premium ham segment. Last year, Kométa 99 products received new packaging following a consumer survey and lengthy research. The logo and the slogan have also changed: “Flavour is our common passion!”. They have also launched the Rustico brand in the premium segment. As the refrigeration chain cannot be interrupted, possibilities for POS communication are more limited, compared together FMCG products. The Debreceni Hús Group (including Szole Meat and Csabahús) was acquired by Slovakian investors last year, who intend to establish a Central European meat holding. They offer fat-free hams for health conscious consumers and are also experimenting with sliced products in large package sizes. They see no point in using the Easter season for brand building, but will continue to do this throughout the year in 2009.