Specialities for the summer ice age

By: trademagazin Date: 2007. 04. 25. 08:00

When hyper markets lose market share in a category, while private labels are more popular than ever, it is reasonable to suspect discount stores behind this trend. Discounts stores not only sell cheap, average quality basic foods. They also sell more affordable versions of premium products and brands. It is no wonder that cheap but real chocolate and ice cream are a success. Over half of all ice cream sales already take place in 401–2500 square meter stores, where private labels dominate. Though private labels account for 43 per cent of sales in this category, average price has not fallen. In fact, it grew from HUF 511 to 560 last year. This was due to a 5 per cent VAT increase and the effects of related tax increases, according to Miklós Konkoly from Unilever Magyarország Kft. It is a great success for Unilever, that the market share of Algida is growing, as well as that of their impulse ice creams. – Sales of family size ice creams far exceed that of impulse ice creams – says Mariana Éliás, from Nestlé. Sales of family size ice creams dominate in hyper markets, whereas sales of impulse ice creams are focused in discount stores and traditional stores. – In the Hungarian market, classic flavours are essential, though potential for growth is concentrated in less orthodox flavours – says Edouard Damas, managing director of Ledo Magyarország Kft. Sometimes innovation itself is a classic, like the reintroduction of punch flavour. Innovation and a classic flavour are also combined in the Carte d’Or Gerbeaud product line of Unilever, which became enormously successful. Since popular taste prefers chocolate flavours, Nestlé has been able to adapt its Boci products to the ice cream market. The only chance manufacturers of brands have to fight private labels successfully is to build their brands consistently. Brands are specialising. The better defined a target group is, the easier it is to communicate with it and to meet its requirements. An example of this is the strategy followed by Unilever. There is segmentation even in their premium Carte d’Or brand. However, Unilever also sees the greatest growth potential in the “affordable” segment, where sales of their Algida Árziccer ice creams grew by 50 per cent in the last two years. They also see the need for an affordable but strong brand, like Algida Krémkönnyű, which is a quality ice cream. Since Nestlé supports healthy lifestyle, they have developed the La Cremeria Naturale product line for consumers who are willing to pay more for natural ingredients. As Ledo Update products contain no added sugar, they can be consumed by diabetics. This product line will also continue to expand this year.

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