Magazine: Weakening middle category among spices and condiments

Spices and condiments are basic accessories of summer barbeques. Rita Bazsó, Univer Product Zrt.’s product category manager told our magazine that the condiment market is not as strong in the Easter period as it used to be, but Christmas still holds on. Univer attempts to add new flavours to its assortment, e.g. garlic and extra mayonnaise, hot mustard and ketchup, but the focus is still on plain ketchup, mayonnaise and mustard. István Bacskai, commercial executive of Koch’s Torma Kft. informed Trade magazin that the spreading of private label products seems to be unstoppable.

Koch’s horseradish, which represents the highest quality category, also managed to grow a bit. The middle category is losing ground against private label products. When it comes to innovating, Univer pays great attention to both to product content and packaging and the company promises novelties for 2012 too, together with new type of communication. Koch’s Torma’s experience is that traditional flavours and traditional communication tools work best: price discounts, secondary placement and tasting sessions. The proportion of sales in promotion increased in this category too. Koch’s Torma products try to keep up with consumer demand and make preservative-free products with low additive content. Traditional methods of preparation are increasingly popular. It is the barbeque season when TABASCO®
is going strong: it is perfect for grilling meats, for marinating or as a dressing for salads. Krisztina Kuti, Maresi Foodbroker Kft.’s brand manager says: – Alongside the well-known Red Sauce last year the smoky-flavour TABASCO® Chipotle appeared in shops and the launch was backed by many tasting sessions. TABASCO® sauce does not contain preservatives, the secret lies ‘simply’ in Tabasco pepper, vinegar, salt and three years of aging. In the last few years Habanero and Buffalo versions appeared on the US market; Maresi Foodbroker will put new product varieties on the Hungarian market next year. Average prices grew on the spice market last year, due to both domestic (introduction of the NETA – public health product fee) and international (black pepper purchase prices elevated) reasons. Gábor Heltai, commercial director of Házi Piros Paprika Kft. told us that their branded product sales did not drop last year but there was a small decline in sales of the private label products they manufacture for retail chains. Mr Heltai reckons that this happened because consumers are looking for cheap products, but instead of PL spices they choose reliable branded products at low prices – and Házi Arany is an excellent choice for them. Anita Pethő, commercial director of Böllér Fűszer Kft. is of the opinion that demand for middle category products practically disappeared. Data from Nielsen shows that consumers prefer smaller packaging units, even in the gastronomy sector. Házi Piros Kft.’s spice mixes have reduced salt content. The company does not launch new products for the barbeque season but they take part in the collective Hungarian Product promotion campaign from 1 May until 31 December (just like Univer Zrt.). Böllér Kft. started distributing its MAGIC MARINADE line in 2006, which is updated this year with a new design and new flavours. Products are also healthier because they don’t contain sodium glutamate.