Magazine: Modern commercial trends in bakery

As a result of special domestic conditions, the Hungarian bakery industry is struggling with peculiar problems. There are many successful ventures but in order to make progress profitability has to be improved, the network of specialist shops have to be expanded and high-quality modern products have to be introduced.

According to Kornél Kovencz, sales manager of Tatár Bakery Kft. the bakery sector is typically made up of SMEs and these are currently in a learning phase. They still have a lot to learn about company management and sales, and in these fields it is worth adopting well-working international practices. Péter Jászvári, sales and marketing director at Óbudai Baking Industry Zrt. is of the opinion that the trade is in a disastrous condition: the black economy is flourishing and there is an abundance of import products. The last few years were characterised by a lack of creativity and the way forward is innovation and forming strategic alliances. Klára Ludwig. Added that quality bakery products can only be made from quality ingredients, which are free from additives and colourings, but this costs more and takes more time. Csaba Németh, managing director of Norbi Update Kft. revealed that their number one concern is health trends. Update products are 50-percent carbohydrate-reduced and do not contain added sugar and fructose. The company’s philosophy is that people need to be educated and product advantages (e.g. functionality) have to be emphasised. Attila Bánhidi, sales and managing director of Fornetti Kft. observed a duality in consumer demand: those with less money have no choice but to buy poor quality mass products, while health conscious consumers with more money are purchasing premium category products. Norbi Update is a franchise chain with 60 units in Hungary and 15 in Slovakia; these are managed not as bakeries but food stores for health-conscious consumers. Fornetti is a bakery franchise that boasts 2,400 domestic and 4,000 foreign units; they also joined the health trend by developing a preservative-free, high fibre- and mineral-content product line. Tatár bakery manufactures quick-frozen bakery products and gastro-pastry products. Their view is that the future of bakeries is artisan units baking a relatively small number of special products. Óbudai Baking Industry Zrt. is going to concentrate on promoting the ESH technology in Hungary. Jókenyér is a specialist chain that consists of 7 own shops and 5 partner units; they make their products using traditional recipes. More and more bakeries work as part of a chain and the Hungarian Baker Association’s view is that bakeries’ own shops are the best way of selling products, as this way the profit stays with the bakers themselves. This type of selling also makes it possible to expand the functions of bakery shops, e.g. selling sandwiches, cakes, coffee, etc. In certain cases this step also entails a change in the interior design of shops: in Hungary a good example of these so-called designer bakeries is the units of Numan bakery.