Need for renewal among frankfurter brands

Private label products have been increasing their share in the market of frankfurters so far. This however, has lead to brand manufacturers increasing their efforts in the field of innovation. The end of the year will bring a rise in prices which will be good news for brand manufacturers. The last days of December are still the main season for frankfurters. According to Dr. Éva Pénzes, marketing director of Kaiser Food Kft., we can be sure that we’ll see some “bombastic” prices this year as well. The question is which manufacturer will be able to deliver quality as well? The category of premium frankfurters has been strengthened in the course of the past 3-4 years. Most of the expansion has taken place among packaged, self-service products. At the same time, changes have also taken place at the other end of the market, with no name frankfurters being displaced by cheap, but reliable quality private labels. – Private labels have achieved a huge increase in market share last year – says Zoltán Szántó, brand manager of PICK Szeged Zrt. According to data from Nielsen, their market share has grown from 17 per cent to 22 in terms of value. Zoltán Szántó believes that there are two ways to fight private labels. The long term solution is brand building, but this requires regular and expensive marketing communication. The other option is constant innovation. New flavours and packaging can provide added value which consumers are willing to pay for. This however is only a short term solution to the problem. – The most effective long term strategy is a combination of the two – he says. There is a third option: if brand manufacturers also produce frankfurters for retail chains. – We manufacture two private labels and we are satisfied with sales – says Dr. Éva Pénzes. – I think PL is something we have to live with – she adds. Kaiser Food joined the Alexandra Béres Weight Control program this year with five healthy products. PICK Szeged Zrt. focuses on premium frankfurters. Its PICK frankfurters are available in four versions in uniform 200 gram size packaging. Their other brand is Délhús, with frankfurters in digestible skin (Délhús Roppanós) and plastic skin, as well. These are available in protective gas flow packs.