Cheap imports? Another pasta…

The spreading of modern stores is taking its toll on regional pasta brands. As the number of small stores decline, the market of regional brands shrinks. The expansion of private labels and the recent drastic rises in the prices of materials are also a problem for major domestic manufacturers. The invasion of imported pastas at the time of our accession to the EU was defeated by Hungarian taste, which prefers pasta made with eggs. According to Nornert Káhn, sales director of Gyermely Zrt., pasta made with eggs enjoys unique popularity in Hungary. Pasta has become one of the ten most frequently consumed foods. – Pasta is one of the basic foods, which can be prepared quickly and not really subject to trends favouring convenience – says Márta Galácz, marketing manager of Cerbona Zrt., Though average prices are increasing, prices of materials have risen even more rapidly and prices still no not reflect the changes in costs. Smaller manufacturers may be seriously effected by the increase in the number of modern stores, as only powerful manufacturers and brands can hope to be successful in large stores. – Even major brands find it hard to find their place in large chains – adds Márta Galácz. This is especially true for discount chains, where private labels dominate. Though the number of smaller manufacturers is expected to shrink, those who are successful in technological or marketing innovation will continue to play a role in the market. Importers of quality products can also find their place in the market. Latinum Zrt. is a distributor of Italian pasta and participates at events like the Italian Weeks. Their main brand building tool is promotional packaging. They try to fill market gaps, like the one filled by products made with durum grain. Italian pasta is not however, expected to dominate the Hungarian market in the foreseeable future. Demand for reliable quality Hungarian products is constant. .Gyermely Zrt. has invested over HUF 4 billion in an automated production plant during the past three years, which is to be followed by the modernisation of packaging technology. In the field of marketing, they will continue their “Programfaló” loyalty campaign aimed primarily at younger age groups, which began last year. The current innovation introduced by Cerbona is the product line made with added fibre and four eggs, intended for health-conscious consumers. A promotion using guaranteed gifts will be held in hyper markets and supermarkets in June and July.