Magazine: Cereal successes

By: Szalai László Date: 2021. 05. 25. 06:18

Last spring households were stockpiling different cereal products too, although not to the same extent. For instance various cereal-based bars were affected negatively by the lockdown.

Tamás Simonics
business development
Nestlé Hungária

Tamás Simonics, Nestlé Hungária Kft.’s business development manager told our magazine: family and children’s breakfast cereals and granolas were the engines of sales growth. Besides these, the popularity of healthy products increased too. This is the reason why Nestlé’s products are made of whole grain cereals with vitamins and minerals, and they contain no preservatives.

Granolas pushed forward

Dóra Csepregi
CCSD specialist
Nestlé Hungária

According to Dóra Csepregi, CCSD specialist of Nestlé Hungária Kft., Nielsen data shows that cereal bars, muesli bars and nut bars ended 2020 with a drop in value sales, while breakfast cereal sales improved by 12 percent and muesli sales soared by 21 percent, in comparison with 2019. What is more, a GfK survey has found that granola sales skyrocketed by 37 percent until November 2020, and this was only the segment where buying frequency also grew.

Hajni Bedő
marketing manager

Hajni Bedő, Cerbona Élelmiszergyártó Kft.’s marketing manager called our attention to the difference between the sales declines of various bars: in the case of functional products (gluten- and lactose-free, protein fortified) sales contracted less. Classic muesli bar is typically an impulse, on-the-go product, so this product segment suffered the biggest blow during the pandemic.

Production prices are on the rise, just like the demand for quality products

Discounters’ weight in sales keeps increasing in this product category too, and their private labels are the competitors of branded products. Ms Bedő informed that in line with the strengthening of the online channel, Cerbona launched its own online shop.

Attila Magyar, Mixit s.r.o.’s country manager (HU) talked to Trade magazin about growing product ingredient prices and the fact that shipping and labour costs increased due to the pandemic. He reported that shoppers aren’t afraid of more expensive, quality products any more.

While granola stepped on the gas, the former star, oatmeal hit the brakes

To the max

Stockpiling always generates increased demand for large-sized products.

Dóra Csepregi of Nestlé Hungária told: the company’s future innovations will also take this factor into consideration. Nestlé’s ‘maxibox’ products are featured in promotions more often, and they are get stronger sales and marketing support. In accordance with the changes in shopping behaviour, last year the company focused almost exclusively on displays in in-store communication. This was especially true for cereal bars – these are impulse products and there were negative market changes in 2020, so the company deemed it important to maintain visibility.

On account of the ever less shopping trips, larger packs got into the focus of marketing and innovation of manufacturers

Just the right product ingredients

We learned from Gyöngyvér Kiss, Dr. Oetker Kft.’s senior product manager that the number of new shoppers is decreasing in the porridge segment, where the role of innovation is crucial. This is the reason why Vitalis porridges are already available in 15 flavours and more will follow. Demand is growing for sugar-free and vegan product variants. Dr. Oetker’s latest product range, Vitalis Első Napsugár contains just the right ingredients: high-quality oat, cranberry and raspberry bits (for the red berries variant) or hazelnut bits and linseed (for the nut version), plus the agave syrup that is used as a sweetener.

A more youthful look

Cerbona hasn’t stopped innovating either: Hajni Bedő spoke to Trade magazin about launching new flavours in the gluten-free product range (both bars and porridges), and Cerbona will also unveil a new gluten-free oatmeal flour product, their protein fortified product range will go through a complete overhaul and in certain categories bigger products will appear on store shelves. The Cerbona brand’s image will fully renew – products will get a new packaging, there will be new communication and a new website too. Cerbona’s own online shop plays a special role in the brand’s communication and the new products will also debut here.

Functional wheat- and muesli bars proved to be more crisis-proof compared to classic products

Healthy alternatives

Habuda-Salyámosy Rita-Glatz Hungary

Rita Habuda-Salyámosy
marketing manager
Glatz Hungary

Glatz Hungary is the distributor of Emco mueslis and muesli bars. The company is expanding and modernising the selection of these. Alternative cereal grains, low sugar content and the use of healthy ingredients (e.g. superfruits, supernuts) characterise these premium products.

Rita Habuda-Salyámosy, Glatz Hungary Kft.’s marketing manager informed: the selection of special, for instance gluten- and sugar-free products is growing, but the company has also observed nominal sales growth. Developing healthy products is a priority in Glatz Hungary’s innovation work – these contain less sugar and carbohydrate, but more protein and vitamins.

Inspiring those who like to experiment

Mixit’s sales reflect the transformation of the market: Attila Nagy told us that the bulk of sales is realised by classic muesli and porridge products, but more and more shoppers are purchasing the company’s healthy snacks too, e.g. nuts and dried fruits in chocolate coating. Mixit’s innovative strategy greatly contributes to consumers’ willingness to experiment with mixing their own mueslis and porridges. Mixit isn’t afraid of unusual flavour combinations and they keep coming out with seasonal and free-from products. Since shoppers expect bigger product variants, the company has unveiled such products to satisfy this need.

Widening the range of tastes may hide significant potential

The art of communication

Zsolt Babocsai, co-founder of Viblance Hungary Kft. broke the news that soon all of their products will receive a new packaging, which communicates an innovative and healthy image. In 2020 volume sales by Viblance continued to stay on a growth path – thanks to starting to sell directly to consumers online in the spring sales have soon doubled and have been stable at this level ever since. In the light of this it doesn’t come as a surprise that they now give even stronger support to the online channel, and create more and better content for potential buyers. //

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