Bakers keep on baking

The increase in the price of baked goods resulted in stronger competition and created a situation for market players where they can operate profitably. Product structure is slowly but steadily changing in right direction. As for consumers, they are receptive to new products but the majority of sales is still realised by standard products. Dr Zoltán Tóth, managing director of Lipóti Bakery told our magazine that in the years of recession new bakeries appeared in the market, offering baked goods in various qualities. In Hungary the average sales price of fine baked goods is below 1 euro, while in Western Europe it is more than 2 euros. Lipóti’s product selection consists of as many goods as any bakery west of Hungary, they even sell gluten-free and low carbohydrate products. Pek-Snack Kft.’s managing director János Galántai opined that bakeries must keep coming out with new products, but the bulk of turnover still comes from classis shapes and tastes as only really creative new baked goods can conquer customers’ heart. He called our attention to the growing number of in-store bakeries in discount stores and to the many new players in the market of small, quick-service exhibition bakeries.

Dr Tóth believes that there will always be demand for good quality baked goods. In his view quality always sells and in the long run quality products don’t generate high marketing costs either. He informed Trade magazin that 70 percent of Hungary’s population has at least one Lipóti Bakery close to where they live and Lipóti products are consumed by half a million people every day. Being part of the chain guarantees a strong brand name, top quality baked goods, a product structure customised to market demand, a modern image, an operating know-how and a development opportunity to partners. Lipóti’s experience is that Hungarian consumers have already started buying quality baked goods, thinking of their health when choosing what to buy. Mr Galántai agrees that the market is slowly shifting towards healthier and more traditional products. Each market player sells some of these but customers only react to measurable extent to radically new shapes and flavours. Lipóti Bakery uses state-of-the-art equipment but firmly believes in the added value of the workers. Pek-Snack Kft.’s managing director stressed that these days it isn’t profitable to open a bakery that only sells baked goods: some bakeries also serve as cafés or small shops. Pek-Snack Kft. relies on loyal customers and with the growing popularity of fast food products counts on further increase in sales.