Wide gap in frankfurter prices

The market of frankfurters serves as a good example of complex and often incoherent consumer behaviour. Though consumers are increasingly concerned about the healthiness of ingredients, private labels show expansion. Brands have withdrawn from lower price categories and focus on innovations. The difference in price between the cheapest and the most expansive products is tenfold. The growth in sales is due primarily to the expansion produced by private labels which have achieved a combined market share of 40 percent in terms of quantity. – Demand for cheaper products will probably continue to grow as a result of the economic recession – says Zoltán Szántó, brand manager of PICK Szeged Zrt. As traditional flavours continue to dominate the market, the Füstli of SáGa Foods remains the leading product in this category. – It has a become a basic requirement that frankfurters should also be suitable for preparation in micro wave ovens, apart from cooking – says Róbert Emmer Róbert, sales director of SáGa Foods Zrt. Innovations introduced by brands are intended to ensure that these continue to represent higher value than private labels. Snack frankfurters, like Snacki by Saga represent a promising market trend. Healthy products without additives and colouring is the other main current trend. A 10-15 percent drop in prices is expected by the end of 2008. – It is a positive trend that consumers have begun to check what is written on labels carefully – emphasises Krisztina Bódi, marketing director of Kométa 99 Zrt. Consumer now realise that lower price means lower value. Kométa does not intend to join the price competition. Its products will continue to represent constantly high quality. This why consumers accept higher price. Prices in the category range from under HUF 300/kilo to over HUF 2,200/kilo. – A great diversity of frankfurters have appeared in the market in recent years – says Dr. Endre Tamás, managing director of Wiesbauer-Dunahús Kft. The market is highly polarised, with the largest part of consumers choosing the cheapest segment. December sales of the Bécsi hosszú frankfurter of Wiesbauer-Dunahús Kft are equal to sales normally generated in a quarter. – A positive change has taken place in consumer preferences regarding frankfurters for New Years Eve, with better quality getting more important – says Dr. Éva Pénzes, marketing director of Kaiser Food Kft. According to Mrs. Tamáskovits, marketing consultant of Merian Orosháza Zrt, consumer thinking is incoherent. Consumers check ingredients, additives and expiry dates carefully, but expect a low price at the same time. Product development by PICK Szeged is continuous. Development is aimed at fulfilling both consumer and retailer requirements, which can be quite different. PICK is present in several segments, including that of premium quality. PICK Békebeli is a premium product made with a minimal quantity of additives. PICK Mangalica is a traditional speciality. Scooby-Doo is aunique product line intended specifically for children. In addition to existing successful products (Füstli, Sajtli), SáGa Foods is also focusing on Falni jó!, launched this year. Traditional Bécsi hosszú is the leading product offered by Wiesbauer-Dunahús Kft for the end of year season, which is now also available in 1 kilo protective gas packaging. Bécsi hosszú had been the only product out of the 15 tested by the Consumer Protection Authority to receive an “excellent” rating and it was also given the Excellent Hungarain Food trademark in November. Kaiser Food has launched the high quality Kaiser Szilveszteri frankfurter for the season, which represents good quality at an affordable price. Kométa Bécsi is the most popular Kométa frankfurter product, which is now also available in 1 kilo size. In terms of ingredients, flavour and packaging, ORSI RETRO is similar to the first poultry frankfurters introduced 26 years ago.