Do you want it sliced and packaged?
Higher production costs, problems with ingredient and packaging material supply, workforce issues on the production side, a shift in retail channel preferences on the consumer side, new consumer expectations and shopping habits – COVID forced cold cut and Bologna makers reconsider many things in their market strategies.
Only pre-packaged
In the last 12 months Zimbo Perbál Kft. has been only selling sliced and pre-packaged Bologna and other cold cuts. Managing director Hedvig Szakács told: this was a good decision as the pandemic strengthened the already existing consumption trend. Zimbo makes pork, ‘spring’ and beef Bologna and Zala colt cut. Discounters and private labels (PL) have a considerable share in sales, and the majority of PL cold cuts are just as good as manufacturer brands. Meat content is very important for consumers, but there is no definite premiumisation process taking place in the category. In 2021 Zimbo’s Zala cold cut finished first in the independent test of the blog called ‘Maradok a pénzemnél’.
Tastier product, new look
Károly Kovács, plant manager of Privát Húsfeldolgozó Kft. reported growing demand for pre-packaged cold cuts in multinational retail chains and discount supermarkets, and he has also sensed a premiumisation process in the category. The company has been busy with development work recently, focusing on using fewer additives and no allergens in products, and on optimising the taste experience offered by Privát’s Bolognas and cold cuts. They also gave products a new, livelier look.
Complex answers to the new challenges
Zsolt Németh, commercial director of Húsüzem Kft. talked to our magazine about the new challenges, which require regular efficiency increasing, the realisation of price increases, recruiting and keeping new workers, and the development and launch of new products at the same time. The company has recently improved its quality assurance system and has earned the right to us the ‘Domestic Product’ marking. They started making sliced products and are currently working on replacing frozen product ingredients with fresh ones. Húsüzem Kft. has commenced focusing more on manufacturing free-from products as well. From early next year they will appear in discount supermarkets with equalised midi products. //
Pre-packaged Bologna is more popular
Bologna sales were worth more than HUF 32 billion in the examined period, as this category realised 9 percent of processed meat sales. Bologna value sales were up 1 percent, but volume sales dropped 4 percent. Hungarians purchased 27,000 tonnes of Bologna. Pork Bologna is the most popular and 55 percent of value sales are pre-packaged products. //
The above article has also been published in Issue 2021/12-01 of Trade magazin.
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