From me, to you
There was a secret hope among market players in the praline category that the end-of-year gift-giving season would put sales back on an upward trajectory, but this hasn’t been the case for the market as a whole.
This article is available for reading in Trade magazin 2024/10
Fanni Fekete
product manager
Storck Hungária
“Sales in October and November showed a double-digit decline, staying well below the base in terms of volume, which couldn’t be significantly mitigated by the more favourable, consolidating December. Overall consumers have cut back on their spending and the year-end gift-giving instinct”,
informs Fanni Krisztina Fekete, product manager of Storck Hungária Kft.
Quality doesn’t go out of fashion
Consumer awareness and buying habits have changed in part as a result of the economic climate.
Zsolt Farkas
head of sales and marketing
Szamos Marcipán
“At the same time, our sales data indicate that demand for Szamos products in the premium category hasn’t decreased, but increased during the festive season”,
says Zsolt Farkas, head of sales and marketing at Szamos Marcipán Kft.
Pál Molnár
commercial director
Szerencsi Bonbon
Similar experiences were reported by Pál Molnár, commercial director of Szerencsi Bonbon Kft:
“Since we launched many new standard (non-seasonal) products in 2023, our normal sales have developed nicely every month, and our desserts performed well in the October-December name day and gifting period. We see a significant expansion, mainly in modern retail channels (discounters, supermarkets and hypermarkets)”.
The year-end “gifting urge” was largely absent in the praline category last year
Limited editions, new promotions
Storck Hungária isn’t planning any major changes to its praline range this year, but some popular limited editions that were successful in the past will be brought back in the second half of the year. A popular flavour in the Toffifee portfolio will return to store shelves. As for the merci brand, two limited-edition selections will hit the shops. Consumer promotions are something new in the strategy if compared with the past few years. In the spring Toffifee did a campaign with zoo-themed activities as Children’s Day approached, while merci implemented a promotion for 21 September’s World Gratitude Day.
Manufacturers have not seen any decrease in the demand for the premium category
Traditional products, modern marketing
Szerencsi continues to introduce new products and innovations to the market. As the manufacturers of the oldest, traditionally Hungarian confectionery brand, they are looking forward to the challenges ahead. They believe that the new gold and white, clean design and the renewed taste will meet the highest expectations of consumers. The company’s marketing focus is on new innovations and top products: desserts will be in the spotlight in the autumn and Christmas candy will take centre stage before Christmas. As consumer attention and presence are rapidly shifting towards the online space, the company is strengthening its presence there. Szamos Marcipán Kft.’s Zsolt Farkas says: “The newly developed Szamos Chocolate cream bonbons and Szamos Gourmet chocolate dessert selection – launched in mid-2023 – also proved that consumers continue to trust premium quality Szamos chocolates and desserts, regardless of the higher price position”. In the remaining part of 2024 the main focus will be on seasonal Christmas products: Szamos Christmas candies will be available in 25 flavours, in 6 different formats. //
Praline market: recovering after the cost-of-living crisis
The 2022-2023 cost-of-living crisis didn’t spare the praline category. Just like in many other markets, the average price of products increased significantly (the price per kilogram grew by 27% in H1 2023 compared to the same period last year), which has led to a change in purchasing patterns.
Krisztina Bakonyi-Kovács
senior product consultant
GfK Consumer Panel
On average fewer items were added to the basket per purchase, and even if the number of buying occasions increased slightly (we bought pralines where the price was better, even if this made another shopping trip necessary), the overall amount of products purchased in the category decreased. In the first half of 2024 – when the price increase dropped to their pre-crisis rate of 5% – purchasing patterns appear to be reversing. Shopping frequency is slightly lower than in the same period last year, but the amount of pralines put in the basket per purchase has increased, reaching pre-crisis basket sizes. The quantity bought remained stable throughout the last two years, typically 1-2 boxes, but during the crisis the demand for smaller sizes increased, while in 2024 we were again more willing to buy larger boxes of pralines. //
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