All the way up

Pálinka production in Hungary has been growing for three years. Krisztina Kérdő, the senior brand manager of Zwack pálinkas told Trade magazin that pálinkas with honey and those aged on fruit bed are very popular. She highlighted the fact that regulation did not use the concept of pálinka with honey, despite that a large share of sales is realised by this segment. – Home distilling will hardly influence the market position of premium pálinkas in bars and restaurants. Consumers can now differentiate between home-made and professional pálinkas – says Miklós Juhász, marketing director of Zsindelyes Pálinkafőzde Kft. Henriett Filei, PR/communications director of Matheus Pálinkaház Kft. agreed that home distilling would not influence pálinka consumption in restaurants and bars, but it might slightly change consumption habits. István Banyári, managing director of Vecse Komplex Kft. highlighted that there are restaurants in the country that serve their own pálinka. Vecse Komplex also distils for customers who bring their own fermented mash and they did not have less work in 2010 than in 2009. What about pálinka export? Well, pálinka is not really known abroad yet and strong state-supported lobbying and marketing activity would be necessary for a breakthrough. The owners of Matheus plan to conquer the Austrian, German, Russian and Ukrainian market. Zwack concentrates on the domestic market with all three ranges (Zwack Sándor Noble Pálinkas, Hírös Kecskeméti, Zwack Kosher). Vecse Komplex‘s Dunai Hajós brand was successful abroad, but profit-wise this success was not significant. Zsindelyes’ experience is that pálinka is better known in German-speaking countries, but 2-3 years are needed until the big export breakthrough happens. In 2009 the consumption of quality pálinkas in bars and restaurants grew by 35-40 percent. The dynamic growth of the past couple of years is expected to lose momentum a bit, but innovative ideas and novelties can still increase consumption.