Focusing on innovation

Pastas are modern, healthy products, which can be prepared quickly and offer many possibilities. This is why pasta is the 6-7th most popular food category in Hungary. According to Nielsen data, the Hungarian market expanded by 2 per cent in terms of volume, in the 12 month period before March 2008. Owing to the rise in grain prices, this translated to a 20 per cent increase in terms of value. (Data from GfK Hungária shows that consumption in terms of volume dropped by 3 per cent and increased by 10 per cent in terms of value.) In terms of egg content, the market share of the 4 egg segment is stagnating, while the 2 egg segment is growing at the expense of the 8 egg segment. Pastas made with eggs still account for 80 per cent of the total market. In the opinion of Norbert Káhn, sales director of Gyermely Zrt., this is due to traditions going back centuries. Durum pastas also hold a stable position, with a market share of 10 per cent. According to Ákos Rédei, sales manager of Rédei ‘97 Bt., this is a very competitive market, where continuous concentration is taking place. While the number of manufacturers is shrinking, the number of distribution channels is also decreasing. In the opinion of Csaba Osskó, sales director of Mary-Ker Kft, no major changes have occurred in the last two-three years. – Occasionally, some retail chains attempt to create new categories by launching new global PL products, but local consumers generally do not welcome these – he explains. – Some smaller manufacturers have successfully begun to expand in recent years, which is good for competition – emphasises János Puskás, sales manager of Família 1997 Bt. All regions have their own local manufacturers, who are staunchly defending their positions. As Zoltán Soós, managing director of Soós Tészta Kft explains, the big rises in grain prices have resulted in a “compromise” regarding product features and prices, which has been accepted by both manufacturers and consumers. Public catering accounts for the largest part of pasta consumption in the HoReCa segment. Traditional pastas are still preferred, though durum products made without eggs are becoming increasingly popular. While most restaurants prefer quality, price is the priority in public catering. Restaurants are also more open to innovations. Italian style pastas are increasingly popular in restaurants. According to Vito Catale, managing director of Latinum Zrt, Hungarians have to learn to prepare quality pastas. Cooking pastas al dente has become accepted. The number of specialised products is growing. One of the most important types among these is pastas made from durum flour. Ferenc Sárik is convinced that durum pastas are ideal for health-conscious consumers, as they contain less calories and no eggs. The Korona Béres Alexandra product line has been developed jointly by Mary-Ker Kft. and Súlykontroll Kft. These pastas are made with durum flour and added egg protein. In the opinion of Vito Catale, the health trend enjoys far greater popularity in the retail sector, than in HoReCa. Gyermely Zrt. has a durum product line targeted at active and youthful consumers, marketed under the brand name Vita Pasta. Família Kft also manufactures coloured pastas and plans to launch a bio product line made without eggs in the future. The main product of Rédei ’97 Bt. is also bio pasta, including coloured versions and even a product line made with Omega 3 lentil sprouts. The product range of Sóós Tészta Kft includes products made with added Omega 3 fatty acid, or red paprika. With the increasing popularity of Mediterranean cuisine, demand for pastas is also growing. Though Hungarian consumers are still predominantly conservative, global trends are beginning to influence their preferences.