Palinka reborn

By: trademagazin Date: 2006. 11. 20. 08:00

Palinka has definitely benefited from EU rules regarding protection of origin. New flavours and designs keep appearing in the market, helping to boost sales.
Since Hungary became the sole country entitled to use the name “palinka”, the market has seen a boom. Major brands began building up the prestige of the product by focusing on premium quality. Authentic fruit palinka is becoming increasingly popular, but low-quality clones still dominate the market.
– Palinka is a growing category in the market of spirits – says Miklos Juhasz, marketing manager of Kaiser 200 Kft. They have expanded their assortment from only six types to almost 30 within a few years. Their premium brands, with the latest innovation, Bio-palinka among them, are made in the Zsindelyes Distillery. – Hyper markets are open to the idea of listing palinkas, but they are not yet as enthusiastic as they are regarding wines. Though gondolas and shelves have become more decorative and premium brands are displayed separately in many stores, low quality and premium brands still often appear together – he adds.
Consumers seem to prefer hyper markets and specialised stores, when they wish to buy authentic palinka. Premium fruit palinkas are not really for discount chains, as these are far more expensive than artificial spirits, made using aromas.
Demand for quality fruit palinkas, especially with special flavouring is growing. An exceptionally high duty had been lifted off imported spirits after our accession to the EU and this has made a lot of room for playing with prices. – Several factors might have contributed to the increase in average prices. Pressure from imported competition was not the reason for investing in innovation. It was the result of our intention to draw attention to this truly remarkable product. – pointed out Miklos Juhasz.
Zsindelyes Distillery will present its new products, Bio-palinkas at the Foodapest exhibition.
Boldogko Fruit Kft. has chosen a different way to introduce its palinkas in the premium segment:
BESTILLO palinkas in nine different flavours will be available in restaurants and specialised stores, with palinka experts.

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