Deli counter meat product sales are revitalising

Despite lobbying by the Hungarian Meat Industry Federation, meat products were not included on the list of products with a reduced VAT. Although the 5 percent increase is not catastrophic in itself, it is another straw on the camel’s back. Whether it is the last that breaks it depends on which company we are talking about. – Changes in the VAT regulations definitely push consumers toward cheaper, lower quality products, so first price products and private labels are expected to increase their sales. The premium category will shrink a bit, buts not as much as the medium category. Traditional Hungarian meat companies are forced to shut down – says Ildikó Paróczi, marketing manager of Zemplén-Hús Kft. According to Tamás Lovász, marketing manager at Sága Foods, significant structural changes are about to come. Prices in the premium category (cured meat products, hams) are predicted to increase more drastically, forcing consumers to purchase from lower-priced categories (pariser, wieners and classic cold cuts) instead. Dr. Éva Pénzes, marketing director of Kaiser Food Élelmiszeripari Kft. reveals that despite the bigger share of self-service deli and meat products, sales at deli counters are radically increasing, mainly because of lower prices. The company tries to react to this new trend and move toward deli counters. In the red meat category they will launch a new five-unit product line, Kaiser Weight Control, promoting a healthy diet. At SáGa the product portfolio is monitored constantly, independent from the VAT change, at the same time offering solutions with a high added value to their costumers. Kométa keeps modifying its assortment so that changing consumer demand is met, they highlight the importance of their products’ good price-value ratio, therefore cost cutting is not among their priorities. – We focus on a higher level of efficiency instead. Our brand message remains the same: Kométa products are of excellent quality – says marketing manager Krisztina Bódi. SáGa Foods monitors the efficiency of their marketing activities and shapes its marketing and communication mix in accordance with their findings. Each activity and product launch is planned carefully in order to optimise marketing tools. – We conduct market surveys, analyse data and consult our retail partners – says Tamás Lovász. Quality improvement on the market is an on-going process, irrespective of economic hardships, therefore smaller companies which specialise in premium products are able to stay on their feet. – We need to do what we are best at. Expanding the product ranges which are among the best, horse meat products and cured products – points out Ildikó Paróczi. At the moment they are switching to more modern packagings, both in terms of packaging material and design. Several products will appear sliced on trays. They intend to use reclosable protective foil with some products; these are more expensive to produce but definitely increase consumption safety, since the taste and aroma of products are preserved longer. Wiesbauer-Dunahús is also a firm believer in quality. – I think products in the medium price category will suffer the effects of VAT increase the most. Our customers are premium buyers, they are probably willing to pay 5 percent more for our products. It is a great advantage for us that Puszta debreceni, Bécsi long wiener and Túra cold cut belong to the Quality Food From Hungary category – it boosts their sales – says managing director Dr. Endre Tamás.