The strategic brand is identified
— 2005-03-01 —

Russian frozen convenience poultry market leader – Produkty Pitania Company – announces its new development strategy for 2005.

Development of the company will be administered in two stages, - says President Stefano Vlahovich. – The first stage objectives will be the construction of a processing facility and creation of technologic facilities that are unique in Russia. The second stage, that started early in 2005, will promote our Zolotoy Petushok as the most demanded trademark across Russia and CIS.

Demand for frozen convenience foods in Russia was grew substantially between 2000 and 2004. Production volume grew is 32% in 2004 alone. The company’s sales volume has exceeded average frozen convenience foods market growth rates and the company’s share in this segment has expanded.

As the fourth facility will launch operation in 2005 the total capacity will grow to about 600 tons of products a day.

In 2005 the growth rate of the market segment will slow down. Sales volume will grow owing to larger amount of added and consumer value products, including vegetable and vegetarian courses, as well as powerful intervention in the regions. Priorities for 2005 include the launch of the fourth facility, the improvement of market position through expansion of distribution, the promotion of Zolotoy Petushok trademark, and the increase of the importance of marketing and branding.

In 2004 certain sectors within the company were reorganized to streamline business processes. As a result Strategic, Corporate and Trade Marketing departments became independent divisions to carry out strategic planning and promote trademarks.

In 2004 the company introduced 11 new products in various categories including poultry and meat-based products as well as ready-to-eat dinners and hot snacks. Thus Zolotoy Petushok became the strategic brand dominating the brand portfolio of the company. Products under this trade mark represent 90 % of total sales of company products.