The Produkty Pitania Story...
— 2007-03-12 —
Produkty Pitania is Russia’s leading frozen foods manufacturer, serving consumers there for more than a decade. And in a national economy that is constantly evolving, the company is committed to not only meeting, but also exceeding customer demand when it comes to quality and convenience at an affordable price.
In 1998, the company made the decision to build its own production facilities in Kaliningrad, chosen for its highly favorable climate as a free trade zone, along with its easily accessible location. And even though Produkty Pitania turned to foreign investors in the face of Russia’s then shaky economy, it is now a full-fledged Russian corporation, entirely compliant with Russian trade laws.
And today, the company continues to adhere to this approach, having now also erected its own storage and distribution facilities, thereby ensuring the most up-to-date manufacturing and quality control systems to support an ever-expanding product line. What’s more, by using Kaliningrad as its home base, Produkty Pitania has reduced its product costs by as much as 25% - a factor that President and Founder Stefano Vlahovic attributes to the region’s “ideal economic environment.”
“As a major investor there, our company has a great deal of influence over Kaliningrad’s industrial and socio-economic future. In fact, I chair the Foreign Investors Association of Kaliningrad, an organization that was established in 2005 to stimulate the region’s investment prospects.”
Production and Distribution
Currently the company’s production facility includes three shops, which produce 48 types of products. Its largest and most recently built production shop is still in the experimental stage, with the ultimate goal of increasing production capacity there to around 600 tons of products a day.
In 2006, Produkty Pitania signed a $200 million investment agreement to construct its new plant in Gusev – a record figure for the Russian frozen foods market. The project, which officially breaks ground this year, will mark the company’s entry into the Kaliningrad region’s new business sector.
Yet another important area of development for Produkty Pitania is its company-owned distribution network, which now stretches across Russia, and includes sizeable logistics centers in the Moscow and Kaliningrad regions, as well as in the Krasnodar territory. The company has also announced near-future plans to open another distribution center in Novosibirsk – while similar projects are under consideration in the Urals around Yekaterinburg.
Produkty Pitania’s Vice-President, Damir Imamovic, asserts that a well-designed logistics system ensures product quality control at the delivery stage - a major competitive advantage on the consumer end – while also supporting the company’s significant presence in the regions.
As Imamovic points out, “Modern convenience products are very different from what they were in the past. As consumers grow more and more scrupulous in their demand, manufacturers strive to deliver the very best quality at an affordable price.”
So by continually adding new products to its line, and improving upon existing ones, Produkty Pitania remains on top of – and even ahead of - consumer demands and overall market trends. Vice-President for Marketing Tea Grguric explains the philosophy behind her company’s branding system. Zolotoy Petushok is its mainstream brand, primarily targeting middle-income customers; while Domashnaya Skazka is designed to compete in the generic product market. And both brand lines rely on chicken as a core product component.
According to Vlahovic, frozen chicken entrees are the most popular category of convenience food among European customers – a trend that continues to drive Produkty Pitania’s strategic growth and development. With that in mind, the company invests a great deal of time, money, and expertise in appealing to Russian consumer tastes and budgets by diversifying its product portfolio.
In 2005 Produkty Pitania upgraded its Zolotoy Petushok line with an expanded assortment of frozen vegetables, hot snacks, and pasta-based foods - which at the time were unique for the national market. Then in 2006 the company introduced yet another Zolotoy Petushok product line: gourmet entrees, including such Russian favorites as Cutlet with Cheese, Kiev-style Cutlets, and Cordon Blue with Mushroom Filling.
It also unveiled its Breaded Barbecue Sticks, packaged under its generic Domashnaya Skazka brand. And in the future, Produkty Pitania plans to unveil a selection of “ready-to-eat” foods – such as Grilled Wings - that require no cooking, as well as a few new homestyle recipes.