Myasnoy Rynok
— 2007-05-28 —
Interview with Damir Imamovic, Produkty Pitania Vice-President
- Are preserved foods in great demand today?
- As popular income is growing people tend to opt for fresh products, which trend negatively affects the preserved meat segment, which currently remains strong only in average minus and economic price segments.
Major producers of preserved meat rely heavily on demand from state organizations such as State Reserve, Ministry of Defense and others. Experts estimated that only 25-30% of population prefer preserved meat. Some of preserved meat produced in Russia is exported to CIS countries.
Sales drop most sharply in winter whereas they reach their apex point in summer as many people recreate in the country. Low-income categories of people also prefer preserved meat. As construction workers flood Moscow in warm seasons, they boost sales of preserved meat in Moscow.
- Are there any long-standing successful brands in the segment?
- The major producers are Borisoglebsky Meat Processing Plant, Buryatmyasprom, Glavprodukt, and Ioshkar-Ola Meat Processing Plant.
None of these major players have implemented any marketing strategy targeting creation of a strong brand. Main criteria that determine consumer choice in the segment are convenience of packages and traditionally strong name of the producer.
Packages, true information about products, product layout on shelves at stores – these are among the core aspects that stimulate consumer interest.
From the very start Produkty Pitania included Chicken Meat in Own Juice product in its Zolotoy Petushok product line and based its production on GOST 28589-90. We are committed to diversifying our presence in all market segments and promotion in preserved meat category happens with no special marketing efforts as Zolotoy Petushok trademark is heading forward.
Our internal production standards supersede Russian food industry standards in terms of product quality and this rule is just for all categories of our products.
- What innovative approaches do you use in preservation and packing of preserved products?
- Hard tins are the most common type of package but they do not let consumers see the product itself. There are alternative packages include glass twist cans, thick aluminum foil and plastic packages.
Produkty Pitania uses metal packages (aluminum and tin), which are hermetically sealed to ensure 2 years of shelf life at temperatures from 0 to 200 degrees Centigrade. Chicken Meat in Own Juice product from Zolotoy Petushok is sterilized at the temperature exceeding 1000 degrees Centigrade to ensure long shelf life.
- what are the prospects in development of preserved foods segment for the next 3-5 years?
- There will be no major advances in market growth rates. Market will grow mainly in the regions and Produkty Pitania focuses on regional markets rather than on major cities of Russia.
Preserved vegetables segment looks more optimistic. Redistribution of market shares is taking place in the preserved meat market with the upper price segment expanding and lower price segment shrinking, which produces market growth in monetary terms that exceeds market growth in natural terms.
The quality of raw materials is one of the main issues producers are expected to continue to face.
As the industry grows slowly major players prefer to diversify their product portfolios in other segments with the premium segment of delicacies and higher quality traditional products playing the major role.
The growth in preserved poultry exceeds the growth in preserved beef and pork.
In 2006 about 80% of the market belonged to local manufacturers with 20% of imported products. In the next several years the ratio will change to reflect further growth of domestic products.