Remarks on the frozen food market review
— 2015-05-11 —

Vice President of “Produkty Pitania” Company Damir Imamovic

Will the market of frozen foods grow in the future and how much?

According to 2014 results and analytic assessments, growth of the meat frozen food market is fixed at the level of +8,5% in volume terms. With a high degree of certainty we can speak about maintenance of growth rate by the end of 2015 (not less than by 3-5% in volume terms).

Firstly, sharp strengthening of Russian Rouble lowered inflation expectations and slightly revived demand. Secondly, retailers partly agreed to sacrifice their interests which let us avoid a decrease in demand because of shocking rise in prices. Thirdly, the fast food sector may once again become a beneficiary from a crisis in Russian economy. This sector in its turn generates considerable demand for frozen foods. Fourthly, prices for meat raw materials begin to stabilize, and the market gets the first consignments of goods from the countries which earlier were “closed to supplies”. Fifthly, consequences of the economic crisis to a less degree affected buying activity of residents of Russian large cities and, above all, of metropolitan area which account for the major consumption of meat frozen foods. And finally, meat frozen foods remain affordable for their regular customers.

If there is no significant deterioration in Russian economy by 2015 (for which there are some prerequisites), not final demand but the deficit of inexpensive meat raw materials may become the major factor influencing the Russian market of meat frozen foods as demand will definitely shift toward affordable but high-quality products. Traditional groups of commodities such as Russian meat dumplings, cutlets, chopped frozen goods will remain the leaders in demand.

How does your company follow these changes? Do you change your range of goods?

In present conditions given risen financial difficulties customers certainly prefers cheaper goods. But in large cities the major factor of option for our production is still good value for money.

Also I should notice that some producers cut production costs by switching to ingredients of lower cost which, in fact, means saving in quality. That’s not our tactics. We still believe that, as before, today the winners are the producers who place their stakes on high quality of production for reasonable cost, inter alia, amid the crisis.

The major goal of our company is high quality of our production. We will keep following this principle.

For more than 17 years of work we have gained a wide experience in production of high-quality frozen foods under TM “Zolotoy Petushok”, ready-made meals and lasagna under TM “Rossiyskaya Korona” which have proved to be high-quality products.

We will keep maintaining consistent high quality of our production and will not change the original range of goods for a cheaper alternative.