Russia: «Rollton» in the rating «Finance-500»

Major producers and suppliers of foodstuffs and soft drinks on the Russian market are presented in the rating «Finance-500» listing the largest companies of Russia as to the volume of earnings in 2006.

The main ranging index of the rating is earnings, the most objective index of company’s business scale. Additional lists of major companies by assets amount, equity capital, net and operating profits, capitalization and the best ones by growth of earnings and profitability have also been made.

Trading house «Rollton» is presented among major companies in the rating (430).

(Finance, Sept. 2007, issue 36)

Russia: The experts are forecasting a growth of prices for the oil

The experts notify us beforehand that already from this autumn in the shops the oil can considerably rise in price. Before all it is connected with an extremely sharp growth of the prices for the raw materials, that is for the sunflower. The explanation is that the expenses for producing one ton of sunflower of new harvest are equal to 12 thousand of rubles — it is twice more than the last year index.

Respectively, the prices in the shops will increase also for the oil in bottles.

(AgroNews.ru, 05.09.07)

Russia: The demand for the liquid soups is growing

According to the dates presented by the company ACNielsen, in 2006 the sale of the soluble soups diminished by 25%. In the same time there is growing the demand on liquid soups. In 2006 this segment of market increased by one third, up to 600 mln. rubles. It is expected that in the current year the growth of the market will become slower.

There enjoy the popularity the trade marks «Rollton» (DNV-S), «Gurmania» (the company Mars), Knorr (Unilever), Maggi (Nestle), Gallina Blanca.

(Secret of the firm, august 2007, number 32).

Russia: There has been elaborated a new standard on macaroni foods

There has been elaborated a new standard on macaroni foods. The title of the document which now is passing the phase of public discussion is: «Macaroni foods. Methods of identification». This standard has been elaborated to simplify the control of trustworthy character of the information given by the manufacturers on the labels of their products. The document describes the methods of revealing admixtures in the macaroni foods, of determining the ash content, the content of soy-bean and corn flour.

(Confectionary and bakery production, 2007, number 7).

Russia: Trends of market of quick-cooking meals

Experts observe that the Russian market of quick-cooking products is slowing down its growth rate. The market remains highly competitive, however, does not grow by 25-30% per year as before.

Main market trends embrace the shift of demand to the segment of products of higher price brackets and a tendency to ecological compatibility and naturalness. Consumer perception is changing, i.e. quick-cooking products are not considered to be unhealthy and unpalatable any more.

Segments of ready-cooked frozen dinners and products entirely ready for consumption remain the most unsaturated.

(Moe delo, 2007, issue 6)

Russia: Noodles are the market leader of quick-cooking meals

Noodles remain the leader on the market of quick-cooking products accounting for 67.5% of sales in natural terms, according to the survey conducted by the company Nielsen in the cities of Russia with population exceeding 10 ths. people from February, 2006 to January, 2007.

It is followed by broths (9.6%), ordinary soups (8.7%), portion quick-cooking meals (7.8%) and instant soups (1.5%).

Experts observe seasonal fluctuations in some market segments. In particular, the sales of noodles in terms of volume go down insignificantly in winter months and reach maximum volumes in June-August. A similar trend is observed in the segment of ready-to-eat soups.

(Moe delo, 2007, issue 6)

Russia: MEDT creates a unified brand of Russian goods

Ministry of Economic Development (МEDT) is developing a program of creating a unified brand of the Russian foodstuffs going for export, i.e. ‚Made in Russia. Several tens of millions of dollars are supposed to be allocated for introducing domestic goods into foreign markets and it will take no less than six months to implement the program.

(Finance, June, 2007, issue 23)

Russia: Sales volume of salty nuts has grown by 8%

The total sales volume of salty nuts has grown by 8% in natural and by 13% in value terms in Russia in 2005-2006, according to the ACNielsen company.

The share of nuts sales on the market of salty snacks has grown by 22% up to 28% within the specified period. About 39.3% of the total demand for salty nuts in 2006 fell to grocery stores, 19.9% for supermarkets, 16.9% for stalls, 15.3%  for minimarkets. 4.4% of sales occupied open markets, 4,2%  pavilions. The annual growth of demand is evaluated at 30%.

Russia: MEDT offered a development concept until 2020

The optimistic scenario of the development concept of the Russian economy until 2020 developed by the Ministry of Economic development and Trade (МEDТ) forecasts GDP growth by 6.6% per year, the share of the middle class in the total population of the country from 20% to 52%.

The growth of average income per capita within this category is forecast from 20 ths. to 46 ths. rubles per month. The number of population will fall to 138 mio people.

The slowing down of the inflation rate after 2010 to 3-3.5%, the negative balance of trade with import exceeding export by US$ 72 bln. and the dollar growth rate to 31-32 rubles are forecast.

The conception was presented by the minister of economic development German Gref at the international economic forum in Saint Petersburg. It will be considered at the government session in the nearest time.

(Vedomosti, 13.06.07)

Russia: Snack market will grow to US$ 2.1 bln. in 2006

The year 2007 will see the growth of the volume of the Russian snack market by 15.6%, as compared with 2006, to US$ 2.138 bln. according to the forecast of the Euromonitor company.

The market capacity will increase to 373.4 ths. tons in natural terms. 135.5 ths. tons among them are going to fall to the crisps market.

(Commercant 08.06.07)

Russia: Deмand for brand development services is growing

Demand for consulting brand development services is growing in Russia, according to Angus Porter, Managing Director of international consulting agency Added Value Group.

Advertising market growth on the whole amounted to 20 percent in 2006, branding services segment increased by 45 percent. Porter regards a stable macroeconomic situation in the country, growth of actual income of population and development of credit services as a positive factor of branding market development in Russia. A negative factor is a high media inflation, which essentially increases companies’ expenses for creating new brands and maintaining the existing ones, according to him.

It is Porter’s opinion that Russian advertising agencies should right now pay attention to the world branding market trends. Consumers are becoming more exacting; competition is getting tougher and a brand is not playing the same role it used to play. The main task of marketing specialists is to preserve customer confidence to the brand.

(Expert, May 2007, issue 19)

Russia: Market volume of ready breakfasts is going up

Association Souzpisheprom values market volume of ready (dry) breakfasts as to results of 2006 at 135ths tons, or 16.9bld rubles.

Market growth accounted for about 4 percent and this trend will remain in 2007. At the same time company MEMRB/IRI values ready breakfasts market capacity (flakes, muesli, cushions) at 24.7ths tons, or 3.2bln rubles in 2006. Growth made up over 10 percent, as compared with 2005.

Porridge segment leaders, stimulating its constant development, include companies Nestle Russia and Bistrov. Aladushkin Group, Angstrem, Bishop, Russkiy Produkt, Raisio, Image also work in this segment. Products of companies Nestle Russia, Souzpisheprom, Fiesta, United Bakers and others are present in other market segments, such as muesli, flakes and the like.

(Novosti Torgovli, June 2007, issue 5)

Russia: Competition on ready breakfast market is getting tougher

Tougher competition is expected on the Russian market of ready (dry) breakfasts, first of all in the middle price segment.

This will happen due to the appearance of new players, according to Elena Podbolotova, marketing director of company Ratio Nutrition. Growth should be expected in all market segments owing to the appearance of new products and technologies, according to Anvar Anvarov, head of ready breakfasts branch of company Nestle Russia.

At the same time advertising activity of ready breakfasts manufacturers went down in Russia in 2006. The only exception was company Nestle Russia that increased TV advertising, according to TNS Gallup AdFact.

When choosing ready breakfasts consumers pay attention to popularity and recognition of a brand or a manufacturer, Mr. Anvarov emphasizes. Next most significant factors embrace quality, taste and healthiness of a product. Growing popularity of a healthy way of life and proper nutrition may also influence priorities when choosing a product.

(Novosti Torgovli, June 2007, issue 5)

Russia: Rusks market slows down growth rate

Growth rates of the Russian rusks market start slowing down, according to experts’ estimates.

Rusks market volume amounted to 9bln rubles in 2006, according to ACNielsen data. Market capacity in natural terms exceeded 60.5ths tons. Average annual market growth rate made up 10 percent in volume and 7 percent in financial terms. Corresponding indices stood at 18 percent and 15 percent accordingly in 2005.

(RBC Daily, 31.05.07)

Russia: FAS will choose system of advertising pricing

The Federal Antimonopoly Service (FAS) intends to choose a system of pricing control in the end of June, 2007 on the Russia’s advertising market, first of all on the TV advertising market.

FAS has in particular approved of the idea of media audit as a pricing system offered by market participants. At the same time the Service does not intend to decline the idea of setting up an advertising exchange, which will make it possible to introduce a new way of selling and pricing control. Advertisers are supposed to pay 0.1-0.3 percent of each deal on the exchange.

Russia: ACNielsen about the consumers’ market

According to the dates presented by ACNielsen, the growth of the Moscow consumers’ market in monetary terms is equal to 11% in comparison with the year 2005.

The foods occupy 73% in the total sales volume of consumption goods. (12% of the growth in comparison with the year 2005). The greatest segments of the foods market are the strong drinks — 41% of the total sales volume (9%), confectionary — 18% (9%), milk products — 16% (18%), tea and coffee — 8% (14%), species and sauces — 5% (13%), snacks — 4% (22%).

The 48% of Moscow inhabitants prefer making their purchases in the foods shops (-2%), the 17% — in the hypermarkets (+2%). The most visited are the shops of step-by-step accessibility. And it is to be added that the 35-65% of consumers do not feel adherence to certain brand of products.

(RBC Daily, 28.05.07)

Russia: Sunflower-seed oil makes up 95 percent of total oil output

Sunflower-seed oil output is annually increasing in Russia.

So, if output stood at only 1.35m tons in 2000, this figure reached 2.6m already in 2006. Output growth amounted to 92.6 percent for the last six years. Sunflower-seed oil makes up the substantial part of the total oil output, i.e. 95 percent.

(RBC. Market research, 25.05.07)

Russia: Snacks are bought in food shops

Non-chain food shops were the main places of buying snack products in Russia in 2006, they were chosen by 48 percent of pollees, according to the Euromonitor International research.
Supermarkets and hypermarkets occupied the second place as to their popularity, i.e. 27 percent. 14 percent of the pollees bought snacks in discounters.

(Russian Food Market, May 2007, issue 4)

Russia: Fruit snacks segment is rapidly increasing

Fruit snacks segment will be rapidly growing in Russia during the next five years, according to the experts’ forecast. Consumption of these products regarded as useful for health went up by more than 27 percent in 2006.

The market share of fruit snacks makes up 1.5 percent of the total volume of the Russia’s snack market in value terms. The segment grew by 26.8 percent in 2006 in value terms and by 18.3 percent in natural value.

The leading trade marks in the sector are "Natural Products" (Moscow Company "Natural Products";), "Gifts of Nature" ("Moscow Nut Company"), Good-Food (the "Good-Food" group), "Chydo-frukt" ("Fincom", Moscow).

(Russian Food Market, May 2007, issue 4)

Russia: Special features of nuts and seeds consumption

Russia"s market experiences a stable growth of consumption of the so called natural snacks, i.e. nuts, seeds and dried fruits, according to the estimates of experts.

Demand for these products is of seasonal character, market fluctuations may average out at 30-40 percent.
Five nuts types are now of stable demand, i.e. peanuts, pistachios, almond, cashew and filbert. Demand for walnuts lies much lower and is connected with their frequent use in cookery.

Demand for exotic nuts, nut cocktails and nut and dried fruits mixtures will grow within the next few years in Russia.

(Moyo Delo, April 2007, issue 4)

Russia: Promotion of ready meals brands in 2006

TNS Gallup Media, a research company, has calculated advertising appearances of "Rollton" and "Kukhnya Bez Granits" companies in Moscow in 2006.

The "Rollton"; company advertised its products 17042 times, 16981 of them - on television. The main emphasis was placed on promoting BIGBON (9409 TV appearances plus 2884 appearances - the «Big game» action) and "Rollton"; brands (7260).
"Kukhnya Bez Granits" placed 7489 advertisements in 2006, including 7483 - on TV. The bulk of advertising falls on such brands as "Business-menu" (3329 TV appearances) and "Big Lunch" (3329).

(Industriya reklami, May 2007, issue 7)

Russia: Market of quick cooking products is growing

The Russia’s market of quick cooking products exceeds at present US$1bln and increases annually by 20 percent according to the experts’ estimates.

At the same time 50 percent of the market falls to Moscow. The market is divided approximately in equal parts between Russian and foreign manufactures but western companies such as Nestle (Maggi trade mark), Unilever (Knorr), Eurofood (Gallina Blanca) are leading. Analysts explain it by the fact that foreign manufactures invest substantial funds in research and development (R&D).

Working women of 25-55 are the basic consumers of quick cooking products in Russia, women of 25-34 are the most active in this group. The segment of ready meals is now developing best of all, according to Alexander Sokoloverov, head of marketing department of trading house "Rollton". However, premium products are not of demand yet.

(RBC Daily, 28.04.07)

Russia: Crisps market increased by 19 percent in 2006

Crisps market in Russia went up by 19percent in 2006 (to 12bln rubles as compared with 2005), according to ACNielsen.
About 50 percent of the market is controlled by the Frito-Lay company, sales of which increased from 4.3bln to 5.8bln rubles in 2006, according to the experts’ estimation.

The five great players include also Kraft Foods (the Estrella trade mark), manufacturer of crisps potato "Russian product"; (the "Moscow Potatoes"; trade mark), "Russian snack company"; belonging to the Scandinavian group Chips Abp and Bridgetown Foods.

39 percent of the Russians buy chips according to the TGI-Russia survey. The share of the snack consumption decreased in 2006 by 1 percent. Products in packages of 70g, 90g or 160g are more popular than those in packages of 30g.

(Sekret Firmi, April 2007, issue 15)

Russia: The wholesale price for the rice has grown by 25%

During the time of ban on the import of rice, introduced by the inspection Rosselkhoznadzor on the 4 of December 2006, the wholesale prices for the cereals have increased by 25%.

As it is said by the market participants, the small shops can cease the trade of imported rice already this week, if its deliveries are not recommenced in the total volume. In the same time the large commercial networks — in particular, the "Zviozdochka" and "Okay"   expect to keep the assortment and prices for the cereals on the former level. But neither they exclude the possibility of increasing prices, if the wholesale prices for rice grow considerably.

Russia: Krasnodar Territory will increase rice production

Krasnodar according to plans to increase in 2007 rice crop capacity up to 60 centners per hectare.

According to the Governor of the according to Alexander Tkachev, this year average rice crop capacity at the region was 56 centners per hectare – the total crop was 640 thousand metric tons rice or 70% from the total crop in the country. In the Governor's opinion, Russia is able to produce as much rice as it is required for complete satisfaction of the exiting demand for this culture.

Russia: Fast food products popularity rating

"Business-rating" marketing agency carried out research of fast food products consumers’ preferences.

According to questioning of consumers, noodles are in the greatest demand among Russians. They are preferred by 70% of questioned consumers of that category of products. 22% of consumers buy mashed potatoes, porridges of fast preparation are bought by 8% of them.

Russia: «Rollton» is the most popular noodles brand

"Business-rating" marketing agency carried out at the end of 2005 research of knowledge about and consumption of noodles of fast preparation in Russia.

It was found out as a result thereof that the most popular among consumers are products manufactured under «Rollton» brand — they are preferred by 57.2% of consumers. Recognizability of the brand is 73.1%. the rest of pattern of demand of noodles of fast preparation looks as follows:
brand / recognizability / consumption
Doshirak / 68.1% / 40.9%
Alexandra and Sophia / 33.2% / 17%
Anacom / 26.6% / 14.3%
King Lion / 36.8% / 14.1%
Quisty / 32.6% / 14%
Big lunch, Business-lunch / 28.2% /10.4%

Russia: The market of porridges of fast preparation will grow

According to forecasts made by Angstrem experts, within the next few years the market of porridges of fast preparation in Russia will grow by 10-15% in monetary terms.

At the same time, unpackaged and unbranded products consumption share will decrease against the background of growth of demand for groats processed additionally.

Currently capacity of the Russian market of porridges of fast preparation is estimated at US$ 400 million. The total groats market in Russia is annually about US$ 1.1 billion or 1.5-1.6 million metric tons in terms of volume.

Russia: There have been named the best grocery products

The best goods in the category “Grocery” were rewarded within the bounds of the competition “Packing and label”, which took place in the course of Moscow International Festival of advertising.

The gold medal was attributed to the spices Aroma Ragusea Corporate Identity. The silver medals were got by the line of vegetable preservation Vegda. The bronze rewards were got by the muesli WOM Pretty Woman (producer – “Fiesta Service”), as well as by the pistachio Grizzly.

Russia: There is growing the demand for the products in small packets

According to the evaluation made by the market participants, during the recent time in Russia there is notified the growing demand for products in small packets, as well as for sliced products (fish, meat, sausage), against the background of the simultaneous decreasing popularity of the “family’s” packages. The manufacture of the products in dearer packets having smaller weight is becoming more preferable for the manufacturers and is promoting the growth of the company’s sales, evaluated either in natural or in monetary form.

By the opinion of analysts, a product in a small packet, whose weight is by 30% less than standard one, creates the illusion of gaining in price. Furthermore, the consumers prefer to buy a good which is completely ready to its consumption, what permits to economize the time.

Russia: Some companies will unit the deliveries of the palm oil

The important operators of the Russian oil-and-fat market are going to unit the purchases of the palm oil with the purpose of guaranteeing the uninterrupted deliveries of this imported raw stuff from the South-East Asia and of economizing on the tankers freight.

In the negotiations there are participating “Efco”, “Sun products”’ NMZhK and “Cargill”. As it was said by Sergey Ivanov – General director of the holding “Sun products” – it is planned to choose a logistic company, good for everybody, which will be able to give the necessary guarantees. The total needs of the four indicated oil-and-fat companies are evaluated as equal to 40 thousand tones every month, what just corresponds to the standard displacement of the tankers with double walls – the unique ones in which, in accordance with the new norms from 2007, is admitted the transportation of oil products.

Russia: The market of liquid soups has an enormous potential

The market of liquid soups in Russia has an enormous potential, as it is indicated by experts.

In accordance with the data presented by the company Mars, now the capacity of this market is equal to some tens of millions of dollars every year, and the rate of growth is 50%. Conforming to the forecasts made by Aleksandr Sokoloverov – the Head of the Marketing and advertising department of the company “Rollton” – potentially the market of liquid soups in Russia can grow considerably.

Now the leader in the segment of cooled soups is the company Mars with the brand “Gurmania”, whose share reaches up to 90% of sales. Else 10% of the market are occupied by the soups Knorr (Unilever), “Rollton”, as well as by the soups of some small regional fabrics of preserved foods.

Russia: The statistics committee ROSSTAT about the foods production within a half-year

In accordance with the data presented by Rosstat, in January – June of 2006 the enterprises of food industry produced 30,4 thousand tones of food concentrates ( the production diminished by 5,6% if compared with the analog period of 2005), 512,9 thousand tones of macaroni foods (+ 5,4 %) and 52,1 thousand tones of bakery yeast ( - 14,2 %).

Russia: In the first quarter the production of macaroni grew, that of bread fell down

According to the dates presented by Federal Statistic Agency (Rosstat), in the first quarter of 2006 on the territory of Russia were manufactured 248.5 thousand tons of macaroni products, what is 8.7% more if compared with the analogue period of 2005. In January–March of the current year were manufactured 1 million 836.2 thousand tons of bread and of bakery products, what is 1.9% less than the indices for the first quarter of 2005. During the indicated period the manufacturing of baker’s yellow in the country decreased by 13% — down to 25.7 thousand tons.

Russia: 25% of Russian people among the flour confectionary prefer biscuits

As it was notified to the newspaper MK in Moscow Institute of Merchandises Motion Investigations, in the recent years Russia was the absolute leader in the consumption of the flour confectionary. It exceeds European countries by 30–40%/. And more exactly: among the flour confectionary 25% of Russian people prefer biscuits, 22% — rolls and cup cakes, 18% — wafers, 11% — honey cakes, 10% — sponge-cakes, 8% — buns, 7% — rusks and ring-shaped crackers.

Russia: “Rollton” enters the market of tea and coffee

DHV-S, a well-known producer of snacks and fast preparation products (“Rollton” trade mark), intends to become a major player in the Russian market of tea and coffee in the medium price segment.

According to the Director of marketing Alexander Sokoloverov, DHV-S registered a new Rolben trade mark, under which it will sell leaf and packaged tea, as well as instant coffee, intending to occupy 5% of each of those markets within the first year of operations already.

Currently the Rolben products are manufactured to order abroad, and DHV-S started to construct a plant near Moscow planning to manufacture there about 1.8 thousand tons of tea, coffee and fast preparation products per annum.