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The cheese market and ways of its promotion

For today, the cheese domestic market of can be called as one of the most dynamic sectors of the food industry with full confidence. In recent years, a real fight for their place has turned among the producers. The magazine “Food Promotion. Prod & Prod” envisages the basic perspectives of the cheese market in the article “The Tidbit”.

Back in 2008th and 2009th years, the cheese market in Russia was developing with priority rates and was one of the most promising and attractive at the food area of the country, the article says. The crisis slowed down the positive dynamics of development, reducing the sales’ volume significantly. However, in 2010 the situation had changed dramatically and the growth of the cheese sector resumed once again. Russia changed the principle of taking import duties on cheese, by entering a single 15 percent rate. As it is reported in the article, this situation was to influence the redistribution of the ratio of imported and domestic cheeses in favor of the latter most likely, but things are not so simple practically. Imports of the cheese domestic market account still 45% still. Currently, the domestic cheese market has significant import content, so a talk about the practicable prospect of import substitution in this industry is not real unfortunately. A share of the foreign cheese products on the store shelves is up to 50%. A lack of adequate raw material and low consumption of the product is a reason for this. Just yet, none of the 150 domestic dairy have companies failed to create a powerful federal brand. Perhaps this is due to the fact that this segment of the Russian market is on-exchange still, where the price and not the brand play the main role. As a consequence, there is a lack of a development and a huge backlog of the domestic producers in all directions. Generally speaking, Russian commodity has only two major advantages over foreign competitors - low price and spontaneous awareness. Unfortunately, this can not be called as a strong position. According to the magazine’s authors, up to date, the Russian cheese market has a clear prospect of danger to be replaced completely by imported products. Most logical is to strengthen own positions in the most popular market segments, namely, in the niche of hard pressed cheeses. Therefore, there is the bitterest struggle here. The key players strive to build a competition the product’s quality, and it is impossible without creating a strong brand. A new trend should be find, which, on the one hand, would allow standing out from the mass counterparts, and on the other - to stay within the familiar consumer preferences. A way out is prepackaged cheese. This will give goods the private component, and will promote a brand.

The process of branding is at the initial stage and to say about the market’s consolidation is impossible still. Trends’ further development will contribute to its ongoing development and attractiveness. However, we can already pre-put an appearance of new major brands in Russia that will lead to increased competition and the widespread implementation of innovations.

More information about this issue, read the article “The Tidbit”, in the new issue of “Food Promotion. Prod & Prod”.