8 August 2008 – Smaller size and premium pastry products are becoming more popular amongst Russian customers, says Elena Belyaeva, Marketing Director at Harry's CIS, a subsidiary of Barilla-controlled group Harry's and a manufacturer of bread and pastry products.
Russia’s retail sales of sweet pastries amounted to 50,000 tonnes in 2007, a 3% drop on year in terms of volumes. Sales rose 8% in terms of value over the same period, a sure sign that expensive products are getting more popular and premium segments are experiencing growth.
Russia’s sweet pastry market is fragmented, counting many producers and brands, with regional players taking great importance at a local level.
In addition to Harry’s CIS, current leader on the Russian sweet pastry market with a 14% share (in terms of value), main players on the Russian sweet pastry market include Ramensky Confectionery, Bolshevik (which Kraft acquired off Danone in December 2007), Russkiy Biskvit, Hhlebny Dom (a Fazer subsidiary), Maharishi and Cheremushki.
Each segment of the sweet pastry market is developing in a different way. The standard roll market, for example, has experienced a 6% decline compared with 2006, whilst the mini-roll market has grown 8% over the same period. Harry’s CIS is market leader in the standard roll segment with an 18% share, whilst Ramensky leads the mini-roll segment with a 44% market share. Standard roll sales amounted to roughly 27,000 tonnes, vs. 5,500 tonnes for mini-rolls.
The cake segment, led by Fazer’s Russian subsidiary Hlebny Dom (25% share), is experiencing good growth and accounts for 12,000 tonnes of products. The mini-cake segment is dominated by Maharishi, RKK and Harry’s CIS, the latter accounting for a 20% share of the market. This sector experienced a decline in 2006 but started recovering in the autumn 2007 with a sharp increase in sales and the best results for the segment for the past year and a half. This trend confirms the popularity of smaller size products, which are more convenient and can be eaten as snacks.