Spreads and fats diversify

Related tags Butter Poland Europe

The market for fats and spreads in eastern Europe is rapidly
diversifying, whilst rapidly expanding. Furthermore the latest
product launches from the Mintel databases in this segment indicate
that functionality is becoming increasingly important.

Euromonitor​ expects retail sales of spreads in Eastern Europe to total $1,175.4 million (€950m)in 2004, equivalent to a consumption per-capita of $3.5 mark. This figure is quite low if compared with developed markets such as Western Europe, showing a consumption per-capita of $12.

Russia and Poland, with retail sales of $760.3 million and $244.6 million respectively, are the most important markets. Russia is the market with the highest potential in the region and Euromonitor forecasts retail sales in this country to grow by 30 per cent in constant terms until 2009. Sales prospects look especially good in jams and preserves, with new premium-packaged lines meeting the new demands of middle and upper classes in urban areas.

In Poland, on the other hand, the best prospects are expected in chocolate spreads, where Euromonitor forecasts a growth of 20 per cent in constant terms until 2009. The current preference in Poland for Western-styled foods has made this spread a part of the weekly shopping of most households. Furthermore, new overseas manufacturers are expected to enter the country, after its recent adhesion to the EU. That will raise the profile of chocolate spreads in Poland, with the introduction of new premium lines furthering competition in a market overwhelmingly dominated by Ferrero's Nutella.

In Russia Bongrain is launching Ell a Vire Doux Unsalted Butter. This is a brand new launch onto the Russian market from the French dairy company of an unsalted butter that contains 82 per cent cow's milk. Launched as a premium butter, it will retail at $0.80 for a 200 gram slap packaged in paper and foil.

Also in Russia St. Petersburg's Factory is launching Cream Margarine. Packaged in paper and foil, the 250 gram portion is expected to retail for €0.25. The margarine is made from vegetable fats, sugar and salt, and contains an emulsifier and a colourant.

Meanwhile Meggle has introduced Die Joghurt Butter onto the Hungarian market. This is a low cholesterol butter spread that has been blended with yoghurt, resulting in what the manufacturers claim is a lower fat content. The spread has a 16 per cent butter content and is expected to retail for €1.44 for a 250 gram slab packaged in paper and foil.

Staying in Hungary we turn to Veszprémtej which is launching Teavaj Butter under the Bakony brand. This is a salted butter, that is claimed to have a slightly sweet taste. The brand new product launch is packaged in a moulded plastic tub that contains 100 gram of spread and is expected to retail for €0.83.

Finnish company Raisio has launched its much publicised cholesterol-free margarine onto the Polish market, calling it Margaryna Margarine. Raisio earlier this year said it wanted to push the product into new markets throughout Europe, and has chosen the largest central European economy for its latest platform. It is claimed that, with the help of plant sterols, the product is clinically proven to reduce cholesterol levels. It retail at €2.06 for a 225 gram serving packaged in a plastic-moulded tub.

This range of spreads is part of a selection from Mintel's Global New Product Database​.

Related topics Processing & packaging

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