Despite the fact that according to assurances of the government sector the crisis had been over, and the development began, not many food companies can reach the pre-crisis sales of its products. It is connected with the sluggishness of consumer, whose life quality has decreased considerably as well as with the lost of dealer network. Many enterprises have to recover, and some even have to build everything from scratch. The items of the development of the food industry’s several sectors are considered in the latest issue of “Food Promotion. Prod & Prod”. Read in this issue:

At the moment there is a very unfortunate situation in the segment of meat products. Trying to fill the deficit through imports as well as very limited possibilities in the matter of supply to the world markets can lead to impaired development of the country’s meat-grocery complex. About this issue read in the article “The Passions for Pork” in the new issue of the magazine “Food Promotion. Prod&Prod” in detail.

Now to speak about the Russian meat industry as about adult, developed market sector is extremely difficult, because livestock husbandry has com into downswing, a truly modern high-tech industry is creating during this moment, and many things have to start from the ground up. Measures to protect the market from an overabundance of imported goods are necessary, that is to improve the quality and competitiveness of domestic goods.

Recently, downturn trend in the domestic beer market is protracting more and more. Sales have fallen by 6% during the first half, despite a fairly good growth in the economy as a whole. This is due to increased prices, thanks to the rise and growth of the excise rate up to 200% to 9 rubbles for litter of beer. In the latest issue of the magazine “Food Promotion. Prod&Prod” in the article “The Beery perspective” climbs one of the most pressing today’s issue - the decline in sales and key ways to promote at the beer market.

In anticipation of the intended increasing of taxes in late 2009 year the index numbers of shipments to distributors had advanced significantly, that affected the performance-breweries immediately. As a result, the production of beer decreased by 21,7% in the first quarter of 2010 year, and in money terms - by 28%. As a consequence, the market narrowing took place and production index toward to the previous year drop by 5,9%. The prospects did not look too bright. In the nearest future there will be a hearing about the amendments to the law “On regulations of the alcoholic beverages”. Most probably, in the first place it will touch the beer – all kinds of taboos, associated with strong alcohol, will now apply to the beer also. This situation has had a negative impact on investments in to the beer industry. Even long-established companies do not see much point in further development of their beer assets. Not too favourable situation of the recent years’ market has forced the major players to take some measures. According to the author of the article, the main strategy of brewing companies is to develop a full range of their brands with a large bias toward the premium and the ground segment. While some players have strengthened activity in the economy segment. Despite the fact that a few large multinational companies have reduced their participation at the Russian beer market, its lion’s share is being still concentrated in the hands of five powerful overseas giants belonging to the Scandinavian brewery concern Baltic Beverages Holding (BBH): Sun Interbrew, Heineken, Efes Beverage Group, SABMiller. Another more or less the major market participant is the domestic manufacturer “Ochakovo”, which in addition to the factory in Moscow, owns several branches in the regions. As to the non-standard beer, “Baltic” and SABMiller are leading here.

Not too favourable situation of the recent years’ market forced the major players to take some measures.Thus, in 2010 year “Baltic” placed its stake on more marginal brands. InBev’s management personnel decided to invest in support of its key brands, in particular, to increase significantly the number of television commercials. The Heineken Company tried to stop a loss of its market share due to increasing activity in the economy segment. As to the Efes company, its current success at the Russian beer market is largely due to a strong financial support of location during the crisis. In particular, these are the increased marketing costs.

The main methods of promotion, what are they? It’s no a secret that the beer is the product of an impulsive demand, that is why it is so difficult to promote. The most popular method was and remains an emotional advertising, based on jokes and funny stories. Or it can be an original idea of the product’s presenting. Another effective method is the emphasis on the production of beer made ​​from natural ingredients. In any case, the same idea is traced throughout all methods of promotion: that the beer – is a beverage that, above all, brings the positive emotions and good mood.

The editors would be grateful if the major players of the industry would express their views on this subject in the pages of “Food Promotion. Prod & Prod” on the magazine’s site.

At this juncture, there is quite a weighty problem to entrance to the other markets and territories. For example, Russian companies, wishing to export their products to Europe, are facing essentially the same problems as western companies entering the Russian market - the attainment of new spaces.

Penetration of the domestic companies in to the foreign markets depends on how actively they operate the tools of international marketing. Now to establish trade relations is the task of all: both Russia and Europe. But how to solve this problem is still unclear. The Russian companies go to Europe for exhibitions, the European embassies organize promotional events in Russia – all this aimed to build relationships in the global market. Not the least among the tasks assigned to embassies, consulates, diplomatic institutions and missions is the promotion of national brands and search for marketing channels of goods abroad. Shopping and commercial sections of the embassies contribute to the development of market relations in many ways. Employees of the trade departments are interested in advertising product and attracting Russian investments in to the national food industry. In order to draw buyer’s attention to a brand, exhibitions are organized as well as other promotional events. Journalists are invited at seminars and workshops; all events are covered in the official websites of the embassies. What is it for? The participation in the international exhibitions is a unique marketing approach that allows company to do business in foreign territories, without changing their own rules. Here the important thing is the activity of companies in promoting their products. It is the claim for themselves, for their business.

Competence of the embassies’ trade departments often helps its domestic producers to establish channels of notification, i.e. those channels there is their business. The result of the exhibitions is the dealers’ and buyers’ attention attraction to foreign brands. If ambassadors, who are the face of the state, do not afraid to recommend the product, so it’s really high quality product. And indeed, such scheme is successful extremely. It is no mere chance the magazine covers the variety of successful exhibitions and presentations in Moscow and St. Petersburg. As it is stated in the article “The diplomatists are regaled”, there were more than a dozen major exhibitions and seminars on the positioning of foreign food products in the Russian market only for two months of this year.

At present, the exhibitions are a unique opportunity to promote not only European brands in our country, but domestic brands in Europe. It is the ideal feedback with buyers and retailers. The author of the article “The Europe’s repine” writes about how German visitors respond about Russian goods at the exhibition “Green Week”, which was being held in Berlin earlier this year.

They were approvingly speaking of sweets, bread and, of course, caviar. Lard, bacon and smoked cheese are positively viewed of as well. Those visitors who said they would not buy Russian goods, simply skeptical about their quality or adhere to a vegetarian diet.

Thus, to establish relations in the world market is possible, but it is not so easy. Unfortunately, the most companies are still passive in the Russian market – themselves producers, themselves sellers. Whether Russian manufacturers are not able enter the European market and compete with local companies? Until now, it is an open question.

More about the problems of Russia’s entering in to the world market and the problems of European producers in the domestic market read in the new issue of “Food Promotion. Prod&Prod”.