Sweet Spreads in Russia

PROSPECTS

Jams and preserves is set to stagnate in retail volume terms

Jams and preserves is the biggest category and accounts for approximately half of volume sales of sweet spreads. The category posted some declines in volume terms during the economic downturn in 2015 and 2016.

Honey is expected to demonstrate moderate volume growth

Honey is the second biggest category and accounts for approximately one third of volume sales of sweet spreads. The overall potential for honey production in Russia is high due to large territories where melliferous plants grow.

Chocolate spreads is small, but the fastest growing category in volume and value terms

Chocolate spreads is quite a small category and accounts for less than a sixth of total volume sales of sweet spreads. The category posted very significant volume and value declines in 2014, 2015 and 2016, which was as a result of several major factors: the economic recession accompanied by a decrease in disposable incomes and an overall increase in retail prices in Russia, and a significant price rise for different types of chocolate products as a result of an increase in the prices of cacao beans.

COMPETITIVE LANDSCAPE

Ratibor is the clear leader in jams and preserves

Ratibor – the leading Russian manufacturer within sweet spreads – offers under its Ratibor brand a wide product range of jams and preserves prepared from different berries and fruits: raspberry, strawberry, apricot, peach, gooseberry, cranberry, cherry, blueberry, blackberry, blackcurrant, orange, pear, kiwi and pineapple, among others. The company has strong positions in retail and is represented in different Russian regions.

Honey is a highly fragmented category with a large number of independent players

Honey is represented by a great number of small companies responsible for honey gathering and further product processing. Although Medovy Dom leads honey with its key brand of Dedushkin Uley, overall brand power in the category is low.

Ferrero Russia’s Nutella drives category development in chocolate spreads

Ferrero Russia’s Nutella is the key brand in chocolate spreads and accounts for approximately two thirds of total category value sales. After declining in both volume and value terms in previous years due to the economic recession, Nutella enjoyed very strong volume and value growth in 2017 and 2018, thus driving overall category volume and value growth.

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