Yoghurt and Sour Milk Products in Russia

PROSPECTS

Traditional sour milk products see the sharpest decline in volume

Sour milk products account for more than half of total category volume. Volume sales of traditional sour milk products, such as kefir, ryazhenka, prostokvasha have in the latter part of the review period, owing to significant increases in retail prices and growing consumer anxiety about low quality dairy products produced from powder milk or with the addition of vegetable fats, like palm oil.

Yoghurt volume declines slightly in volume

Both drinking and flavoured yoghurt saw declines in volume in the latter part of the review period, with strong declines in flavoured yoghurt than in drinking yoghurt. Similarly to other dairy categories, increasing retail prices and doubts about product quality were the key reasons for this trend.

Growth in volume of functional and fortified products

Growth in volume of functional and fortified products is in line with the growing health and wellness trend, and rising demand for products with high nutritional value. Danone Actimel and PepsiCo Immunele are key brands which have been successful in Russia for more than 15 years.

COMPETITIVE LANDSCAPE

Small local producers and private label lines are growing in sour milk products

In 2016 and 2017, retail prices increased quite noticeably for a number of key sour milk brands, in line with the overall price increase for dairy products. As a result, consumers have switched to more affordable local brands and private label.

Epica – new brand in drinking and flavoured yoghurt, driving the category

Epica is a new brand in drinking and flavoured yoghurt, launched by Ehrmann in Russia at the end of 2016. The brand has seen success in both categories, and has an especially strong position in flavoured yoghurt.

Sloboda brand expands into drinking and flavoured yoghurt

Sloboda is a well-known Russian brand, which has existed for more than 10 years and is available in a number of categories, such as vegetable oils, mayonnaise, ketchup and sauces. The brand has strong positions in all these categories due to its appealing product characteristics – taste, flavour and consistency, as well as its positioning as offering fresh, natural products.

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