Russian Pouch Market
Delivering solutions, shaping the future.
Russia- Overall S.U.P.
 Industry Background
o
2011 Stand Up Pouch Units: 1.693 billion units
• 2011-2016 CAGR % Value: 9.3%
• 2011-2016 Absolute Value: 946 million units
 Consumer, Market, Packaging Trends
o
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Growth in hypermarkets transforms packaged food
environment
Growing interest in Western brands
Health and Wellness is an influential trend
Delivering solutions, shaping the future.
Russia- Overall S.U.P.
 Largest Categories
Rank
Category
2011-16 CAGR % Value
2011-16 Value ($Million)
1
Sauces, Dressings, Condiments
5.4%
$310
2
Cat Food
16.2%
$306
3
Confectionary
13.1%
$222
4
Dog Food
9.4%
$26
5
Dairy
15%
$38
 Fastest Growing Categories
Rank
Category
2011-16 CAGR % Value
2011-16 Value ($Million)
1
Alcoholic Drinks
50.40%
$0.20
2
Baby Food
16.70%
$1.70
3
Cat Food
16.20%
$306
4
Dairy
15%
$38
5
Spreads
13.10%
$1
Delivering solutions, shaping the future.
Russia- Baby Food
 Industry Background
o
2011 Stand Up Pouch Units: 1.5 million
• 2011-2016 CAGR % Value: 16.7%
• 2011-2016 Absolute Value: 1.7 million
 Consumer, Market, and Packaging Trends
o
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Improving economy results in growing baby food spending and increased
demand for value added products
Little to no regulations on advertisements
Gaining popularity due to convenience
Prepared baby food being consumed by athletes and on-the-go youth as well
Increased product availability in different retail channels (i.e.
super/hypermarkets) is restricting unit price growth
Liquid standard milk and soy based special formula considered niche products
Environmental friendliness not a considerable trend
Category dominated by international marketers
Birth rate rose 23% since 2006 accounting for increase in baby food sales growth
• However, still considered too low for stable future development. Government expected to
use stimulus for future births.
Delivering solutions, shaping the future.
Russia Baby Food Flexible Market
Nutricia
Progress
Unimilk
Flexible Stand-up Pouch
$3.75(6x1.24 oz)
Tetra Pack
$0.50 (.13 g)
Tetra Pack
$0.59 (7.27 oz)
Nutritrek
Hero Gida
Flexible Foil Material
$1.42 (8.82 oz)
Flexible Laminate
$2.80 (8.82 oz)
* No Stand Up Pouches currently on market according to gnpd
Delivering solutions, shaping the future.
Russia- Top 10 Baby Food Marketers/Current Packaging
6) Hipp GmBH& Co
1) Wimm-Bill-Dann
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•
Market Share 2006: 16%
Market Share 2010: 18%
2) Nestle Russia
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Market Share 2006: 13.2%
Market Share 2010: 15%
3) Istra-Nutricia
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Market Share 2006: 9.8%
Market Share 2010: 13.3%
4) Unimilk
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Market Share 2006: 2.5%
Market Share 2010: 9.76%
5) Progress
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Market Share 2006: Market Share 2010: 8.76%
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Market Share 2006: 3.6%
Market Share 2010: 2.43%
7) Heinz Russia
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Market Share 2006: 3.06%
Market Share 2010: 2.34 %
8) Nurtitek
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Market Share 2006: 3.62 %
Market Share 2010: 2.3%
9) Semper
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Market Share 2006: 1.98%
Market Share 2010: 1.69%
10) Faustovo
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Market Share 2006: 1.5%
•
Market Share 2010:
Delivering solutions, shaping the future.
1.6%
Russia- Potential Baby Food Pouches
 Companies that utilize S.U.P. in other categories
or geographies
o
Wimm-Bill-Dann
Russia- Baby Food
Plastic PP Tub
$0.76 (3.53 oz)
o
Russia- Dairy
Flexible Stand-up Pouch
CT Closure
$0.65 (3oz)
Hipp GmbH & Co
Russia- Baby Food
Glass Jar
$2.19 (5.76 oz)
Delivering solutions, shaping the future.
UK- Baby Food
Flexible S.U.P.
$1.45 (3.5 oz)
Russia- Potential Baby Food Pouches
o
Heinz
Russia- Baby Food
Tetra Pak
$1.62 (7.06 oz)
o
N.A. - Baby Food
Stand Up Pouch
$1.58 (4.33 fl oz)
Nestle
Russia- Baby Food
Glass Jar
$1.92 (7.02 oz)
Delivering solutions, shaping the future.
N.A. - Baby Food
Stand Up Pouch
$1.47 (4.33 fl oz)
Russia- Cat Food
 Industry Background
o
2011 Stand Up Pouch Units: 273 million units
• 2011-2016 CAGR % Value: 16.2%
• 2011-201 Absolute Value: 306 million units
 Consumer, Marketing, and Packaging Trends
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Metal packaging is perceived as convenient
Number of domestically owned pets is increasing
Despite economic downturn, Russians still willing to
pay premium price for wet cat food in pouches
Delivering solutions, shaping the future.
Russia- Cat Food Market
Iams
Brit Care
Nestle Purina
Flexible Stand-up Pouch
$21.19 (3.31 lbs)
Flexible Stand-up Pouch
$5.49 (14.21 oz)
Flexible Stand-up Pouch
$0.51 (3 oz)
Nestle Purina
Mars
Metal can
$2.11 (6.88 oz)
Flexible Stand-up Pouch
$1.32 (3 oz)
Delivering solutions, shaping the future.
Russia Top 10 Cat Food Marketers
 Mars
 Nestle Purina Petcare
 Aller Petfood
 Nestle
 Velikonovgorodskiy Myasnoy Dvor
 Zoogurman
 Velikonovgorodsky Miasnoy Dvor
 Arovit Petfood
 Polteks
 Effem
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Russia- Sauces, Dressings, Condiments
 Industry Background
o
2011 Stand Up Pouch Units: 1.023 billion units
• 2011-2016 CAGR % Value: 5.4%
• 2011-2016 Absolute Value: 310.2 million units
 Consumer, Marketing, Packaging Trends
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Mayonnaise remains most popular, followed by ketchup
Average unit price of sauces, dressings, and condiments rose by
8% in 2011
Salad dressings show the greatest potential for growth with a
volume growth of 10% in 2011
Consumers are switching from economy to standard brands
Popularity of wet/cooking sauces expected to grow
Health and wellness trends have significant influence on
category
Delivering solutions, shaping the future.
Russia- Sauces, Dressings, Condiments Pouch Market
Skit
Unilever
Heinz
Flexible Stand-up Pouch
CT Closure
$1.54 (15.22 fl oz)
Flexible Stand-up Pouch
CT Closure
$1.70 (8.2 oz)
Flexible Stand-up Pouch
CT Closure
$0.98 (8.2 oz)
Efko
Il’inskoye
Flexible Stand-up Pouch
CT Closure
$1.43 (15.22 fl oz)
Flexible Stand-up Pouch
CT Closure
$0.33 (7.78 fl oz)
Delivering solutions, shaping the future.
Russia- Sauces, Dressings, Condiments Pouch Market
 Compared to other packaging formats
Unilever
(Tomato Sauce)
Glass bottle
CT Closure
$1.22 (17.65 oz)
Flexible Stand up Pouch
CT Closure
$2.02 (19.42 oz)
Efko
(Olive Mayo)
Plastic PET Jar
Cap
$1.61 (13.53 fl oz)
Flexible Stand up Pouch
CT Closure
$0.81 (13.53 fl oz)
Plastic PP Tub
Cap
$2.29 (30.43 fl oz)
Delivering solutions, shaping the future.
Russia- Top 5 Sauces Marketers/Current Packaging
 Unilever (stand up pouch, 8.2 oz)
o
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2006 Market Share- 5%
2010 Market Share- 11%
 Heinz (stand up pouch, 8.2 oz)
o
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2006 Market Share- 3.9%
2010 Market Share- 4.4%
 Essen Production
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2006 Market Share- 1.3%
2011 Market Share- 4.0%
 NMZhK GK
o
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2006 Market Share- 2.3%
2011 Market Share- 3.8%
 Efko (stand up pouch, 13.53 fl oz; plastic bottles, 27.39 fl oz)
o
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2006 Market Share- 3.1%
2011 Market Share- 3.7%
Delivering solutions, shaping the future.
Russia- Dairy
 Industry Background
o
2011 Stand Up Pouch Units: 37.6 units
• 2011-2016 CAGR % Value: 15%
• 2011-2016 Absolute Value: 38 million units
2011 SUP with Closure Units: 1.3 units
 Consumer, Market, Packaging Trends
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Cheese is the largest and fastest growing dairy category, however other dairy
products show the faster growth in S.U.P’s
Glass packaging demonstrates the highest growth rate of 21% in 2011 due to
growing health awareness and demand for premium products
Post-recession market regeneration contributed to healthy dairy growth in 2011
Manufacturers attract young buyers with novel packaging
“Family-Packaging” is popular; Larger sizes, smaller prices
Manufacturers tend to make transparent flexible closures so consumers can see
products such as cottage cheese , yogurt, etc.
Consumers looking for quality packaging that provides long and safe food storage
•
Aseptic packaging not widely used, but moving towards that direction
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Russia Dairy Pouch Market
Wimm-Bill-Dan
Ehrmann
RostAgroKomplex
Flexible Stand-up Pouch
CT Closure
$0.65 (3oz)
Flexible Stand-up Pouch
CT Closure
$1.72 (3.18oz)
Flexible Stand-up Pouch
CT Closure
$1.22 (8.12 oz)
Verkhovskiy MolochnoKonservnyy Zavod
Porechskki
Flexible Stand-up Pouch
CT Closure
$1.03 (8.802 oz)
Flexible Stand-up Pouch
CT Closure
$1.17 (12.71 oz)
Delivering solutions, shaping the future.
Russia Dairy Pouch Market
 Compared to other packaging formats
RostAgroKomplex
(Sour Cream)
Plastic PP Tub
Cap
$0.51 (8.82oz)
Flexible Stand-up Pouch
CT Closure
$1.22 (8.12 oz)
Delivering solutions, shaping the future.
Russia- Top 5 Yogurt Marketers/Current Packaging
 Danone (PET plastic bottle, 10.24 oz; plastic PP tub, 6oz)
o
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Market Share 2006- 19%
Market Share 2011- 30.6%
 Wimm-Bill-Dann (HDPE plastic bottle, 3.53 oz; stand up
pouch, 3 oz)
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Market Share 2006- 23%
Market Share 2011- 22.7%
 Ehrmann (glass jar, 17.6 oz; plastic HDPE bottle, 14.34 oz;
stand up pouch, 3.18 oz)
o
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Market Share 2006- 3.6%
Market Share 2011- 3.4%
 RoyalFrieslandCampina (no gnpd examples)
 Molvest (tetrapak, 1.06 pint)
o
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Market Share 2006- 1.3%
solutions, shaping the future.
Market ShareDelivering
2011- 2.6%
Russia- Top 5 Milk Marketers/Current Packaging
 Wimm-Bill-Dann Produkty Pitania OAO (PET plastic bottles, 32 fl oz; tetra
pak, 17.65 oz)
 Danone Group (PET plastic bottles. 10.24 oz)
 Molvest ZAO (Plastic HDPE, 33.53 oz)
 Milkland NV (Plastic lined carton, 16.1 oz)
 Galaktika GK (tetra pak, 2.21 lbs)
Delivering solutions, shaping the future.