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Thursday, June 29, 2017

The Chinese choked the Russian chocolate

Zeroing of import duties on 3-5% on basic ingredients for the production of chocolate products (cocoa paste and cocoa butter) is significantly encouraged domestic confectioners this spring. The industry is thus freed from the financial burden amounting to more than 1 billion rubles by the end of 2017. Russia increased its export of sweet to China. And after the austerity of the Russians pulled on the sweet, demand revived. Center for research of the confectionery market (ZIKR) then stated optimistically: “the Confectionery industry of Russia has passed the bottom of the crisis in March and April celebrates the restoration of its many key performance indicators”. But in the fall it became clear that sweet economic miracle have not happened. There are two reasons — the impoverished Russian people buy in stores is primarily a product of vital necessity, indulging in chocolate and other candy delights. And affluent Chinese people simply overeat Russian chocolate.

photo: pixabay.com

Nevertheless, the confectionery industry is still alive. However, under the pressure of protracted crisis, and reorientation of the interests of the consumer there have been a number of changes. But what? Let’s deal together with the Executive Director of CICR Elizabeth Nikitina.

The reasons lie in the past. The sharp fall of the ruble in late 2014 — early 2015 and stun the growth of prices for bakery products against the impoverishment of the Russians led to a significant reduction in our spending on sweets. Consumers were forced to switch to more available and less expensive. Recall that last year, the chocolate rose on average by almost 40%. Particularly affected then the “premium” segment, the import has decreased dramatically. It is quite logical. Why seek, when his funds barely enough.

According to experts, the slight recovery in demand for “confectionaries” in the spring of this year was a temporary phenomenon. Despite the reduction of the dynamics of prices in two times (compared with 2015), it is still significantly ahead of food inflation. Why? The price of cocoa-the raw materials remain very high. And despite the fact that import duties on beans were cleared in 2005, oil and pasta — at the end of February 2016.

Let’s say that chocolate is now a product not for everyone. However, if you look at the sign, the question arises. Why the year went up once democratic caramel — almost 17%? The expert’s response is simple: “It is rather inertia, since sugar is also more expensive in the beginning of the year, now the prices have been adjusted”. Well, Yes, I forgot that sugar from January to mid-August rose by 9.5% and, respectively, the caramel more than 8% (according to Rosstat).

And yet, despite all the negative trends since the beginning of October “MK” noted the increased interest in sweets. In any case, in the capital. Increasingly popular among Muscovites become private candy shelves. And for good reason. First, there do not lie, buy the freshest. Plus no need to pay for packaging 250-300 g, since it is possible to buy candy in bulk. The staff strictly monitors changes in customer preferences and generates an order for delivery tomorrow. And the range is not only limited to Moscow. On the counter there is Peter (Zephyr, drying, bagels), Penza (gummy slices, crackers), Voronezh (gingerbread), Kursk also started to look into it. Of the imports there is just one position below and the rich to please.

As reported by “MK” at one point, after the summer lull, now the middle class “podnyal” chocolates. A special demand for the products of capital’s three confectionery factories. And the grandmother-the pensioner not far behind, preferring the soft candy with chocolate is cheaper (with various fillings) and caramels.

An independent source told “MK” that the purchase price of chocolate candy in the capital days decreased by 5%. However, in the retail sweet products are not going to go down. Especially on the eve of the New year. December for confectioners and retailers is the peak season, so they need a certain reserve. Exhausted after all the holiday spending consumers in January, will show a sharp decline.

Experts of the confectionery market expect that by the end of the year the demand for sweets will be enough as gifts for the New year, the Russians simply do not have enough money.

When your choice will give you under the Christmas tree as a gift a chocolate bar instead of the usual “bling”, get it right. Because the yard is still raging crisis.


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