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However, this is not a disadvantage. Some companies deliberately choose to work with a private label, as this makes it much easier for Western retail chains to access.
As Rolandas Taraškevičius warns. The Agricultural Attaché of the Republic of Lithuania in the Lithuanian Permanent Representation often does not read the label alone. You need to know what the codes written on it mean and what number Lithuania means. Otherwise, the country of origin will remain secret and you will not even suspect that the product is made in Lithuania.
For example, kefir or sour cream with the brands of the expat network. Only Viči brands and various dairy processors are seen there. It is more difficult for meat processors to export.
“I saw sausages in the ‘Russian’ store for emigrants, but the fact that they could only be understood from Lithuania by reading the label. Everything else is Polish meat products. Their sausage supermarkets are next to the Belgians. I guess their taste is more palatable to locals. Polish sausages are different. Even our real smokers when I bring it and give it to my Polish friends here to try, they don’t like it very much. For example, the meat is boiled first and only then is further processed. In the dairy segment, the difference is not so pronounced, “explains R. Taraškevičius and says that, to his knowledge, Viči is one of the few supplying products to retail chains. All the others They depend on intermediaries, often German, who supply many traditional and so-called “nostalgic” supermarkets.
Giedrius Bagušinskas, director of the Lithuanian Food Exporters Association, says there is such a trend that ours are in no rush to attack with their brands.
“We have stereotypes of individual products, such as a Finnish sauna, a Thai swimming pool, and Eastern European food for Westerners is associated with Poland. When Eastern European Days are held at Lidle in the UK, 95% of products from Poland. It is a large country with many producers and they have flooded the EU in large quantities. For example, Macedonia is very strong in the Balkans, but it is still absent in the West, “explains G. Bagušinskas and mentions other aspects.
Ethnic stores depend on migrants. Polish only mostly. Furthermore, there are simply more of them working in retail chains and enough in networks working in purchasing departments. This is how trade grows naturally, as ties with the country itself are strong.
“Another reason is the price because they work with large quantities. We are small, interesting, innovative, but not cheap. They have economies of scale, ”explains G. Bagušinskas, not us, but our neighbors.
As for why products in Lithuania are made under Russian brands, these products simply sell better. For example, we have a company that produces and packs toasted sunflowers, but the inscriptions are Russian because they are associated with Ukraine and southern Russia. The crisis in this segment of your brand is desperate. Customer networks know the buyer’s needs very well and deliver them.
Giedrius Bagušinskas
“In the West, Viči and Svalia are known, which are recognized not only by migrants, and Džiugas, in which there is a lot of investment. In the narrowest segment, “Kėdainių konservai” and “Dadu” ice creams are known. However, there are specific needs in these so-called nostalgic markets. For example, pickles are only in three-liter jars, bread is only black according to ancient technology, ”explains G. Bagušinskas.
As for the meat sector, our taste is closer to the former Soviet Union than to the West. As a result, few products are suitable for export and need to be adapted, which is difficult. An exception could be dry goods, sandwiches. This is a narrow segment.
Another problem is that we have a pork base, beef elsewhere. In the dairy sector, the products are much more similar. In addition, there are more standard products such as milk flour, condensed milk, ice cream. Changing packaging or flavor is much easier than, say, hot dogs.
“As a result, some processors have decided to work with their brands only in the domestic and nearby markets, and continue to simply provide a production service and produce under a private label. This saves a lot of money on marketing and sales, albeit with a much smaller margin, ”says G. Bagušinskas, who says there are enough companies in Europe that only have strong brands and outsource product production elsewhere.
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