Review of Russian Ice Cream Market
Ice cream is perhaps the most common and the most liked dessert in the world. Today anybody can find a treat to fit personal likings in a wide product range offered both by domestic and foreign manufacturers. Summer is coming to bring the heat, so let's see how Russian ice cream market performs now.
In 2013 Russia produced 372.2 thousand tons of ice cream. This volume was by 3.6% smaller against 2012 when production volume constituted 386.3 thousand tons. In Ql 2014 domestic production of ice cream constituted 73.7 thousand tons in volume with 2.1% year-to-year increase. Production dynamics correlates with natural seasonal fluctuations — you would rather want ice cream when it is 25-30 degrees of heat than at 15 degrees of frost.
Despite impressive volume of domestic production, Russian ice cream market is open for foreign suppliers. In 2013 Russia imported 10.6 thousand tons of ice cream worth S43.2 million. In comparison to 2012 ice cream import saw increase both in volume and value — respectively by 28.9% and 30.4%. This year the trend of import increase continued. In Ql 2014 ice cream import constituted 2.3 thousand tons in volume (+28.6% over January-March 2013) and $9.1 million in value (+17.9%). Dynamics of ice cream import is not quite settled and demonstrates natural seasonal fluctuations with peak of supplies in May and summer months and minimum import volume in winter.
The average import price of ice cream in 2013 ranged 3.62 $/kg — 4.83 $/kg. Comparison of prices registered in 2012 and 2011 reveals obvious seasonality of price dynamics: in autumn, winter and spring imported ice cream does not offer very attractive prices while in summer prices are significantly lower. In the beginning of 2014 the average import price of ice cream was declining and already in February 2014 it was less than 4 $/kg.
In 2013 the largest importer of ice cream to Russia was France with 16.7% of supplies. Second important supplier was Latvia with 12.6% of import. Switzerland was on the third line in this rating with 12%. The leaders were followed by Ukraine (10%), Spain (8%), Belgium (7.1%), Poland (5.3%), Germany (5.3%) and 18 other countries.
In Ql 2014 distribution of import between supplying countries changed a lot. Serbia went up to the first line with 18.5% of import; in Ql 2014 this country supplied more ice cream to Russia than it did during 12 months of 2013. Switzerland went to the second line with 12.6% and Ukraine — to the third with 10.6%. Top three suppliers were followed by Latvia (9%), Poland (8.1%), France (7.6%) and 15 other countries.
Among importing manufacturers in 2013 the largest supplier was "Nestle" controlling 16.6% of import. On Russian market the company offers ice cream brands "Movenpick" and "Nestle". Sec-ond large foreign manufacturer was "Mars Chocolat" with 16.4% and such brands of ice cream as "Bounty", "Snickers", "Mars" and "Twix". "Rigas Piena Kombinats (Dairy Complex of Riga)" was on the third line with 12.4% of import and ice cream brands "Banana Stick", "Eklselence", "Pols" and "Nu Fruit". Ukrainian company "Lasunka" LLC was the fourth large supplier of ice cream to Russia in 2013; the company sells to Russia ice cream TM "Lasunka" and controls 10% of import.
In Ql 2014 "Nestle" remained the leader among foreign manufacturers of ice cream operating on Russian market; share of the company increased to constitute 35.6%. Ukrainian "Lasunka" went up to the second line with 10.6%. "Rigas Piena Kombinats" remained on the third line with 8.9% of import.
Ice cream export from Russia constituted 4 thousand tons in volume and $15.2 million in value in 2013. In comparison to 2012 export of the review category increased by 9.2% in volume and by 8.6% in value. In Ql 2014 Russia exported 560.2 tons of ice cream (+36% over January-March 2013) worth $1.9 million (+25.4%). Export dynamics is subject to seasonal fluctuations — in hot months demand for ice cream grows in any country for obvious reasons.
Kazakhstan is the largest buyer of Russian ice cream but data on foreign trade with this country is not considered. Therefore, the most important destination country for export of Russian ice cream is Mongolia. In 2013 this country received about 57.8% of officially accounted export of ice cream. Data of Russian Customs Service; foreign trade with Byelorussia and Kazakhstan not considered. Abkhazia was on the second line with 13% of export, Azerbaijan — on the third with 7.3%. The leaders were followed by Ukraine (6.1%), Kyrgyzstan (3.1%), Israel (2.5%), USA (2.2%), China (1.8%), Estonia (1.6%) and 11 other countries.
In Ql 2014 share of Mongolia in Russian export of ice cream increased to reach 73.2%, Azerbaijan went up to the second line with 7.4% and Ukraine — to the third with 4.1% of export volume.
"Novokuznetsky Khladokombinat (Cold Store Facility of Novokuznetsk)" OJSC (Kemerovo Region) was the leader among exporting manufacturers of ice cream in 2013. The company sells abroad ice cream TM "Snezhny Gorodok (Snow Fort)" and controls 27.1% of export volume. "Laguna Koil" LLC (Moscow Region) was on the second line with 10.4% of export; the company mainly exports ice cream TM "Russky Kholod (Russian Frost)". Third large exporter of ice cream from Russia in 2013 was "Angaria" Fabrika Morozhenogo (Ice Cream Factory)" LLC (TM "An-garia") with 7.8% of export. "Inmarko" LLC (Saint Petersburg) was on the fourth line with 6.5% of export and a wide range of ice cream (TM "Dzhemka", "Zolotoy Standart (Golden Standard)", "Russky Raz-makh (Russian Scale)", "Magnat (Tycoon)", "Ekzo", "Fishka", etc.). The group of top five Russian exporters of ice cream also included "Fabrika Grez (Dream Factory)" LLC (Nizhny Novgorod) with cognominal ice cream brand and 6.3% of export volume.
In 2013 visible domestic consumption of ice cream constituted 378.8 thousand tons or by 3.1% less than in 2012. In Ql 2014 consumption volume in the review category increased to constitute 75.4 thousand tons against 73.6 thousand tons in Ql 2013 (+2.4%). It can be assumed that size of ice cream consumer base practically does not change.
Natalia Krylova (Analyst in the company "WS")
"РОССИЙСКИЙ ПРОДОВОЛЬСТВЕННЫЙ РЫНОК"
Рекламный специализированный информационно-аналитический журнал. 2014 №4 (144)